Program Summary

Supplemental Unemployment Benefit (SUB) plans were introduced in 1956 as a means of supplementing employees' income during temporary lay-offs due to shortage of work. This created an incentive for employees to return to work for their employer, thus reducing retraining and other costs associated with hiring new employees.

In response to the needs of the private sector and in keeping with the intent of Canadian social security legislation, the criteria required to register SUB plans have subsequently been adjusted. The plans can now supplement Employment Insurance (EI) benefits paid for temporary stoppage of work, training, illness, injury or quarantine. SUB plans must be approved by the Department of Human Resources and Skills Development Canada (HRSDC) to ensure that payments are not considered as earnings for EI purposes and are not deducted from EI benefits.

HRSDC officers in Bathurst, N.B. assess employers' SUB plans against the standards set out in section 37 of the EI Regulations. They also help employers develop acceptable SUB plans.

Approximately 3,000 employers across Canada have approved SUB plans and over 887,500 workers benefit from these payments.

Details can be found in our Program Guide.

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