On November 25, 2022, the federal government announced that the Employment Insurance sickness benefit is being extended from 15 weeks to 26 weeks effective December 18, 2022. This change is due to amendments to the Employment Insurance Act that were enacted on June 29, 2021, through the Budget Implementation Act, 2021, No. 1, (introduced as Bill C-30) but was waiting for proclamation to come into force.
This issue has arisen in several recent mediations that I have conducted. As regular readers will know, Employment Insurance benefits are usually deducted from money paid out in lieu of notice of dismissal. At mediation, the plaintiff will be asked if they received EI benefits; if they did, then a mechanism for obtaining a statement of account/debt from Service Canada, and a holdback of funds to cover any repayment obligation, is typical.
This blog discusses how Employment Insurance (EI) benefits or CERB benefits are taken into account when calculating wrongful dismissal damages during the COVID 19 pandemic.