Month: November 2022

EI sickness benefits being extended

Posted onAuthorDave Patriarche

We’ve been playing a guessing game since the federal government first announced changes to the EI sickness benefit back in the April 2022 budget.  When it would happen, and how it would work with private sickness benefits (WI/STD, LTD)etc. were just the beginning.  Well, the mystery is starting to clear up with December 18th being the go-live date, providing a more generous benefit increasing from the current 15 weeks to 26 weeks.

So, what does this mean for group disability plans?  There is still EI reform happening and more details are expected in the coming weeks and months specifically around the STD rate reduction program (this only applies if you have a formal STD plan and meet the qualifications).  We’ll watch and share more about this as it comes out.

Should you change your long term disability benefit as a result of this change?

There are a two primary options for employers to consider.

  1.  Keep your existing LTD waiting period of 112 or 119 days.  This will provide an LTD benefit 2 months before the EI ends and in most cases, will provide a higher benefit period than the EI benefit maximum.  Insurers do a pretty good job of getting people back to work, so the earlier intervention should help with better outcomes. The downside is that there could be a duplication of EI and LTD payment, which the employee would have to repay (but the LTD benefit is higher so not a hardship).
  2. Amend your plan to match the new EI sick benefits. This would delay your LTD benefits from 4 to 6 months.  A small rate decrease would be experienced (~3-7%), but staff would have the reduced benefit that EI offers.  This would also delay the LTD insurer from getting involved, which can make rehabilitation and return to work harder in some cases (early intervention is always better).

The decision will be unique to each employer’s situation. Some have no LTD benefit, so no changes are required. Some insurers will change all their plans one way or the other while others will leave it as is, but most are expected to allow employers to choose.

There is more info on the release below and we’ll be in touch as more information becomes available.

News release – November 25, 2022                

Canadians who are facing illness or injury need to feel confident that they are supported and that their jobs are protected as they recover. That is why the Government of Canada is taking action to improve Employment Insurance (EI) sickness benefits.

https://www.canada.ca/en/employment-social-development/news/2022/11/government-of-canada-improves-sickness-benefits-under-the-employment-insurance-system1.html

Having a workplace holiday party this year?

Posted onAuthorDave Patriarche

As we approach the end of November, the end of the pandemic and with so many wanting teams back together in real life, the idea of holiday parties comes up.  I saw this note from E2R ( an HR consulting firm) and thought a good reminder of items employers should consider. 

The holiday season is just around the corner – yes, already! For many employers, this means gearing up for workplace holiday festivities, perhaps for the first time in-person since the breakout of COVID-19.

To make sure a holiday party is a big success, all employers, regardless of size, should consider their responsibility to provide a safe environment for employees and guests. This means ensuring that proper plans are in place so that employees know what is expected of them, such as highlighting specific workplace policies related to conduct (including ‘off-duty” conduct), drugs and alcohol, and harassment.
 
Employer Liability
While holiday parties are meant to be fun and enjoyed by all, they can also lead to significant liability for employers.
 
As a general principle, an employer is liable for the actions of its employees at the workplace. But what exactly is the “workplace” you ask? Well, the definition of workplace has expanded to include situations where employees are off-site and off-duty. Courts have found that employers may be held responsible for negative consequences and damages flowing from their work-related social gatherings, including holiday parties.
 
Impairment
It’s the time of year when drinks are flowing – but did you know that employers may be liable for employee incidents related to overconsumption of alcohol? For example, if an intoxicated employee were to drive home following a holiday party, the employer may face liability for any related injury to the employee or to an innocent third party. To minimize this risk, it is a good idea to consider limiting the quantity of alcohol, to arrange safe transportation options for employees to get home (taxi chits for example), and to ensure that the staff is adequately trained in spotting impairment.
 
Issues of impairment may also arise from substances other than alcohol, such as recreational cannabis. Employers should review their policies regarding cannabis use and set clear expectations at any workplace function.
 
Misconduct
Employers have a legal responsibility to ensure that employees are provided a safe and harassment-free environment at any workplace social function. If an employee crosses the boundary of inappropriate conduct by engaging in harassing, discriminatory or violent behaviour, the employer could be liable for those actions.
 
To minimize this risk, employers should ensure employees are familiar with respect in the workplace policies and reporting procedures. Employers should also be cautious of any games, activities, or decorations that may encourage inappropriate behaviour (e.g. hanging mistletoe). Employees who misbehave should be immediately, and safely, removed from the function.
 
COVID-19
As we know, the risk of COVID-19 and related health and safety requirements are ever-changing. Employers should be aware of the most recent health and safety requirements and make the necessary amendments to any holiday party plans to ensure the celebration is compliant with up-to-date COVID-19 regulations and your own internal procedures for ensuring health and safety.
 
Take Away
All this talk of liability, while not exactly merry, certainly does not mean that employers should stop hosting holiday parties! However, employers must be aware of the safety and legal responsibilities associated with workplace events and be proactive in managing risks. Our e2r™ Advisors are happy to assist you with risk management, relevant policies, or related concerns.
 
Here’s to a safe and healthy (and fun!) holiday party! Cheers!
 

CRA Updates CPP Maximums for 2023

Posted onAuthorDave Patriarche

 
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2023 will be $66,600—up from $64,900 in 2022. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Contributors who earn more than $66,600 in 2023 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2023 remains at $3,500.

The employee and employer contribution rates for 2023 will be 5.95%—up from 5.70% in 2022, and the self-employed contribution rate will be 11.90%—up from 11.40% in 2022. The increase in contribution rate is due to the continued implementation of the CPP enhancement.

The maximum employer and employee contribution to the plan for 2023 will be $3,754.45 each and the maximum self-employed contribution will be $7,508.90. The maximums in 2022 were $3,499.80 and $6,999.60 respectively.

LINK