Transition rules from CERB/CESB to EI

Summary#

Interim Order No. 7 Amending the Employment Insurance Act (Employment Insurance Emergency Response Benefit) is a temporary change to the Employment Insurance Act made in 2020 to help people move from emergency pandemic benefits into regular EI. It credits extra hours, extends qualifying windows, waives some waiting periods, limits overlap with other emergency benefits, and is time-limited (deemed in force from March 15, 2020 and set to stop by December 31, 2020 unless repealed sooner).

What it does#

• Says people who got payments under the Canada Emergency Response Benefit Act (CERB) or the Canada Emergency Student Benefit Act (CESB) generally cannot receive the EI emergency response benefit for the same weeks.
• Caps the total weeks of the EI emergency response benefit at 24 minus the number of weeks a person received CERB or CESB.
• Treats a benefit period that started before March 15, 2020 as ending the day before a person’s first week on the EI emergency response benefit.
• Adds a short set of temporary rules (a new Part VIII.5) to make it easier for people to switch from CERB/CESB to EI special benefits or work-sharing:
  • Credit of 480 hours of insurable employment for people claiming maternity, parental, compassionate care, or family caregiver benefits.
  • Credit of 300 hours of insurable employment for people claiming work-sharing benefits.
  • A one-time extension of the qualifying period by 16 weeks if the EI benefit period is established before July 5, 2020, or by 24 weeks if it is established on or after July 5, 2020.
  • Waiver of the EI waiting period for many special benefits and work-sharing claims (with limited exceptions for employer top-up plans).
  • Allows a late claim to be accepted where, but for these hour credits or extensions, the person would not have qualified.
• Sets a minimum unemployment rate of 13.1% to apply across EI regions for the period August 9, 2020 to September 5, 2020, if that is higher than the rate that would otherwise apply.
• Limits review rights for a specific administrative decision under the adapted rules (technical administrative change).
• States the whole interim order is deemed to have come into force at 00:00:06 a.m. on March 15, 2020, with some amendments treated as coming into force on May 1, 2020.
• The temporary measures expire on the earlier of December 31, 2020 or repeal of the interim order.

Who's affected#

• People who received the Canada Emergency Response Benefit Act (CERB) payments or the Canada Emergency Student Benefit Act (CESB) and who later apply for Employment Insurance.
• Workers seeking EI special benefits such as maternity, parental, compassionate care, family caregiver benefits, or work-sharing after receiving CERB/CESB.
• Employers that operate work-sharing plans and employees covered by those plans.
• Administrators of EI (including the Canada Employment Insurance Commission) who must apply the temporary rules.
• If it is unclear who is affected by a specific technical change (for example, the limited change to review rights), the order itself is the definitive source.

Why it matters#

• It smooths the transition from one-time emergency pandemic income (CERB/CESB) into the regular EI system. That can help people keep getting income support when CERB/CESB ends.
• The hour credits (480 or 300) and qualifying-period extensions (16 or 24 weeks) can let people with limited recent work history qualify for EI benefits they otherwise would not.
• Waiving the waiting period can speed up when people receive their first EI payment.
• The rules stop people from being paid both CERB/CESB and the EI emergency response benefit for the same weeks, and they limit total combined weeks to avoid overlap.
• The measures are temporary and tied to fixed dates (March 15, 2020 start, and up to December 31, 2020 end), so affected people should check current EI rules or seek advice about claims made during this period.