# unemployment insurance



## couchman (Oct 10, 2013)

Question for a co-worker of mine. The company has offered a buyout for employees over 56 years old. He would receive 1 years pay as a lump sum on his last day. The question is after the 1 year period could he apply and receive unemployment insurance.


----------



## Mukhang pera (Feb 26, 2016)

I would certainly hope not, given that I was forced to pay into that scummy plan at max for many years, never taking out a dime. But, knowing how our government likes to take money from those who work for it and redistribute it to the indolent, my guess is he'll be allowed to sit on his *** and draw one year of severance and another year of pogey.


----------



## Mukhang pera (Feb 26, 2016)

couchman said:


> Question for a co-worker of mine. ... could he apply and receive unemployment insurance.


I belatedly noted your misnomer. The federal government finally decided to be a bit more forthright and call it what it is, i.e., _employment_ insurance, not _unemployment_ insurance.

The distinction recognizes that insurance nomenclature generally describes the peril insured against, eg. fire insurance insures against the risk of loss by fire, theft insurance against the risk of loss by theft, etc. Hence employment insurance insures against the risk that one might actually have to work for a living.


----------



## RBull (Jan 20, 2013)

I suspect you'll find more financial insight and advice on here vs. employment insurance info. I don't know the answer but guess the answer is no. Employment insurance should be for those who have lost their job and need assistance during the period immediately following in order to assist and cover off all or some portion of the period towards becoming reemployed. In this case the employer is already providing relief likely greater than the benefits of EI.


----------



## cougar (Oct 15, 2014)

I believe he may be able to collect EI after one year as long as he is not eligible for a pension from his company. It will also depend on whether the termination is voluntary or involuntary. I know I was eligible for EI 6 years ago for an involuntary termination once my severance money had run out-best for him to check the current rules online. Of course he will need to be looking for work.


----------



## Plugging Along (Jan 3, 2011)

If it a severance and not bridging to a pension then yes, ei would apply after severance runs out. He is supposed to apply right away so it's on file.


----------



## stardancer (Apr 26, 2009)

One condition for receiving EI is that you must be available for and actively looking for employment. If he still wants to work after the year is up, then he must go to interviews etc and show that he is looking for work; however, if he is receiving an early pension, his income may wipe out any EI benefits he might receive.


----------



## ykphil (Dec 13, 2009)

I would certainly hope so, he contributed all his life so he should be eligible to receive benefits after his severance runs out. That was my case in 2007 when I was terminated without cause and received a one-year severance, but I was still eligible to get EI benefits after my year's severance. It is important to apply immediately after termination to get the application in the system, whether he needs it or not after severance is fully paid. In my case, I was eligible to receive the maximum EI benefit but never received any as I had found a job a week after my severance ended but in any case, I would not see any moral issue about receiving EI if it is needed, especially at 56.


----------



## naysmitj (Sep 16, 2014)

ykphil said:


> I would certainly hope so, he contributed all his life so he should be eligible to receive benefits after his severance runs out. That was my case in 2007 when I was terminated without cause and received a one-year severance, but I was still eligible to get EI benefits after my year's severance. It is important to apply immediately after termination to get the application in the system, whether he needs it or not after severance is fully paid. In my case, I was eligible to receive the maximum EI benefit but never received any as I had found a job a week after my severance ended but in any case, I would not see any moral issue about receiving EI if it is needed, especially at 56.


Agreed, did the same as well.


----------



## couchman (Oct 10, 2013)

Thanks for all the replies. He will speak with the government on this. The sticking point I will assume is when the company offers a buyout and you accept I believe this is the same as quitting your job. You are not being terminated you are accepting an offer to leave.


----------



## Cdnwife (Sep 10, 2013)

It will depend on what his termination code is on his ROE. If the code indicates that he waslaid off then yes, he would be eligible but as Plugging mentioned he would need to file as soon as he is terminated. To wait a year when the money runs out his opportunity to apply would no longer be valid.


----------



## Daniel A. (Mar 20, 2011)

stardancer said:


> One condition for receiving EI is that you must be available for and actively looking for employment. If he still wants to work after the year is up, then he must go to interviews etc and show that he is looking for work; however, if he is receiving an early pension, his income may wipe out any EI benefits he might receive.


Pension is not considered income under the rules. I know people on pension that have jobs when the job ends they apply for and receive EI as long as they have the hours needed.


----------



## sags (May 15, 2010)

I would hope the people at EI aren't wasting time interviewing and chasing people who have applied for EI but aren't collecting benefits due to severance payments.

I am sure they have better things to do with their time.


----------



## ian (Jun 18, 2016)

I had a 20 plus month separation agreement. I was advised to register for EI immediately. EI reviewed my separation agreement. I started 38 weeks of EI after 21 months. I had to be available for work and be in Canada. Nothing else. It is an on line system. No, you do not have to go for job interviews or report any work search details. 

Register for EI immediately. I was fortunate. This was the first time in over 40 years that I rec'd EI. Mind you, I was in the top tax bracket so the gov't got most of it back.

I delayed taking my early DB and CPP since these would have been counted as income by EI and my payments would have been reduced.


----------



## OnlyMyOpinion (Sep 1, 2013)

ian said:


> I had a 20 plus month separation agreement. I was advised to register for EI immediately. EI reviewed my separation agreement. I started 38 weeks of EI after 21 months. I had to be available for work and be in Canada. Nothing else. It is an on line system. No, you do not have to go for job interviews or report any work search details.
> Register for EI immediately. I was fortunate. This was the first time in over 40 years that I rec'd EI. Mind you, I was in the top tax bracket so the gov't got most of it back.
> I delayed taking my early DB and CPP since these would have been counted as income by EI and my payments would have been reduced.


I've heard of people collecting EI when they retire. I know "we paid into it" and all that, but I think it should be limited to those between jobs.


----------



## sags (May 15, 2010)

My wife went back to work part time after retirement.

She was still required to pay EI premiums, unlike CPP where you can opt out.

The company reduced her hours and she applied and received EI for weeks that her hours were less than the average of 6 months before the hours of work reduction.

She collected on and off for over a year, sometimes she got a cheque (low hour pay periods) and sometimes she didn't (high hour pay periods) Her hours fluctuate due to holidays and call ins.

Perhaps people who are retired should not be required to pay EI premiums and then would not be able to claim benefits. It would also save the employer some costs.

It seems to me that if you are forced to pay the insurance premiums, you ought to be able to access the coverage.


----------



## Spudd (Oct 11, 2011)

OnlyMyOpinion said:


> I've heard of people collecting EI when they retire. I know "we paid into it" and all that, but I think it should be limited to those between jobs.


I believe you can only collect it if you left your job involuntarily. So if you retired because the company laid you off, you could collect EI. If you just retired of your own accord, you cannot.


----------



## ian (Jun 18, 2016)

It really comes down to the reason code that is selected and entered by your employer.


----------



## gibor365 (Apr 1, 2011)

> I had to be available for work and be in Canada.


 what does it mean "be in Canada"? Can't you go for 2-3 weeks abroad?


----------



## Ag Driver (Dec 13, 2012)

gibor365 said:


> what does it mean "be in Canada"? Can't you go for 2-3 weeks abroad?


Sure you can. Just report it. You may incur loss of payment for not being ready and available for work from Monday to Friday. 

Trips outside of Canada should be kept to weekends or short visits (ie. Going over for groceries and gas). This will minimize any loss of payment. Report all trips outside of Canada -- you do not want to be hit up for fraud and repayment....they WILL catch you, even if it is numerous years later, you will still have to pay up!

Back to the original question: As stated prior: Apply right away, and from the sounds of it you should be approved after your severance. I know of a family member that did exactly this.


----------



## ian (Jun 18, 2016)

You do not incur any loss. As I recall, I had 38 weeks of EI that had to be taken in a period of 50 or so weeks. That period could be extended...really not certain.

We went south for a few weeks. EI did not pay during that period. But I still got my 38 weeks, there was no financial penalty. When I filled out the biweekly on line form one of the questions asks if you were in Canada and available for work. If you are not in Canada during the reporting period, EI payment is suspended (ie you do not loose any money, the benefits simply take longer to pay out). until such time as you return. The only exception is apparently someone who is going outside the country for a job interview.

The EI plan is a mess and is not longer a true insurance offering. The premiums are grossly inflated. Successive Governments have siphoned billions of dollars from the plan and moved the monies to general revenue.

I strongly suspect that you will be eligible for EI. Apply immediately even if you have a long waiting period to start collecting.


----------

