By: Stephanie McDonald and Baljinder (Bal) Singh Tiwana
In March 2025, the federal government launched Employment Insurance (EI) Pilot Project No. 24 to reduce the financial strain on workers across Canada facing job loss. The pilot—extended through to April 11, 2026—introduces temporary measures that make it significantly easier for workers to qualify for and receive EI, even when they receive severance or other separation payments.
These measures were initiated due to the ongoing economic downturn and anticipated increase in job losses across Canadian industries, caused by the tariffs imposed by the US on Canadian goods.
Key Temporary Measures Include:
Waiver of the One-Week Waiting Period
If your benefit period begins between March 30, 2025, and April 11, 2026, the standard one-week waiting period is eliminated. Eligible claimants can begin receiving EI payments immediately.
No EI Reduction for Separation Payments
Lump-sum severance, pay in lieu of notice, vacation pay, and other separation payments are not treated as “earnings” under the pilot. This means EI will not be delayed, reduced, or clawed back because you received severance. You no longer need to exhaust separation pay before EI begins, and you can now receive both simultaneously, without risk of setoff. This reflects a major temporary policy shift.
Reduced Hours Requirement
The number of required insurable hours to qualify for regular EI benefits has been temporarily reduced, increasing access for workers in affected regions.
Additional Support for Long-Tenured Workers
Eligible long-tenured workers whose benefit period begins during the pilot period, may receive up to 20 additional weeks of regular EI benefits, extending total entitlement well beyond standard limits.
Crucially, these changes help former employees access EI faster—without needing to exhaust severance before the EI benefits kick in.
Why it Matters
Separation payments no longer block or reduce EI benefits for eligible claimants.
- Workers can receive financial support from the very first week of unemployment, helping employees transition jobs easier, whist mitigating the impact of the economy on workers
- Long-tenured workers may receive significantly extended support during prolonged job searches or retraining, to reflect the reality of the challenges long-tenured workers face to re-enter the job market
- Lower qualification thresholds and extended benefit durations provide much-needed stability amid ongoing economic uncertainty
Key Exception: Salary Continuance Still Counts as Earnings
The pilot excludes ongoing employment income. If your employer continues paying your regular salary or benefits after termination—commonly referred to as salary continuance—those payments still count as earnings under EI rules. Salary continuance can delay or reduce your EI benefits because it is treated as income, unlike lump-sum severance paid at termination.
Protecting Your EI Entitlement
- Apply as soon as employment ends. Delaying your application can reduce or jeopardize your entitlement, even if you are still receiving severance.
- Submit bi-weekly EI reports on time. Late or missing reports can interrupt your payments.
- Report all earnings accurately. This includes part-time work, self-employment income, and any additional payments you receive.
- Report changes immediately. Failing to report changes may result in an overpayment that you will be required to repay to Service Canada.
Honest, accurate, and timely reporting is essential to protecting your benefits and avoiding unexpected repayment obligations under EI rules.
Conclusion
Pilot Project No. 24 fundamentally improves access to EI for workers navigating job loss.
Eligible workers can now rely on EI to provide immediate, stable financial assistance during job transitions. By acting promptly, understanding how post-employment income is treated, and reporting accurately, you ensure you receive the benefits you are entitled to and avoid owing outstanding debts to Service Canada.
Staying informed ensures that EI serves as the reliable safety net it is intended to be. Book a consultation today.
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While reasonable efforts have been made to ensure the accuracy of the content provided, it does not constitute legal advice. Prior to relying on any aspect of this article, you should consult with a suitably qualified legal professional promptly in your relevant jurisdiction, to obtain advice tailored to your individual circumstances
Nothing in this article should be interpreted as forming a solicitor-client relationship or construed as a solicitation for legal services.
