» Quick answer: EI after maternity leave in Canada
You may still qualify for regular EI (job-loss) benefits after taking maternity or parental leave, but the rules that blocked many claimants have now been ruled unconstitutional. On September 3, 2026, the Federal Court of Appeal held that denying regular EI to parents laid off around maternity or parental leave violates section 15 of the Charter of Rights and Freedoms. The Court suspended its declaration of invalidity for one year, which means the current EI Act rules still apply while Parliament decides how to amend them. If you were denied EI after mat leave, you should file a claim (or appeal a past denial) now to protect your position, and plan for the tax impact if any retroactive benefits are paid.
» Why this ruling matters for Canadian parents right now
Imagine finishing your parental leave, planning to return to work, and being told your position no longer exists. You apply for regular Employment Insurance (EI), the federal benefit paid to workers who lose their job through no fault of their own. Service Canada tells you that you do not have enough insurable hours because those hours were used up before your leave. For thousands of Canadian parents, that has been the reality for years.
A September 2026 decision from the Federal Court of Appeal has changed the legal landscape. The Court found that the provisions of the Employment Insurance Act producing this result treat parents unequally under the Canadian Charter of Rights and Freedoms and, in practice, affect mothers disproportionately. Nothing changes automatically, and the ruling could still go to the Supreme Court. Any parent denied EI around a maternity or parental leave now has a stronger reason to revisit that file.
» Quick start: pick your path
Your next move depends on where you sit today. If you are on leave and just lost your job, apply for regular EI immediately. If you were denied EI in the last 30 days, file a request for reconsideration. If you are an employer, make sure the Record of Employment is accurate and on time.
Apply for regular EI through your My Service Canada Account as soon as your employment is formally terminated. Do not wait for a severance package to be finalized.
File a request for reconsideration in writing with Service Canada. The 30-day clock is strict and missing it typically forces you to argue for an extension.
Make sure the Record of Employment for a parent returning from leave is issued within five calendar days of the interruption of earnings, and that the reason code (usually A for shortage of work) is accurate.
Plan for the tax hit before any retroactive lump sum lands. The timing of a lump sum can move a recipient into a higher marginal bracket, and the T1198 relief has to be claimed on the correct return.
» What the Federal Court of Appeal actually ruled
The case was brought by six Quebec women who lost their jobs shortly before, during, or just after their maternity leaves. They applied for regular EI and were denied because they lacked the insurable hours needed in the 52-week qualifying period. Most of that period had been spent on maternity or parental leave.
The women argued this outcome discriminated against them under section 15 of the Charter, which guarantees equality without discrimination based on sex. They won at the Social Security Tribunal General Division, lost at the SST Appeal Division, and appealed to the Federal Court of Appeal.
On September 3, 2026, a three-judge panel of the Federal Court of Appeal agreed with the women. The Court held that the affected provisions create a sex-based distinction with a disproportionate adverse effect on women, because women give birth and take most parental leave.
The Court declared the provisions unconstitutional but suspended that declaration for one year to give Parliament time to amend the Act. The federal government has 60 days from the ruling to signal whether it will seek leave to appeal to the Supreme Court. Until Parliament amends the Act or the suspension expires, the current EI rules still apply.
» Regular EI vs maternity and parental EI: where the gap opened up
The Employment Insurance Act runs two related benefit systems. Regular EI is the job-loss benefit and pays out when you lose your job through no fault of your own. Special EI includes maternity, standard parental, and extended parental benefits, and pays out when you leave work to care for a newborn or newly adopted child.
Both benefit families draw from the same pool and share the same 52-week qualifying period. To qualify for regular EI, you typically need between 420 and 700 insurable hours in that period, depending on the unemployment rate in your economic region. Maternity and parental benefits generally require 600 insurable hours.
Here is where the gap opens up. Hours spent receiving maternity or parental benefits are not insurable hours toward a future regular EI claim. If you take a full extended parental leave and are laid off shortly after returning to work, most of the past 52 weeks may have been leave. Payroll rules and Record of Employment coding sit at the centre of this problem, and small errors on the employer side can make it worse. Our guide to managing payroll in 2026 covers the ROE mechanics in detail.
» Step-by-step: what to do if you were laid off around mat or parental leave
If you were laid off in or around a maternity or parental leave, act in this order: confirm the Record of Employment, apply for regular EI immediately, file a request for reconsideration within 30 days if denied, appeal to the Social Security Tribunal if the reconsideration goes against you, and get tax advice before any retroactive payment arrives.
- 1Confirm your Record of EmploymentThe ROE is the document Service Canada uses to assess your claim, and the reason code (usually A for shortage of work), insurable hours, and insurable earnings must be accurate. Ask your employer for a copy the day it is issued.
- 2Apply for regular EI right awayApply through Service Canada as soon as your last day of work is confirmed. You typically have four weeks from your last day to apply without losing benefits.
- 3Request reconsideration if deniedFile a request for reconsideration in writing within 30 days of the decision letter. This is a mandatory step before you can appeal.
- 4Appeal to the Social Security TribunalIf the reconsideration is denied, appeal to the SST General Division within 30 days. The SST is the specialized appeal body for EI decisions and is not the same as the CRA appeals process for tax disputes. If you have filed a Notice of Objection with the CRA before, the venue is different but the deadline discipline is the same.
- 5Preserve documentation and get tax adviceKeep records of your maternity or parental leave period, including start and end dates and any correspondence with your employer. Consult a tax advisor before any retroactive lump sum is deposited, because a small amount of planning can save a large amount of tax.
» Tax treatment of EI benefits and retroactive lump sums
EI regular and special benefits are taxable income in Canada. Service Canada issues a T4E slip each February reporting your benefits in box 14. If the 2026 ruling produces a retroactive lump sum covering more than one prior year, Form T1198 may allow the tax to be recalculated as if the benefit had been paid in the correct years.
EI benefits are ordinary income and are taxed at your marginal rate. Service Canada withholds tax at a flat rate that often under-withholds, especially if you have other income in the year, so the full picture only shows up when you file your T1 return. Our explainer on how federal income tax is calculated walks through the marginal-rate math.
The T4E slip reports EI benefits in box 14, tax withheld in box 22, and any repayments in box 30. Higher-income recipients may also face an EI clawback, reported through the tax return.
A retroactive lump sum can be more painful than the original denial. A single deposit covering two or three prior benefit years often pushes the recipient into a higher marginal bracket in the year of receipt. Section 110.2 of the Income Tax Act and Form T1198 (Statement of Qualifying Retroactive Lump-Sum Payment) can help. If the lump sum exceeds $3,000 and covers eligible prior years, the CRA can recalculate the tax as if each year’s portion had been paid in that year. The relief must be claimed on the return for the year the payment is received, and it is easy to miss.
» Common mistakes to avoid after the 2026 ruling
The ruling has been widely reported, and the reporting has created some confusion. The mistakes below come up in every parent’s file we have seen since September 3, 2026.
- →Assuming the ruling means EI is automatically owed. The declaration of invalidity is suspended for one year, so the current rules still apply.
- →Missing the 30-day reconsideration window. It is the single most common reason a file is lost, and the clock starts on the date of the decision letter, not the day you read it.
- →Confusing the Social Security Tribunal with the CRA appeals process. The SST handles EI decisions; the CRA appeals process handles income tax and GST/HST disputes. Filing in the wrong forum wastes months.
- →Forgetting the retroactive lump-sum tax relief. Form T1198 can prevent a bracket jump when a multi-year lump sum arrives, but only if it is filed with the correct return.
- →Letting the employer file the Record of Employment incorrectly. Coding errors, wrong insurable hours, or a late ROE can sink an otherwise valid claim before it is assessed.
- →Treating provincial severance under the Ontario Employment Standards Act as a substitute for EI. Severance and EI serve different purposes and interact with each other; you may need to plan for both.
- →Assuming the ruling only applies to Quebec. The Employment Insurance Act is federal, so a Federal Court of Appeal decision applies Canada-wide.
» Frequently asked questions
Can I get EI if I was laid off during or right after my maternity leave in Canada?
Does the 2026 Federal Court of Appeal ruling mean I automatically get EI now?
How long do I have to appeal an EI denial after maternity or parental leave?
Are EI maternity and parental benefits taxable in Canada?
What happens to my tax bill if I receive a retroactive EI lump-sum payment?
Does the ruling apply outside Quebec, in Ontario or the rest of Canada?
How many insurable hours do I need to qualify for regular EI after parental leave?
Should I file an EI claim now or wait until the government changes the rules?
Get help before you file or appeal
The 2026 Federal Court of Appeal ruling is a real shift for Canadian parents, but it is not yet the law in effect. If you were denied EI around a maternity or parental leave, filing a reconsideration, an appeal, or a fresh claim now protects your position while the clocks are still running. A brief review of the tax implications before any retroactive payment arrives can also save you a lot in avoidable tax.
Book a ConsultationSources and References
- Federal Court of Appeal decisions — https://decisions.fca-caf.gc.ca/fca-caf/en/nav.do
- Canadian Press: Denying EI to women laid off after maternity leave is unconstitutional (Sept 4, 2026) — https://lethbridgeherald.com/news/national-news/2026/09/04/denying-ei-to-women-laid-off-after-maternity-leave-is-unconstitutional-appeal-court/
- Government of Canada: EI regular benefits eligibility — https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/eligibility.html
- Government of Canada: EI maternity and parental benefits — https://www.canada.ca/en/services/benefits/ei/ei-maternity-parental.html
- Justice Laws: Employment Insurance Act — https://laws-lois.justice.gc.ca/eng/acts/E-5.6/
- Canadian Charter of Rights and Freedoms, section 15 — https://laws-lois.justice.gc.ca/eng/const/page-12.html
- CRA: Line 11900 Employment insurance and other benefits — https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-11900-employment-insurance-other-benefits.html
- CRA: Form T1198 Statement of Qualifying Retroactive Lump-Sum Payment — https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1198.html
- Social Security Tribunal of Canada — https://sst-tss.gc.ca/
- Government of Canada: Record of Employment (ROE) — https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/reports/roe-guide.html
