How does parental leave work in Canada?

In this article, we will cover:

• How does the parental leave entitlement work?
• How is parental leave pay calculated?
• The eligibility for parental leave
• What documents need to be submitted by the employee?
• What does the employee need to do with Remote to process parental leave?

How Does the Parental Leave Entitlement Work?

EI parental benefits are offered to parents who are caring for a newborn or newly adopted child or children.

There are 2 options available for receiving parental benefits: Standard or Extended. The number of weeks and the weekly amount employees will receive differ between those options.

• Standard parental benefits can be paid for a maximum of 35 weeks and must be claimed within a 52-week period (12 months) after the week the child was born or placed for the purpose of adoption. The 2 parents can share these 35 weeks of standard parental benefits.
• Extended parental benefits can be paid for a maximum of 61 weeks and must be claimed within a 78-week period (18 months) after the week the child was born or placed for the purpose of adoption. The 2 parents can share these 61 weeks of extended parental benefits.

How Is Parental Leave Pay Calculated?

The basic rate for calculating EI parental benefits depends on the option the employee chooses:

• Standard parental benefits are paid at a weekly benefit rate of 55% of your average weekly insurable earnings, up to a maximum amount of CAD $650 a week for 2023.
• Extended parental benefits are paid at a weekly benefit rate of 33% of your average weekly insurable earnings, up to a maximum amount of CAD $390 a week for 2023.
• Please visit the benefits calculator to get the estimated amount.

The Eligibility For Parental Leave

Employees may be eligible to receive EI maternity or parental benefits if they meet the following criteria:

1. They are employed in insurable employment
2. They meet the specific criteria for receiving EI maternity or parental benefits their normal weekly earnings are reduced by more than 40%
3. They have accumulated at least 600 hours of insurable employment during the qualifying period Detailed information on each requirement can be found here.

The eligibility for parental leave of one parent is determined separately from the eligibility of the other parent

It depends on whether the employee has or will have actual care and custody of the child

It depends on whether proper notice was given to the employer Note: “employees” also includes “interns”. Student interns are not entitled to parental leave.

What Documents Need To Be Submitted By the Employee?

To complete the online application, employees will need the following personal information:

• Social Insurance Number (SIN)
  • If their SIN begins with a 9, they will need to provide proof of their immigration status and work permit
• The last name at birth of 1 of their parents
• Mailing and residential addresses, including the postal codes.
  • If they do not have a usual place of residence, they must apply in person at they local Service Canada Centre.
• Complete banking information to sign up for direct deposit, including:
  • Financial institution
  • Branch (transit) number
  • Account number
• The date of birth of the newborn or, in the case of an adoption, the date on which their child was placed with the employee (they must also provide the full name and address of the agency handling the adoption)
• The SIN of the other parent, if they plan to share the benefits
• The names and addresses of all employers they worked for in the last 52 weeks, as well as the dates of employment and the reasons for separation from these employers
• Detailed version of the facts, if they quit or were dismissed from any job in the last 52 weeks
• The dates (Sunday to Saturday) and earnings for each of their highest paid weeks of insurable earnings in the last 52 weeks or since the start of their last EI claim, whichever is the shorter period
  • This information will be used, along with their record(s) of employment, to calculate their weekly EI benefit rate

Please visit EI maternity and parental benefits: Apply for more information.

What Does the Employee Need To Do With Remote to Process Parental Leave?

1. Employee creates their leave with the right “Time Off Type” under Time Off in Remote See also: Submit time off
2. Customer approves the request.
3. Remote team will generate a Record of Employment (ROE) with the last payroll the employee will receive before going on leave. See also: What is a Record of Employment (ROE), and when is it provided?
4. Employee to apply for EI parental benefits here.