1st Session, 35th Parliament,
42-43-44 Elizabeth II, 1994-95

The House of Commons of Canada

BILL C-111

An Act respecting employment insurance in Canada

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Short title

1. This Act may be cited as the Employment Insurance Act.

INTERPRETATION

Definitions

2. (1) In this Act,

``affidavit''
« affidavit »

``affidavit'' means an affidavit sworn or affirmed before a commissioner of oaths or any other person authorized to take affidavits;

``benefit period''
« période de prestations »

``benefit period'' means the period described in sections 9 and 10;

``benefits''
« prestation »

``benefits'' means unemployment benefits payable under Part I, but does not include employment benefits;

``board of referees''
« conseil arbitral »

``board of referees'' means a board of referees established under Part VI;

``claimant''
« prestataire »

``claimant'' means a person who applies or has applied for benefits under this Act;

``Commission ''
« Commission »

``Commission'' means the Canada Employment and Immigration Commission;

``confirmed delivery service''
« service de messagerie »

``confirmed delivery service'' means certified or registered mail or any other delivery service that provides proof of delivery;

``documents''
« documents »

``documents'' includes money, securities, books, records, letters, telegrams, vouchers, invoices, accounts and statements (financial or otherwise);

``dwelling-ho use''
« maison d'habitation »

``dwelling-house'' means the whole or any part of a building or structure that is kept or occupied as a permanent or temporary residence and includes

      (a) a building within the yard of a dwelling-house that is connected to it by a doorway or by a covered and enclosed passageway, and

      (b) a unit that is designed to be mobile and to be used as a permanent or temporary residence and that is being used as a residence;

``employee's premium''
« cotisation ouvrière »

``employee's premium'' means the premium that a person employed in insurable employment is required to pay under section 67;

``employer''
« employeur »

``employer'' includes a person who has been an employer and, in respect of remuneration of an individual referred to as sponsor or co-ordinator of a project in paragraph 4(1)(e), it includes that individual;

``employer's premium''
« cotisation patronale »

``employer's premium'' means the premium that an employer of an insured person is required to pay under section 68;

``employment ''
« emploi »

``employment'' means the act of employing or the state of being employed;

``employment benefits''
« prestation d'emploi »

``employment benefits'' means benefits established under section 59;

``insurable earnings''
« rémunératio n assurable »

``insurable earnings'' means the total amount of the earnings, as determined in accordance with Part IV, that an insured person has from insurable employment;

``insurable employment''
« emploi assurable »

``insurable employment'' has the meaning assigned by section 5;

``insured person''
« assuré »

``insured person'' means a person who is or has been employed in insurable employment;

``interruption of earnings''
« arrêt de rémunération »

``interruption of earnings'' means an interruption that occurs in the earnings of an insured person at any time and in any circumstances determined by the regulations;

``labour dispute''
« conflit collectif »

``labour dispute'' means a dispute between employers and employees, or between employees and employees, that is connected with the employment or non-employment, or the terms or conditions of employment, of any persons;

``Minister''
« ministre »

``Minister'' means the Minister of Employment and Immigration, except in Parts IV and VII;

``overpaymen t of benefits''
« versement excédentaire de prestations »

``overpayment of benefits'' does not include a benefit repayment as described in Part VII;

``prescribed'' Version anglaise seulement

``prescribed'' means prescribed by the regulations or determined in accordance with rules prescribed by the regulations;

``provincial law''
« loi provinciale »

``provincial law'' means the provisions of any Act of the legislature of a province authorizing, or entitling a person to, the payment of benefits under a plan established by or under that Act;

``rate of unemploymen t''
« taux de chômage »

``rate of unemployment'' means the rate of unemployment as determined from time to time in a year;

``regular benefits''
« prestations régulières »

``regular benefits'' does not include special benefits or benefits by virtue of section 24 or 25;

``special benefits''
« prestations spéciales »

``special benefits'' means benefits paid for any reason mentioned in subsection 12(3);

``umpire''
« juge-arbitre »

``umpire'' means an umpire appointed under Part VI;

``week''
« semaine »

``week'' means a period of seven consecutive days beginning on and including Sunday, or any other prescribed period;

``year''
« année »

``year'' means a calendar year.

Rates of unemploymen t produced by Statistics Canada

(2) If the use of rates of unemployment produced by Statistics Canada is required under this Act or the regulations, the Commission shall use those most recently produced at the time it is appropriate or necessary for the Commission to make a final determination in respect of those rates or involving their use.

Electronic documents and communicatio n

(3) A document or other communication under this Act or the regulations may be in electronic form and a reference in this Act or the regulations to a form, record, book, notice, request, demand, decision or any other document includes a document in electronic form.

References to claims for benefits

(4) In this Act and the regulations, references to claims for benefits include questions arising in relation to those claims, and references to action on a claim include determining questions in favour of or adversely to claimants.

REPORT

Commission to assess adjustment

3. (1) The Commission shall monitor and assess how individuals, communities and the economy are adjusting to the changes made by this Act to the insurance and employment assistance programs under the Unemployment Insurance Act, including the effectiveness of the employment benefits and support measures under Part II.

Report

(2) The Commission shall report to the Minister on its assessment no later than December 31, 1998 and shall make any additional reports that the Minister may request at any later times.

Tabling in Parliament

(3) The Minister shall lay each report before Parliament within 30 days after receiving it or, if Parliament is not then sitting, on any of the first 30 days that either House of Parliament is sitting after it is received.

Referral to committee

(4) Each report shall be referred to such committee of the House of Commons as may be designated or established by the House for that purpose.

MAXIMUM YEARLY INSURABLE EARNINGS

Maximum for each year

4. For the purposes of section 17, subsection 82(2) and sections 95 and 145, the maximum yearly insurable earnings is

    (a) $39,000 for the years 1997 to 2000; and

    (b) for each subsequent year, an amount to be set by the Commission, with the approval of the Governor in Council on the recommendation of the Minister and the Minister of Finance.

INSURABLE EMPLOYMENT

Types of insurable employment

5. (1) Subject to subsection (2), insurable employment is

    (a) employment in Canada by one or more employers, under any express or implied contract of service or apprenticeship, written or oral, whether the earnings of the employed person are received from the employer or some other person and whether the earnings are calculated by time or by the piece, or partly by time and partly by the piece, or otherwise;

    (b) employment in Canada as described in paragraph (a) by Her Majesty in right of Canada;

    (c) service in the Canadian Forces or in a police force;

    (d) employment included by regulations made under subsection (4) or (5); and

    (e) employment in Canada of an individual as the sponsor or co-ordinator of an employment benefits project.

Excluded employment

(2) Insurable employment does not include

    (a) employment of a casual nature other than for the purpose of the employer's trade or business;

    (b) the employment of a person by a corporation if the person controls more than 40% of the voting shares of the corporation;

    (c) employment in Canada by Her Majesty in right of a province;

    (d) employment in Canada by the government of a country other than Canada or of any political subdivision of the other country;

    (e) employment in Canada by an international organization;

    (f) employment in Canada under an exchange program if the employment is not remunerated by an employer that is resident in Canada;

    (g) employment that constitutes an exchange of work or services;

    (h) employment excluded by regulations made under subsection (6); and

    (i) employment if the employer and employee are not dealing with each other at arm's length.

Arm's length dealing

(3) For the purposes of paragraph (2)(i),

    (a) the question of whether persons are not dealing with each other at arm's length shall be determined in accordance with the Income Tax Act; and

    (b) if the employer is, within the meaning of that Act, related to the employee, they are deemed to deal with each other at arm's length if the Minister of National Revenue is satisfied that, having regard to all the circumstances of the employment, including the remuneration paid, the terms and conditions, the duration and the nature and importance of the work performed, it is reasonable to conclude that they would have entered into a substantially similar contract of employment if they had been dealing with each other at arm's length.

Regulations to include employment

(4) The Commission may, with the approval of the Governor in Council, make regulations for including in insurable employment

    (a) employment outside Canada or partly outside Canada that would be insurable employment if it were in Canada;

    (b) the entire employment of a person who is engaged by one employer partly in insurable employment and partly in other employment;

    (c) employment that is not employment under a contract of service if it appears to the Commission that the terms and conditions of service of, and the nature of the work performed by, persons employed in that employment are similar to the terms and conditions of service of, and the nature of the work performed by, persons employed under a contract of service;

    (d) employment in Canada by Her Majesty in right of a province if the government of the province waives exclusion and agrees to insure all its employees engaged in that employment;

    (e) employment in Canada by the government of a country other than Canada or of any political subdivision of the other country if the employing government consents;

    (f) employment in Canada by an international organization if the organization consents; and

    (g) the tenure of an office as defined in subsection 2(1) of the Canada Pension Plan.

Regulations to include persons in business

(5) The Commission may, with the approval of the Governor in Council and subject to affirmative resolution of Parliament, make regulations for including in insurable employment the business activities of a person who is engaged in a business, as defined in subsection 248(1) of the Income Tax Act.

Regulations to exclude employment

(6) The Commission may, with the approval of the Governor in Council, make regulations for excluding from insurable employment

    (a) any employment if it appears to the Commission that because of the laws of a country other than Canada a duplication of contributions or benefits will result;

    (b) the entire employment of a person who is engaged by one employer partly in insurable employment and partly in other employment;

    (c) any employment if it appears to the Commission that the nature of the work performed by persons employed in that employment is similar to the nature of the work performed by persons employed in employment that is not insurable employment;

    (d) the employment of a member of a religious order who has taken a vow of poverty and whose remuneration is paid directly or by the member to the order;

    (e) any employment in which persons are employed hardly at all or for nominal remuneration; and

    (f) any employment provided under regulations made under section 24 or under employment benefits.

Defining certain expressions

(7) The Commission may, with the approval of the Governor in Council, make regulations defining, for the purposes of this section, the expressions ``casual nature'', ``government'', in relation to a government of a country other than Canada or of a political subdivision of the other country, and ``international organization''.