Can You Get Employment Insurance (EI) If You Quit?

| June 28th, 2017 | No Comments »

If an employee voluntarily leaves their employment without reason, this would result in disqualification from EI entitlements. There are certain circumstances, however, that an individual would be able to voluntarily leave their employment without forfeiting their EI eligibility. Under the Employment Insurance Act, there are numerous reasons that allow employees to ‘quit’ without forfeiting their EI eligibility. Each of these reasons is called ‘just cause’, which means that since the employee was justified under the Act in leaving their employment, EI eligibility is not forfeited.

The ‘just causes’ scenarios listed under the Act that allows individuals to retain their EI eligibility include:

  • Sexual Harassment
  • Moving with a spouse of dependent child
  • Discrimination
  • Work that endangers health or safety
  • The need to provide care to an immediate family member
  • Assurance of a job in the immediate future
  • Negative changes to your salary/wages
  • Excessive overtime or an employer refusing to pay for overtime wages
  • Major changes to work duties
  • Discrimination due to being a member of an association, organization, union, etc.
  • Pressure from an employer or employee to leave employment

If quitting is necessary and is linked to one or more of the above ‘just cause’ qualifiers, it is important to support your decision to leave employment with any information possible. It is important to establish that quitting was the only reasonable decision that could have been made given the situation.

Upon applying for EI, an agent will assess the claim of just cause. It is important to have as much information as possible, as an investigation of the employer (if necessary) and the reasons being claimed to support just cause will be evaluated.

Employment Insurance Requirements under 3 scenarios: Quitting, Dismissed for Cause, Dismissed Without Cause

| June 7th, 2017 | No Comments »

Eligibility Requirements for Employment Insurance

Paying into the Employment Insurance program is usually automatic, with regular deductions taken from you paycheque – individuals that are self-employed may choose to pay into EI. Further, you must have worked the minimum required hours within the last year. This falls between 420 – 700 hours depending on your geographic area. For Toronto, the required annual amount of hours is 630. Individuals must also be without an income for 7 consecutive days, be actively seeking employment and maintain a record of the specific employers contacted along with the date.

Quitting

To be eligible for Employment Insurance (EI) in Canada, your loss of employment cannot be your own fault.  This means that if you voluntarily quit your employment you will not be eligible to claim EI.

Dismissed for Cause

If an employer dismisses an employee for cause then the employee is usually not entitled to EI. Being dismissed for cause means that the employee has done something wrong to warrant a dismissal without notice or a severance package. When an employee is dismissed as a result of a single incident, the wrongful act must be fundamentally incompatible with the employment relation, making continued employment unfeasible. Examples may include theft, workplace violence, or breach of confidentiality.

Dismissal for cause can also happen as the last step of progressive discipline. This requires an employee to have committed multiple wrongs, receiving a disciplinary measure for each instance. Whatever the case may be, if you feel that dismissal was not warranted, it is important to seek legal consultation. In addition to missing out on EI benefits, an employer would also owe additional payment in damages.

Dismissed Without Cause:

If an employer dismisses an employee without cause, the employee is owed notice or pay in lieu. This does not disqualify an employee’s eligibility for EI – employees that are dismissed without cause are eligible to apply for EI benefits, providing they meet the criteria mentioned above.