Supplemental Unemployment Benefit Plan Cannot Be Used To Top Up The Canada Emergency Response Benefit

On May 8, 2020, the federal government of Canada clarified through Q&A guidance that the Employment Insurance (EI) rules allowing employers to make additional ("top up") payments to workers through Supplementary Unemployment Benefit Plans (SUB plans) do not apply to employees receiving the Canada Emergency Response Benefit (CERB).  The CERB provides temporary income support to workers who have stopped working for COVID-19-related reasons.  

An employer can establish an SUB plan to top up EI benefits during a period of unemployment.  Unless an SUB plan is registered with Service Canada and meets specific requirements, the payments from that plan to an employee will be treated as income and EI benefits received by the employee may be reduced.