Law Times

PAGE 10 FOCUS OcTOber 18, 2010 • Law Times EI for self-employed off to rocky start BY JUDY VAN RHIJN For Law Times O n Jan. 1, a whole new class of customers will start accessing employ- ment insurance for the self-em- ployed. Inevitably, some of them will require legal advice as they put their rights to the test, and there will be plenty of eager law- yers waiting to embrace them. Nevertheless, the scheme so far seems to be attracting more praise than paying customers given that, as of the beginning of this month, only 6,000 self-employed people had opted to take part in it. For Corinne Pohlmann, vice president for national aff airs at the Canadian Federation of In- dependent Business, the scheme is a welcome tool for those who work for themselves, but she, too, hasn't seen a great deal of in- terest. "It's great that the option is out there," she says. "It has been a little skewed that a whole portion of the workforce couldn't access parental benefi ts. But will it be attractive enough to invest up to $750 a year? Every person must do their own calculation to decide whether it's worth it." Th e CFIB supported running the program as a voluntary one. "Th e last thing we wanted was something imposed on us because everyone's situation is very diff er- ent," says Pohlmann. "We sense that the members are pleased that the option is available; however, that doesn't mean that the take- up has been very strong." Pohlmann advises people to look carefully at their own situa- tion before entering the scheme. "It's straightforward in terms of understanding what it can do," she says. "Employment insurance is primarily used when someone loses a job, but this scheme only deals with special benefi ts, name- ly parental leave, maternity leave, sickness benefi ts, and compas- sionate care leave." As a result, the applicant only has to pay the equivalent of an employee's share at the same rate and not the part usually covered by the employer. "Usually, an employer pays 1.4 times what the employee pays," Pohlmann notes. "Th e employer really pays for the regular insurance ben- efi ts, and the employee is fund- ing the special benefi ts. So pay- ing the same as an employee will keep the system viable." Pohlmann believes the most attractive part of the package will be the sickness benefi ts. "Th e self- employed often fi nd it diffi cult to get health coverage. To be covered for 15 weeks and get some sort of income may be very attractive. Th is is something that applies at any age versus maternity-paterni- ty leave that may only be of inter- est to younger women and men who are planning a family." In fact, Pohlmann notes that Class Actions in Canada Ward Branch This important work provides examples and direction through analysis of hundreds of class action cases litigated across Canada, as well as a comprehensive bibliography of class action articles. This well-organized, easy-to-read text features: • practical direction and commentary by one of the leading Canadian experts in class action litigation • guidelines for drafting pleadings • expert guidance on the effective use of class actions in different legal areas such as: securities, environmental law and product liability … and more! Looseleaf (2 Volumes) • $289 • Subscription updates invoiced as issued (2/yr) P/C 0378030000 • ISSN 1206-2375 Damages: Estimating Pecuniary Loss Cara Brown Damages: Estimating Pecuniary Loss is a unique approach to blending economic data with case law from civil litigation cases. Support for each economic principle or assumption is found in cases throughout Canada so counsel will know which economic assumptions judges will accept and which ones they will not. Looseleaf (2 Volumes) • $285 • Subscription updates invoiced as issued (1/yr) P/C 0375030000 • ISBN 0-88804-325-2 The Oatley-McLeish Guide to Personal Injury Practice in Motor Vehicle Cases Roger G. Oatley, John McLeish and contributing authors Find out from today's top personal injury experts how to attain the fairest compensation for your client's injury with this insightful resource. This resource provides all the essential step-by-step guidance you need to effectively manage the complexities of Ontario's no-fault insurance system. Looseleaf (2 Volumes) • $329 • Subscription updates invoiced as issued (1-2/yr) P/C 0486030000 • ISBN 0-88804-380-5 Personal Injury titles the vast majority of self-employed people are older. "Often, they have been through a career and then go off on their own. Th is op- tion doesn't preclude people with a pre-existing condition from applying. In many situations, it might be very feasible, although if you are younger and healthy, it might be more advantageous to go through the private system." One feature that's prompting the CFIB to urge its members to show caution is the provi- sion that, although people can opt out at any time before they make a claim, once a person has received benefi ts, they have to keep paying as long as they're self-employed. Th is would be of particular concern to someone who only wants to access paren- tal benefi ts. "Many women say to us, 'I could only aff ord to take a couple of months away from my business before I went back to work at least part time. I could never take a year off ,'" Pohlmann points out. "Th en they have to pay into the scheme for the rest of the time they are self-employed. Many women prefer to put a cer- tain amount of money aside from their income and draw on that when they need it." But even if the scheme gets lots of participants, it's not cer- tain there will be much work for lawyers stemming from it. Jim Renaud of Renaud Todd LLP in Windsor, Ont., is concerned that the limits on the maximum return are so low. "Disputes over these policies are hardly ever worth the cost of a lawyer," he says. "In the 24 years of my ex- perience, I've almost invariably never fought over this stuff unless I'm fi ghting for a union or where I subsume it as part of a wrongful dismissal claim." Th ere's only one new concept canadalawbook.ca For a 30-day, no-risk evaluation call: 1.800.565.6967 Canada Law Book, a Thomson Reuters business. Prices subject to change without notice, to applicable taxes and shipping & handling. LT1018 www.lawtimesnews.com in the amendments — the defi - nition of self-employed — but Renaud doesn't expect it to gen- erate much dispute. "I haven't seen much litigation on eligibil- ity because applicants are vet- ted when they fi rst sign up for a policy," he says. "Th is to me is no diff erent from taking out private insurance. You set it up and pay the premium." LT

• Cover
• Legal Pioneer
• Radical Ideas
• Focus On Insurance Law