TORONTO — Federal legislation extending the ability of self-employed people to participate in the Employment Insurance (EI) program’s special benefits — including maternity, parental, sickness and compassionate care allowances — received Royal Assent just before Christmas.
Diane Finley, Minister of Human Resources and Skills Development, made an official announcement Dec. 16 regarding Bill C-56, the Fairness for the Self-Employed Act. Self-employed people can now take part on a voluntary basis.
“Thanks to this new initiative, self-employed Canadians will no longer have to choose between their family and their business responsibilities,” said Finley in a news release. “It is good family policy, and it represents one of the most significant enhancements to the EI program in the last decade.”
According to the news release, the new measure “responds to the government’s 2008 pledge to help provide improved economic security and support for all those who are self-employed.”
Those who choose to take part will be required to opt into the program at least one year prior to claiming benefits, and will be responsible for making premium payments for the tax year in which they apply to the program.
Subject to final approvals of regulations, they will be able to voluntarily opt into the EI program effective January 31, 2010, and as a transitional measure those who register on or before April 1, 2010, will be able to collect benefits as early as January 1, 2011. Special benefits provided to self-employed individuals will mirror those currently available to salaried employees under the EI program.
“The self-employed have previously had little or no income protection to cope with major life events such as giving birth, caring for a newborn or newly adopted child, being sick or injured, or caring for a gravely ill family member,” added Finley. “This government is now pleased to be providing these Canadians with greater peace of mind with respect to their future financial security.”
The four types of EI special benefits are maternity benefits, parental benefits, sickness benefits, and compassionate care benefits. To be eligible, you must be self-employed, a Canadian citizen or a permanent resident of Canada, and have entered into an agreement with the Canada Employment Insurance Commission through Service Canada. You will have to register online using My Service Canada Account anywhere you can access the internet, including at a Service Canada Centre.
If you enter into an agreement with the Canada Employment Insurance Commission after April 1, 2010, you will have to wait 12 months before you will be able to make a claim for EI special benefits.
