Joginder Singh Toor

SOME countries rather some continents are facing a severe problem of population freeze. These include North America, Canada, Europe and Australia. Canada intends a new legislation to help all young self-employed persons who are working hard to establish their careers but are putting off their raising their families until they are on a sound economic footing and a developed track.

Canada has introduced bill c-56 which stipulates providing certain benefits to self-employed persons also which are available to salaried ones. These include paternity benefits. Maternity and paternity benefits are available to all salaried persons. The government, by the new legislation intends to provide paternity benefits to both mother and father in order to encourage them to raise a family.

There are in existence certain programs such as PLAP (Parental leave assistance program) for small firms but self-employed individuals have to choose between careers and family. Ask any young couple in these countries, if they have got any child, the usual answer would be “we have not planned, we have no money to afford, we are yet to establish ourselves in our career and we will wait until we are sound footing”. To pull out young couples from this enigma and to encourage them to raise families so as to increase population, the government has chosen to provide some benefits to self-employed individuals, however with certain caps.

The present system of PLAP which was rolled out last March has eligibility criteria which stipulate that “a claimant must, have no access to other maternity, parental or adoption financial benefits under public or private plans and is not eligible to receive employment insurance.” The parental, maternal and adoption leave benefits range from $750.00 per week to a maximum of $9,000.00 per leave for a lawyer. During the first eight months, PLAP has approved benefits for 39 small-firm lawyers, including 29 women, 30 out of them were single practitioners. The total budget of PLAP for 2010 is to touch $540,000.00.

As against PLAP, Bill c-56 contemplates that a self-employed individual should have earned a minimum of $6,000.00 over the proceeding calendar year. The governments contemplates under bill c-56 maternity benefits for maximum of 15 weeks to birth mothers, covering the period surrounding birth which can starts 8 weeks before the expected birth. Parental/ adoptive benefits can go up to 35 weeks available to biological or adoptive parents for the period they are caring for a new born or newly adopted child.

Sickness benefits would also be available to self-employed persons who can’t work due to sickness, injury or quarantine. The bill also contemplates compassionate care benefits of up to 6 weeks who have to temporarily leave work to provide care or support to a family member who is seriously ill with significant death risk.

A self-employed person would be able to opt out of the employment insurance program at the end of any tax year provided he has not claimed benefits under it. However, if he has claimed benefit he will have to contribute on self-employed earnings as long as he is self-employed but he will have to pay the same premium rate as salaried employees pay, but will not be required to pay the employer portion of premiums, he being a persons self-employed.

The new legislation has a primary purpose of encouraging young couples to raise families and to provide them financial support for the purpose. There is a on-going debate on the benefits intended and the purpose to be achieved. By and large there is a feeling that it would help and encourage young couples raising families if both of them get maternity and paternity allowance for a significant period and a suitable supportive amount.

[The writer is a senior advocate and a commentator on public affairs is currently in Toronto.
jogindersingh_toor@yahoo.com]

BACK