The government is urging people who want to take advantage of new employment insurance (EI) special benefits to register before April 1, 2010, to avoid the 12 month waiting period that will take effect after that date.

"It is important that self-employed individuals are aware that if they register by April 1, 2010, they will be eligible to apply for benefits as early as January 1, 2011," said Human Resources and Skills Development Minister, Diane Finley. "If they register after April 1, 2010, they will have to wait 12 months before applying for benefits."

Effective January 31, 2010 self-employed workers have been able to access special benefits for maternity, parental, sickness and compassionate care.

Participation is voluntary

Accessing these benefits is done on an opt-in basis by entering into an agreement with the Canada Employment Insurance Commission (the Commission) through Service Canada.

You would be considered a self-employed person if you either operate your own business or are employed by a corporation, but are unable to participate in the EI program as an employee because you control more than 40 percent of the voting shares of the corporation.

Special considerations

There are a handful of self-employed professions the new measures do not apply to, as they may already be eligible for EI and special benefits:

• barbers & hairdressers;
• taxi drivers and drivers of other passenger-carrying vehicles; and
• fishers who are included as insured persons under the EI Fishing Regulations.

Self-employed workers in Quebec are already covered for maternity and parental benefits through the Quebec Parental Insurance Plan. Those wishing to apply for EI sickness and compassionate care benefits can do so by opting into the program.

Rules for participation

Once you enter into an agreement there is a 60 day window to reconsider your decision and withdraw from the program. Should you choose to withdraw you will not have to pay any premiums.

After the 60 day grace period, participation lasts indefinitely unless you terminate it.

You may only terminate the agreement if you have never received EI special benefits as a self-employed person. If you have received benefits, you cannot terminate your agreement and must continue to pay EI premiums on your self-employment income for the entire duration of your self-employment career.

If you are eligible to terminate your agreement and choose to do so, you will not receive a refund for EI premiums you have paid and will be required to pay EI premiums on your self-employment income for the entire calendar year in which you terminate the agreement.

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