Vol. 143, No. 7 — April 1, 2009

Registration

SOR/2009-96 March 12, 2009

EMPLOYMENT INSURANCE ACT

Regulations Amending the Employment Insurance Regulations

RESOLUTION

The Canada Employment Insurance Commission, pursuant to paragraphs 54(m) and (q) and subsection 143(1) of the Employment Insurance Act (see footnote a), hereby makes the annexed Regulations Amending the Employment Insurance Regulations.

March 3, 2009

JANICE CHARETTE
Chairperson
Employment Insurance Commission

PATRICIA BLACKSTAFFE
Commissioner (Workers)
Employment Insurance Commission

ANDRÉ PICHÉ
Commissioner (Employers)
Employment Insurance Commission

P.C. 2009-405 March 12, 2009

Her Excellency the Governor General in Council, on the recommendation of the Minister of Human Resources and Skills Development, pursuant to paragraphs 54(m) and (q) and subsection 143(1) of the Employment Insurance Act (see footnote b), hereby approves the annexed Regulations Amending the Employment Insurance Regulations, made by the Canada Employment Insurance Commission.

REGULATIONS AMENDING THE EMPLOYMENT INSURANCE REGULATIONS

AMENDMENTS

1. (1) The portion of subsection 19(3) of the Employment Insurance Regulations (see footnote 1) before paragraph (a) is replaced by the following:

(3) Subject to subsection (4), copies of the record of employment completed in paper form in accordance with subsection (2) shall be distributed by the employer in the following manner:

(2) Section 19 of the Regulations is amended by adding the following after subsection (3):

(3.1) The record of employment completed in electronic form in accordance with subsection (2) shall be distributed by the employer in the following manner:

(a) it shall be sent to the Commission not later than the earlier of

(i) five days after the end of the pay period during which the first day of the employee’s interruption of earnings fell, and

(ii) if there are 13 or fewer pay periods per year under the employer’s pay cycle, 15 days after the first day of the interruption of earnings; and

(b) it shall be kept and retained as part of the employer’s records and books of account in accordance with subsection 87(3) of the Act.

2. (1) The definition “period of eligibility” in subsection 26.1(1) of the Regulations is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

(c) in respect of the benefits referred to in subparagraph (2)(c)(iii), the period during which the claimant is employed in work-sharing employment referred to in section 24 of the Act. (période d’admissibilité)

(2) Paragraph 26.1(2)(c) of the French version of the Regulations is replaced by the following:

c) il présente une demande de prestations pour chaque semaine de chômage comprise dans sa période d’admissibilité pour l’un des motifs suivants :

(i) pour une raison mentionnée aux alinéas 12(3)a), b) ou d) de la Loi,

(ii) pour suivre un cours d’apprentissage ou un programme d’apprentissage au titre de l’article 25 de la Loi,

(3) Paragraph 26.1(2)(c) of the Regulations is amended by striking out “or” at the end of subparagraph (i), by replacing “and” with “or” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):

(iii) under section 24 of the Act, to receive work-sharing benefits, and

COMING INTO FORCE

3. These Regulations come into force on the Sunday after the day on which they are registered.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

Employment Insurance (EI) administration continues to evolve from paper-based systems to electronic automated processing systems. Current regulations do not always allow for efficiencies in processing of EI claims which can be realized through automation. This has, in some cases, resulted in increasing processing times and reducing speed of payment of EI benefits.

Currently, for work-sharing claimants, regulations require claimants to submit a paper report card every two weeks, which is co-signed by the employer, and lists work-sharing employment (hours missed), as well as any other earnings from other employment. This paper report card is matched against a copy of the employer’s report (work-sharing ledger), which must also be submitted to Service Canada.

With regard to the record of employment (ROE), current regulations require employers to issue an ROE within five days of an employee’s interruption of earnings and provide a paper copy to the employee. For employers using electronic payroll systems, payroll data that an employer is required to report on an ROE is often not available until the end of the pay period cycle. Therefore, to comply with the five day rule, an employer must produce an ROE in the majority of cases “off cycle,” before the final payroll information is available (complete information is often only available to employers at the end of the pay cycle).The five-day requirement results in incomplete payroll information being used, often requiring follow-up verification by Service Canada with the employer, and re-submission of amended ROEs by the employer once the pay cycle is completed. This process adds to the administrative burden on the employer, and slows claims processing times.

Additionally, when an ROE is issued electronically, the ROE data is made available to Service Canada and the claimant automatically in the system to support a claim for EI benefits, making the employee’s paper copy unnecessary. These situations will be rectified by amending the Regulations.

The objectives of the Regulations are

• to enable the government to take advantage of administrative efficiencies provided by the electronic submission of information;
• to reduce employer administrative burden, by streamlining reporting requirements and allowing electronic reporting;
• to improve quality of information received, and;
• to improve service to EI claimants through expedited claims processing.

Ultimately, the Regulations ensure that information provided to Service Canada for the processing of EI claims is submitted in as efficient a manner as possible, reducing duplication of information provided, and reducing employer administrative burden. These Regulations will improve claims processing times, provide incentive for further take-up of electronic reporting by employers, and improve speed of payment of benefits.

Description and rationale

Work-sharing:

The regulatory amendments to subsection 26.1(2) of the EI Regulations will exempt employees from submitting bi-weekly report cards, as is currently the case for maternity and parental benefits claims. Instead, as per the work-sharing agreements, the information required for the assessment of ongoing work-sharing claims, and determining the rate of benefits for claimants will be received from employers through their work-sharing reports.

Record of Employment:

The amendments to subsection 19(3) of the EI Regulations, governing electronic ROEs, will

1) put in place new deadlines for employers to complete and submit electronic ROEs, in accordance with their pay cycles; and

2) exempt employers filing electronic ROEs from printing a paper copy for the employee.

The electronic ROE, entered directly into Service Canada systems, will be used to process the claim and will be available to the employee online via their My Service Canada account or by requesting a paper copy from Service Canada.

The amendments do not create new reporting requirements, but enable the use of information already prepared to improve administrative efficiencies. These Regulations will help ensure that claims processing times are reduced and improve speed of payment of EI benefits.

These amendments to the Regulations affect administrative practice and no new costs are anticipated.

The Regulations are in line with the Budget 2009 commitment to ensure that EI support “is delivered promptly and efficiently by streamlining delivery and reducing paper burden.” Putting these amendments in place will eliminate duplication of reporting by employees and employers with respect to work-sharing, and will allow Service Canada to take advantage of efficiencies to be gained through automation of claims processing. This will increase Service Canada’s ability to meet speed of payment targets, especially during periods of a high number of claims.

Consultation

Stakeholders, including the Canadian Federation of Independent Business (CFIB) and the Canadian Payroll Association (CPA) raised concerns that have been addressed with these Regulations. Follow-up consultations with these stakeholders in Fall 2008 indicated that they view these changes as directly responsive to the concerns raised, and it is expected that stakeholder response will be positive.

The Regulations were prepared by the Skills and Employment Branch at Human Resources and Social Development Canada (the Department) and the Department of Justice. The Employment Insurance Commission has approved the regulatory amendments.

Implementation, enforcement and service standards

These Regulations do not change existing service standards. Standard investigation and control measures will apply to ensure program integrity and enforcement of these Regulations. The Department’s existing compliance mechanisms will ensure that the provisions contained in the Regulations are properly implemented.

Contact

Michael Duffy
Director
Legislative and Regulatory Policy Design
Skills and Employment Branch
Human Resources and Social Development Canada
140 Promenade du Portage, 3rd Floor
Gatineau, Quebec
K1A 0J9
Telephone: 819-997-5034
FAX: 819-934-6631

Footnote a
S.C. 1996, c. 23

Footnote b
S.C. 1996, c. 23

Footnote 1
SOR/96-332

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