Human Resources and Skills Development Canada
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Canada Employment Insurance Commission
Background
The Canada Employment Insurance Commission (CEIC) is an entity under the umbrella of the Department of Human Resources and Social Development (known as Human Resources and Social Development Canada or HRSDC). Its main role is to assist HRSDC in managing the Employment Insurance Program.
Today, the Commission finds its basis for existence under the Department of Human Resources and Skills Development Act (assented to on July 20, 2005). Under section 24 of the departmental Act, the Commission, as required by the Minister of HRSDC or by an Act of Parliament (e.g. the Employment Insurance (EI) Act), exercises such powers and performs such duties and functions in relation to:
- employment insurance
- employment services
- the development and utilization of labour market resources
The Commission can also be called by order of the Governor in Council or by or pursuant to an Act of Parliament to exercise powers and perform duties and functions in relation to other matters.
The Commission is required to comply with any directions given to it from time to time by the Minister of HRSDC respecting the exercise of its powers or the performance of its duties and functions.
The Commission has four members, representing the interests of government, workers and employers. The Chairperson and Vice-Chairperson are respectively the Deputy Minister and Associate Deputy Minister of HRSDC and can be said to represent the interests of government. The other two Commissioners represent the interests of workers and employers. The Governor in Council appoints these two Commissioners for terms of up to five years, following consultation with organizations representative of workers and employers respectively.
Mandate under the EI Act
HRSDC manages many programs, one of the most important being the EI program which is delivered to Canadians at its Service Canada Centres across the nation. UI was changed to EI under Bill C-12 which introduced the EI Act, replacing the UI Act, as of June 30, 1996.
Although the EI Act is replete with references to activities for which the CEIC is responsible, the program is primarily administered and delivered by HRSDC staff.
There is a split in the administration of the EI Act between two government departments/agencies. HRSDC and the Commission are responsible for application of the benefit provisions whereas the Canada Revenue Agency (CRA) is fully responsible for all matter of insurability including the collection of EI premiums. The CEIC plays an active role in a number of areas related to EI policy and program delivery.
The 2008 Budget Implementation Act, which received Royal Assent on June 18, 2008 includes a new approach to Employment Insurance financing. This new approach includes a new Crown corporation, the Canada Employment Insurance Financing Board (CEIFB) which will be responsible for EI financing, including a new EI premium rate-setting mechanism. The Budget Implementation Act includes the CEIFB Act, and changes to the EI Act. There are implications for the CEIC related to EI premium rate-setting, the annual EI Monitoring and Assessment report and a new role on the CEIFB Nominating Committee.
The Canada Employment Insurance Financing Board (CEIFB) Nominating Committee (section 10 of the CEIFB Act)
The EI Commissioner for Workers and the EI Commissioner for Employers are members of the Nominating Committee responsible for identifying and recommending to the Minister qualified candidates for appointment to the CEIFB Board of Directors. This will ensure both business and labour play a role in ensuring the most qualified individuals are selected to manage decision-making concerning the financing of the EI program. The third member of the Nominating Committee is a chairperson appointed by the Minister on the basis of merit.
Setting the Annual Premium Rate (section 66 of the EI Act
) .
As part of the new approach to EI financing, pursuant to the CEIFB Act and amendments to the Employment Insurance Act, the CEIFB will be responsible for implementing an improved EI premium rate-setting mechanism that will ensure that EI revenues and expenditures break even over time.
Under the existing legislation, for each year, the CEIC sets the premium rate at a rate that the Commission considers will, to the extent possible, ensure that there will be enough revenue over a business cycle to pay the amounts authorized to be charged to the EI Account; and maintain relatively stable rate levels throughout the business cycle. The Budget Implementation Act, 2005 (assented to June 29, 2005) amended Part III of the Employment Insurance Act which deals with Premiums and Other Financial Matters:
- the principle that the premium rate should generate just enough premium revenue to cover payments to be made for that year;
- the report from employment insurance chief actuary; and
- any public input.
However, in any given year, the rate cannot change by more than 0.15% ($0.15 per $100). For 2006 and 2007 the rate must not exceed 1.95% ($1.95 per $100).
Making Regulations (mainly section 54 of the EI Act ). For the proper administration of the eligibility provisions of the EI program, including the self-employed fishing scheme, the Commission makes regulations with the approval of the Governor in Council (there exists some 100 regulatory provisions).
Annual Monitoring and Assessment Report (section 3 of the EI Act
) The CEIC is required to monitor and assess the impact and effectiveness, for individuals, communities and the economy of the benefits and other assistance provided under the Employment Insurance Act.
Pursuant to amendments to the Employment Insurance Act included in the 2008 Budget Implementation Act, the EI Commission will have an ongoing mandate to continue the EI Monitoring and Assessment report as a permanent annual report.
Policy Issues. Reviews and approves major EI application policies presented by HRSDC staff such as premium relief and adjudication principles.
Appeals System. There is an appeal system for the persons who are not entitled to receive EIbenefits. The first level of appeal is the Board of Referees (an independent administrative tribunal consisting of a Chairperson, a member selected from the worker community and one selected from the employer community). Next levels are the Umpire, the Federal Court of Appeal and finally the Supreme Court of Canada. The two Commissioners, for Workers and Employers, following consultation with labour and employer groups, respectively appoint worker and employer members of a Board of Referees for up to three years (Chairs are appointed by the Governor in Council). (Part VI of the EI Act - Administrative Provisions - Board of Referees, Part V - EI Regulations - Boards of Referees).
The two Commissioners, for Employers and Workers, establish and maintain consultations and working relationships with a variety of private sector organizations and individuals that are clients of, or affected by, HRSDC programs and services, particularly in regard to EI. These relationships fulfill the representational responsibilities of the Commissioners and enable them to reflect internally the concerns and positions of the private sector regarding the administration of legislation, policy development and implementation, and program delivery.
The Commission first came into being as the Unemployment Insurance Commission (UIC) which was created in 1940 with the passage of legislation which introduced Canada's first unemployment Insurance (UI) program. The UIC was responsible for the operation and administration of the UI program.
In 1977, the UIC integrated into the new Department of Employment and Immigration under the Employment and Immigration Department and Commission (EIDC) Act. It became the Canada Employment and Immigration Commission (CEIC). The EIDC Act laid out powers in regard to:
- the development and utilization of labour market resources
- employment services
- unemployment insurance
- immigration
The EIDC Act also required the CEIC to comply with any directions given to it from time to time by the Minister of Employment and Immigration.
Under the EIDC Act, the Deputy Minister and Associate Deputy Minister became the Chairperson and Vice-Chairperson respectively of the CEIC. Two other Commissioners representing the interests of workers and employers were appointed by Governor in Council for terms of up to five years, following consultation with organizations representing workers and employers respectively.
In 1994, the immigration program was transferred to the newly created Department of Citizenship and Immigration. The human resources and social programs from five other departments were combined to create the Department of Human Resources Development of Canada or better known as HRDC. The Canada Employment and Immigration Commission was maintained.
In May 1996, the Commission became the Canada Employment Insurance Commission under the Department of Human Resources Development Act.
In July 2005, the Commission was maintained under the Department of Human Resources and Skills Development Act.
The 2008 Budget Implementation Act, which received Royal Assent on June 18, 2008 includes a new approach to Employment Insurance financing. This new approach includes a new Crown corporation, the Canada Employment Insurance Financing Board (CEIFB) which will be responsible for EI financing, including a new EI premium rate-setting mechanism. The Budget Implementation Act includes the CEIFB Act, and changes to the EI Act. There are implications for the CEIC related to EI premium rate-setting, the annual EI Monitoring and Assessment report and a new role on the CEIFB Nominating Committee.
