Postmedia VBO and EI
To: All Postmedia members
November 9, 2016
Re: EI and Postmedia’s Voluntary Buyout (VBO) Program
Dear Postmedia members,
We’ve received a number of questions about Employment Insurance (EI) eligibility with the Voluntary Buyout program (VBO).
The Service Canada website says Retiring Allowance recipients may be eligible for EI if the loss of their job is related to an approved Workforce Reduction Program.
With this in mind, the Employer has been approved by Service Canada for a Workforce Reduction Program and this will be reflected on people’s Record of Employment. The termination of your employment on the ROE should be described with the code “G7” (Retirement / Approved workforce reduction).
Service Canada refuses to provide a “blanket” guarantee of eligibility because individual circumstances may make some people ineligible. Because of this stipulation, Postmedia is advising anyone considering the Retiring Allowance to contact Service Canada and inquire about their EI eligibility before they make their decision on applying for the VBO.
Your Union is also urging individuals to do this. Make sure that Service Canada is aware that you will be receiving a Retiring Allowance, not a severance, and that your employer has been approved for a Workforce Reduction Program.
Also, be aware that any Retiring Allowance or severance is counted as income that will delay the start of EI payments. In other words, you cannot collect a Retiring Allowance or a severance while you are getting EI. You will be eligible for EI after the end of your retiring allowance or severance and after a brief waiting period.
IT’S IMPORTANT THAT YOU APPLY FOR EI IMMEDIATELY AFTER BEGINNING A RETIRING ALLOWANCE OR SEVERANCE PERIOD.
DO NOT WAIT UNTIL YOUR ALLOWANCE OR SEVERANCE PERIOD IS ALMOST OVER. DELAYING YOUR APPLICATION MAY AFFECT YOUR BENEFITS. YOU APPLY ONLINE AT SERVICE CANADA AND YOU DO NOT NEED YOUR RECORD OF EMPLOYMENT TO APPLY.
Respectfully yours,
Paul Morse
President
Cc: Brad Honywill, Michelle Arruda, Howard Law, Gary Ellis