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Difference between revisions of "Benefit Period of Employment Insurance (8:V)"
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Benefit Period of Employment Insurance (8:V) (view source)
Revision as of 21:20, 16 August 2018
, 21:20, 16 August 2018→C. Income That is Treated as Earnings
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== C. Income That is Treated as Earnings == | == C. Income That is Treated as Earnings == | ||
Section 35(2) of the EI Regulations defines what will be considered earnings for EI purposes. Income that counts as “earnings” includes, but is not limited to: | Section 35(2) of the EI Regulations defines what will be considered earnings for EI purposes. | ||
*a) severance pay; | |||
*b) retirement payments and retirement leave credits or payments in lieu; | Income that counts as “earnings” includes, but is not limited to: | ||
*c) most bonuses and gratuities; | |||
*d) wages in lieu of notice; and | *a) severance pay; | ||
*e) vacation pay. | *b) retirement payments and retirement leave credits or payments in lieu; | ||
*c) most bonuses and gratuities; | |||
*d) wages in lieu of notice; and | |||
*e) vacation pay. | |||
See section 35(2) of the EI Regulations for more detail. | |||
It is important to note some income, while generally considered earnings, will not prevent an interruption of earnings. For example, the fact that a worker receives severance, pay in lieu of notice, or vacation pay after getting laid off will not delay the interruption of earnings. The claimant should still apply for EI as soon as possible after they stop working to make sure their application is not late, even if the money they get from the employer due to the layoff may delay the start of their actual EI benefits.. | |||
Income regarded as earnings is “allocated” pursuant to s 36 of the EI Regulations. This is usually done at the claimant’s regular weekly rate of pay. Such allocation may delay the start of benefits by the number of weeks the earnings can be allocated to. For example, if a person normally earns $500 per week, and receives $1000 severance pay, their claim will be delayed for an additional 2 weeks after they stop work. This is because it will notionally take two weeks to “use up” the $1000, as the claimant usually makes this amount in two weeks. | Income regarded as earnings is “allocated” pursuant to s 36 of the EI Regulations. This is usually done at the claimant’s regular weekly rate of pay. Such allocation may delay the start of benefits by the number of weeks the earnings can be allocated to. For example, if a person normally earns $500 per week, and receives $1000 severance pay, their claim will be delayed for an additional 2 weeks after they stop work. This is because it will notionally take two weeks to “use up” the $1000, as the claimant usually makes this amount in two weeks. | ||