The definition of earnings in the Regulations is very general. It simply says that it comprises the entire income of a claimant arising out of employment. Income in turn, is defined as any pecuniary and non-pecuniary receipts from an employer or any other person.
Canada (A.G.) v. Vernon [1995], F.C.J. No. 1394 (F.C.A.) A-597-94
Canada (A.G.) v. King, April 10, 1996, F.C.J. No. 483 (F.C.A.) A-486-95
Canada (A.G.) v. Roch, 2004 FCA 356 A-688-01
The Regulations define earnings as "the entire income of a claimant arising out of any employment". However, these words are not used in their ordinary sense, but rather are broadly defined. Earnings in the broad sense are everything the worker derives in the form of pecuniary benefits from his work past or present. In order to constitute earnings an amount must be paid to a claimant as a result of work done, not merely because of his or her employment status.
Cote v. C.E.I.C. [1986], F.C.J. No. 447 (F.C.A.) A-178-86
Canada (A.G.) v. Vernon [1995], F.C.J. No. 1394 (F.C.A.) A-597-94
Canada (A.G.) v. King, April 10, 1996, F.C.J. No. 483 (F.C.A.) A-486-95
Canada (A.G.) v. Roch, 2004 FCA 356 A-688-01
Earnings include any receipt or consideration received for the work done. If, as a result of variable market conditions, a worker receives a sum of money on condition that he give up his work or that he surrender his hours of work to another employee, the amount that he receives has the effect of compensating for his diminished earnings. The amount received represents, to a certain extent, compensation for his undertaking not to work. It also mitigates the situation in which workers finds themselves when they are no longer receiving a salary. This sum becomes consideration for not working. It does not necessarily correspond to the same amounts as the salary, but it makes up for its absence. At the same time, this amount is one of the conditions of termination of employment because it is an incentive to put an end to the employment. It is closely connected to the employment and has all of the characteristics of earnings even if it is not earnings within the traditional meaning because there is no work done in consideration of the amount received. There is no reason why the notion of earnings cannot be adapted to labour market conditions if it is determined that a sum received, even from a third party, is comparable to consideration for freeing up a position.
Canada (A.G.) v. Roch, 2004 FCA 356 A-688-01
The term normal weekly earnings means the ordinary, usual earnings that a claimant receives or earns on a regular basis. It does not include amounts which are more properly characterized as fringe benefits or extra amounts.
Canada (A.G.) v. Fox, October 9, 1997, F.C.J. No. 1321 (F.C.A.) A-841-96
In order for an amount paid under a contract of service to constitute earnings, it is not necessary that services actually be performed under the contract. It is sufficient that a contract of employment exists.
Canada (A.G.) v. Fox [1989], F.C.J. No. 812 (F.C.A.) A-1205-88
Amounts that are deductible by statute for payment over to the government in respect of a debt due to the government, as for example, under the Income Tax Act are earnings. Earnings also include amounts deductible by the employer under some arrangement between the employer and employee for application on some indebtedness of the employee to the employer or for payment to a third person.
Canada (A.G.) v. McCombe, [1978] 2 F.C. 746 (F.C.A.) A-856-77
Moneys paid to a claimant as compensation for loss of capital cannot be regarded as income for the purposes of allocation. Where a claimant has part ownership of a business and joined the business on the basis of obtaining capital rather than earning income, the repayment of this capital or its equivalent is not income and is not "paid by reason of a lay-off or separation from employment" as required by the regulations.
Canada (A.G.) v. Carr, March 21, 1996, F.C.J. No. 357 (F.C.A.) A-572-95
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2009-04-28