Canadians who find themselves out of work may be able to get financial compensation from the Canadian federal government in the form of employment insurance (EI) payments. EI is a financial assistance program that is meant to help unemployed Canadians keep up with their bills.
But what about if you quit your job? Will you still be able to qualify for EI benefits?
Employment insurance (EI) is a program overseen by the Canada Employment Insurance Commission (CEIC) that offers temporary financial assistance to unemployed Canadians who are legally permitted to work in Canada.
In order to be eligible, EI recipients must have lost their job due to circumstances beyond their control and must be willing and able to return to work.
Here’s a list of documents you’ll need to get a job in Canada.
The benefit amounts will vary from one person to the next, as there is no specific amount that would be applicable to everyone. Instead, eligible EI recipients will receive approximately 55% of their average weekly earnings. That said, there is a maximum weekly benefit of $638 per week or 60,300 a year for 2022.
The time frame within which EI benefits are paid out ranges from anywhere between 14 to 45 weeks. However, this number is based on your local unemployment rate and the number of insurable hours worked over the last 52 weeks, or since the last EI claim was filed, whichever of the two is less. Seasonal workers may extend their benefits for an additional 5 weeks, for a maximum of 50 weeks.
EI Sickness benefits offer up to 15 weeks in payments for those who cannot work due to a medical reason. So, they are not the best option for anyone who is suffering from a long-term debilitating disease or ailment that has left them unable to work. Those with long-term sickness or disability can look into Canada Pension Plan disability benefits and the Disability Tax Credit (DTC).
If EI isn’t enough to cover your expenses, learn more about taking out a loan while on EI.
In order to be eligible for EI, you must meet the following requirements:
EI is also available to those who are not working due to reasons other than being laid off, such as for maternity or paternity leave, illness, or caregiving responsibilities.
Another requirement you must meet to qualify for EI is the number of insurable hours you worked. To be eligible, you must have worked the required number of insurable hours over the last 52 weeks or since your last EI claim, whichever of the two is less.
Due to COVID-19 the required insurable hours will vary based on when you apply.
Not everyone may qualify for EI. If any of the following apply to your situation, you may be denied EI benefits:
COVID-19 Note: If you quit or lose your job for not complying with the mandatory COVID-19 vaccinations policy in your workplace, then you are unlikely to be eligible for the EI benefit.
You may only qualify for EI benefits if you have good reason to voluntarily leave your job. For instance, you may be eligible for EI for maternity, paternity, illness, and compassionate care reasons if you qualify.
You may also qualify if you can prove that you had “just cause” to quit. Here are some reasons that can be classified as just cause:
Without just cause for leaving your job, you will not be eligible for regular EI benefits. Check out the Government of Canada website for more information on causes that are justified for voluntarily leaving your job.
Before you leave your job, it’s strongly recommended that you take every step possible to avoid becoming unemployed, otherwise you will not be considered to have just cause for quitting. And if so, you won’t be eligible to receive EI benefits.
For starters, try to rectify the situation with your employer or union representative to see if the problem at work can be fixed. For example, consider the following alternatives before quitting:
You may also want to review your collective agreement or employment contract to find out if there’s a certain protocol that should be followed to handle a situation like yours.
If your labour rights are being violated, look into the laws regarding workplace health and safety or human rights. Be sure to take notes on the steps you’ve taken, and speak with an attorney if necessary. And if you ultimately decide to quit, look for another job first.
Ultimately, you’ll need to make sure you have just cause to quit in order to be eligible for EI benefits. If you are expecting benefits to be paid to you, you’ll need to verify whether or not just cause exists.
When you apply for EI, you must explain why quitting was your only reasonable option. You might need to gather evidence to support your side of the story. The more evidence you can gather to support your reason to quit, the better your odds of getting approved for EI.
Evidence collected can include the following:
You may also consider writing to Service Canada to explain your situation. Be sure to include the evidence you gathered in your letter and keep a copy for your records. Hopefully, Service Canada will get in touch with your former employer to inquire about the facts you provided.
In general, it is recommended that you apply for EI as early as possible after you’ve stopped working. Even if you haven’t received your ROE from your employer, it’s best not to delay your application. If you wait for more than 4 weeks after you stopped working, you could lose out on your benefits.
Service Canada may still approve your EI application if you can prove that you had good reason to wait to apply, but you must have a good reason for delaying your application.
When you’re ready to apply, you may do so online, whether from home or at an internet kiosk at a Service Canada centre.
Be sure to have the following information ready if you quit your job before applying for EI:
If Service Canada believes that you had just cause to quit your job, you may be eligible for special benefits, including the following:
Just because you quit your job does not automatically disqualify you from receiving EI benefits. As long as your reason for quitting is justified and you can show that you took steps to rectify your situation, you may still be eligible for EI. Make sure you’ve done your homework before voluntarily leaving your job if you intend to collect EI benefits.
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Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.
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