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The memo below provides guidance concerning Employment Insurance (EI) for members who are/will be in receipt of retroactive salary payments and/or the recognition bonus pursuant to the 2022-26 Provincial Collective Agreement, and who also have collected EI benefits at any point since September 2022. If this does not apply to you, please disregard the memo.
Retroactive Pay Increases
The 2022-26 Provincial Collective Agreement provides for a 2% retroactive salary increase for the 2022-23 school year, a 2% retroactive increase for, the 2023-24 school year and, as of January 15, 2024, an additional increase resulting from adjustments to the salary grid steps, the exact amount of which depends on your grid placement. These changes are what will be reflected in retroactive salary payments.
The common inquiries from members who are currently or have been at some time since September 1, 2022, in receipt of EI benefits can be summarized as follows:
- Does a retroactive salary increase need to be reported as earnings to Service Canada when received?
- Does receipt of a retroactive salary increase have any impact on EI benefits received during the period to which the retroactive payment applies?
The NLTA has consulted with Service Canada and sought legal advice on this matter, and the short answer to both questions is no. We have been advised that retroactive salary increases due to contract negotiations are specifically excluded from consideration as earnings for EI purposes during the benefits period and for the purpose of interruption of earnings. In short, the receipt of retroactive pay does not need to be reported to Service Canada and should not negatively impact current EI benefits or benefits received since September 1, 2022.
Notwithstanding, the advice we have received on this matter, the NLTA is aware that information provided to teachers by individual Service Canada employees is not always consistent and may interpret EI regulations differently. If a member is advised by Service Canada that retroactive pay should be reported as earnings for the period when the money was received or for the period of work to which it relates, resulting in a negative impact for the teacher, they should contact an NLTA Administrative Officer for assistance by sending an email to mail@nlta.ca.
Recognition Bonus
The 2022-26 Provincial Collective Agreement also provides for a one-time recognition bonus of $2,000, pro-rated based on days worked during the 2022-23 school year. Details on eligibility for and payment of the recognition bonus have been previously communicated to members, and that information can be accessed here.
The NLTA has also sought legal advice on this matter and we have been advised that Service Canada may deem the recognition bonus to be earnings payable in the week of receipt or on the date the Collective Agreement was signed (February 1, 2024). Members who are told this by Service Canada representatives should contact the Association immediately; the Association will assess the individual’s case and provide assistance if there are grounds for appeal.
Given this uncertainty, we advise members to contact Service Canada and advise that you have received a recognition bonus from the ratification of a new Collective Agreement. You should make it clear to them that the recognition bonus is payable on a pro-rated basis for days worked during the 2022-23 school year, and that it should be allocated to the period that the work was performed, that being from September 2022 to June 2023.
If Service Canada advises you, verbally or in writing, that the recognition bonus will affect your entitlement to EI benefits, , please contact an NLTA Administrative Officer via mail@nlta.ca, or by calling 709-726-3223 or 1-800-563-3599.
Thank you in advance for your time and attention to this matter.
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