My friend has been terminated from a full-time job recently by his employer due to Work Force Reduction. He is eligible to apply for claiming Employment Insurance from next month.

Meanwhile he got a contracting job for 6 months. He decided not to pay for himself from the contract job and leave the money earned in business account.

Can he claim EI until he finds a full-time job?

  • What kind of business account? I don't know the categories in Canada, but in the US, that could refer to a sole proprietorship, an LLC, or a C-Corp among other options. It may make something of a difference. You also might want to include province in case the rules are different. E.g. if provincially incorporated.
    – Brythan
    Aug 26, 2018 at 22:10
  • Its a provincial incorporation in Ontario
    – corning
    Aug 28, 2018 at 2:43

1 Answer 1


No, your friend would not be eligible for EI under these conditions. In order to claim EI, your friend must certify they are "ready, willing, and capable of working each day". As your friend is doing contract work, even though they are not drawing money, they do not meet the criteria.

Claiming EI while working a contracting job would be fraud, and is most definitely not what EI is there for.

  • Thanks, is it possible to claim EI after completing 6 months contract and until he find a full-time job?
    – corning
    Aug 27, 2018 at 18:33
  • I'm uncertain about that case. The EI office would be able to tell you. I suspect the answer is yes, but I'm not remotely sure about that. Sep 7, 2018 at 17:44

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