Difference between revisions of "Benefit Period of Employment Insurance (8:V)"

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== D. Income That Is Not Treated As Earnings ==
== D. Income That Is Not Treated As Earnings ==


Section 35(7) exempts certain sources of income from being regarded as earnings.
Section 35(7) exempts certain sources of income from being regarded as earnings. These include:


Recent cases suggest that in certain circumstances some  earnings '''may not delay''' the start of an EI claim. In ''Attorney General of Canada v Doreen Myers'', 2006 FCA57 the court found that the  claimant’s vacation pay did not delay the start of a claim because it was not a payment made by reason of a separation, thus allowing benefits to be received earlier, and possibly at a higher rate.
*a) Disability pension or a lump sum or pension paid in full and final settlement of a claim made for workers’ compensation payments;
*b) Payments under a sickness or disability wage-loss indemnity plan;
*c) Relief grants;
*d) Retroactive increases in wages or salary.


Income that '''does not''' count as earnings and will not delay the start of the claim includes:
For more details, see section 35(7) of the EI Regulations.
*a) disability pensions; and
*b) permanent settlement Workers’ Compensation payments.


:'''NOTE:''' A retirement pension will not delay the start of a claim. However, it does constitute earnings, and will reduce the benefits payable until the pensioner has worked long enough to re-qualify for EI '''after''' the pension commences. From that point on, it is not regarded as income.
Recent cases suggest that in certain circumstances some earnings may not delay the start of an EI claim. In ''Attorney General of Canada v Doreen Myers'', 2006 FCA 57, the court found that the claimant’s vacation pay did not delay the start of a claim because it was not a payment made by reason of a separation, thus allowing benefits to be received earlier, and possibly at a higher rate.  See also the case of ''Attorney General of Canada v Bielich'', 2005 FCA 363.  In this case the court allowed a $24,000 payment to be exempted from the claimant’s allocation of earnings because the purpose of the payment was to compensate the claimant for giving up his right to seek reinstatement, not to compensate for lost pay.
 
:'''NOTE:''' A retirement pension will not delay the start of a claim. Retirement pensions are generally considered income and are deducted from EI benefits.  However, if the claimant accumulates all the hours needed to qualify for EI after the date their pension starts, then their pension money will not be deducted from their EI benefits (see EI Regulation, s 35(7)(e).


== E. The Waiting Period ==
== E. The Waiting Period ==
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