Week 23 - Chapter 13
Employment Insurance (EI)
•Employment Insurance is a federal program that provides income benefits if a person is unable to
work through no fault of his/her own. Ex. Getting laid off for an unjust reason.
•To receive benefits, an employee must first have worked a minimum number of hours during a
minimum number of weeks, which is called a qualifying period. Then there’s a waiting period
from the last day of work and until the benefits begin. If the employer provides severance pay at
the time of losing the job, these payments must run out before the waiting period being.
•Employer contributions can be reduced if the employer provides a wage loss replacement plan for
employee sick leave.
•A supplemental unemployment benefit (SUB) plan is an agreement between an employer and the
employee for a plan that enables employees who are eligible for EI benefits to receive additional
benefits from a SUB fund created by the employer. They use this when the employee is on
Canada/Quebec Pension Plan (C/QPP)
•C/QPP are programs that provide three types of benefits: retirement pensions, disability pensions,
and survivor benefits.. Benefits are payable only to those individuals who make contributions to
the plans and/or available to their family members.
oCalculated as 25% of the average earnings over the years during which contributions were
oBenefits are reduced on early retirement and are increased in the case of late retirement.
oAre only paid for severe disabilities that are expected to be permanent or to last for an
oThe disability benefit is 75% of the pension benefit earned at the date of the disability,
plus a flat-rate amount per child.
oAre benefits paid on the death of a plan member.
oA lump sum payment is made to the plan member’s estate, and a monthly pension is also
payable to the surviving spouse and each dependent child.
•Workers’ compensation laws are aimed at providing sure, prompt income and medical benefits to
victims of work-related accidents or illnesses and/or their dependants, regardless of fault.
•This is basically a “no fault’ insurance plan designed to help injured or ill workers get well and
return to work. The basic requirement that an employee need in order to qualify for the
compensation is that they must prove that it arose while the employee was on the job.
•Controlling Workers’ Compensation Costs
oControl the accidents from happening by reducing anything that can cause accidents.
oThere are two basic approaches to reducing workers’ compensation claims
Firms try to reduce accidents- or illness-causing conditions in the company by
having safety and health programs.