Canada improves Employment Insurance Plan

Canadian government is on the lines of improving the existing employment insurance plan, with these changes they will be able to provide more benefits to its workers and support the local labour market conditions in a better way.

Recently the Human Resources and Skills Development Minister, Diane Finley has proposed new changes and improvements in the Employment Insurance program of the country. The changes have been proposed with the viewpoint to improve economic growth of the country along with the improvements of its workers. Finley claims that their main concern is to create jobs and maitain long term economical prosperity of the country. The introduction of this new Employment Insurance plan will align with the existing discrepancies in the labour market conditions. The new Employment Insurance calculation system will ensure fairness amongst all the labour market workers throughout the country.

The Plan:

According to the governments new pan-Canadian approach of calculating the Employment Insurance benefits, the value for such benefits are supposed to be calculated by using the highest weeks earnings of the qualifying or the set period that is usually 52 weeks. The number of weeks in consideration will be ranging from 14 to 22 that will most probably depend on the unemployment rate in a particular Employment Insurance region. A 14 Weeks pilot study of the project is suggested in 25 regions to check the efficiency of the plan. It is believed that once it is on roll, it is expected to replace the current plan providing more benefits to the seeker.

Current Implementation:

Currently the ongoing Employment Insurance rules will be applied till April 7, 2013, (until the new rule is application) as subject to the approval by Parliament. Hence most probably the Best 14 Weeks pilot project is expected to be extended till April 6, 2013.

The Actual Implementation:

From April 7, 2013, the new change will be implemented across the nation when all the applicants will getting their employment insurance calculated according to highest weeks of earnings over the last year. The time period taken to implement the changes will ensure that the claim seekers and also the Canadian businesses have ample of time to adjust and understand the changes. This particular improvement is no way going to affect the self-employed or fishers.

Opposition’s take on the Improvement:

Opposition parties are of different point of view and they are quiet worried about the Canadians as the plan could be little less effective, especially, when the employment insurance coverage is much needed.

The Promise:

It is believed that the new change will bring new ray of hope and ensures a more fair system and will also be very helpful to deal with labour market situations.