| Issue: |
Sub-Issue 1: |
Sub-Issue 2: |
Sub-Issue 3: |
| earnings |
income |
provincial program |
|
Summary:
Held by Umpire that the maximum payment of $5,000 made to employees under the Ontario Employee Wage Protection Program by reason of the plant closure is exempt from earnings as being relief grants pursuant to Reg. 57(3)(c). Decision overturned by the FCA who found that the Program is essentially an unfunded insurance scheme intended to compensate all employees in Ontario in the event that their employer does not meet its obligations under provincial law in respect of unpaid wages, v.p., sev. pay, etc.
| Issue: |
Sub-Issue 1: |
Sub-Issue 2: |
Sub-Issue 3: |
| earnings |
income |
arising out of any employment |
|
Summary:
The Board was correct when it concluded that the payments are caught by the definition of earnings. They clearly arise out of the claimant's employment. Without the employment, the payments would not have been made. They were received from the Ontario Ministry of Labour which is "any other person".**In the case at bar, the payments provided under the Program are compensation, to a maximum amount, for wages of benefits earned but not paid, and are therefore directly related to one of the most critical aspects of the employment relationship. Decision confirmed by FCA.
| Issue: |
Sub-Issue 1: |
Sub-Issue 2: |
Sub-Issue 3: |
| earnings |
allocation |
from week of layoff |
|
Summary:
Temporary layoff on 2-01-91. Plant closure in 03-91. No monies paid except $5,000 received later under the Ontario Employee Wage Protection Program. Held that the payment was made by reason of the plant closure, not the layoff, so would be allocated from the plant closure. Commission's appeal dismissed on that issue but allowed on determination of earnings by the FCA.**NOTE: Based on the specifics of the case and on the definition of the word "termination" in the Ontario Employment Standards Act, Commission did not challenge the allocation for that particular case to the Supreme Court.
| Issue: |
Sub-Issue 1: |
Sub-Issue 2: |
Sub-Issue 3: |
| earnings |
income |
wage protection program |
|
Summary:
Held by Umpire that the maximum payment of $5,000 made to employees under the Ontario Employee Wage Protection Program by reason of the plant closure is exempt from earnings as being relief grants pursuant to Reg. 57(3)(c). Decision overturned by the FCA who found that the Program is essentially an unfunded insurance scheme intended to compensate all employees in Ontario in the event that their employer does not meet its obligations under provincial law in respect of unpaid wages, v.p., sev. pay, etc.
| Issue: |
Sub-Issue 1: |
Sub-Issue 2: |
Sub-Issue 3: |
| earnings |
earnings |
relief grants |
|
Summary:
Three closely related aspects determine whether a payment constitutes a relief grant: the circumstances giving rise to the loss, the type of loss for which the compensation is being paid and the nature of the compensatory scheme. Distinguishing the case from that of Vernon (A-597-94), the FCA found that payments made under the Ontario Employee Wage Protection Program lack the attributes of what one could reasonably describe as a "relief grant".**Claimants maintain "that the key component of the definition of a relief grant is the fact that it is financial assistance, the objective of which is the alleviation of hardship". Position not supported by the Court's reasoning in Vernon (A-597-94). The flaw in the claimants' argument can be traced initially to the mistaken belief that the financial hardship is a sufficient, rather than a necessary, basis on which to conclude that certain payments qualify as relief grants.
