Abstract: In this paper we will discuss about the unemployment insurance programs of Canada. In the United States these programs are run by the state government under the guidelines set by the Federal Law while in Canada, the situation is completely different. The Federal Government itself manages the unemployment insurance programs. The government also sets the amount and duration of compensation.
In Canada, the unemployment insurance is based on individual incomes. These programs are meant to help those unemployed workers who are eligible and actively searching jobs. A working income supplement is provided to the low-income families. The insurance benefits are subject to Federal tax.
The duration of these benefits is generally 45 weeks, and the claimants receive the first benefit after two weeks of filing the claim. Unlike the United States of America, the unemployment insurance in Canada is fully governed by the Federal Government. Funding for these programs come from contributions made by both the employers and employees.
The Canadian Federal Government also gives some special benefits. These are, sick benefit, maternity benefit, for at most 15 weeks, combined benefits, for at most 30 weeks, parental benefits, for at least 10 weeks, etc.
• Eligibility Criteria:
The eligibility criteria are different in different parts of Canada and it also depends on the region's unemployment rate. The criteria are listed below:
• The claimants have to work for a certain period, generally 420 to 700 hours during the qualifying period, that is, the last 52 weeks before claiming.
• The unemployment benefits are entitled to those eligible workers who have lost their jobs not for their own fault but for some other factors.
• The candidate must have been employed.
• The insurance benefit claimant has to earn a minimum amount.
To receive the maternal benefit the candidate has to be employed for at least 20 weeks before pregnancy.