Can you get EI if you quit your job? Many employees are surprised to learn that the answer is not always no. While workers who voluntarily resign are generally not eligible for regular Employment Insurance (EI) benefits, there are important exceptions.
In some circumstances, employees who quit their jobs may still qualify for EI if they can show they had just cause for leaving and that resignation was their only reasonable option. Situations involving workplace harassment, discrimination, unsafe working conditions, or significant changes to employment terms may qualify.
Understanding the difference between voluntarily leaving without cause and quitting with just cause is critical, as it can determine whether you receive EI benefits while searching for new employment.
TL;DR: Can you get EI if you quit your job?
Potentially, yes.
Employees who voluntarily quit their jobs are generally not entitled to regular EI benefits. However, Service Canada may approve EI benefits if the employee can demonstrate they had just cause for resigning and that quitting was their only reasonable alternative.
Common situations that may qualify include:
- Workplace harassment
- Workplace discrimination
- Unsafe working conditions
- Significant pay reductions
- Major changes to job duties
- Excessive unpaid overtime
- Constructive dismissal
Every case is assessed individually, and employees should be cautious before resigning because eligibility depends heavily on the specific circumstances.
What is Employment Insurance (EI)?
The Employment Insurance (“EI”) program is a federal program that provides temporary income support to unemployed workers while they look for new work.
Who is eligible for EI benefits?
Unemployed workers who fulfil the necessary requirements are eligible for EI benefits.
The EI program also provides special benefits to workers who take time off work due to specific life events including pregnancy, illness and caregiving obligations.
Basic EI eligibility requirements
Workers can receive EI benefits only in certain circumstances.
To be eligible, workers must satisfy all of the following points:
- You have paid EI premiums through your employment
- You have lost your job through no fault of your own
- You have worked a minimum number of insurable hours in the last 52 weeks or since your last claim (the minimum amount varies depending on the region’s unemployment rate)
- You are actively seeking and available for work
If you are eligible in Ontario, benefits are calculated based on a percentage of the worker’s average insurable earnings, up to a maximum amount.
Once a worker is receiving EI benefits, they are required to provide ongoing reports regarding their job search activities and any earnings or changes in their employment status.
Can you get EI if you quit your job?
Potentially, yes but the circumstances are very specific.
In most cases, employees who voluntarily leave their employment are not eligible for regular EI benefits. However, Employment Insurance rules recognize that some workplace situations leave employees with no reasonable choice but to resign.
If it is determined that you voluntarily quit your job, then you are not eligible for EI benefits. “Voluntarily leaving” means that the employee took the initiative and not the employer to end the employment.
This is considered without just cause when the worker did not take every reasonable alternative available to them to avoid unemployment.
Therefore, to be paid regular EI benefits the worker must show that quitting their job was the only reasonable alternative in their case, considering all the circumstances.
What does “just cause” mean for EI benefits?
Many people incorrectly assume “just cause” means having a good reason to quit. Under Employment Insurance rules, the standard is much higher. Employees must show that resigning was their only reasonable alternative after considering all available options. In other words, the worker took all the necessary steps to avoid being unemployed and had just cause to quit.
What reasons for quitting may qualify for EI?
Some examples of when a worker may be able to prove “just cause”, in that there was no reasonable alternative include:
- sexual or other harassment in the workplace
- discrimination in the workplace
- working conditions that endanger your health or safety
- major changes in the terms and conditions of your job affecting wages or salary
- excessive overtime or an employer’s refusal to pay for overtime work
- major changes in work duties
Can you get EI after constructive dismissal?
Potentially, yes. Employees who resign because their employer fundamentally changed the terms of employment may still qualify for EI benefits if the circumstances amount to constructive dismissal and resignation was the only reasonable option.
What evidence should you keep before quitting?
If you are considering quitting and would like to claim just cause for quitting to receive EI benefits, you should consider collecting the following information to support your case:
- emails
- text messages and other communications
- performance reviews
- complaints regarding any of the reasons that may qualify your quitting for just cause
- pay records
- medical documentation where applicable
Can you get severance if you quit your job?
Generally no, unless a constructive dismissal claim exists.
Severance is typically paid out when an employer ends the employment relationship with the employee and will pay severance in lieu of proper notice.
Frequently Asked Questions
Can I collect EI if I quit my job?
Potentially. Employees who quit their jobs may still qualify for EI benefits if they can demonstrate just cause and prove that resignation was their only reasonable alternative.
What is considered just cause for quitting a job?
Just cause may exist where an employee experiences workplace harassment, discrimination, unsafe working conditions, significant changes to compensation, excessive unpaid overtime, or constructive dismissal.
Can I get EI if I quit because of stress?
Possibly. Eligibility depends on the specific circumstances and whether there were reasonable alternatives available before resigning. Medical evidence may be important in some cases.
Can I get EI if I quit because of a toxic workplace?
Potentially. Employees may qualify for EI benefits if workplace harassment, bullying, discrimination, or other serious issues made continued employment unreasonable.
Can I get EI if my employer cuts my pay?
Possibly. Significant changes to wages or compensation may support an EI claim if resignation was the only reasonable alternative.
Can I get EI after constructive dismissal?
Potentially, yes. Employees who resign because of constructive dismissal may still qualify for EI benefits and may also have legal claims for severance compensation.
How does Service Canada decide if I had just cause to quit?
Service Canada reviews all surrounding circumstances and determines whether the employee had any reasonable alternatives to resigning before becoming unemployed.
Key Takeaway
Employees who quit their jobs are not automatically disqualified from receiving Employment Insurance benefits. However, Service Canada generally requires proof that resignation was the only reasonable option available. Because quitting can also affect severance and other legal rights, employees should understand their options before making the decision to resign.
Should you speak with an employment lawyer before quitting?
Whether or not you can prove that you had no reasonable alternative to quit varies on a case-by case basis One of the biggest mistakes employees make is resigning before understanding their legal rights. In some cases, an employee who quits may lose entitlement to both EI benefits and severance compensation.
Before quitting, we always recommend reaching out to an experienced employment lawyer to evaluate your case.
If you have any questions, please contact Whitten & Lublin online or by phone at 416 640 2667.
