Being laid off is stressful, but the first 72 hours matter most. Acting quickly on EI, severance, and benefits ensures you do not lose income you are entitled to while you regroup.
Apply for Employment Insurance the day after your last day of work. Then work through the steps below in order — each has a deadline that, if missed, costs you money.
Step 1: Apply for EI immediately
Do not wait until your severance runs out. Apply the day after your final day of employment.
| EI Step | What to Do |
|---|---|
| Apply online | Canada.ca → My Account → Apply for EI benefits |
| Record of Employment (ROE) | Your employer must issue it within 5 business days — CRA receives it electronically in most cases |
| Waiting period | 1-week unpaid waiting period applies to most claims |
| Payment start | Approximately 28 days after applying if documents are in order |
| Bi-weekly reports | Submit a report every 2 weeks to keep payments flowing |
You need 420 to 700 insurable hours worked in the last 52 weeks to qualify. The required hours depend on your region — areas with lower unemployment require more hours.
→ See: How to Apply for EI in Canada
Step 2: Review your severance and departure terms
Before signing anything, understand what you are receiving and what you are giving up.
| Term | What to Know |
|---|---|
| Severance pay | Legally required in most provinces after 5+ years of service; exact amount varies by province and employment contract |
| Pay in lieu of notice | Common law notice is often much higher than statutory minimum — typically 4–6 weeks per year of service |
| Release of liability | Signing a full and final release waives your right to sue for additional pay — do not sign without understanding your rights |
| Non-compete clauses | Many are unenforceable in Canada — consult an employment lawyer before agreeing |
| Benefits during notice period | You may be entitled to continued benefits through the statutory notice period even if you are not working |
Ontario example: The Employment Standards Act requires 1 week per year of service up to 8 weeks. Common law entitlement is typically much higher. An employment lawyer consultation ($200–$400) is worth considering if the severance offer seems low.
→ See: Severance Pay Canada
Step 3: Protect your health and dental benefits
Group benefits usually end quickly after termination. Act within the first week.
| Action | Timeline |
|---|---|
| Confirm coverage end date | Ask HR immediately — some employers extend coverage through the severance period |
| Fill prescriptions | Stock up on medications before coverage lapses |
| Book dental and vision appointments | Use coverage before it ends |
| Conversion privilege | You may convert group life or extended health to individual coverage without medical evidence — you have approximately 31 days |
| Add to spouse’s plan | If your spouse has group benefits, add yourself as a dependent now |
| Provincial pharmacare | Low-income programs such as Ontario’s ODB or BC PharmaCare may bridge gaps in drug coverage |
→ See: How to Continue Benefits After Leaving a Job
Step 4: Adjust your budget to EI income
Assume your income drops to EI level now, even while severance is still paying. Treat any extra as emergency buffer.
| Expense | Action |
|---|---|
| RRSP contributions | Pause — preserve cash and save the deduction for a higher-income year |
| Subscriptions | Cancel or downgrade streaming, gym, and app subscriptions |
| Discretionary spending | Freeze non-essential purchases |
| Mortgage or rent | Contact your lender early if you foresee difficulty — lenders prefer proactive conversations |
| Minimum debt payments | Maintain these to protect your credit score |
| TFSA investing | Pause new contributions but do not withdraw unless necessary |
A simple rule: live on your projected EI amount starting today, regardless of what is in the bank.
→ See: What to Do When You Can’t Pay Your Bills
EI payment reference
| Your Average Weekly Insurable Earnings | EI Weekly Benefit (55%) |
|---|---|
| $600/week ($31,200/year) | $330/week |
| $800/week ($41,600/year) | $440/week |
| $1,000/week ($52,000/year) | $550/week |
| $1,265/week ($65,700/year — maximum) | $695/week |
If you have dependants and low family income, the Family Supplement may raise your rate to up to 80% of insurable earnings.
Step 5: Use the low-income year for tax planning
A period of unemployment may lower your annual income significantly, creating opportunities.
| Strategy | Notes |
|---|---|
| RRSP withdrawal | If income is much lower than usual, withdrawing from an RRSP at a low marginal rate is more tax-efficient — plan carefully |
| TFSA withdrawal | Always tax-free; room is restored January 1 of the following year |
| Capital loss harvesting | Selling non-registered investments at a loss offsets gains realized elsewhere |
| Save RRSP deductions | Avoid contributing now — carry the contribution room forward and claim the deduction in a higher-income year |
→ See: RRSP Withdrawal Rules
While on EI: allowed and not allowed
| Allowed | Not Allowed |
|---|---|
| Earn money (keep 50¢ per $1 earned, up to your weekly benefit) | Turn down suitable employment without reporting it |
| Take approved training or return to school (with Service Canada agreement) | Work full-time without reporting earnings |
| Start a side project or freelance work | Earn above your weekly benefit without declaring it |
| Travel within Canada | Leave Canada for more than 7 days without notifying Service Canada |
→ See: Working While on EI in Canada
30-day action checklist
| Day | Action |
|---|---|
| Day 1 | Apply for EI online at Canada.ca |
| Day 1–3 | Review severance offer; consult employment lawyer if the amount seems low |
| Day 1–7 | Confirm benefits end date; book pending dental and vision appointments |
| Day 1–31 | Exercise any conversion privilege on group life or health insurance |
| Day 7 | Receive Record of Employment from employer |
| Day 14 | Submit first EI bi-weekly report |
| Day 14–28 | Receive first EI payment |
| Week 2–4 | Rebuild budget based on EI income |
| Week 4+ | Reassess savings, debt payments, and job search strategy |