27 July 1993 Ministerial Letter 9321398 F - Fishermen and Unemployment Insurance

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

ISSUE SHEET

FISHERMEN AS EMPLOYEES - UNEMPLOYMENT INSURANCE

Issue

Individuals engaged in fishing are arranging their affairs so that they may be insured as an employee under the Unemployment Insurance Act where the individual is engaged under a contract of service, rather than as a fisherman under the Unemployment Insurance Fishermen's Regulations.

Response

INDIVIDUALS ENGAGED IN FISHING MAY ARRANGE THEIR AFFAIRS IN A MANNER THAT PROVIDES THEM WITH THE BEST POSSIBLE COVERAGE AND BENEFITS UNDER THE UNEMPLOYMENT INSURANCE LEGISLATION PROVIDING THE ACTUAL ARRANGEMENTS CAN BE SUPPORTED OR DOCUMENTED. THUS, DEPENDING ON THE CIRCUMSTANCES, AIDUAL ENGAGED IN FISHING MAY BE INSURED AS A FISHERMAN UNDER THE UNEMPLOYMENT INSURANCE FISHERMEN'S REGULATIONS OR AS AN EMPLOYEE UNDER THE UNEMPLOYMENT INSURANCE ACT, DEPENDING ON THE CIRCUMSTANCES IN EACH CASE.

Background

There has been some dificulty in establishing the true nature of some of the arrangements entered into by fisherpersons. Clarification was requested last year by the Atlantic Region as to who could be considered a fisherman for purposes of the unemployment insurance legislation. One concern was whether an individual who has a species fishing licence and owns his own boat and gear should be covered as an employee or as a fisherman in cases where he leases the boat and gear to either his own corporation or a fish buyer which purports to hire the individual to fish as an employee.

A revised directive to clarify the Department's policy has been drafted in consultation with district offices, legal services, Employment and Immigration Canada and the Department of Fisheries and Oceans which emphasizes specific factors to be reviewed before making a decision as to what category a particular fisherperson may fall into. The revised directive gives specific guidelines to district offices on how to ensure that the normal criteria found in a contract of service are present when dealing in cases involving the fishing industry. The Public Affairs Officers in the St. John's District Office will communicate with members of the provincial legislature and federal members of Parliament on this matter and, in addition, public information sessions will be held by the St. John's District Office.

For Further Information: Approved by ADM