Interruption of Earnings

II. Principles of Law

(a) General

The legislation sets out the general criteria of eligibility which a claimant must meet in order to establish entitlement to benefits. One of the criteria is that an insured person must have suffered an interruption of earnings from employment. An interruption of earnings is defined in the legislation as an interruption that occurs in the earnings of an insured person at any time and in any circumstances determined by the Regulations.

Section 2 Employment Insurance Act Employment Insurance Act

Dick v. Canada [1980] S.C.R. 243 (S.C.C.) File no. 15540 Judgment of the Supreme Court Of Canada
Canada (A.G.) v. Kelly (1990), F.C.J. No 568 (F.C.A) A-106-89 Judgment Of The Federal Court Of Appeal

The Commission has the power, under paragraph 54(u) of the Employment Insurance Act, to make regulations defining and determining when an interruption of earnings occurs.

Paragraph 54(u) Employment Insurance Act Employment Insurance Act

Canadian Marine Officers Union v. Board of Referees (1988), F.C.J. No 618 (F.C.A.) A-220-87 Judgment Of The Federal Court Of Appeal
Scully v. Canada (1989), F.C.J. No 965 (F.C.A.) A-923-88 Judgment Of The Federal Court Of Appeal
Canada (A.G.) v. Hartmann (1989), F.C.J. No 839 (F.C.A.) A-516-88 Judgment Of The Federal Court Of Appeal

There are three situations which can give rise to an interruption of earnings:

  1. lay-off from employment and a period of seven or more consecutive days in which no work is performed for that employer and in respect of which no earnings arise from that employment, or;
  2. separation from employment and a period of seven or more consecutive days in which no work is performed for that employer and in respect of which no earnings arise from that employment, or;
  3. reduction of earnings of more than forty (40) percent of normal weekly earnings where the insured person has ceased working because of illness, injury, quarantine, pregnancy or the need to care for a child or children referred to in subsection 23(1) of the Employment Insurance Act.

Subsections 14(1) and (2) Employment Insurance Regulations
Employment Insurance Regulations
Subsection 23(1) of the Employment Insurance Act Employment Insurance Act

Canada (A.G.) v. Hartmann (1989), F.C.J. No 839 (F.C.A.) A-516-88 Judgment Of The Federal Court Of Appeal
Canada (A.G.) v. Duffenais, A-551-92, April 23, 1993 (F.C.A.) Judgment Of The Federal Court Of Appeal

 

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