Introduction
Supplemental Unemployment Benefit Program
This program allows employers to register Supplemental Unemployment Benefit (SUB) plans that meet the requirements of subsection 37(2) of the Employment Insurance Regulations .
The purpose of a SUB plan is to provide supplemental payments to Employment Insurance (EI) benefits during a period of unemployment due to:
- temporary stoppage of work;
- training;
- illness, injury or quarantine.
The employer chooses which of the above-mentioned types of unemployment to supplement.
Note
Employers offering supplements to maternity, parental (including adoption), compassionate care, and family caregiver benefits do not have to register their plans with the SUB Program. Information on these supplements is available by visiting the Supplement to Employment Insurance (EI) maternity, parental, compassionate care and family caregiver benefits section of our site.
Advantages of a SUB Plan
Employers use SUB plans to increase the employee's weekly earnings during periods of unemployment. Payments from registered plans are not deducted from the employee's EI benefits.
Payments under a registered SUB plan are not considered as insurable earnings; therefore, EI premiums are not deducted.
Plan Document(s)
The SUB plan must include a complete description of the benefits and must meet the conditions listed in Part I – Plan Requirements.
One or more of the following documents may be used to describe a plan:
- a union or association agreement;
- a trust agreement;
- a private carrier's insurance policy;
- an employee handbook;
- a personnel policy bulletin;
- any signed commitment by the employer.