ACTA is closely monitoring the recent developments regarding Employment Insurance (EI) benefits in response to U.S. tariffs affecting Canadian businesses. These new temporary measures, announced on March 22, 2025, will impact travel agencies and independent travel advisors during this period of economic uncertainty.

What's Changing: New Temporary EI Measures Explained

The federal government has introduced three key temporary changes to the EI system to help workers affected by economic challenges resulting from international tariffs:

  1. Easier Access to Benefits (3-month duration)

    What's changing: The government is artificially raising unemployment rates by 1% in all regions for EI calculation purposes, with no region having less than 7.1% unemployment.

    What this means: Workers now need fewer hours (maximum 630) to qualify for EI compared to the previous requirements, which could be as high as 700+ hours in some regions.

    Key benefit: Up to four additional weeks of benefits for eligible claimants.

  2. Immediate Benefit Access (6-month duration)

    What's changing: Rules requiring workers to exhaust severance, vacation pay, and other separation monies before receiving EI are suspended.

    What this means: Workers can now receive EI immediately after job loss, even if they received severance or vacation payouts.

    Key benefit: No financial gap between final pay and first EI payment.

  3. No Waiting Period (6-month duration)

    What's changing: The standard one-week waiting period before benefits begin has been eliminated.

    What this means: EI payments start from the first week of unemployment, not the second week as was previously the case.

    Key benefit: Immediate financial support from day one of unemployment.

These changes complement the EI Work-Sharing Program flexibilities announced on March 7, 2025, which offer alternatives to layoffs through reduced hours and supplemental EI benefits.

Impact on Travel Agencies

For travel agencies with staff on payroll, these changes provide a meaningful safety net if business downturns require reducing staff hours or implementing layoffs. Specifically:

  • Employees will qualify for benefits with fewer working hours
  • Benefits will start immediately with no waiting period
  • Support will last longer with extended benefit periods
  • Work-sharing may be a viable alternative to layoffs

Special Note for Independent Travel Advisors

Most independent travel advisors likely do not qualify for regular EI benefits. Here's what you need to know:

Self-employed advisors are generally not eligible for regular unemployment benefits unless they have specifically registered and paid into the special EI benefit program for at least 12 months. Even then, this typically only covers special benefits (maternity, parental, sickness, etc.) not regular unemployment benefits.

Advisors who pay themselves through payroll and have made regular EI contributions as both employer and employee are likely EI eligible, similar to traditional employees.

Independent advisors should review their specific EI contribution status to understand their eligibility under these new measures.

ACTA's Ongoing Work

ACTA is continually monitoring updates from all levels of government and is actively engaged in discussions with officials. ACTA will continue to monitor the situation closely and will share further developments as they emerge. Members are encouraged to reach out with industry-specific questions or concerns about these measures.