Insurable Hours: What Counts?

Insurable hours are the hours worked by an employee in a job covered by Employment Insurance (EI). The number of insurable hours is used to determine if workers are entitled to benefits and for how long. Generally, all paid working hours are included as insurable hours. For employees who are paid hourly, the number of insurable hours is the number of hours actually worked and paid. If an employee is not paid on an hourly basis, the number of insurable hours is determined by the number of hours worked and remunerated, as evidenced by timesheets, contracts, and pay stubs. In cases where the employer cannot establish the exact number of hours, an agreement can be made between the employer and employee. If no agreement can be reached, the maximum number of insurable hours is set at seven hours per day or 35 hours per week.

Characteristics of Insurable Hours

Insurable hours are the hours worked doing a job covered by Employment Insurance (EI)

Insurable hours are the hours worked while doing a job covered by Employment Insurance (EI). The number of insurable hours is used to determine if workers are entitled to benefits and for how long. In other words, you must work a certain number of insurable hours to get EI benefits. The general principle underlying the EI system is that each hour worked, for which remuneration is received, is insurable.

For an employee who is paid hourly, the number of insurable hours is the number of hours actually worked and paid. For example, if you are paid by the hour, the number of hours of insurable employment will be the hours you actually worked and were paid for.

For an employee who is not paid hourly, if the employer knows the number of hours that the employee actually worked and for which they were paid, we consider the employee to have that number of insurable hours. For example, an employee who is paid on an annual basis, but whose employment contract specifies 32 hours as the usual hours of work per week would be credited with 32 insurable hours.

If the employer does not know the actual number of hours worked, the employer and the employee can agree on the number of insurable hours of work for which they are paid. For example, an agreement on hours on the value of piecework would determine the number of insurable hours. However, if no contract or agreement on hours exists or can be reached, the number of insurable hours is determined by dividing the insurable earnings by the minimum wage. The result cannot be more than seven hours per day or 35 hours per week.

Full-time employees who are limited by law to less than 35 hours per week will be credited with 35 insurable hours per week. Part-time employees in these circumstances are credited with a proportionate number of hours.

The number of insurable hours is determined by the type of EI benefits being applied for

Insurable hours are the hours worked in a job covered by Employment Insurance (EI). The number of insurable hours is determined by the type of EI benefits being applied for. For example, to get sickness benefits, one must have worked for at least 600 hours. The number of insurable hours is also used to determine if workers are entitled to benefits and for how long.

For an employee who is paid hourly, the number of insurable hours is the number of hours actually worked and paid. For an employee who is not paid hourly, if the employer knows the number of hours that the employee actually worked and for which they were paid, the employee is considered to have that number of insurable hours. If the employer does not know the actual number of hours worked, the employer and the employee can agree on the number of insurable hours of work for which they are paid. However, if no contract or agreement on hours exists or can be reached, the number of insurable hours is determined by dividing the insurable earnings by the minimum wage. The result cannot be more than seven hours per day or 35 hours per week.

Full-time employees who are limited by law to less than 35 hours per week will be credited with 35 insurable hours per week. Part-time employees in these circumstances are credited with a proportionate number of hours. Full-time members of the Canadian Forces or a police force will be credited with 35 insurable hours per week, unless the employer keeps and provides the actual number of hours worked.

To receive EI Regular benefits, one must demonstrate that they have worked for the required number of insurable employment hours in the last 52 weeks or since the start of their last EI claim, whichever is shorter. The qualifying period is the shorter of the 52-week period immediately before the start date of the claim or the period from the start of a previous benefit period to the start of the new benefit period, if the applicant had applied for benefits earlier and their application was approved in the last 52 weeks.

Insurable hours are calculated differently for employees who are paid hourly vs. those who are not

Insurable hours are the hours worked by an employee, covered by Employment Insurance (EI). To be eligible for EI benefits, an employee must have worked a certain number of insurable hours. The number of insurable hours is used to determine if workers are entitled to benefits and for how long.

The calculation of insurable hours differs for employees who are paid hourly and those who are not. For employees who are paid hourly, the number of insurable hours is the number of hours actually worked and paid. In this case, the worker must have worked and been remunerated for that hour to be considered insurable.

For employees who are not paid hourly, the calculation is more complex. This includes situations where employees receive a fixed weekly, monthly, or annual salary, are paid by commission, or are paid on a piecework basis. In these cases, if the employer knows the exact number of hours worked and for which the employee was paid, then those are considered the number of insurable hours. For example, if an employee is paid annually but their contract specifies 32 hours as the usual weekly work hours, they would be credited with 32 insurable hours.

However, if the employer does not know the actual number of hours worked, they can agree with the employee on the number of insurable hours for which they are paid. This could be determined through an agreement on the value of piecework, for instance. If no contract or agreement can be reached, the number of insurable hours is determined by dividing the insurable earnings by the minimum wage. The result cannot exceed seven hours per day or 35 hours per week.

It is important to note that for both hourly and non-hourly employees, the employment itself must be insurable for the hours to be considered insurable. Additionally, certain types of employment, such as standby time and periods of leave, have specific rules regarding the calculation of insurable hours.

Standby hours are insurable if certain conditions are met

Insurable hours are the hours worked by an employee, covered by Employment Insurance (EI). To receive EI benefits, an employee must have worked a certain number of insurable hours. The number of insurable hours is used to determine if workers are entitled to benefits and for how long.

• The standby hours are paid at a rate equal to or above the rate that would have been paid if the employee had actually worked.
• The employee is present at the employer's premises, as required by the employment contract, waiting for the employer to request their services. These hours are insurable if they are paid, regardless of the rate.

It is important to note that the expression "employer's premises" includes the location where the employee is required to perform their work, such as a cutting site for a forestry worker. Additionally, the determination of insurable hours for standby time may vary based on federal or provincial regulations and the specific employment contract.

In summary, standby hours can be considered insurable if the employee is compensated for their time spent on standby, either at a specified rate or as agreed upon in their employment contract. These conditions ensure that employees are fairly compensated and entitled to benefits for their time spent on standby.

Statutory holiday pay may be included in the total insurable hours, depending on the circumstances

Insurable hours are the hours worked under a job covered by Employment Insurance (EI). The number of insurable hours determines if workers are entitled to benefits and for how long. Generally, each hour worked for which remuneration is received is insurable. However, there are specific circumstances that determine whether statutory holiday pay is included in the total insurable hours.

For employees paid hourly, the number of insurable hours is the number of hours actually worked and paid. If a worker takes a paid holiday, each hour of holiday time is considered an hour of insurable employment. This is also true if a worker works on a public holiday and is paid at a higher rate.

For employees who are not paid hourly, the determination of insurable hours can be more complex. If the employer knows the number of hours worked and paid, the employee is considered to have that number of insurable hours. However, if the employer does not know the actual number of hours worked, they can agree with the employee on the number of insurable hours based on the value of the work. This agreement is especially relevant in cases of piecework. If no contract or agreement on hours exists or can be reached, the number of insurable hours is determined by dividing the insurable earnings by the minimum wage. This calculation cannot exceed seven hours per day or 35 hours per week.

In the case of statutory holiday pay, whether these hours are included in the total insurable hours depends on the nature of the employee's departure. If the departure is final, meaning the employer-employee relationship is not expected to continue, the employer does not need to include the hours for a paid statutory holiday in the employee's total insurable hours. On the other hand, if the departure is not final, and the employer-employee relationship is expected to continue, the hours for a paid statutory holiday would be considered insurable and included in the total insurable hours.

It is important to note that these guidelines may vary depending on the specific region and its regulations. The examples provided offer a general framework, but specific laws and practices may differ based on location.

Frequently asked questions