Vol. 147, No. 23 — November 6, 2013

Registration

SOR/2013-190 October 25, 2013

EMPLOYMENT INSURANCE ACT

Regulations Amending the Employment Insurance (Fishing) Regulations (Miscellaneous Program)

P.C. 2013-1111 October 24, 2013

RESOLUTION

The Canada Employment Insurance Commission, pursuant to section 153 of the Employment Insurance Act (see footnote a), makes the annexed Regulations Amending the Employment Insurance (Fishing) Regulations (Miscellaneous Program).

October 23, 2013

IAN SHUGART
Chairperson
Canada Employment Insurance Commission
MARY-LOU DONNELLY
Commissioner (Workers)
Canada Employment Insurance Commission
JUDITH ANDREW
Commissioner (Employers)
Canada Employment Insurance Commission

His Excellency the Governor General in Council, on the recommendation of the Minister of Human Resources and Skills Development, pursuant to section 153 of the Employment Insurance Act (see footnote b), approves the annexed Regulations Amending the Employment Insurance (Fishing) Regulations (Miscellaneous Program), made by the Canada Employment Insurance Commission.

REGULATIONS AMENDING THE EMPLOYMENT INSURANCE (FISHING) REGULATIONS (MISCELLANEOUS PROGRAM)

AMENDMENT

1. The formula in paragraph 4.2(b) of the Employment Insurance (Fishing) Regulations (see footnote 1) is replaced by the following:

A x 0.18

COMING INTO FORCE

2. These Regulations come into force on the Sunday after the 10th sitting day after the day on which they are tabled in the House of Commons.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Background

In April 2013, Variable Best Weeks (VBW), a new legislative approach for the Employment Insurance (EI) benefit rate calculation, came into force. The VBW approach was designed specifically for claimants who qualify for EI regular and special benefits under Part I of the Employment Insurance Act (EI Act) and not for fishers.

In order to ensure there would be no change in the calculation of a fisher’s benefit rate, amendments to the Employment Insurance (Fishing) Regulations (EI Fishing Regulations) were required to incorporate the provisions removed from the EI Act and Employment Insurance Regulations as a result of the new VBW benefit rate calculation. Namely, consequential amendments related to the treatment of insured separation payments for earnings from employment other than fishing were made to the EI Fishing Regulations.

Separation payments are generally comprised of monies paid or payable to an employee when a temporary or permanent job separation occurs. It can come in a variety of forms, including vacation pay and pay in lieu of notice. Separation payments are deemed as insurable earnings from which EI premiums can be collected, therefore allowing it to be used to increase the claimants’ insurable earnings to calculate their EI benefit rate. In order to prevent very large separation payments from disproportionately increasing claimants’ benefit rates, separation payments used in the calculation of benefits are capped to a maximum of 18% of insurable earnings in the rate calculation period.

Issue

Due to a typographical error, the new section 4.2 of the EI Fishing Regulations related to insured separation payments did not reflect the policy intent as set out in the Regulatory Impact Analysis Statement (SOR/2013-32).

More specifically, the new section 4.2 indicated that the amount of insured separation payments to be included in the calculation of the benefit rate is the lesser of the actual amount of the insured separation payments or 0.18% (rather than 18%) of the insurable earnings in the rate calculation period from the employment that gave rise to the insured separation payments.

Objective

Correct the typographical error in section 4.2 of the EI Fishing Regulations to reflect the policy intent, which is to cap separation payments in the calculation of benefits to a maximum of 18% of insurable earnings in the rate calculation period.

Description

The EI Fishing Regulations have been amended to remove the “%” character from the formula in paragraph 4.2(b) so that it now reads

“One-for-One” Rule

The “One-for-One” Rule does not apply, as this amendment does not impose any incremental administrative burden on business.

Small business lens

The small business lens does not apply, as this amendment does not impose any additional administrative or compliance costs on small businesses.

Rationale

The introduction of the VBW neither intended nor required a change to the percentage used in the calculation of allowable insurable earnings used in determining the benefit rate of a claimant. Therefore, this amendment corrects a typographical error in the EI Fishing Regulations and ensures the treatment of insured separation payments is consistent with the longstanding policy intent.

Contact

Brian Hickey
Director
Employment Insurance Policy
Skills and Employment Branch
Human Resources and Skills Development Canada styled Department of Employment and Social Development
140 Promenade du Portage, Phase IV, 5th Floor
Gatineau, Quebec
K1A 0J9
Telephone: 819-934-4576
Fax: 819-934-6631
Email: brian.hickey@hrsdc-rhdcc.gc.ca