Digest of Benefit Entitlement Principles - Chapter 10
Chapter 10 — Availability for work
Table of contents
10.6.0 Earnings
The legislation requires that all claimants who are claiming regular benefits prove that they are available for work and unable to obtain suitable employment, and that they are making reasonable and customary efforts to obtain suitable employment.
One of the six criteria that is used to determe whether employment is suitable for a particular claimant, and therefore employment that must be sought and accepted, is "offered earnings". This specific criterion is linked to the extent to which the claimant has both contributed to the Employment Insurance fund and received regular benefits in the past. For this purpose all claimants claiming regular benefits are categorized as "long tenured workers", "occasional claimants" or "frequent claimants".
Once a benefit period is established, the suitability of certain "offered earnings" will vary as the duration of the claim increases. Claimants are expected to expand their willingness to seek and accept lower levels of earnings as their benefit period progresses and the exact extent to which they will have to expand that willingness will vary according to whether they are a "long tenured worker", a "frequent claimant" or an "occasional claimant", and the number of weeks that have elapsed in the benefit period.
If a claimant restricts their availability for work to a level of earnings that exceeds the legislative definition of suitable employment they will be disentitled from regular benefits until those requirements are met if:
- this is a restriction and not just a preference;
- such a restriction does not put them in a "less favourable financial situation" than the lesser of: a) the financial situation they are in while receiving benefits, and b) that which they were in during their qualifying period; and,
- they have been warned that such a restriction is unacceptable.
10.6.1 Preferences, restrictions and warnings
One should avoid drawing hasty conclusions from an answer to a question regarding the level of earnings that one is prepared to accept. In response to such a question, a claimant will naturally respond by specifying earnings that are consistent with or close to past experience and qualifications. This does not necessarily mean that the claimant is imposing an absolute restriction and will not accept anything less. It is quite normal for a person to look for gainful employment and start with high expectations, leaving room for later concessions.
Similarly, in an effort to reply to direct and specific questions on a form or questionnaire or to give the information within the limited space provided, a person may not have had the opportunity to clarify what appears to be a somewhat definite and categorical answer.
Personal efforts made to obtain employment at a lower level of earnings, or the acceptance of employment at a lower level, may be an indication that the level originally specified was a preference rather than a restriction.
All of these issues must be clarified by the Commission. Any subsequent clarification should be accepted provided it is considered plausible.
As indicated in Section 10.4.3, the Commission will, continue its long-standing practice of warning claimants whose availability may be restricted in some way. The claimant will be advised of the specific periods of time they are allowed to restrict their level of earnings, and that if they do not comply with those requirements they will be disentitled from benefits.
10.6.2 "Offered" and "reference" earnings
The extent to which offered earnings are suitable will vary according to whether the claimant is a long tenured worker, frequent claimant or occasional claimant as well as on the number of weeks that have elapsed since the start of the benefit period.
Like the other five criteria the suitability of offered earnings is a distinct criterion that needs to be assessed independently from the other criteria.
In order for a claimant to prove that they are available for suitable employment and not unduly restricting their availability for work, the claimant must be willing to seek and accept employment that meets the statutory definition of suitable employment, including the offered earnings provision.
Consequently, during the benefit period, and no matter what type of work is involved (as this is a separate criteria), the claimant must be willing to seek and accept employment whose "offered earnings" are evaluated by comparing them to the claimant’s "reference earnings" from the employment in which the claimant worked for the greatest number of hours during their qualifying period. No other employment in the qualifying period will be taken into account for the purpose of this evaluation.
For example: in the qualifying period a claimant held 3 different employments: bookkeeper, supply teacher and bartender. The employment in which they worked the greatest number of hours during the qualifying period was the employment as a bookkeeper. Consequently, and no matter what type of work is involved (as this is a separate criteria), the claimant must be willing to seek and accept employment whose "offered earnings" are evaluated by comparing them to the claimant’s "reference earnings" from their employment as a bookkeeper.
10.6.3 Offered earnings
The extent to which certain offered earnings are suitable will vary according to which category the claimant is in and the number of weeks that have elapsed in the benefit period. Claimants will be required to expand their willingness to seek and accept employment with lower offered earnings as their number of weeks on claim increases.
For varying periods of time, both long tenured workers and occasional claimants are allowed to restrict their acceptance of work and their job search to employment where the offered earnings are 90% or more of their reference earnings from their qualifying period.
All three categories of claimants will, at different stages in their benefit periods, have to expand their acceptance of work and their job search to employment where the offered earnings are less than their reference earnings from their qualifying period.
Long-tenured Workers: During the first 18 weeks of the benefit period a long tenured worker must be willing to seek and accept offered earnings that will equal 90% or more of their reference earnings. After the 18th week of the benefit period they must be willing to seek and accept employment that will equal 80% or more of their reference earnings.
Occasional Claimant: During the first 6 weeks of the benefit period an occasional claimant must be willing to seek and accept offered earnings that will equal 90% or more of their reference earnings. From the 6th to the 18th week of the benefit period they must be willing to seek and accept offered earnings that will equal 80% or more of their reference earnings. After the 18th week of the benefit period an occasional claimant must be willing to seek and accept offered earnings that will equal 70% or more of their reference earnings.
Frequent Claimant: During the first 6 weeks of the benefit period a frequent claimant must be willing to seek and accept offered earnings that equal to 80% or more of their reference earnings. After the 6th week of their benefit period they must be willing to seek and accept offered earnings that will equal 70% or more of their reference earnings.
A wage that would pay less than the minimum wage in effect in that province or territory would render the employment unsuitable.
10.6.4 Less favourable financial situation
A claimant is not expected to seek and accept employment if, by accepting the offered earnings, they are placed in a less favourable financial situation than the lesser of, their financial situation while receiving benefits and that which they were in during their qualifying period.
For example, and taking into account the claimant’s Employment Insurance benefits including any allowable earnings provision, otherwise suitable employment is not suitable and does not have to be sought or accepted if the intermittent and part-time nature of the employment means that on-going transportation and child care expenses are so high that the claimant would be put in a less favourable financial situation by accepting the employment.
If a claimant is restricting their availability for work to a level of earnings that exceeds the legislative definition of suitable employment they will be disentitled from regular benefits until they meet those requirements, if this is a restriction and not just a preference, the restriction does not put them in a "less favourable financial situation" and they have been warned that such a restriction is unacceptable.
- Date modified: