Summary of Issue: Relief Grants

Decision A-0486.95 Full Text of Decision A-0486.95

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.

Decision A-0500.95 Full Text of Decision A-0500.95

Case similar to FCA in King (A-0486.95). Refer to summary indexed.

Decision A-0597.94 Full Text of Decision A-0597.94

Closure of mine in Kirkland Lake and Temagami. Part of severance package received was labelled "Housing and Rental Subsidy". Held as an obiter that even if the housing subsidy were considered earnings, it would be exempt as a "relief grant in cash or kind" under subsection 57(3) of the Regulations.

Decision A-0598.94 Full Text of Decision A-0598.94

Refer to summary indexed under L. Vernon (A-0597.94)

Decision 25472 Full Text of Decision 25472

Refer to: A-0597.94

Decision 28505 Full Text of Decision 28505

A relief grant has the following characteristics: available only in rare or unusual circumstances; a fixed sum not dependent on individual entitlement; not wholly compensatory; not paid by the party responsible for its payment but out of public funds because it is beneficial to the public interest. Held that the maximum payment of $5000 made to employees under the Ontario Employee Wage Protection Program by reason of the plant closure has the characteristics of a relief grant and is exempt from earnings under reg. 57(3)(c).

Decision 27566 Full Text of Decision 27566

His claim that monies from the Ontario Employee Wage Protection Program are in the nature of a relief grant has no merit. A relief grant connotes a payment of a lump sum, usually forgivable, and by the use of the word "relief" seems to connote that it arises as a result of some catastrophic event.

Decision 25473 Full Text of Decision 25473

Refer to FCA A-0597.94

Decision 12994 Full Text of Decision 12994

6 weeks' salary paid to claimant by employer in consideration of length of service to assist her in retraining not to be construed as relief grant. Clearly a remuneration arising from employment.

Decision 11083 Full Text of Decision 11083

Relief grant bears the connotation of freely given assistance for the destitute who are markedly more needy than the general population among whom they live and work. Northern accommodation allowance is not a relief grant.