The majority of those working in the real estate industry are self-employed. While this provides flexibility and the satisfaction of personal accomplishment, one of the drawbacks is the cost of purchasing an individual insurance policy.  Cost is not the only factor, witPreviewhout employment insurance mortgage specialists that needed to care for an ill family member, were ill themselves or were having a child also had to worry about how this time off would affect their continued employment.

This is no longer the case with the joint announcement from the Canadian government and the Canadian Real Estate Association that the passage of Bill C-56 now extends Employment Insurance (EI) benefits to realtors who are self-employed. The legislation is known as the Fairness for the Self-Employed Act. Those who choose to join the program can begin to utilize the benefits starting in January 2011.

The realtors association applauded this initiative and thanked the government for acting quickly to pass the bill. The association noted the significance of the real estate industry to the nation’s economy stating that transactions in the realty field contribute $132 billion to Canada’s economy. Over 200,000 jobs annually are associated with the industry.

EI benefits are comprehensive and previously have been restricted to those who were employees of businesses, government and other institutions.  Maternity benefits for mothers can total 15 weeks and cover both before and after the child is born.  There are also adoptive and parental benefits with a 35-week maximum that are available to both parents for the care of a newborn or a newly adopted child. These benefits can be used by both mother and father or even shared between the couple.

The EI legislation also provides for personal illness as well as compassionate leave time in the case of caring for a critically ill family member. Personal sickness has a 15 weeks maximum while the compassionate clause provides six weeks. The bill went into effect in February 2010 and is an optional program for those mortgage specialists and realtors who are self-employed. The Canadian Real Estate Association salutes the measure as an indication that the government recognizes the value of those self-employed equally with those who work for others.

Filed under: Mortgage

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