To set up a SUB Plan to supplement EI benefits for sick leave or layoffs, please follow the following guidelines:
1) PREPARE YOUR PLAN
An example of a SUB Plan, prepared by Service Canada, is available here.
The employer may select a group of employees to be covered by the plan, as long as the group does not:
The total amount of the SUB plan payment and EI benefits must not exceed 95% of the employee’s total weekly earnings.
2) REGISTER YOUR PLAN
Every employer must submit their registration package to Service Canada, located at:
Service Canada- Supplemental Unemployment Benefit (SUB) Program
120 Harbourview Boulevard
P.O Box 11,000
Bathurst, New Brunswick E2A 4T5
Fax: (506) 548-7473
A SUB plan should not be used by a business that intends to permanently close but, rather, for employees who find themselves temporarily out of work. The employer should reasonably predict a date that they can expect to return to normal work and provide that date to EI as proof that the work suspension is temporary. There is, of course, some flexibility to this date as it is understood that times are uncertain and no definitive answer can be given at this time.
Employers should assist their employees with apply for a SUB plan. They should also note that employees must apply for and have received EI benefits before the SUB plan will come into effect. If the employee has not received benefits, they may still be allowed to access the SUB plan payments if they are within a one-week waiting period of receiving benefits, have less than the required amount of insurable hours of employment to qualify for EI, or if they have maxed out their EI entitlements.
In creating your SUB Plan, it should indicate:
Before enlisting n the SUB Payment Plan, please read over the requirements for registration here.