Employment Insurance Benefit Entitlement (8:VII)

Once a claim is established, the basic requirement for receiving weekly benefits is that the claimant be “capable of and available for work and unable to obtain suitable employment”. To prove this in the event of a dispute, the claimant should keep a “job search record” (see Section IX.A: Job Search Record).

A. Capable and Available

A claimant will be disentitled if the Commission has evidence (often supplied inadvertently by the claimant) to show that the claimant was not capable and available for work during a given period. For example, if a claimant volunteers the fact that he or she is only applying for jobs paying $20 per hour or more, the Commission could disentitle the claimant if there are few if any such jobs for which the claimant would be suitable. For an example of how unforeseen events can affect availability, see Canada (Attorney General) v Leblanc, 2010 FCA60. In this case, a desire to work was insufficient to establish availability because the claimant lacked proper clothing and a means to get to work as the result of a house fire.

1. Vacation and Travel

A claimant cannot collect benefits for times he or she is on vacation, as he or she must be ready for work to collect benefits. However, he or she can collect up to the day he or she leaves, and from the day he or she returns, if he or she becomes immediately available again. To avoid potentially onerous penalties, vacations – including short ones – must be properly recorded and reported.

The Customs Match program allows Human Resources and Skills Development Canada (HRDC) to match data from Canada Customs and Revenue Agency’s Customs Declaration form to determine whether an EI claimant has been out of Canada without notifying HRDC. Under the EI Act, a claimant is not entitled to receive EI benefits while not in Canada, except under certain circumstances.

2. Sickness

A claimant may receive up to 15 weeks of sickness benefits where he or she can prove that he or she was “incapable of work by reason of prescribed illness, injury or quarantine on that day, and that they would otherwise be available for work” (s 12(3)(c)). In theory, if the claimant is already receiving regular benefits from EI and is ill for even one day, that day must be recorded as a day on which he or she is not capable of or available for work, if that is indeed the case.

3. Attending Courses

A person attending a course full-time is usually considered only “available for work” as defined in s 18 if he or she was referred to take that course by an authority designated by the Commission (s 25(1)). Even if the course is part-time and improves the claimant’s chances of finding employment, the claimant may still be disentitled because he or she is considered unavailable for work. In these circumstances a claimant may attempt to prove availability, if the course does not interfere with the job search and he or she would immediately be able to accept an offer of employment.

An appeal can and should be made against a disentitlement due to taking an unauthorized course, although according to s 25(2), the Commission’s decision to refer a claimant to a course is not reviewable under s 112.

Persons attending full-time courses not approved by the Commission may still be entitled to EI benefits if they have established their eligibility by working part-time while attending classes and if they are still available for their previous hours of work on virtually no notice.

4. Starting a Business

Claimants who are trying to start a business are generally considered to be working full-time, regardless of whether they are receiving any income from the business. They are therefore not eligible for any benefits. The only escape for such claimants is to convince the Commission, or the Referees in an appeal, that the self-employment was so minor in extent that a person would not normally rely upon it as a principal means of livelihood.

5. Working Part-time

A claimant who worked part-time may be able to claim an earnings exemption. If the claimant receives any benefits at all, the week counts toward the maximum number of weeks that can be paid under that claim. Thus, it may be in a claimant’s interest not to claim benefits for a week in which only a small amount would be paid.

B. Suitable Employment

A claimant must accept suitable work but is not required to take work considered not suitable. Most of the criteria that define ‘suitable work’ are contained in the Employment Insurance Regulations s 9.002-9.004. They are as follows:

• “the claimant’ s health and physical capabilities allow them to commute to the place of work and to perform the work” (9.002(a))
• “the hours of work are not incompatible with the claimant’s family obligations or religious beliefs” (9.002(b))
• “the nature of the work is not contrary to the claimant’s moral convictions or religious beliefs” (9.002(c))
• "the daily commuting time to or from the place of work is not greater than one hour or, if it is greater than one hour, it does not exceed the claimant’s daily commuting time to or from their place of work during the qualifying period or is not uncommon given the place where the claimant resides, and commuting time is assessed by reference to the modes of commute commonly used in the place where the claimant resides” (9.002(d))
• “by accepting the employment, will not be put in a less favourable financial situation than the less favourable of (i) the financial situation that the claimant is in while receiving benefits, and (ii) that which the claimant was in during their qualifying period.” (9.002(f))
• The employment does not arise in consequence of a stoppage of work attributable to a labour dispute (Employment Insurance Act, s 27(2))
• The level of earnings meets the requirements in EIR s 9.004 (see below)
• The similarity of the employment to the claimants past employment meets the requirements in EIR s 9.003. (see below)

The level of earnings and similarity of employment required vary based on how often the claimant has claimed EI benefits. Claimants are broken into three categories for the purpose of determining what constitutes suitable work. Employment Insurance Regulations (SOR/96-332)s 9.003 categorizes as follows:

1. Long-Tenured Workers

A claimant who has paid into EI seven of the past ten years and who has claimed 36 weeks or less of regular benefits in the past five years is considered a long-tenured worker. During the first 18 weeks of their EI claim in which they claim regular benefits, they need only accept jobs in their previous occupation that pay 90% of their previous wages. Following that, they must accept any jobs in similar occupations that pay 80% of their previous earnings.

2. Frequent Claimants

Claimants who have had three or more claims totalling 60 weeks or more in the past five years are considered frequent claimants and must be willing to accept a wider range of employment. For the first six weeks of their claim in which they claim regular benefits they must accept jobs in similar occupations with 80% of their previous earnings. Following that, they must accept any job paying 70% of their previous wages.

3. Occasional Claimants

Claimants who do not fit into either category above are considered occasional claimants. In the first six weeks in which they claim regular benefits, they must accept jobs in their previous occupation that pay 90% of their previous earnings. For the twelve weeks following that, they must accept jobs in similar occupations paying 80% of their previous earnings. Following that, they must accept any job paying 70% of their previous wages.

4. Proof of Search for Suitable Employment

Section 50(8) of the EI Act requires that a claimant prove he or she is making “reasonable and customary” efforts to obtain suitable employment. Again, this emphasizes the importance of keeping a job search record, which the claimant should update daily. The criteria are further elaborated in Employment Insurance Regulations (SOR/96-332) s9.001:

• (a) the claimant’s efforts are sustained;
• (b) the claimant’s efforts consist of
  • (i) assessing employment opportunities,
  • (ii) preparing a resumé or cover letter,
  • (iii) registering for job search tools or with electronic job banks or employment agencies,
  • (iv) attending job search workshops or job fairs,
  • (v) networking,
  • (vi) contacting prospective employers,
  • (vii) submitting job applications,
  • (viii) attending interviews, and
  • (ix) undergoing evaluations of competencies; and
  • (c) the claimant’s efforts are directed toward obtaining suitable employment.

C. Disqualification

There are two categories of disqualification: s 27(1) and s 30(1). The effects of disqualification differ depending on what category the disqualification falls into:

Section 27(1) states that a claimant is disqualified from 7 to 12 weeks of benefits when, without good cause, he or she:

• refuses a suitable employment offer;
• refuses to apply for suitable employment when aware that a position is vacant or is becoming vacant;
• neglected to avail himself or herself of an opportunity for suitable employment;
• failed to attend an interview recommended by the Commission; or
• under s 27(1.1), has failed to attend a course of instruction or training referred to by the Commission.

NOTE: In these cases the length of disqualification is appealable.

Section 30(1) states that a claimant is disqualified when he or she is fired due to his or her own misconduct or when he or she quits without just cause. However, s 35 states that s 30(1) does not operate when loss of employment is due to membership in a union, organization, or association.

The effect of a s 30 disqualification is a cut-off of all regular benefits in a benefit period. Such a disqualification is imposed if the claimant has lost any job in the qualifying period for the reasons set out in s 30, even if the claimant had other work before applying for EI (ss 30(5) and (6)). Only if the claimant has worked enough hours since the disqualifying loss of employment to meet the hourly requirements to establish a claim will the disqualification not be imposed. For example, if a worker is employed in a job for five years, and gets fired for misconduct, the worker would be totally disqualified under s 30 from all regular benefits. If the worker subsequently finds a second job, and gets laid off from that second job after 10 weeks, the total insurable employment would be calculated as the number of hours worked during those 10 weeks after the earlier s 30 disqualification. The worker’s previous five years of insurable employment would not count unless the worker had enough hours in the 10-week period to qualify under the s.7 table. In that case, the previous hours would count toward the number of weeks of payable benefits.

1. Just Cause for Voluntarily Leaving Employment

“Just cause” is defined under s 29(c) as follows: “having regard to all the circumstances, the individual had no reasonable alternative to leaving the employment. ”Where an employee had “just cause”, for leaving his or her employment, he or she will not be disqualified. The onus is on the worker to show “just cause”. The Commission must show that leaving was voluntary and that the claimant took the initiative in severing the employer-employee relationship; the worker must then prove just cause.

The Decisions of the Umpires and the SST provide examples of what is and is not considered voluntary. Once the facts have been established to show voluntary leaving, the onus then shifts to the claimant to show that he or she had just cause. When the evidence of the employee and the employer contradict one another, and the evidence is evenly balanced, s 49(2) of the EI Act provides that the claimant shall receive the benefit of the doubt.

a) Statute & Case Law

Whether the employees had “just cause” for leaving his or her employment is decided with statutes and case law.

Sections 29(c)(i) – (xiv) of the EI Act provide a list of the circumstances that can constitute “just cause”. This list is neither exhaustive nor conclusive. In other words, circumstances not described in s 29(c) can also be just cause if they satisfy the main definition in s 29(c). On the other hand, circumstances listed in s 29(c)(i) –(xiv) will not be considered “just cause” if the conditions in s 29(c) are not met (if, for example, the claimant had a reasonable alternative).

Under s 29(c), just cause includes:

• i) sexual or other harassment;
• ii) obligations to accompany a spouse, common law partner, or dependent child to another residence;
• iii) discrimination on a prohibited ground of discrimination within the meaning of the Canadian Human Rights Act, RSC; 1985, c. H-6;
• iv) working conditions that constitute a danger to health and safety;
• v) obligations to care for a child or member of the immediate family;
• vi) reasonable assurance of other employment in the immediate future;
• vii) significant modification of terms and conditions respecting wages or salary;
• viii) excessive overtime work or refusal to pay for overtime work;
• ix) significant change in work duties;
• x) antagonism with supervisor if the claimant is not primarily responsible for the antagonism;
• xi) employer’s practices that are contrary to law;
• xii) discrimination with regard to employment because of membership in an association, organization or union of workers;
• xiii) undue pressure by an employer on employees to leave employment; and
• xiv) such other reasonable circumstances as are prescribed.

Bill C-23 amended s 29(c)(ii) by adding “common law partner”. The definition of “common law partner” has also been added to s 2(1) and defined as a person who could be of the same sex “with whom the claimant has lived in a conjugal relationship for at least one year”.

To date, the only prescribed circumstance under s 29(c)(xiv) is EI Regulations s 51. This states that leaving employment when the employer is downsizing the business and the claimant’s decision preserves the employment of another worker does constitute just cause. This regulation reverses the decision of the Federal Court of Appeal in Tanguay et al. v Unemployment Insurance Commission (1985), 10 C.C.E.L. 239 (F.C.A.), which is still quoted as the leading authority on the general meaning of just cause. According to cases decided before Bill C-21 (1990) was introduced, and under the old Unemployment Insurance Act, for a claimant to prove just cause, he or she must show:

• a) a genuine grievance, or other acceptable reason for leaving the employment;
• b) proof of taking all reasonable steps to alleviate the grievance; and
• c) proof of a search for alternate employment before the termination, unless circumstances are so immediate that a proper search is impossible.

In Canada v Hernandez, 2007 FCA 320 the claimant was disqualified for quitting his job after a public health nurse advised him that the silica dust which was a main material in the factory was a carcinogen. The court decided he did not exhaust his alternatives because he should have asked the employer to change its business or find him a new job somewhere else. While this case is an aberration, it shows the importance of being able to prove that the worker did everything possible to avoid quitting.

There are thousands of decisions by the Umpires, SST and Federal Court of Appeal addressing “just cause” issues that may help determine whether just cause existed (see Section XIII.D: Umpire’s Decision is Final). CUB 21681 (23 Sept. 1992) confirms that just cause may result from all of the circumstances together, although no single factor would be sufficient: “When the statute says ‘having regard to all the circumstances’, it imposes a consideration of the totality of the evidence.” Thus, if the claimant’s reason for leaving is not one of the enumerated factors under s 29 but the claimant feels that they had no reasonable alternative to quitting or that they were fired without committing intentional misconduct, a case could still be made that the totality of the claimant’s circumstances gives rise to just cause.

b) Importance of Evidence

Students should stress to LSLAP clients that detailed evidence like records or diaries is exceptionally important in the determination of their claim. The employee should try to remember as many specific incidents, dates and times as he or she can. Though the older CUBs (Umpire decisions) or SST decisions may provide an indication of what “just cause” means, they are not determinative.

c) Returning to School

The Federal Court of Appeal continues to find that voluntarily leaving one’s employment to return to school, except for programs authorized by the EI Commission, does not constitute “just cause” and is a ground for disqualification from benefits under ss 29 and 30 of the EI Act.

In the case of Attorney General of Canada v Mattieu Lamonde, 2006 FCA44, the court held that the claimant should be disqualified from benefits because he took a year’s leave from his full time job to attend school in another community, although he immediately found part time work when he arrived there.

Refer also to Attorney General of Canada v Melanie Gauthier, 2006 FCA40 and Canada v Cloutier, 2007 FCA 161 and CUB 66126.

NOTE: While nothing in the legislation indicates that improving one’s qualifications can never be just cause, the Court of Appeal continues to set aside decisions on this basis.

2. Misconduct

Section 30(1) states that a claimant is disqualified when he or she is fired due to his or her own misconduct.

a) Determining Misconduct

“Misconduct” is not defined in the EI Act, but previous decisions have stated that the word must be given its dictionary meaning. According to Black’s Law Dictionary:

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