New Temporary Measures for Employment Insurance Benefits

In our March 7, 2025 Briefing Note, Trump’s Tariffs Have Landed – How Can Canadian Employers Pivot?, we discussed the impact of the United States launching a trade war with Canada and options for Canadian employers if right- or downsizing becomes necessary.

In our March 13, 2025 Briefing Note we discussed, in detail, special measures the Federal Government introduced under Service Canada’s Work-Sharing Program.

On April 9, 2025, the Federal Government announced a six-month employment insurance (“EI”) pilot project to support Canadian workers[1]. With the significant job losses expected in a tariff-impacted economy, the EI benefits claims are expected to increase substantially, with an anticipated 415,000 additional claims in the first 12 months.  It is also expected that a greater percentage of claimants will exhaust their weeks of entitlement, with the potential of return to employment increasingly difficult.

As a result, the following measures are now in effect:

1. Service Canada will waive the one-week waiting period for all EI claims.
   • This is in effect from March 30, 2025 to October 11, 2025.
   • EI claimants may still serve the waiting period if it is to their advantage because of a top-up from a Supplemental Unemployment Benefit plan.
2. EI claimants will not experience a delay in receiving benefits, or a reduction of benefits, if they also receive separation monies (e.g., severance, vacation, and other monies), if:
   1. The claimant’s benefit period begins between March 30, 2025 to October 11, 2025; or
   2. The separation monies are allocated during a period where the first week falls between March 30, 2025 to October 11, 2025.
      • This is in effect from March 30, 2025 to October 11, 2025.
      • For an employment separation or layoff that occurred before March 30, 2025 and separation payments that continue beyond October 11, 2025, a delay or reduction in EI benefits may still occur.
3. During the period April 6, 2025 to July 12, 2025, the Government will artificially boost regional unemployment rates as follows:
   1. For a region with a rate of 6.1% or less, the rate will be deemed to be 7.1%.
   2. For a region with a rate between 6.1% and 12.1%, the rate will increase by 1% point.
   3. For a region with a rate between 12.1% to 13.1%, the rate will be deemed to be 13.1%.
   4. For a region with a rate of 13.1% or greater, the rate will not change.
      • Claimants across all EI regions will need no more than 630 hours of insurable employment to quality for regular benefits[2]; and
      • Across all EI regions, entitlement to benefits may increase by up to 4 additional weeks.[3]

To learn more, please contact your Sherrard Kuzz LLP lawyer or info@sherrardkuzz.com

The information contained in this article is provided for general information purposes only and does not constitute legal or other professional advice, nor does accessing this information create a lawyer-client relationship. This article is current as of April 2025 and applies only to Ontario, Canada, or such other laws of Canada as expressly indicated.  Information about the law is checked for legal accuracy as at the date the article is prepared but may become outdated as laws or policies change.  For clarification or for legal or other professional assistance please contact Sherrard Kuzz LLP.

[1] “Regulations Amending the Employment Insurance Regulations (Pilot Project No. 24): SOR/2025-115” Government of Canada” (April 9, 2025)

[2] Depending on the EI region, a claimant regularly needs 429 to 700 hours of insurable employment .

[3] Depending on the EI region, the standard maximum is 45 weeks.