The Government of Canada Delivers Employment Insurance Fairness for the Self-Employed

TORONTO, ONTARIO, Nov 03 (MARKET WIRE) --
The Honourable Diane Finley, Minister of Human Resources and Skills
Development, today announced that the Government of Canada has introduced
the Fairness for the Self-Employed Act, legislation that would extend
Employment Insurance (EI) special benefits, including maternity,
parental, sickness and compassionate care benefits, to the self-employed.

"Our government knows that self-employed Canadians should not have to
choose between their family and their business responsibilities," said
Minister Finley. "Extending access to these benefits is the fair and
right thing to do. It is good family policy, and it represents one of the
most significant enhancements to the EI program in the last decade."

"The self-employed have 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 Minister Finley. "This government is now providing these
Canadians with greater peace of mind with respect to their future
financial security."

This measure responds to the Government's 2008 pledge to help provide
improved economic security and support for all those who are
self-employed. By introducing this legislation, the Government is
delivering on, and in fact exceeding, its commitment. With these changes,
self-employed Canadians would be able to voluntarily opt into the EI
program and receive special benefits. Overall, the special benefits for
self-employed individuals would mirror those currently available to
salaried employees under the EI program.

"About 2.6 million Canadians are self-employed. The majority of them have
long asked for this support, and our government is responding to this
strongly expressed need," said Minister Finley. "We think that the
self-employed should have the option of getting the same income
protection that salaried employees currently receive when it comes to
major life events."

This measure demonstrates that the Government continues to make
responsive and responsible choices to support Canadians through the EI
program. It is just the latest in a series of improvements the Government
has already made to the EI program.

Through Canada's Economic Action Plan, the federal government is helping
those hardest hit by the economic downturn by providing longer EI
benefits, more efficient service and support for training, while
protecting jobs through Work-Sharing agreements. The Government has also
frozen EI premiums for 2010 at the same rate as 2009.

Most recently, the Government introduced legislation to extend EI regular
benefits for unemployed long-tenured workers, who are individuals that
have paid EI premiums for years and made limited use of the program, and
who now need additional support while they look for jobs in a recovering
economy.

BACKGROUNDER

Fairness for the Self-Employed Act

Income protection for life-transition events, such as the birth of a
child, adoption, illness, and the care of a gravely ill family member, is
a key contributor to the financial security of all Canadian workers. The
2008 Speech from the Throne recognized the challenges facing
self-employed Canadians as they deal with the dual pressure of being
entrepreneurs and caring for their families. In Budget 2009, the
Government proposed to examine ways to best provide self-employed
Canadians with access to Employment Insurance (EI) maternity and parental
benefits. The Government has now introduced the Fairness for the
Self-Employed Act, legislation that would fulfill and exceed this
commitment.

Through the new legislation, self-employed Canadians who opt into the EI
program would be eligible to receive the same special benefits currently
available to salaried employees, specifically:

- maternity benefits (15 weeks maximum) are available to birth mothers
and cover the period surrounding birth (a claim can start up to 8 weeks
before the expected birth date);

- parental/adoptive benefits (35 weeks maximum) are available to
biological or adoptive parents while they are caring for a newborn or
newly adopted child, and may be taken by either parent or shared between
them (if parents opt to share these benefits, only one waiting period
must be served);

- sickness benefits (15 weeks maximum), which may be paid to a person who
is unable to work because of sickness, injury or quarantine; and

- compassionate care benefits (6 weeks maximum), which may be paid to
persons who have to be away from work temporarily to provide care or
support to a family member who is gravely ill with a significant risk of
death.

Under the proposed legislation, self-employed Canadians would be required
to opt into the program at least one year prior to claiming benefits.
They would also be responsible for making premium payments starting with
the tax year in which they apply to the program. With a program start
date of January 2010, claims could be made as early as January 1, 2011.

To access EI special benefits, self-employed individuals would need to
have earned a minimum of $6,000 in self-employed earnings over the
preceding calendar year.

The self-employed could opt out of the EI program at the end of any tax
year, as long as they have never claimed benefits. If they have claimed
benefits, they would have to contribute on self-employed earnings for as
long as they are self-employed.

Self-employed Canadians who opt into the program would pay the same EI
premium rate as salaried employees. They would not be required to pay the
employer portion of premiums, in recognition of the fact that they would
not have access to EI regular benefits.

Self-employed residents of Quebec would continue to receive maternity and
parental benefits through the Quebec Parental Insurance Program provided
by the Government of Quebec. In addition, they would now be eligible to
take advantage of the sickness and compassionate care benefits being
offered by the Government of Canada through EI. Should they choose to
take advantage of the program, they would pay EI premiums at the same
rates as employees in Quebec, where rates have already been adjusted
downward to take into account the existence of a provincial maternity and
parental benefit plan.

Through the Economic Action Plan, the Government of Canada has also
implemented measures to support all unemployed Canadians. These measures
include providing 5 extra weeks of EI regular benefits, increasing the
maximum duration of benefits from 45 to 50 weeks in regions of high
unemployment, protecting jobs through the Work-Sharing program, and
freezing EI premiums for 2010 at the same rate as 2009 to provide
economic stimulus. For more information on these measures, please visit
www.actionplan.gc.ca.

Most recently, the Government introduced legislation to extend EI regular
benefits for unemployed long-tenured workers, who are individuals that
have paid EI premiums for years and made limited use of the program, and
who now need additional support while they look for jobs in a recovering
economy. Further information on this proposed measure is available at
www.hrsdc.gc.ca.

This news release is available in alternative formats on request

Contacts:
Office of Minister Finley
Michelle Bakos
Press Secretary
819-994-2482

Human Resources and Skills Development Canada
Media Relations Office
819-994-5559

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