Employment Insurance Regulations (SOR/96-332)

66 An Enhanced Cumulative Paid Sick Leave shall meet the following requirements:

• (a) the plan must satisfy all the requirements of section 65, except the requirements of paragraph 65(b), subparagraph 65(c)(i) and paragraphs 65(e) and (f);

• (b) the plan must credit an insured person covered by the plan, after the completion of the period referred to in subparagraph 63(a)(i) or after the accumulation of the number of hours referred to in subparagraph 63(a)(ii), with one and two thirds or more days of paid sick leave for each subsequent full month of active employment, of which at least one and two thirds days per month are available only for the insured person’s illness or injury, while the insured person remains at home because of pregnancy or to care for a child or children referred to in subsection 23(1) of the Act or while the insured person is providing care or support to a family member referred to in subsection 23.1(2) of the Act, to a critically ill child or to a critically ill adult;

• (c) notwithstanding paragraph (b), the plan may allow the paid sick leave credit referred to in that paragraph to be prorated in relation to the total period of active employment in a month;

• (d) the days of paid sick leave available only in respect of the insured person’s illness or injury, while the insured person remains at home because of pregnancy or to care for a child or children referred to in subsection 23(1) of the Act, or while the insured person is providing care or support to a family member referred to in subsection 23.1(2) of the Act, to a critically ill child or to a critically ill adult, that are not used for those purposes, must be accumulated at the rate prescribed in paragraphs (b) and (c), and the maximum number of days of paid sick leave that may be so accumulated is not less than 125 working days; and

• (e) subject to the elimination period referred to in paragraph 63(b), benefits are payable under the plan with respect to the insured person's illness or injury until the earliest of

  • (i) the end of a period of at least 125 working days during which the benefits are paid,

  • (ii) the end of the period of incapacity due to the illness or injury,

  • (iii) the exhaustion of all accumulated paid sick leave,

  • (iv) the date the insured person retires, and

  • (v) the date of the insured person's separation from employment for any reason other than illness or injury, where notice of the separation was given before the onset of the illness or the occurrence of the injury.

• 67 (1) A plan that meets the requirements of section 63, 64, 65 or 66 shall be evidenced by a formal written commitment, including one or a combination of any of the following:

  • (a) a union or association agreement;

  • (b) an industry-wide plan;

  • (c) a private carrier insurance policy;

  • (d) an undertaking contained in an employees' handbook;

  • (e) a board of directors' resolution that has been implemented;

  • (f) an undertaking contained in a personnel policy bulletin; or

  • (g) a memorandum or other document addressed to employees by their employer.

• (2) Subject to section 71, if a plan referred to in section 63, 64, 65 or 66 becomes a qualifying plan or ceases to be a qualifying plan under subsection (4) at any time during the year for which a reduction of the employer’s premium rate is made under subsection 62(1), the reduction shall apply to the number of months in the year during which the plan is a qualifying plan.

• (3) A plan is a qualifying plan when it satisfies all the requirements of subsection (1) and section 63 or 64 or, subject to subsection (5), section 65 or 66.

• (4) For the purpose of determining when a plan becomes or ceases to be a qualifying plan under this Part, where the plan becomes or ceases to be a qualifying plan

  • (a) on or before the 15th day of a month, it shall be considered to have done so on the first day of that month; and

  • (b) after the 15th day of a month, it shall be considered to have done so on the first day of the following month.

• (5) A plan referred to in section 65 or 66 is considered to be a qualifying plan as of the date an application is made for a reduction of the employer's premium or the date it becomes a qualifying plan under subsection (4), whichever is later, if, on that date, each insured person covered by the plan is credited

  • (a) in the case of a plan referred to in section 65, with a number of days of paid sick leave equal to 72 minus the maximum number of days that could have been accumulated by the insured person since its commencement or during the six years preceding that date, whichever is the shorter period; and

  • (b) in the case of a plan referred to in section 66, with a number of days of paid sick leave equal to 120 minus the maximum number of days that could have been accumulated by the insured person since its commencement or during the six years preceding that date, whichever is the shorter period.

Application for Reduction of Employer's Premium Rate

• 68 (1) An application for a reduction of the employer’s premium rate in respect of insured persons, or for the continuation of such a reduction after the modification or replacement of a plan, shall be made to the Commission by the employer and shall

  • (a) be accompanied by a copy of the documents that represent the formal commitment referred to in subsection 67(1) or, if the application is for the continuation of a reduction, by a copy of the documents that have been modified or replaced;

  • (b) provide all the information necessary to determine whether the plan meets or continues to meet the requirements of this Part; and

  • (c) be accompanied by the employer's undertaking that the insured persons will benefit from the reduction of the employer's premium in an amount at least equal to five twelfths of the reduction, as required by subsection 69(1) of the Act.

• (2) Where an application referred to in subsection (1) is incomplete or where the Commission requires further information or documentation in order to make a decision on the application and the Commission requests that information or documentation from the employer, the employer shall provide the information or documentation within 30 days after the request is made, and where the information or documentation is not provided to the Commission within that time, an officer of the Commission shall make a decision on the existing information or documentation.

• 69 (1) In the case of an application for a reduction of the employer’s premium rate, or for the continuation of such a reduction, an employer shall group the insured persons employed by the employer into the following categories:

  • (a) insured persons who are covered by a plan that satisfies the requirements of section 63;

  • (b) insured persons who are covered by a plan that satisfies the requirements of section 64;

  • (c) insured persons who are covered by a plan that satisfies the requirements of section 65, except the insured persons referred to in paragraph 65(d);

  • (d) insured persons who are covered by a plan that satisfies the requirements of section 66, except the insured persons referred to in paragraph 65(d); and

  • (e) all other insured persons, including those referred to in paragraph 65(d).

• (2) In the case of an application for a reduction, the employer shall

  • (a) on notification by the Commission that a plan satisfies the requirements of section 63, 64, 65 or 66, request immediately from the Canada Revenue Agency a separate account number for each category of insured persons who are covered by a plan that entitles the employer to a reduction; and

  • (b) notify the Commission immediately on receipt of those account numbers.

• (3) If a modification or replacement of a plan results in a change to the previously established categories of insured persons, the employer shall

  • (a) on notification by the Commission that the plan as modified or replaced satisfies the requirements of section 63, 64, 65 or 66, request immediately from the Canada Revenue Agency a new account number for any newly established category; and

  • (b) notify the Commission immediately on receipt of that account number.

• (4) For each year for which a reduction of the employer’s premium rate is applicable, the employer shall

  • (a) beginning not later than the first remittance for the first month from which the employer’s reduction is applicable, remit to the Canada Revenue Agency the employer’s premium payable in respect of all insured persons in each category for which an account number has been received; and

  • (b) submit to the Canada Revenue Agency, for each account number, an information return that shows the total amount of insurable earnings, of employees’ premiums and of employer’s premiums in respect of all insured persons in the category for which the account number was issued.

70 If the plan on which a reduction of the employer’s premium rate is based is modified or replaced, the employer shall

• (a) notify the Commission within 30 days after the modification or replacement; and

• (b) apply for a continuation of the reduction in accordance with section 68.

71 The effective date of a reduction of the employer’s premium rate under subsection 62(1) is,

• (a) in the case of an initial application for a reduction,

  • (i) the first day of the month following the month in which the application was made, if it was made on or before the 15th day of the month, or

  • (ii) the first day of the second month following the month in which the application was made, if it was made after the 15th day of the month, and

• (b) in the case of an application for the continuation of a reduction, the effective date of the modification or replacement of the plan.

• 72 (1) On receiving an application that is in accordance with section 68, an officer of the Commission shall decide whether the employer meets or continues to meet the requirements for receiving a reduction under this Part and shall notify the employer of the decision.

• (2) If an employer does not comply with section 70, an officer of the Commission shall, after learning of the non-compliance and giving the employer an opportunity to be heard, make the decision referred to in subsection (1) and notify the employer of the decision.

• (3) If an employer’s plan ceases to meet the requirements of paragraph 63(d), an officer of the Commission shall terminate entitlement to the reduction and notify the employer of the decision.

73 An employer who makes an application referred to in subsection 69(4) of the Act shall produce evidence that a qualifying plan pursuant to paragraph 67(3) was in effect during the period in respect of which the application is made.

Termination of Plan

74 An employer shall, within 30 days after termination of a plan on which a reduction of the employer’s premium rate is based, notify the Commission of the plan’s termination.

Appeals

75 An employer may appeal to the Commission a decision made pursuant to section 72 of these Regulations or pursuant to subsection 69(4) of the Act or a new decision made pursuant to subsection 69(5) of the Act, within one year after the day on which notice of the decision or new decision is sent to the employer.

Transitional Provisions

76 The Commission may reconsider an application by an employer for a reduction of the employer's premium for the year 1995 where the employer

• (a) has made the application before December 4, 1994;

• (b) has been considered for a premium reduction for the year 1995; and

• (c) would have been entitled to a greater premium reduction if the application had been made on or after December 4, 1994.

PART III.1Reduction of Premiums for Employees Covered by a Provincial Plan and for their Employers

DIVISION 1General

Interpretation

76.01 The definitions in this section apply in this Part.

provincial benefits

provincial benefits means allowances, money or other benefits, paid to a person under a provincial plan because of pregnancy or in respect of the care by that person of one or more of their new-born children or one or more children placed with them for the purpose of adoption. (prestations provinciales)

provincial plan

provincial plan means a plan, established under a provincial law, that provides for the payment of provincial benefits and in respect of which an agreement has been entered into between the Government of Canada and the province to establish a system for reducing employer’s and employee’s premiums where the payment of those benefits would have the effect of reducing or eliminating benefits payable under section 22 or 23 of the Act. (régime provincial)

variable administrative costs

variable administrative costs means the amount of direct operating costs incurred to provide benefits under sections 22, 23, 152.04 and 152.05 of the Act that fluctuate with the number of claims for such benefits that are processed, not including any fixed operating costs related to the administration of the Act. (frais administratifs variables)