Vol. 150, No. 14 — July 13, 2016

Registration

SI/2016-42 July 13, 2016

BUDGET IMPLEMENTATION ACT, 2016, NO. 1

Order Fixing July 3, 2016 as the Day on which Certain Provisions of the Act Come into Force

P.C. 2016-665 June 30, 2016

His Excellency the Governor General in Council, on the recommendation of the Minister of Labour, pursuant to subsection 231(3) of the Budget Implementation Act, 2016, No. 1, chapter 7 of the Statutes of Canada, 2016, fixes July 3, 2016 as the day on which subsection 207(3) and sections 209, 210, 216, 220 and 230 of that Act come into force.

Order Fixing July 3, 2016 as the Day on which Certain Provisions of the Act Come into Force

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

This Order in Council (the Order), pursuant to subsection 231(3) of the Budget Implementation Act, 2016, No. 1 (BIA 2016), chapter 7 of the Statutes of Canada, 2016, fixes July 3, 2016, as the day on which subsection 207(3) and sections 209, 210, 216, 220 and 230 of the BIA 2016 come into force.

Objective

The intent of the Order is to bring into force clauses of the BIA 2016, which received royal assent on June 22, 2016, to eliminate the new-entrant and re-entrant (NERE) provisions in the EI Act. The coming-into-force date would be set as July 3, 2016, at the same time as the proposed amendments to the Employment Insurance Regulations (the EI Regulations) and the Employment Insurance (Fishing) Regulations [the EI (Fishing) Regulations].

Background

Budget 2016 announced several initiatives to improve employment insurance (EI), including expanding access to EI benefits by eliminating the NERE provisions in the EI Act and its regulations.

The NERE provisions in the EI Act were enacted in 1978. These provisions sought to reduce dependence on EI and ensure there was significant work effort antecedent to an EI claim. The provisions generally require that any worker who has not accumulated 490 hours of employment in their pre-qualifying period (generally the 52 weeks prior to their qualifying period) to then have 910 hours of insurable employment in their qualifying period (generally the 52 weeks prior to their claim).

Similarly, self-employed fishers who have not accumulated $3,000 in earnings from employment as a fisher or 490 hours of labour force attachment in the pre-qualifying period are required to have $5,500 in earnings in their qualifying period (generally the 31 weeks prior to their qualifying period).

Amendments to repeal the NERE provisions in the EI Regulations and the EI (Fishing) Regulations are also underway in parallel, with the date of the coming into force to be set as July 3, 2016.

Implications

The NERE provision must be repealed from the EI Act, the EI Regulations, and the EI (Fishing) Regulations at the same time to ensure the proper application of these three statutes. Without the Order to bring into force the NERE-related provisions in the BIA 2016, there would be inconsistencies between the EI Act and the EI Regulations. The coming into force of the amendments to the EI Act and the consequential amendments to the EI Regulations and the EI (Fishing) Regulations will end the different treatment of NEREs and ensure that they will have the same access to EI benefits as the rest of the workforce.

Consultation

A wide range of stakeholders representing organized labour, think tanks, business and SMEs have supported these changes to EI. Some stakeholders may view the initiatives as an early first action toward future EI changes. Any additional changes to the EI program are beyond the scope of this particular initiative; however, this initiative does not preclude the Government from taking future actions to ensure that EI serves the needs of the Canadian workers and employers.

Departmental contact

Janique Venne
Director
Employment Insurance Policy Directorate
Skills and Employment Branch
Employment and Social Development Canada
140 Promenade du Portage, 5th Floor
Gatineau, Quebec
K1A 0J9
Telephone: 819-654-3067
Fax: 819-934-6631