DEFINITION of 'Employment Insurance - EI'

An unemployment insurance program in Canada that allows individuals who have recently lost a job to receive temporary financial assistance. Employment insurance can also be extended to individuals who are unable to work because of illness or who are caring for a young child or a seriously ill family member. In additional to financial assistance, the program assists the unemployed with job search services.

BREAKING DOWN 'Employment Insurance - EI'

The Employment Insurance Act replaced the Unemployment Insurance Act in 1996. The updated scheme was designed to link unemployment benefits with wages, and to reduce penalties for those who can only find temporary work. In order to qualify for benefits, individuals must work a certain number of hours, and the length of time that benefits are provided for depends on an individual's geographic region's unemployment rate.

RELATED TERMS
  1. Unemployment Insurance

    A source of income for workers who have lost their jobs through ...
  2. Continuing Claims

    Continuing claims refers to unemployed workers that qualify for ...
  3. Federal-State Unemployment Compensation ...

    A social safety net that provides temporary financial assistance ...
  4. Unemployment

    Unemployment occurs when a person who is actively searching for ...
  5. Health Insurance

    A type of insurance coverage that pays for medical and surgical ...
  6. Trade Adjustment Assistance - TAA

    An unemployment assistance program offered in the United States ...
Related Articles
  1. Financial Advisor

    Critical Illness Insurance: Do You Need It?

    Critical illness insurance could be the only thing protecting you from financial ruin if you're faced with a big health emergency.
  2. Personal Finance

    Understanding the Unemployment Rate

    The unemployment rate is the percentage of people in the labor force who are unemployed but seeking a job.
  3. Insurance

    Critical Illness Insurance: Get Paid If You Get Sick

    This coverage will allow you to focus your attention on getting well, rather than getting by.
  4. Personal Finance

    What "Unemployment" Really Means

    Unemployment occurs when a person who is actively searching for employment is unable to find work. The most frequently cited measure of unemployment is the unemployment rate. This is the number ...
  5. Insurance

    How to Protect Your Income No Matter What

    What does it mean to insure your income? Here are a variety of ways to do it and some insights into when it might make sense to invest in income insurance.
  6. Financial Advisor

    No Paycheck Doesn't Necessarily Mean No Income

    If you lose your job, be sure to apply for unemployment benefits. It's not welfare, but an insurance program that you and your employer have already paid into.
  7. Personal Finance

    What The Unemployment Rate Doesn't Tell Us

    The unemployment rate is climbing, but what does it mean?
  8. Personal Finance

    Where Unemployment Hits Hardest

    A look at the demographics of unemployment, and what that means for workers around the nation.
RELATED FAQS
  1. Do rising unemployment rates tend to increase or decrease investor sentiment and ...

    Discover whether rising unemployment rates tend to increase or decrease consumer confidence and investor sentiment. Unemployment ... Read Answer >>
  2. What is the difference between frictional unemployment and structural unemployment?

    Learn about structural unemployment and frictional unemployment, the differences between the two types and their main characteristics. Read Answer >>
  3. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
  4. What is the difference between structural unemployment and cyclical unemployment?

    Learn more about unemployment in an economy, what structural and cyclical unemployment are, and the differences between these ... Read Answer >>
  5. Are Social Security benefits affected by unemployment benefits?

    Find out if Social Security benefits are affected by unemployment benefits, and if so, how much this benefit can be reduced ... Read Answer >>
Hot Definitions
  1. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  2. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  3. Mezzanine Financing

    A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing ...
  4. Long Run

    A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all ...
  5. Quasi Contract

    A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A normal ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center