Extra EI Weeks for Seasonal Workers

Summary#

These final regulations (SOR/2020-111) amend the Employment Insurance Regulations to extend the time window for Pilot Project No. 21. The change lets eligible seasonal workers qualify for up to 5 extra weeks of EI regular benefits for benefit periods starting between August 5, 2018 and October 30, 2021 (the regulations were registered and came into force on May 20, 2020).

What it does#

• Replaces the original end date of May 30, 2020 with October 30, 2021 in the rule that sets when the extra weeks under Pilot Project No. 21 can apply.
• Keeps all other features of Pilot Project No. 21 the same. That pilot gives up to 5 extra weeks of EI regular benefits to claimants who meet the pilot’s “seasonal claimant” test and who live in the specified EI regions.
• Leaves this measure as a pilot (testing approach and data collection), not a permanent change to the EI program.

Who's affected#

• Seasonal workers who have a pattern of making EI regular or fishing claims at around the same time of year (the pilot’s “seasonal claimant” criteria).
• The change targets people in the 13 EI regions included in the pilot, including parts of Atlantic Canada, Quebec and Yukon such as Gaspésie–Îles‑de‑la‑Madeleine, Restigouche‑Albert, Prince Edward Island (outside Charlottetown), Newfoundland and Labrador (outside St. John’s), Eastern Nova Scotia, and several Quebec regions.
• The government estimates more than 77,000 additional seasonal claimants in those regions could see reduced income gaps because of the extension.
• Service delivery is handled by Service Canada and policy/oversight by Employment and Social Development Canada and the Canada Employment Insurance Commission.

Why it matters#

• The extension gives researchers and decision-makers more data on whether a targeted approach (extra weeks only for certain seasonal claimants in selected regions) helps reduce the recurring income gaps sometimes called the “trou noir.”
• It aims to help seasonal workers who otherwise exhaust their regular EI weeks before their seasonal work resumes.
• The government estimates the extension’s benefit payments amount to about $122.2 million in present value over three years (annualized about $46.6 million), with administrative costs of about $3.1 million present value (annualized about $1.2 million).
• Officials also estimate a small potential premium impact of 0.12 cents per $100 of insurable earnings would be needed to balance the EI account over seven years (this is an actuarial estimate mentioned in the regulatory statement).
• The pilot will be evaluated; the extension was partly justified to collect evidence under different economic conditions, including the effects of the COVID‑19 downturn.