Relief Measures in Response to Tariffs
In a tariff-impacted economy, the Canadian government expects the volume of Employment Insurance (“EI”) benefits claims to rise substantially. The Canada Employment Insurance Commission expects an additional 415 000 claims in the first 12 months. It is also expected that more claims will exhaust their entitlement. Canada’s federal government has introduced temporary employment insurance (EI) relief measures as of March 2025 that are designed to ensure that workers are supported with timely access to Employment Insurance benefits. Two of those measures were modified in September 2025 to extend their timelines.
Some of these measures include the following:
Suspending Certain EI Repayment Obligations;
Under ordinary circumstances, an employee’s earnings paid as part of a separation from employment are deducted accordingly from their benefits. It can also delay receiving benefits. These “separation earnings” include but are not limited to vacation pay, severance pay, and sick leave credits.
The remedial measures recently introduced have changed that by offering providing some claims relief from these principles. For EI claims commenced between March 30, 2025 to October 11, 2025, earnings from such a separation are not deducted from a claimant’s EI benefits. That date range has been extended from October 11, 2025 to April 11, 2026 as of September 2025.
The suspension does not apply to ongoing employment income fees, including salary continuance.
Waiver of the 1-Week Waiting Period:
Ordinarily, you will not be paid your EI benefits for one week, commonly deemed the “waiting period”.
Under the new relief measures, EI benefit claims commencing between March 30, 2025 to October 11, 2025 (also now extended to April 11, 2026) now have a waived “waiting period”.
The waiver is discretionary by the claimant, meaning a claimant may choose to undergo the waiting period if they so choose. They may wish to do so if they have a top-up from a Supplemental Unemployment Benefit plan.
Controlled Adjustment to Regional Unemployment Rates:
The qualification for EI benefits depends on your number of hours of insurable employment; the hours needed changes between regions based on each region’s unemployment rate.
The Canadian government has artificially boosted regional unemployment rates currently under 13.1%, thus reducing the number of hours needed for a claimant to make a claim. The adjustments are as follows:
- Employment rates at or below 6.1% are raised to 7.1%
- Employment rates between 6.2% and 12% are raised by 1%; and
- Employment rates between 12.1% and 13% are raised to 13.1%
This adjustment will apply to any claims started between April 6, 2025 to October 11, 2025.
20 Extra Weeks of Benefits for Long-Tenured Workers:
On September 5, 2025, a new remedy was introduced regarding “long-tenured workers”.
Long-tenured workers who require additional time to find new employment will be eligible for an additional 20 weeks of EI and income support, extending the maximum to 65 weeks.
This measure will take effect on October 12, 2025 and will apply to eligible claims established between June 15, 2025 to April 11, 2026.
Also announced were various investments to be made in Canadian labour market funds and agreements over the next several years. This includes $50 million over 5 years into a new digital tool to better match workers’ skills profiles to relevant jobs on the Job Bank platform, which all EI claimants will be automatically enrolled in.
Current Impact of Relief Measures and the Future
It remains to be seen what impact these measures will have on Canada’s workers and industries. It is also unclear whether there will be sudden changes in the US’ tariffs – upward or downward – and how EI relief measures might be further adjusted in response. Regardless, there will be many workers looking to make use of these aforementioned relief measures in the coming months.
EI benefits are a common issue in wrongful dismissal claims. Contact our office to schedule a consult with our employment lawyers whether you are an employer or employee and facing a separation of employment.
Tags: Employment Litigation Law, Employment Insurance and Tariffs