Government of Canada Introduces Temporary Employment Insurance Measures to Respond to Economic Impacts From Tariffs

The Government of Canada has introduced new temporary employment insurance (“EI”) measures to support Canadian workers impacted by foreign tariffs.

The government published the Regulations Amending the Employment Insurance Regulations (Pilot Project No. 24) in the Canada Gazette on April 9, 2025, which temporarily amends the EI Regulations. These temporary amendments include: boosting the regional unemployment rates used to determine access to and duration of EI benefits; suspending the rules regarding earnings allocation and repayment of monies related to separation from employment; and introducing a discretionary waiver of the one-week waiting period for EI benefits.

These temporary measures will make it easier and quicker for employees to access EI benefits, by reducing the number of insurable hours needed to qualify for EI benefits, as well as waiving the waiting period (unless serving the waiting period is advantageous to the employee). In addition, employees who receive a lump sum payment related to a separation from employment allocated to the applicable time period will not see that payment trigger the normal repayment obligations that would have applied (absent the amendment) if they receive EI benefits during the same period.

These temporary measures are described below:

Boosting Regional Unemployment Rates (April 6, 2025, to July 12, 2025)

For the period between April 6, 2025, and July 12, 2025, the regional unemployment rates used to determine access to and duration of EI benefits will be artificially boosted, which will reduce the number of insurable hours that employees need to qualify for regular EI benefits, as follows:

• For regions with an unemployment rate of 6.1% or less, the rate will be deemed to be 7.1%
• For regions with an unemployment rate that is greater than 6.1% but less than 12.1%, the rate will be increased by 1%
• For regions with an unemployment rate that is greater than 12.1% but less than 13.1%, the rate will be deemed to be 13.1%

This change is aimed at improving access to EI benefits. As a result, employees will be required to work fewer hours to qualify for EI benefits, and may be eligible to receive benefits for a longer period of time.

Suspension of Rules Regarding Earnings Allocation Relating to Monies Payable on Lay-off or Separation of Employment (March 30, 2025, to October 11, 2025)

Oftentimes when an employment relationship ends, an employee receives some form of separation payment that would typically constitute “employment income” for the purposes of determining eligibility for EI benefits (and which could trigger repayment obligations if the employee receives EI benefits during the same time period). As a result of these amendments, the earnings paid or payable to a employee due to a lay-off or separation from employment will not constitute earnings for the purpose of triggering EI repayment obligations where:

• The employee’s benefit period begins during the period beginning on March 30, 2025, and ending on October 11, 2025; or
• Those earnings would otherwise be allocated to a number of weeks, the first week of which falls within the period beginning on March 30, 2025, and ending on October 11, 2025.

This means that such payments will not trigger the normal repayment obligations that would have applied (absent the amendment) if the employee receives EI benefits during the same period. The above applies to lay-offs or separations from employment that occur during the March 30, 2025, to October 11, 2025, period. Employers should be aware that EI repayment obligations can still apply for lay-offs or separations of employment that occurred before March 30, 2025.

Discretionary Waiver of the One-Week Waiting Period for all EI Claims (March 30, 2025, to October 11, 2025)

The amendments provide that Employment and Social Development Canada (“ESDC”) “may” waive the one-week waiting period in respect of any benefit period that begins between March 30, 2025, and October 11, 2025. Employers should be aware that such waiver is discretionary. ESDC has published guidance noting that EI claimants may serve the waiting period if it is to the claimant’s advantage because of a top-up from a Supplemental Unemployment Benefit plan.

If you have any questions or require more information about any of the above-noted temporary changes, please contact any member of our Labour & Employment Group.