Order Fixing April 1, 2026 as the Day on Which Certain Provisions of the Budget Implementation Act, 2023, No. 1 Come into Force: SI/2026-4

Canada Gazette, Part II, Volume 160, Number 5

Registration
SI/2026-4 March 11, 2026

BUDGET IMPLEMENTATION ACT, 2023, NO. 1

Order Fixing April 1, 2026 as the Day on Which Certain Provisions of the Budget Implementation Act, 2023, No. 1 Come into Force

P.C. 2026-178 February 26, 2026

Her Excellency the Governor General in Council, on the recommendation of the Minister of Employment and Social Development, under subsection 679(1) of the Budget Implementation Act, 2023, No. 1, chapter 26 of the Statutes of Canada, 2023, fixes April 1, 2026 as the day on which sections 634 and 643 to 645, subsections 647(2), 649(1) and 651(1), sections 652 and 653, subsections 655(1) and (2), sections 656 to 662, subsections 663(1) and (3), sections 668, 671, 673, 675 and 676 and subsection 678(1) of that Act come into force.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

The Order fixes April 1, 2026, as the day on which sections 634 and 643 to 645, subsections 647(2), 649(1) and 651(1), sections 652 and 653, subsections 655(1) and (2), sections 656 to 662, subsections 663(1) and (3), sections 668, 671, 673, 675 and 676 and subsection 678(1) of the Budget Implementation Act, 2023, No. 1 (BIA 2023) come into force pursuant to subsection 679(1) of that Act. The provisions amend the Department of Employment and Social Development Act (DESDA) as well as the Federal Courts Act, the Labour Adjustment Benefits Act, the Income Tax Act, and the Employment Insurance Act.

Objective

The Order will bring into force amendments that prescribe that all new first appeals of employment insurance (EI) decisions made under the Employment Insurance Act are to be heard by the EI Board of Appeal (Board of Appeal) instead of the EI Section of the General Division of the Social Security Tribunal (the EI General Division of the SST).

The Order will also bring into force consequential amendments necessary for the replacement of the EI General Division of the SST by the Board of Appeal.

Background

In August 2019, the Department of Employment and Social Development (ESDC) announced a series of reforms to make the recourse process for appeals of decisions related to EI more responsive to the needs of Canadians. This included the creation of the Board of Appeal to hear and decide all first level (or initial) EI appeals, replacing the EI General Division of the SST.

Legislative amendments to the DESDA to allow for the creation of the Board of Appeal were introduced in Budget 2022; however, they were later removed to allow for further consultations with stakeholders. Legislative amendments were then introduced as part of BIA 2023 on March 28, 2023, and received royal assent on June 22, 2023. The amendments were developed based on a third-party report entitled Review of the Social Security Tribunal of Canada for Employment and Social Development Canada (published in 2018) as well as feedback from stakeholders, including labour and employer groups.

Sections 633, 654 and 664 to 667 of BIA 2023 came into force when that Act received royal assent on June 22, 2023. These provisions amended the DESDA to establish the Board of Appeal as a tripartite (three decision-maker) appeal system, similar to the one that existed for EI appeals prior to the establishment of the SST. Section 654 provides authority for the Canada Employment Insurance Commission (an organization representing employers, workers and the Government of Canada that oversees the EI program) to make regulations with respect to the Board of Appeal, subject to approval by the Governor in Council.

Section 634 amends the DESDA to set out procedural aspects of first level appeals made to the Board of Appeal, including the requirement to bring an appeal within 30 days of receiving the decision. The amendments also allow the Board of Appeal to grant additional time to file an appeal, but no later than one year from receipt of the decision. Under new provisions, the Board of Appeal must decide on an appeal in writing and provide reasons but cannot consider questions of constitutional law. The Executive Head of the Board of Appeal may extend the time that the Board of Appeal has to make a decision in a particular case. Parties may be reimbursed for expenses related to attending Board of Appeal hearings subject to the discretion of the Executive Head and the requirements set out in the regulations. Board of Appeal hearings are to be held in person and in an appellant’s region except as provided for in regulations. New provisions state that all or part of a Board of Appeal hearing may be held in private and that parties to an appeal may be represented by a representative of their choice. Questions related to EI insurable earnings and insurable hours raised on appeal must be directed to the Canada Revenue Agency. Under new provisions in DESDA, appeals may be considered abandoned where the Board of Appeal has not been able to contact the appellant, or the appellant has failed to respond to the Board of Appeal when asked to do so. Lastly, the Board of Appeal may reopen abandoned appeals on an appellant’s application if the Board of Appeal failed to observe a principle of natural justice or if the abandonment was due to circumstances beyond the appellant’s control.

Sections 643 to 645, subsections 647(2) and 649(1) and section 653 amend the DESDA to direct appeals of decisions made by the Board of Appeal to the Appeal Division of the SST and eliminate the requirement to request leave to appeal in these cases and in cases that are already before the EI General Division of the SST. This will allow more appellants to have their case heard by the Appeal Division. The amendments also clarify that the Appeal Division can only hear appeals from the Board of Appeal on specific grounds; that the Board of Appeal failed to observe a principle of natural justice, made an error in law or made a finding of fact in a perverse or capricious manner, or on grounds that a question of constitutional law remains to be determined. The amendments also provide that if an appeal concerns a question of constitutional law, the Appeal Division of the SST may hear new evidence in respect of the question. An amendment also provides for information to be shared by the Board of Appeal with the Appeal Division of the SST.

Subsection 651(1), section 652, subsections 655(1) and (2), sections 656 to 662 and subsections 663(1) and (3) of BIA 2023 make amendments to the DESDA, the Federal Courts Act, the Labour Adjustment Benefits Act, the Income Tax Act, and the Employment Insurance Act that replace references to the EI General Division of the SST with the Board of Appeal or add references to new Board of Appeal provisions.

Sections 668, 671, 673, 675 and 676 and subsection 678(1) of BIA 2023 provide transitional rules with respect to the elimination of the requirement for leave to appeal, and with respect to the transition from the EI General Division of the SST to the Board of Appeal.

To fully implement the legislative changes, regulations setting out the governance, administration and functioning of the Board of Appeal were required. The new Employment Insurance Board of Appeal Regulations were published in the Canada Gazette, Part II, on March 26, 2025, and will come into force on the same date as this Order. The Regulations have also been published on the Justice Laws website.

Implications

The amendments require that first level appeals of EI decisions be made to and heard by the Board of Appeal. EI Appeals submitted to the EI General Division of the SST before the coming into force of this Order will remain with the EI General Division of the SST for a decision or until such time as that body is dissolved. Appeals before the EI General Division of the SST that are ongoing when it is dissolved, if any, will be transferred to the Board of Appeal.

The Board of Appeal will provide support to vulnerable clients and respond to concerns from stakeholders by introducing a fair and transparent client-centric model, which will minimize complexity to better serve clients’ needs. It is intended to make the recourse process more responsive to user needs by returning to a three-person appeal system with regional hearings, as opposed to the current model of a single decision-maker in a centralized location, who could be in a location distant from that of the appellant and their associated work/life context. The return to a three-person decision-making body is intended to shift the power dynamic to increase fairness and access by providing appellants with the option of in-person hearings held in an appellant’s region. The changes respond to the needs of Canadians by improving the delivery of high quality, responsive and efficient services.

Consultation

A 2017 third-party review of the SST included public consultations, including six in-person and two virtual focus groups with community, legal, and labour organization representatives, appellants, and observers from ESDC. More than 900 responses to surveys and over 30 written submissions were received from appellants and representatives; appointees of the Board of Referees, former and current SST members, members of the Office of Commissioner of the Review Tribunals, and Pension Appeals Board members; and employees of the Board of Referees and Administrative Tribunals Support Service of Canada.

Additional consultations with EI stakeholders were convened in the summer of 2022, which included roundtable discussions with labour unions, employer groups, legal clinics and an online survey, which was open to the public. In total, 40 stakeholders participated in the roundtable discussions and 400 respondents completed the online survey in respect of the EI appeal process.

The stakeholders that participated in the consultations were strongly in support of changes to the EI appeal process, including a return to a three-member decision-making body for appeals; appellants being provided with the option of in-person hearings; and hearings being held in an appellant’s region.

Contact

Robert Lalonde
Director
Individual Payments and On-Demand Services Directorate
Integrated Service Strategy and Operations (ISSO) Branch
Email: EIBOA.AppealSupport-CAAE.SupportAppel@canada.gc.ca