Can I collect employment insurance if I quit due to wage reduction or rollback?

[jmc]

Question: Can I collect employment insurance if I quit due to wage reduction or rollback?

Can anybody confirm? Thank you.

Aside: Here's some info that I found...
Service Canada
http://www.servicecanada.gc.ca/eng/e..._leaving.shtml

A number of circumstances for quitting are considered just cause
-major changes in the terms and conditions of your job affecting wages or salary

http://www.servicecanada.gc.ca/eng/e..._8.shtml#6_3_8

a decrease in a person's total take-home pay can constitute just cause for voluntarily leaving employment

http://www.servicecanada.gc.ca/eng/e..._0.shtml#6_4_1

Wages–Unjustified Reduction

http://www.servicecanada.gc.ca/eng/e...html#a6_4_1_34

legitimate hope to increase or at least maintain one's salary level
Just Cause: actual or potential loss of wages based on reasonable grounds

Alberta Queen’s Printer:
http://www.qp.alberta.ca/574.cfm?pag...=9780779725663

Termination of employment by an employee

58(1) Except as otherwise provided in subsection (2), to terminate employment an employee must give the employer a written termination notice of at least

(a) one week, if the employee has been employed by the employer for more than 3 months but less than 2 years, or

(b) 2 weeks, if the employee has been employed by the employer for 2 years or more.

(2) Subsection (1) does not apply when

(i) an employee terminates the employment because of a reduction in wage rate, overtime rate, vacation pay, general holiday pay or termination pay.

Update: Thank you got my answer.

[AE92_TreunoSC]

I had an unfair wage reduction but I stayed because there werent any openings available for me. Phone service canada and ask, but think carefully before you quit.

[Jim Rome99]

You can still collect EI if you quit. You just have to serve a six week deductible period instead of the usual two. The maximum allowance is around $400 after tax a week (used to be $358 for years when I was on it during apprenticeship training), so think of it as giving up $1600. Only quit if you're already qualified for full benefits and you're thinking of taking a full forty weeks off work, otherwise it's really not worth it.

If you believe you have reasonable grounds to quit, do so immediately, but be prepared to file appeals, go to hearings, and argue as to why the job became untenable. If we're talking about a small rollback in wages, (20% or less) I'd forget about it. Also keep in mind that if you gross more than 50k in 2008, 2009, or 2010 you won't get to keep all the money they give you.

[l/l/rX]

I'm gonna have to say this but I think you're kind of dumb for quitting due to wage cut.
So you pretty much quit out of spite? And you fdby have a back up plan.
Besides wouldn't it be better to still take home money rather than no money at all? Ei don't even pay that much.

[cosmok]

I'm sure you're making more than $22k a year, quitting and going on EI is not worth it.

[Jim Rome99]

It depends what you're going to do with your time off and how much money you have saved. I work in construction, often outside, and there are many days when I wish I was unemployed on EI and sitting at home in the warmth rather than making good money freezing my balls off.

[jmc]

Originally posted by Jim Rome99
You can still collect EI if you quit. You just have to serve a six week deductible period instead of the usual two. The maximum allowance is around $400 after tax a week (used to be $358 for years when I was on it during apprenticeship training), so think of it as giving up $1600. Only quit if you're already qualified for full benefits and you're thinking of taking a full forty weeks off work, otherwise it's really not worth it.

If you believe you have reasonable grounds to quit, do so immediately, but be prepared to file appeals, go to hearings, and argue as to why the job became untenable. If we're talking about a small rollback in wages, (20% or less) I'd forget about it. Also keep in mind that if you gross more than 50k in 2008, 2009, or 2010 you won't get to keep all the money they give you.

Anybody know Service Canada's Employment Insurance department's E-Mail? I want some written confirmation before I make a decision. I don't want to quit and then they rule it as unjust cause or something and I get disqualify from EI.

[bignerd]

I don't think they deal in email due to privacy issues and what not. Phone or mail only.

[Adrenaline101]

be prepared to wait a good ammount of time before you get an answer on whether or not you have been accepted or not. Im sitting at just over 2 months since I claimed and I havent seen a cent yet, and mine is cuz I quit due to medical.!!

[slick2404]

Originally posted by Adrenaline101
be prepared to wait a good ammount of time before you get an answer on whether or not you have been accepted or not. Im sitting at just over 2 months since I claimed and I havent seen a cent yet, and mine is cuz I quit due to medical.!!

I got laid off in 2nd week of March and was approved for EI the last week of April so about 6 weeks turnaround....hopefully you get on soon!

[dexlargo]

What you're talking about is called constructive dismissal. It's the equivalent of being fired, it's not quitting at all. The 2 week waiting period would likely apply.

Only a judge can tell you for sure whether your situation amounts to constructive dismissal or not.

Remember that the maximum you can get paid on EI is $800 every two weeks - it might be more worthwhile to keep working while you look for another job.

[Xtrema]

You rather collect EI than take a wage reduction? Are you making close to minimum wage?

[jmc]

Originally posted by jmc

Anybody know Service Canada's Employment Insurance department's E-Mail? I want some written confirmation before I make a decision. I don't want to quit and then they rule it as unjust cause or something and I get disqualify from EI.

I phoned Service Canada and in order for them to make a ruling, I must first apply for EI benefits. But in order to apply, I will have to quit first.

The service rep confirmed that 'voluntarily leaving employment' due to salary cut can be a legitimate ‘just cause’ reason for me to terminate employment. But there’s no fixed dollar value or percentage drop to guarantee a person will qualify for EI. I been informed they will look at each case uniquely, taking into full detail account each person’s different situation.

I am now getting way less than what I was originally making in my previous job (three years ago). I can infer [hard to prove for private company], my current employer did not reduce wages simply for ‘low economic’ as they stated. They seem to be cutting way more pay than that; employer did not simply cut “just ten percent or roll back just a few years of increases”. Basically, I would not of accepted this permanent full-time ‘offer of employment’ at the amount I am getting now.

http://www.servicecanada.gc.ca/eng/e..._8.shtml#6_3_8
“Significant Modification of Terms and Conditions Respecting Wages and Salary: A person is entitled to expect that the conditions respecting wages or salary agreed to with the employer or included in the person's employment contract will be honoured”.
http://www.rhdcc-hrsdc.gc.ca/eng/lp/.../ipg/033.shtml
“’constructive dismissal’ describes situations where the employer has not directly fired the employee. Rather the employer has failed to comply with the contract of employment in a major respect, unilaterally changed the terms of employment or expressed a settled intention to do either thus forcing the employee to quit. Constructive dismissal is sometimes called ‘disguised dismissal’ or ‘quitting with cause’”

Leaving due to salary cut could qualify me for EI. Unfortunately, I won’t know for sure, if I will be approved for EI benefits until I quit; and actually apply for the benefits.
For me (each person and situation is different) things would be much better, easier, and clear-cut if my devious employer would just lay me off.

[pinoyhero]

Originally posted by jmc
Question: Can I collect employment insurance if I quit due to wage reduction or rollback?

Can anybody confirm? Thank you.

Aside: Here's some info that I found...
Service Canada
http://www.servicecanada.gc.ca/eng/e..._leaving.shtml
http://www.servicecanada.gc.ca/eng/e..._8.shtml#6_3_8
http://www.servicecanada.gc.ca/eng/e..._0.shtml#6_4_1
http://www.servicecanada.gc.ca/eng/e...html#a6_4_1_34
Alberta Queen’s Printer:
http://www.qp.alberta.ca/574.cfm?pag...=9780779725663

Let me get this straight, you have a job but want to loose it on purpose so you can be a leech to society? Nice call. Its people like you that take advantage of the system, that ruin it and give a bad name to those who legitimately require temporary assistance. Shame on you.

[Jim Rome99]

Originally posted by pinoyhero


Let me get this straight, you have a job but want to loose it on purpose so you can be a leech to society? Nice call. Its people like you that take advantage of the system, that ruin it and give a bad name to those who legitimately require temporary assistance. Shame on you.

I completely disagree. It is companies like his that are taking advantage of the downturn to give it to thim up the ass. He's doing the right thing by quitting and collecting EI - he pays into it, so he's perfectly entitled to draw benefits from it.

EI is far and away the most profitable government program. Do you know how many hundreds of millions it runs in surplus every year?

[ZorroAMG]

Originally posted by pinoyhero


Let me get this straight, you have a job but want to loose it on purpose so you can be a leech to society? Nice call. Its people like you that take advantage of the system, that ruin it and give a bad name to those who legitimately require temporary assistance. Shame on you.

[pinoyhero]

Originally posted by Jim Rome99


I completely disagree. It is companies like his that are taking advantage of the downturn to give it to thim up the ass. He's doing the right thing by quitting and collecting EI - he pays into it, so he's perfectly entitled to draw benefits from it.

EI is far and away the most profitable government program. Do you know how many hundreds of millions it runs in surplus every year?

If he doesn't want to work there he doesn't have to, but get another job. If he wants to work at a company where economic downturn and decreasing company profits dont result in decreased pay or lay off he should work for a union ... say the CAW.

That being said I agree he is entitled to collect what he's paid, but quitting seems against the spirit of the program.

[jmc]

I didn’t give enough specifics, so some might misunderstand. But let’s put it this way, if I was in better financial shape, I would quit already and not even worry about EI.

Useless rant, please ignore:
In addition to my wage cuts, I believe the employer is unfairly taking advantage of its other employees via ‘low economic’. Let’s just say some on parental leave is not coming back. There are employees losing half their salary. They have layoff people including some they just hired (which quit their previous job and relocated here). It’s a small-midsize company; the private owners have full control and should know better. Their action seems unfair. Seeing it might take some time to find a job with a ‘respectful company’, the reassurance of EI would help.

[Kloubek]

OP, I have little doubt that your company is fucking people around. And your reasoning behind leaving I would back 100%.

However, I kinda have to agree with Pinoy - despite the backlash he's received in this thread. You're really just leaving out of spite. And therefore your spite will cost Canadians - when the alternative option would be simply to grin and bear it until you find another job like most people would. (Myself included to some degree)

If you really want to "stick it" to your current company, then look and get another job, and then quit without notice. Just walk out one day. Put them in a lurch with nobody to do your job. Shit on your bosses desk. Piss on your supervisor's face. It really doesn't matter - but taking advantage of a program which has been put in place with the sole intention of helping those who actually NEED it is not the answer.

[BlackArcher101]

This is a similar situation to mine, except mine was mainly a complete change of job duties with more responsiblity, but didn't want to bring the pay to standard levels.

Ultimately, you can claim it's constructive dismissal (and get EI) if you are the only one that had their pay cut.

If you work in a department of 5 who are all doing similar work, and you were the only one who had their pay cut, then you can claim constructive dismissal. However, if the cut applied to all 5 or company/division wide, then you have no claim and won't get EI.