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Understanding Your Employment Income

15 Shortage of Work

Anne Lee

Employment Insurance – Regular Benefits

Trade workers may find that they lose their job through no fault of their own.  This may be due to a project ending, seasonality of industry, or cost-reducing measures by the employer organization.  Individuals with a shortage of work may be eligible to receive Employment Insurance (EI) – Regular benefits.  One needs to remain available to work, and actively seeking further employment.

The employer will issue a Record of Employment (ROE) to each employee that has an interruption in work.  The ROE submitted to Service Canada is the primary information that determines whether an individual is eligible to receive EI benefits and how much one will receive.

The basic rate for calculating Employment Insurance (EI) – Regular benefits is 55% of one’s average insurable weekly earnings, up to a maximum amount.  As at January 1, 2024, the maximum benefit amount to be received is $668 a week.  An amount of 10% is usually withheld from the net amount issued to assist in covering some of the potential tax liability at the end of the year.  One can receive EI from 14 weeks up to a maximum of 45 weeks, depending on the unemployment rate in your region at the time of applying for EI and the amount of insurable hours a worker has accumulated in the last 52 weeks or since the last claim.

Apply for Employment Insurance (EI) benefits through Service Canada, part of Employment and Social Development Canada (ESDC).

A trade worker can apply for EI benefits as soon as they stop working, even before they have received the ROE.  If there is a delay in filing a claim for EI benefits for more than 4 weeks after the last day of work, there is a possibility that no EI benefits will be paid out.

While receiving EI benefits, an individual is required to complete a report every 2 weeks to show that one remains eligible to continue receiving benefits.  To submit this report, one will need a 4-digit access code provided by Service Canada on the benefit statement and the individual’s Social Insurance Number (SIN).

If an employer files the ROE electronically online, then an individual can view the record of employments issued to them through signing up for a ‘My Service Canada Account’.

Example: Applying for Employment Insurance Benefits

Jeff is a heavy equipment operator that works in asphalt pavement installation, repair, and maintenance services for ABC Asphalt Ltd.  This trade industry is seasonal and much of the work is during the summer construction season.  Jeff is paid on a semi-monthly basis, and his last day of work with the employer will be October 20, 2024.  The semi-monthly pay period in which there is an interference of employment for Jeff is from October 16, 2024 to October 31, 2024.  Jeff can apply for EI – Regular benefits to Service Canada right after his last day of work.  The employer has until November 5, 2024 to issue the ROE, but Jeff can apply to Service Canada prior to being supplied access to the ROE.

 

Applying for EI Benefits more than once in the same 52-week rolling period

If you have already applied for EI benefits within the last 52 weeks (1 year), and there’s still weeks payable on that claim, Service Canada will automatically reactivate (renew) the existing claim when one submits an application.  This situation would be more common for trade apprentices, as one may have already collected EI Benefits as an Apprentice to attend technical training, and then subsequently find them with a shortage of work within the same year.  In some cases, it may be advantageous to cancel or end the old claim and start a new claim, to increase the amount of benefit issued or the length of the qualifying benefit period.

Government Supported Organizations

There are a number of government initiatives that can assist Canadians entering the skilled trades and finding further employment. (eg. Work BC, Alberta Alis, Manitoba Career Prospects, Employment Ontario).  The Government of Canada has recognized that there is a skilled labour shortage and has invested highly to help skilled tradespeople get back to building their rewarding careers.

 

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Shortage of Work Copyright © 2024 by Anne Lee is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License, except where otherwise noted.

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