Expanded Benefits Aim to Cushion Economic Blow
Canadian workers affected by escalating US tariffs will find it easier to access Employment Insurance (EI) benefits following a series of temporary measures announced by the federal government this week. The move comes as trade tensions between Ottawa and Washington continue to disrupt key sectors of the economy.
Jobs and Families Minister Patty Hajdu confirmed on Tuesday that the government is extending three existing temporary EI provisions introduced in March 2025, along with launching one new measure designed to offer greater flexibility for displaced workers.
“The more people that can keep their jobs, their current jobs, the healthier and more productive our communities remain,” Minister Hajdu said during a press briefing. “But for those that lose their jobs, even with those supports for employers, we’re going to make it even easier to get employment insurance.”
New Rule Loosens Voluntary Departure Restrictions
One of the most significant changes allows workers who voluntarily leave a job within the past year to still qualify for EI if they subsequently lose new employment through no fault of their own. Previously, individuals who resigned from a position were barred from receiving EI benefits for 52 weeks.
Employment lawyer Teilen Celentano from Samfiru Tumarkin LLP explained how the policy shift could provide crucial relief. “That situation would be where somebody resigned, faced a period of unemployment, found a new job, and then that new job… they lost,” he said.
“I think it’s a good thing that they’re at least trying to help people who tried to make a new move and through no fault of their own, that new move didn’t work out.”
Severance Payments No Longer Block EI Claims
In another change set to extend through 2026, the government is waiving the standard one-week waiting period before EI payments begin. Additionally, workers can now receive EI benefits even while collecting severance pay or unused vacation compensation.
This effectively permits what employment lawyers refer to as “double-dipping” — drawing both severance packages and EI simultaneously. Partner Puneet Tawari at Levitt LLP noted the practical advantage of the adjustment. “In terms of employees who have been terminated or having trouble at work, it’s a great measure that does help them out because they can double dip,” he said.
“That’s the colloquial term we use in employment law — they’re double dipping on EI until they get a new job and they get a severance package from their employer. So that’s definitely helpful.”
Long-Tenured Workers Gain Extended Coverage
A separate provision extending an additional 20 weeks of EI benefits for long-tenured workers will also remain active for the coming year. Officials highlighted that experienced employees often struggle to secure comparable roles quickly, particularly in industries directly impacted by US tariffs such as dairy, automotive, and manufacturing.
Despite these enhancements, some legal experts argue that current benefit levels may fall short in high-cost regions. Standard EI payments cap out at $729 per week before taxation, based on 55% of average insurable earnings up to $68,900 annually.
“For a lot of people, they get largely blindsided and they’re terminated effective immediately. And that’s true even when it’s without cause. So they don’t have time to save money, they can’t make their purchasing decisions, and a lot of people are living paycheque to paycheque,” Celentano observed.
He suggested that increasing payment thresholds as part of the temporary framework could offer more meaningful support. “Depending on their local cost of living and other personal circumstances, that may not be enough to get by,” he added.
The expanded EI access follows Prime Minister Mark Carney’s decision to abandon trade negotiations with the US earlier this month after failed discussions over tariff disputes. President Donald Trump subsequently imposed 50% duties on dozens of Canadian exports, prompting retaliatory actions from Ottawa targeting hundreds of American products.
Why it Matters
With thousands of jobs already lost due to trade-related disruptions and further economic uncertainty looming, these EI adjustments represent a critical lifeline for affected families. However, questions persist about whether enhanced access alone addresses deeper affordability challenges faced by low- and middle-income households. As Canada navigates an intensifying transatlantic trade conflict, the effectiveness of domestic safety nets will likely come under increasing scrutiny.
