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HIRING A FAMILY MEMBER OR A RELATED PERSON

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Under the Employment Insurance Act , employees who are related to their employer might not be in an insurable employment. This means that they would not have EI premiums deducted from their pay and would not be able to get EI benefits.

Employees can be related to employers in several ways. They can be related by marriage (including common law relationships), adoption, or by blood (parents, brothers, sisters, children). They can also be related to a corporation if they are related to a person or group of persons that control the corporation. However, this does not mean that employment of a family member is automatically not insurable.

Source cra.gc.ca

Added on April 16, 2007

REFERENCES:
Web Site: Hiring a Family member or a Related Person
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