(b) Lay-off or Separation vs. Reduction in Earnings
Not all reductions in working hours will be considered an interruption of earnings. A reduction in work hours will only give rise to an interruption of earnings if it entails a reduction in earnings as prescribed by the regulations; that is, a reduction in earnings of more than forty (40) percent in the insured person's normal weekly earnings, because the person ceases to work in that employment by reason of illness, injury, quarantine, pregnancy or the need to care for a child referred to in subsection 23(1) of the Employment Insurance Act.
Subsection 14(1) Employment Insurance Regulations
Subsection 23(1) of the Employment Insurance Act
A reduction of hours of work and consequent reduction of earnings does not amount to either a "layoff" or "separation from employment", whether actual or constructive.
Canada (A.G.) v. Hartmann (1989), F.C.J. No 839 (F.C.A.) A-516-88
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2009-05-05