New Mother Denied Employment Insurance After Job Loss

First-time mother Celia Johnston faced an unexpected setback after being laid off just before her scheduled return to work. Johnston, who lives in the Vaudreuil-Soulanges region near Montreal, had been excited to resume her role as a project manager in e-learning after taking her full maternity and parental leave. Just one week before her return on October 12, 2023, her employer informed her that her position had been eliminated due to the company’s financial performance. This news left Johnston feeling a mix of panic, shock, and fear.

Following her layoff, Johnston promptly applied for Employment Insurance (EI) benefits but soon learned that her claim had been denied after two months of waiting and numerous phone calls. “I just received a message in my portal saying that my case is refused. I don’t have enough hours to qualify for EI payments,” she stated, highlighting a significant issue affecting many parents in similar situations.

The challenges Johnston faced are not isolated. According to Mouvement Action Chômage (MAC) de Montréal, a group advocating for the unemployed, they receive calls about such situations regularly. “We have calls about this situation maybe once a week,” said Fanny Labelle, head of mobilization and finance at MAC. The current EI rules are seen as discriminatory by many who argue that they do not adequately support parents who lose their jobs during or shortly after maternity leave.

Employment Insurance regulations allow for a combination of special and regular benefits for a total of 50 weeks within a 52-week period, with maternity and parental leave counted as special benefits. In Quebec, a birthing parent can take up to 18 weeks of maternity leave followed by 32 weeks of shared parental leave. If they are laid off during this time, they do not qualify for regular EI benefits. In contrast, a non-birthing parent can take five weeks of paternity leave, and if they also take full parental leave, they remain eligible for regular benefits.

MAC has been actively advocating for reforms to the EI Act. In 2018, the organization assisted six Quebec mothers who experienced similar layoffs during their maternity and parental leaves in bringing their case to the Social Security Tribunal of Canada. This tribunal, which oversees disputes regarding the application of laws, ruled in their favor in 2022, acknowledging that parts of the EI Act violated women’s constitutional rights to equality. However, the Canada Employment Insurance Commission (CEIC) appealed this decision and won, prompting the group to escalate the matter to the Federal Court of Appeal in November 2022.

Labelle expressed hope that the ongoing legal battle could lead to significant changes for “every woman in Canada.” Yet, the timeline for a final decision remains uncertain, with potential appeals possibly extending the process to the Supreme Court of Canada.

In the political arena, the New Democratic Party (NDP) is leading efforts to reform EI so that individuals laid off while on parental leave or shortly after returning can still qualify for benefits. Critics argue that the current system discriminates against parents. NDP MP Alexandre Boulerice has proposed an easy-to-implement solution, which he presented in a private members’ bill to the House of Commons in October 2023. Boulerice stated that the proposed changes would not be costly and would significantly benefit those in need.

Although precise figures on how many Canadian women are affected annually are difficult to ascertain, estimates suggest that around 3,000 may encounter similar issues. Boulerice emphasized that the current EI program is unfair and called for immediate reforms.

In a statement provided to CBC News, Samuelle Carbonneau, a spokesperson for Employment and Social Development Canada, did not directly address the specific concerns of birthing parents denied EI benefits. Instead, she noted several legislative changes aimed at providing parents with more flexibility and support, including the option to claim EI maternity benefits up to 12 weeks before childbirth.

For Johnston, the denial of benefits has compounded her challenges. After receiving the rejection, she submitted an appeal form in person to Service Canada and is currently waiting for a response. She shares her story to highlight what she sees as a critical policy gap, stating, “After a financially vulnerable year, when you’re on maternity leave, your income is cut significantly, and once you’re laid off with no notice, there’s zero income coming in.”

Johnston also noted the difficulties mothers face in re-entering the workforce, including gaps in their resumes and the challenges of job searching while caring for a baby. “It’s really hard to start a new job and have to be able to try to navigate that and prove yourself,” she explained.

Beyond seeking regular EI benefits, Johnston hopes for broader changes to support parents facing similar circumstances. “There are so many resources available that it is quite shocking to hear that other mothers have been through this situation, and nothing has changed over the years,” she concluded.