Labour Adjustment Benefits Act (R.S.C., 1985, c. L-1)

Marginal note:Suspension of benefits

• 18 (1) Labour adjustment benefits are not payable to a qualified employee notified of a decision pursuant to subsection 16(1) from the week during which the notice is sent to the qualified employee to the week during which any subsequent notice of decision pursuant to subsection 16(5) to revoke that decision is sent to the qualified employee.

• Marginal note:Termination of benefits

  (2) Labour adjustment benefits are not payable to a qualified employee after the week during which he attains sixty-five years of age.

• Marginal note:Idem

  (3) Labour adjustment benefits shall cease with the payment for the week in which the qualified employee dies.

Marginal note:Initial amount of benefit

• 19 (1) The initial amount of labour adjustment benefit payable to a qualified employee is a weekly amount equal to sixty per cent of his average weekly insurable earnings, which amount shall be rounded to the nearest cent or, if the amount is equidistant from two cents, to the greater thereof.

• Marginal note:Work sharing agreements

  (2) For the purposes of this Act, the weekly insurable earnings of a qualified employee for any week of employment under a work sharing agreement approved pursuant to section 24 of the Employment Insurance Act is the lesser of

  • (a) the total amount the employee would have earned for that week if he had worked a full working week for the employer he worked for under the agreement, and

  • (b) the maximum weekly insurable earnings, as determined pursuant to that Act, for that week.

Marginal note:Annual adjustment

• 20 (1) The weekly amount of labour adjustment benefit payable to a qualified employee shall be adjusted each year so that the amount of the benefit payable to the employee for a week in any year following the year in which his effective date of lay-off falls is equal to the amount obtained

  • (a) by multiplying

    • (i) the initial amount of the benefit as determined pursuant to subsection 19(1)

    by

    • (ii) the ratio, rounded to the nearest one-thousandth or, where the ratio is equidistant from two one-thousandths, to the greater thereof, that the Pension Index for that following year bears to the Pension Index for the year in which the effective date of lay-off occurs; and

  • (b) by rounding the product obtained under paragraph (a) to the nearest cent or, if the product is equidistant from two cents, to the greater thereof.

• Marginal note:Pension Index

  (2) In this section, the Pension Index for any year means the Pension Index for that year calculated in accordance with section 43 of the Canada Pension Plan.

Marginal note:Deductions

• 21 (1) There shall be deducted from the weekly amount of labour adjustment benefit payable to a qualified employee an amount equal to

  • (a) sixty cents for each dollar that is received by the employee as

    • (i) vacation pay, severance pay, salary, wages or other remuneration, including gratuities but excluding any worker compensation benefits or other disability payments, in respect of any office or employ- ment continued or commenced after the commencement of such benefit, or

    • (ii) income from any business carried on by him, either alone or with others, that is continued or commenced after the commencement of such benefit,

    and that is allocated to that week in accordance with the regulations; and

  • (b) one dollar for each dollar that is received by the employee as

    • (i) benefits under an employer pension plan earned by the employee as a result of any office or employment,

    • (ii) a retirement pension under the Canada Pension Plan or a provincial pension plan,

    • (iii) benefits under Part I of the Employment Insurance Act,

    • (iv) [Repealed, 1996, c. 23, s. 181]

    • (v) vacation pay, severance pay, salary, wages or other remuneration, including gratuities but excluding any worker compensation benefits or other disability payments, in respect of any office or employment terminated prior to the commencement of such benefit, or

    • (vi) income from any business carried on by him, either alone or with others, that is terminated prior to the commencement of such benefit,

    and that is allocated to that week in accordance with the regulations.

• Marginal note:Definitions

  (2) In subsection (1),

  business

  business includes a profession, calling, trade, manufacture or undertaking of any kind and an adventure or concern in the nature of trade, but does not include an office or employment; (entreprise)

  employment

  employment means the position of an individual in the service of some other person, including Her Majesty or a foreign state or sovereign; (emploi)

  office

  office means the position of an individual entitling him to a fixed or ascertainable stipend or remuneration and includes any office the incumbent of which is elected by popular vote or is elected or appointed in a representative capacity and also includes the position of a corporation director. (charge)

Marginal note:Deemed benefit

• 22 (1) Where a qualified employee to whom labour adjustment benefits are payable has, after his effective date of lay-off and before the commencement of those benefits, received a lump sum payment, under or in respect of an employer pension plan, earned by the employee as a result of an office or employment in the Canadian establishment from which he was laid off, the payment is deemed to be a benefit referred to in subparagraph 21(1)(b)(i).

• Marginal note:Report of earnings

  (2) A qualified employee to whom labour adjustment benefits are being paid shall submit to the Commission a report, in such form and manner and at such times as the Commission may direct, setting out the amounts received by the employee in the period to which the report relates as remuneration, income, benefits, pension or allowance described in paragraph 21(1)(a) or (b) and such other information as the Commission may require.

• Marginal note:Failure to comply

  (3) Notwithstanding any other provision of this Act, a qualified employee who fails to comply with a requirement under subsection (2) that has not been waived under subsection (4) is not qualified to receive labour adjustment benefits as long as the failure to comply continues.

• Marginal note:Waiver or variation of requirement

  (4) The Commission may waive or vary any requirement under subsection (2) if in its opinion the circumstances warrant the waiver or variation for the benefit of a qualified employee in a particular case or class or group of cases.

Marginal note:Benefits not assignable

23 Labour adjustment benefits are not capable of being assigned, charged, attached, anticipated or given as security and, subject to subsections 22(1) and 26(1), any transaction purporting to assign, charge, attach, anticipate or give as security any of those benefits is void.

Administration and Enforcement

Marginal note:False or misleading statements

• 24 (1) Where the Board becomes aware of facts establishing, in its opinion, that a person, in relation to an application under section 11, has made a statement or representation that he knew to be false or misleading or has participated or acquiesced in the making of such a statement or representation, the Board may revoke the certification of any employee named in the application.

• Marginal note:Notification of intention

  (2) Before the Board revokes the certification of an employee pursuant to subsection (1), it shall notify the employee in writing of its intention to do so.

• Marginal note:Right to make written representations

  (3) An employee who is notified pursuant to subsection (2) may within thirty days after the date of the notice, or within such further time as the Board may allow, make representations in writing to the Board with respect to the proposed revocation of his certification.

• Marginal note:Notification of decision

  (4) Where the Board revokes the certification of an employee pursuant to subsection (1), it shall notify the employee and the Commission in writing of the revocation.

• Marginal note:Limitation

  (5) Notwithstanding any other provision of this Act, a qualified employee whose certification is revoked pursuant to subsection (1) is not qualified at any time before or after the revocation to receive labour adjustment benefits by virtue of the revoked certification.

• Marginal note:Idem

  (6) No certification shall be revoked pursuant to subsection (1) more than seventy-two months after the date on which the false or misleading statement was made.

• Marginal note:Recertification not precluded

  (7) Nothing in this section shall be construed as preventing an employee whose certification is revoked pursuant to subsection (1) from re-applying to, and being certified by, the Board under section 11.

Marginal note:Reconsideration in respect of amounts repayable

• 25 (1) Subject to subsection (5), the Commission may, at any time within twelve months after labour adjustment benefits have been paid to a person, reconsider

  • (a) any application he made under section 13,

  • (b) any information he provided in the course of a review under subsection 16(1), or

  • (c) any report he submitted under subsection 22(2)

  and, if the Commission decides that the person has received, in consequence of that application, information or report, labour adjustment benefits for which he was not qualified or in excess of the benefits payable to him, the Commission shall calculate the amount of such benefits or excess and shall notify the person in writing of its decision.

• Marginal note:Reconsideration in respect of amounts payable

  (2) The Commission may, at any time within thirty-six months after labour adjustment benefits would have been payable to a person, reconsider

  • (a) any application he made under section 13,

  • (b) any information he provided in the course of a review under subsection 16(1), or

  • (c) any report he submitted under subsection 22(2)

  and, if the Commission decides that the person has not received labour adjustment benefits for which he was qualified or has received less than the benefits payable to him, the Commission shall calculate the amount of such benefits or deficiency and shall notify the person in writing of its decision.

• Marginal note:Amount repayable

  (3) If the Commission decides that a person has received labour adjustment benefits for which he was not qualified or in excess of the benefits payable to him, the amount of such benefits or excess as calculated pursuant to subsection (1) is an amount repayable under section 26 and, for the purposes of subsection 26(2), the date of the notice of the decision is the date on which liability arises.

• Marginal note:Amount payable

  (4) If the Commission decides that a person has not received labour adjustment benefits for which he was qualified or has received less than the benefits payable to him, the amount of such benefits or deficiency as calculated pursuant to subsection (2) is the amount payable to that person.

• Marginal note:Extension

  (5) Where, in the opinion of the Commission, a false or misleading statement or representation has been made in connection with any application, information or report referred to in subsection (1), the Commission may, at any time within seventy-two months after labour adjustment benefits have been paid to a person, reconsider the application, information or report under that subsection.