Bill C-520

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First Reading

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	1st Session, 36th Parliament, 46-47-48 Elizabeth II, 1997-98-99
	The House of Commons of Canada
	BILL C-520
	An Act to amend the Employment Insurance Act (employer's bankruptcy)
	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1996, c. 23	*1. (1) Paragraph 54(s) of the Employment Insurance Act* is replaced by the following:**
	(s) subject to section 67.1, defining and determining earnings for benefit purposes, determining the amount of those earnings and providing for the allocation of those earnings to weeks or other periods;
	(2) Paragraph 54(u) of the Act is replaced by the following:
	(u) subject to section 67.1, defining and determining the circumstances in which and the time at which an interruption of earnings occurs;
	(3) The portion of paragraph 54(z) of the Act before subparagraph (i) is replaced by the following:
	(z) subject to section 67.1, for carrying out the purposes and provisions of section 14, including regulations
	2. Subsection 55(1) of the Act is replaced by the following:
Hours of insurable employment	55. (1) Subject to section 67.1 , the Commission may, with the approval of the Governor in Council, make regulations for establishing how many hours of insurable employment a person has, including regulations providing that persons whose earnings are not paid on an hourly basis are deemed to have hours of insurable employment as established in accordance with the regulations.
	3. The Act is amended by adding the following after section 67:
Bankruptcy of employer	67.1 Subject to subsection 82(1.1) and notwithstanding any other provision of this Act, where, as a result of the bankruptcy of the employer of the claimant, the claimant receives no earnings, or only part of the earnings, owed to the claimant in respect of a time in which the claimant was employed in insurable employment by the employer, the claimant shall be deemed
	(a) for the purposes of the provisions concerning the calculation of the number of hours during which the claimant was in insurable employment, to have been in insurable employment during that time, even though the employer did not pay the claimant the earnings owed to the claimant in respect of that time;
	(b) for the purposes of the provisions concerning the calculation of the claimant's insurable earnings, to have been paid the earnings in respect of the employment; and
	(c) to have paid, pursuant to this Act, the employee's premium in respect of the earnings that the claimant is deemed to have received from the employer by virtue of paragraph (b).
	4. Section 82 of the Act is amended by adding the following after subsection (1):
Deduction and payment of premiums	(1.1) Notwithstanding any other provision of this Act, where, as a result of the liquidation of the assets of an employer, the trustee in bankruptcy pays the claimant all or part of the earnings to which the claimant is entitled, in respect of the claimant's employment in insurable employment by this employer, the trustee in bankruptcy shall
	(a) deduct from the earnings an amount equivalent to the employee's share of the premium payable by the employee on those earnings under this Act; and
	(b) pay this amount to the Receiver General at the prescribed time and in the prescribed manner.

Bill C-520

BILL C-520