KB v Canada Employment Insurance Commission

KB v Canada Employment Insurance Commission

The $19,000 payment is not earnings because the claimant had a code-based right to reinstatement, sought reinstatement via a Canada Labour Code unjust dismissal complaint, and the Minutes of Settlement expressly state the $19,000 was paid on account of relinquishment of reinstatement; the $14,076.92 retiring allowance and $1,923.08 statutory termination pay are earnings payable by reason of separation and must be allocated at the claimant's weekly insurable earnings starting the week of separation (week beginning January 6, 2019); the Commission erred by allocating from March 17, 2019.

Citation
2021 SST 177
Parties
Appellant / Claimant: K. B.; Respondent / Commission: Canada Employment Insurance Commission
Court
Social Security Tribunal of Canada
Jurisdiction
Canada
Judgment Date
11 January 2021
Procedural Posture
Employment Insurance / General Division Decision
Outcome
Appeal allowed in part
Legal Topics
Earnings Allocation, Termination Pay, Retiring Allowance, Reinstatement Relinquishment, Wrongful Dismissal Settlement, Allocation Period
Source Language
English
Employment Insurance Labour Law Social Security Earnings Allocation Termination Pay Retiring Allowance Reinstatement Relinquishment Wrongful Dismissal Settlement +1 more

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Parties

K. B.

Appellant / Claimant

Canada Employment Insurance Commission

Respondent / Commission

Procedural Posture

Employment Insurance / General Division Decision

Legal Issues

  1. 1 Whether settlement payments are "earnings" under the Employment Insurance Regulations
  2. 2 Whether the $19,000 payment for relinquishment of reinstatement is earnings
  3. 3 Whether the Commission allocated earnings to the correct weeks and commencement date of allocation

Ratio Decidendi

The $19,000 payment is not earnings because the claimant had a code-based right to reinstatement, sought reinstatement via a Canada Labour Code unjust dismissal complaint, and the Minutes of Settlement expressly state the $19,000 was paid on account of relinquishment of reinstatement; the $14,076.92 retiring allowance and $1,923.08 statutory termination pay are earnings payable by reason of separation and must be allocated at the claimant's weekly insurable earnings starting the week of separation (week beginning January 6, 2019); the Commission erred by allocating from March 17, 2019.

Court Disposition

Appeal allowed in part

Orders

  • $19,000.00 paid for relinquishment of reinstatement is not earnings and shall not be allocated to EI benefits
  • $14,076.92 (retiring allowance) and $1,923.08 (statutory termination pay) are earnings and shall be allocated to the Claimant's EI benefits at the rate of the Claimant's weekly insurable earnings beginning the week of the Claimant's separation from employment (week beginning January 6, 2019)