Losing a job is the last thing anyone wants in life. With the pandemic hitting the economy badly, many individuals have lost their jobs and sources of income. To top it up, cases of severe illness or catering to an ill family member may hamper the lives further during a job loss or monetary crisis.
During such a situation, the government of Canada runs a specific employment insurance program to help overcome the financial crunch.
What is the employment insurance program?
The Employment Insurance program or the EIP run by the government of Canada is a source of temporary income for all those citizens who lose their jobs. Unemployed Canadian citizens can get financial help from the EIP. EIP helps those who are severely sick or are tendering an unwell member of their family. The program even assists unemployed citizens with new job opportunities.
Eligibility criteria to benefit from the Canadian employment insurance
- Having no source of income and pay for a minimum of seven days.
- To pay in advance for the employment insurance program deducted from past employment paychecks.
- To fulfill a certain number of hours of working depending upon the rate of working hours and the period.
Benefits of the Canadian employment insurance
1. A temporary income partner
The employment insurance program acts as a source of income during a monetary crisis. The employers deduct a certain amount for the Employment Insurance fund to keep a certain amount reserved for the employee to help during the crisis.
2. Added benefits partner
As a financial assistant to those who lost their jobs and those who struggle with illness, the employment insurance program is a life savior. A sick, pregnant, or taking care of a sick can easily avail of the benefits from this program.
3. A helping hand for businesses
Businesses may go through a rough patch, which might risk layoffs for many employees. During such critical times, the employment insurance program allows the employees and the business to get back on track and avoid laying off employees.
4. A job assistant
EIP is a source of income for individuals who have lost their jobs and acts as a job assistant to many job seekers. It helps employers connect with prospective employees and thus helps in seeking jobs for many unemployed individuals.
Ineligibility criteria for the employment program:
- If an employee willingly leaves their current job position.
- If an employer fires an employee or asks to resign from their job role.
- If an employee has any criminal record or even if in jail.
- If an employee has not contributed towards the employment insurance program fund from their past employment jobs.
The Canadian employment insurance program helps the unemployed in difficult times of their life. However, the program has its downside. As beneficial as it can be, the employment insurance program may instigate these two negative situations:
- The program may encourage unemployment for job seekers who may become passive to search for work and depend on the government for their job opportunities.
- Excessive dependency upon employment insurance funding may be over-used by businesses for their benefits, creating a negative impact on the economy.
The employment insurance program is a boon for Canadians who lost their sources of income. It provides additional services and facilities for the unemployed during such situations. Canadians must know their rights, benefits, and government programs like EIP can help any citizen when they need them the most.