While it is good news that EI rates are frozen for 2 years and the new benefits are temporary (for now), CFIB's biggest concern is that a worker can now collect $400 per week for a half-year if they've been working a part-time job with 3 hours a week (or less).
So my part-time job in high school (washing dishes at a pizza place for 3 hours each Friday night) would qualify me to collect over $10,000 if I decide NOT to work.
Small firms in retail, hospitality, arts/recreation & the service sector were the hardest hit by COVID-19. Now that they are allowed to open, many will struggle to get their part-timers back, making them more vulnerable to bankruptcy & slowing Canada's economic recovery.
Fortunately, the new policies will require recipients to be available and looking for work. We need to ensure that the EI system will know if an employer has asked a worker to return to their pre-COVID job. I suspect this will be a challenge.
In quickly reviewing the EI changes, the POSITIVES are:
1. Changes are temporary
2. Premiums are frozen for 2 years
3. Benefits continue for the self-employed w/o work
4. Requirement to be available/looking for work
5. Caregiving benefits not available if school/daycare is open
1. Changes are temporary
2. Premiums are frozen for 2 years
3. Benefits continue for the self-employed w/o work
4. Requirement to be available/looking for work
5. Caregiving benefits not available if school/daycare is open
In quickly reviewing the EI changes, the NEGATIVES are:
1. Only 120 hours required for 26 weeks of benefits (3 hrs/wk for PT work)
2. These changes could be made permanent (expanding premiums to self-employed, paid sick days)
3. GIGANTIC new costs hitting employers in 2 years
1. Only 120 hours required for 26 weeks of benefits (3 hrs/wk for PT work)
2. These changes could be made permanent (expanding premiums to self-employed, paid sick days)
3. GIGANTIC new costs hitting employers in 2 years
