Interruption of Earnings

II. Principles of Law

(b) Lay-off or Separation vs. Reduction in Earnings

Not all reductions in working hours will be considered an interruption of earnings. A reduction in work hours will only give rise to an interruption of earnings if it entails a reduction in earnings as prescribed by the regulations; that is, a reduction in earnings of more than forty (40) percent in the insured person's normal weekly earnings, because the person ceases to work in that employment by reason of illness, injury, quarantine, pregnancy or the need to care for a child referred to in subsection 23(1) of the Employment Insurance Act.

Subsection 14(1) Employment Insurance Regulations
Employment Insurance RegulationsSubsection 23(1) of the Employment Insurance Act Employment Insurance Act

Canada (A.G.) v. Giguere, [1979] 1 F.C. 823 (F.C.A.) A-384-78 Judgment Of The Federal Court Of Appeal

A reduction of hours of work and consequent reduction of earnings does not amount to either a "layoff" or "separation from employment", whether actual or constructive.

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

 

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