Canadian Payroll Reporter

5 Canadian HR Reporter, a Thomson Reuters business 2017 Time off for parental leave QUESTION: I understand that the federal government is changing the maximum period in which individuals may receive employment insurance (EI) parental benefits. Will this change affect unpaid parental leaves that employers must provide under labour standards law? ANSWER: Recently passed federal legis- lation, which is not yet in force, will allow individuals claiming EI parental benefits to choose whether they want to receive the benefits for up to 35 weeks at a rate of 55 per cent of their average insurable weekly earn- ings or for a maximum of 61 weeks at a 33 per cent benefit rate. The length of time individuals may receive EI parental benefits is not necessarily the same as the amount of unpaid time off that labour standards laws require employers to provide for a parental leave, although many jurisdictions do match their period of leave to the maximum length of EI parental ben- efits (and the benefits waiting period). The federal government has also amend- ed the Canada Labour Code to lengthen the maximum period of job-protected parental leave from 37 weeks to 63 weeks. Once in effect, this amendment will apply to federally regulated workplaces. It is expected that at least some provinces/ territories will change their labour standards laws to increase the maximum number of weeks off that employees may take for a pa- rental leave to match the federal changes. In the meantime, employers must provide eligible employees with at least the time al- lotted in the table below: CPR | October 2017 ASK AN EXPERT Annie Chong MANAGER OF CARSWELL'S PAYROLL CONSULTING GROUP annie.chong@thomsonsreuters.com | (416) 298-5085 ANSWER: No. Employers who send ROEs electronically to Service Canada do not have to print a pa- per copy of the form for employees. The data on the form is transmitted to Service Cana- da's database and it uses that information to administer employment insurance claims. However, even though employers submit- ting electronic ROEs are not required to pro- vide a printed copy of the form to employees, Service Canada recommends that employ- ers do so as a courtesy. It adds that employers should inform the individuals that they have submitted the form electronically and, therefore, the em- ployees should not provide Service Canada with a printed copy of it. Service Canada also advises that individu- als registered with the government's online service called My Service Canada Account may view and print copies of their electronic ROEs. It may be helpful to let employees know this and suggest they sign up for the service at Service Canada's website at www.canada. ca/en/employment-social-development/ services/my-account.html. ANSWER: Yes, severance pay can be paid in instalments and still qualify as a retiring allowance. To ensure that the payment is a retiring allowance, make sure that the em- ployee is not allowed to continue to accrue pension credits (if applicable) after the ter- mination. That would disqualify the sever- ance pay as a retiring allowance. It is also important to check the employ- er's benefit plan to see if continued partici- pation is limited to employees only. If so, the company would need to have or establish a plan specifically for non-employees such as retirees or terminated employees. Other- wise, if benefit coverage is continued after termination, the severance payment would be disqualified as a retiring allowance. Retiring allowances are not subject to Canada/Quebec Pension Plan contribu- tions, employment insurance premiums or Quebec Parental Insurance Plan premiums, with the exception of legislated wages in lieu of notice payments. Retiring allowances are taxable with income tax deductions calcu- lated using the lump-sum tax rates. Those with years of service before 1996 may transfer part or all to a registered pen- sion fund or registered retirement savings plan in which they are the annuitant to avoid income tax deductions. Paper ROEs not necessary when filing electronically QUESTION: A recently terminated employee is quite insistent that we have to provide him with a printed Record of Employment (ROE) even though we use an electronic ROE (ROE Web). Are we required to provide employees with a paper copy of the completed form? Paying retiring allowances in instalments QUESTION: We are paying severance pay to a long-service employee whose position has been eliminated. We are paying it in two instalments. Does the payment still qualify as a retiring allowance even though we are not paying it in a single payment? Jurisdiction Weeks Federal 37 1 Alberta 37 British Columbia 37 2 Manitoba 37 New Brunswick 37 2 Newfoundland and Labrador 35 Northwest Territories 37 2 Nova Scotia 52 2 Nunavut 37 2 Ontario 37 3 Prince Edward Island 35 2 Quebec 52 Saskatchewan 34/37 4 Yukon 37 NOTES: 1 Once in effect, recently passed amendments to the Canada Labour Code will increase the maximum length of the leave to 63 weeks. Under current rules, the maximum combined pregnancy and parental leave is 52 weeks. 2 The maximum combined pregnancy and pa- rental leave is 52 weeks. 3 The Ontario government is proposing to in- crease the amount of leave to 63 weeks. For those who also take a pregnancy leave, the maximum parental leave would be 61 weeks. 4 The 34-week period applies to employees who are also entitled to take a maternity leave or an adoption leave. The 37-week period is for employees who are not entitled to a maternity or adoption leave. The labour standards requirements are mini- mums only. Employers may choose to change their policies to allow for longer periods of paren- tal leave. Some jurisdictions also legislate a sepa- rate period of leave for adoption and some allow employees to extend a parental leave if the child or newborn has a health condition that requires additional time off.

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