Canada ( Attorney General ) v. Vernon
A-597-94
Linden J.A.
20/10/95
9 pp.
When employer closing Adams Mine, agreeing to pay housing and rental subsidy as part of severance package in effort to defray expected resulting losses in housing values-Payable as fixed, one-time cash disbursement-Unemployment Insurance Regulations, s. 57(1) defining "income" as any pecuniary and non-pecuniary receipts from employer or any other person, including entire income arising out of employment, but excluding income derived from "relief grants in cash"-S. 58(1) providing earnings allocated to weeks-Commission allocating entire amounts-Board of Referees holding as unrelated to conditions of employment, subsidies not earnings-Umpire concurring, but holding alternatively subsidy exempted as relief grant-(1) Whether subsidy "earnings" within definition in s. 57(1)-To be considered as "earnings", receipt must evince character of consideration given in return for work done by recipient: Coté v. Canada Employment and Immigration Commission (1986), 69 N.R. 126 (F.C.A.)-Receipt must be as result of work done, not merely as consequence of employment status-Subsidy not referrable to particular work performed by employees-Value computed not by reference to job performed by recipient, length of employment, salary earned, or age of employee, but by reference to fixed guidelines suggesting reasonable indemnification for loss of value to residences located in specific geographical area-Such reference insufficient to characterize receipt as "earnings" for purposes of allocation-Furthermore subsidy purely discretionary-(2) Whether exempted by s. 57(3) as relief grant-Even if "earnings", subsidy exempt as "relief grant in cash or kind"-"Relief grant" suggesting financial assistance given to alleviate hardship-Hardship including, but not confined to, circumstances of personal destitution, emergency, or disaster-May also comprise broader circumstances of financial or other adversity, not necessarily amounting to destitution, emergency or disaster-Loss of value of primary residence as result of mine closing within situation intended to be covered by "relief grant"-Unemployment Insurance Regulations, C.R.C., c. 1576, ss. 57(1), (2) (as am. by SOR/90-756, s. 17), (3), 58(1) (as am. by SOR/86-58, s. 2).