Canada’s Temporary EI Changes: What They Mean for Severance and Job Loss

With the current economy and rising unemployment rates, we are seeing more Moms at Work members navigating employment terminations and understandably feeling concerned about managing the transition. The good news is that on March 20, 2026, the Canadian government extended its temporary Employment Insurance ("EI") measures for a third time, which can make a meaningful difference in the event of a job loss.

The temporary EI measures apply to claims starting between March 30, 2025, and October 10, 2026, and were first introduced in April 2025 in response to the economic impact of U.S. tariffs.

Why does this matter? Typically, employees do not start receiving EI until their severance period has ended, and if a settlement is reached later, they may have to repay EI for overlapping periods.

Here is what the temporary measures mean in practical terms:

• No one-week waiting period to start receiving EI
• Termination payments (like severance and accrued vacation) will not delay EI benefits the way they normally would
• Some long-tenured workers may qualify for up to 20 additional weeks of EI benefits (for claims starting on or after June 15, 2025)
• Settlement payments received later will not require repayment of EI
• Lump sum termination payments (like severance and accrued vacation) will not delay EI benefits the way they normally would (different rules appear to apply to salary continuance as an ROE won’t typically be issued until the end of the salary continuation period).  

Under these temporary rules, if you fall within the qualifying timelines, you will be able to receive EI and keep your severance or settlement without having to pay it back. For many working parents, that added financial flexibility during an already stressful time can make a meaningful difference.

If you have any questions, the lawyers at Hudson Sinclair LLP are always happy to help. Please reach out to us at info@hudsonsinclair.com and request the MAW discounted consultation rate!