Employment Insurance (EI) in Ontario: A Guide
EI is a federal program that pays temporary income when you’re out of work or away for certain life events. Ontario law (the ESA) protects your job during many leaves; EI replaces income. Below is a practical, plain-English guide for employees and employers.
TL;DR (what most people need)
How much: Generally 55% of your average insurable weekly earnings, capped at $695/week in 2025. Extended parental is 33% (max $417/week).
Regular EI (layoff): You need 420–700 hours of insurable work, depending on your region’s unemployment rate.
Special benefits (sickness, maternity/parental, caregiving): You need 600 insurable hours in the last 52 weeks (or since your last claim).
Waiting period: Normally 1 week. Temporary 2025 change: for claims that start Mar 30–Oct 11, 2025, the waiting week is waived and certain separation payments aren’t deducted from EI.
Working while on EI: You keep 50¢ of EI for every $1 you earn (until you hit about 90% of your old weekly earnings). Work a full week and you don’t get EI for that week.
Misconduct/quit: If you were fired for misconduct or quit without just cause, you’re usually not eligible for regular EI (special benefits may still be possible).
What types of EI exist?
Regular benefits – when you’re laid off or there’s a shortage of work.
Sickness benefits – up to 26 weeks when you can’t work for medical reasons (medical certificate needed).
Maternity and parental benefits – maternity 15 weeks; parental: either standard (up to 35 weeks at 55%) or extended (up to 61 weeks at 33%).
Caregiving benefits – up to 35 weeks (critically ill child), 15 weeks (critically ill adult), or 26 weeks (compassionate care, end-of-life).
There’s also a Family Supplement for low-income families with children that can raise the benefit rate (up to a ceiling).
Eligibility (hours & other basics)
Regular EI: You’ll need between 420 and 700 hours, depending on your region’s unemployment rate.
Temporary 2025 relief (tariff response): until Oct 11, 2025, the qualifying hours won’t exceed 630 in any region, and some claims can get up to 4 extra weeks of benefits.
Special benefits: 600 hours in the last 52 weeks (or since your last claim) for sickness, maternity/parental, and caregiving.
Disentitlements: Regular EI is generally denied if you quit without just cause, were fired for misconduct, or you’re off work due to a strike/lockout.
Self-employed: You can opt in for special benefits only (not regular). You must register at least 12 months before claiming and pay EI premiums via your tax return.
How much do you get?
Rate: 55% of your average insurable weekly earnings (2025 maximum $695/week). For extended parental, 33% (2025 maximum $417/week).
Taxable: EI is taxable—federal and provincial tax is withheld.
Family Supplement: Low-income families with children can receive a top-up (only one spouse can get it at a time).
Waiting period & the 2025 temporary changes
Normal rule: a one-week unpaid waiting period at the start of your claim.
Temporary rule (Mar 30–Oct 11, 2025): the waiting week is waived for all EI claim types. In the same window, separation payments (e.g., vacation payout, pay in lieu of notice, severance) that normally get allocated to future weeks are not deducted from EI.
Employers: this temporary suspension means EI may start sooner even if you issued a lump-sum package. (This does not change income-tax treatment—just EI timing.)
“Working while on claim” (the claw-back math)
You keep 50 cents of EI for every $1 you earn, up to ~90% of your previous weekly earnings.
Go over that threshold and EI is clawed back dollar-for-dollar that week.
If you work a full week, you simply don’t get EI for that week (but it doesn’t shorten your total weeks payable).
Applying, ROEs, and reporting
Apply ASAP after you stop working—don’t wait for your Record of Employment (ROE). If you delay beyond about 4 weeks, you risk losing benefits.
ROE: Employers must issue it when there’s an interruption of earnings. Employees can still file their claim while waiting for it to arrive.
Bi-weekly reports: For regular EI, you must report every 2 weeks (work, earnings, availability, training). Keep a job-search log—recommend keeping it for 6 years in case Service Canada asks.
How settlement money affects EI
Normal rule: vacation pay, pay in lieu, and severance are usually “earnings” that get allocated to specific weeks, which can delay or reduce EI payments.
Temporary rule (Mar 30–Oct 11, 2025): that allocation is suspended—those monies don’t reduce EI in that period.
SUB top-ups: Employer top-ups under a proper Supplemental Unemployment Benefit plan are not deducted from EI (different rules apply for layoff vs maternity/parental/caregiving top-ups—set up your plan correctly).
For employers (quick hits)
ROEs on time: file within the statutory timelines after an interruption of earnings.
Package design: Understand EI allocation rules (and the 2025 temporary suspension) so you can set expectations on timing.
SUB plans: Consider a registered SUB for layoffs and a top-up policy for maternity/parental/caregiving.
References & codes: Be accurate on ROE codes—mislabeling “misconduct” can trigger disputes and delays.
For employees (quick hits)
Apply even without the ROE—don’t miss the window.
Keep records: job-search log, copies of postings, interviews, and any earnings during your claim.
Understand your claim type: If you quit or were fired for misconduct, talk to a lawyer about just cause before assuming you’re ineligible.
On leave: EI special benefits (maternity/parental/sickness/caregiving) often pair with ESA-protected leaves—coordinate both.
FAQs
Can I draw EI if I quit?
Only if you had just cause (e.g., unsafe work, harassment, major unpaid wages). Otherwise, no for regular EI.
How many weeks of regular EI can I get?
It varies by region and hours (typically 14–45 weeks). Temporary 2025 measures can add up to 4 weeks for some claims.
Do I need to job search on parental or sickness?
No for parental/caregiving/sickness (different reporting rules). Yes for regular EI—active job search is required.
I’m self-employed. Can I get EI?
You can’t get regular EI from self-employment. You can opt in for special benefits if you register 12+ months before you claim and meet the criteria.
Bottom line
EI is federal (so the same in Ontario as elsewhere), but 2025 brings temporary flexibility: no waiting week and relaxed treatment of separation monies for claims starting Mar 30–Oct 11, 2025. Know which benefit you need, apply fast, keep clean records, and coordinate EI payments with any packages or top-ups so there are no surprises.
This is legal information, not legal advice. For guidance on your specific situation, contact Vanguard Law.