Judgments

Decision Information

Decision Content

A-760-86
Marcelle Tétreault-Gadoury (Applicant) v.
Canada Employment and Immigration Commis sion (Respondent)
and
Leon Vellone, Rodrigue Deraiche and Andre Manocchio (Mis -en-cause in their capacity as members of the board of referees under the Unem ployment Insurance Act)
and
Deputy Attorney General of Canada and Attorney General of Canada (Mis -en-cause)
INDEXED AS: TÉTREAULT-GADOURY V. CANADA (CANADA EMPLOYMENT AND IMMIGRATION COMMISSION)
Court of Appeal, Hugessen, Lacombe and Desjar- dins JJ.—Montréal April 25; Ottawa, June 14, 15 and September 23, 1988.
Unemployment insurance Application to review and set aside board of referees decision confirming Commission's exclusion of applicant from receiving ordinary unemployment insurance benefits because of old age Except for age, applicant met all statutory conditions Under s. 31, entitled to special retirement benefit amounting to three weeks' benefits Applicant appealed on ground s. 31 contrary to s. 15 of Charter Legislative intent in adopting s. 31 was to avoid overlapping with other social programs such as old age pen sions Age exclusion unreasonable and no longer justifiable in view of changes to Act and Regulations since its introduc tion in 1971 Not shown legislator cannot achieve objectives by applying other provisions of Act or Regulations Board erred in giving effect to provision inconsistent with Charter.
Constitutional law Charter of Rights Equality rights Discrimination by reason of age Applicant, 65 years old, lost employment Employment and Immigration Commis sion informed applicant not entitled to ordinary unemployment insurance benefits due to age Under s. 31 of Unemployment Insurance Act entitled to special retirement benefit amounting to three weeks' benefits On appeal to board of referees on ground s. 31 contrary to s. 15 of Charter, board upheld Commission's decision without rendering opinion on constitu tional point Board of referees or umpire have power to find legislative or regulatory provision of no force or effect as inconsistent with Charter Board erred in refusing to consid er constitutional arguments Age exclusion unreasonable
and irreconcilable with Charter s. 15 S. 31 of Act declared inoperative.
Federal Court jurisdiction Appeal Division Applica tion to review and set aside decision of board of referees Whether applicant could submit question of constitutionality of Unemployment Insurance Act, s. 31 by application to Court under s. 28 Applicant challenging board's decision without appealing to umpire In determining jurisdiction, irrelevant whether application to review from board or umpire Board having erred in refusing to consider constitutional arguments Appeal Court having jurisdiction.
In September of 1986, the applicant, then 65 years old, lost her employment. The Employment and Immigration Commis sion informed her that because of her age she was not entitled to receive ordinary unemployment insurance benefits, but that under section 31 of the Act, she was entitled to the special retirement benefit amounting to three weeks of benefits. This decision was appealed on the ground that section 31 was contrary to section 15 of the Charter. The board of referees upheld the Commission's decision without considering the con stitutional arguments presented. The applicant challenged the board's decision by this application for judicial review rather than by appealing to an umpire.
Held, the application should be allowed.
Per Lacombe J.: Administrative tribunals, whether function ing as a board of referees or as an umpire, have the power to find that a legislative or regulatory provision is of no force or effect because it is inconsistent with the Charter. The power to find legislative or regulatory provisions unconstitutional is inherent to any body exercising the power of adjudication between the rights of parties in a particular instance. Accord ingly, the board having erred in refusing to consider the constitutional arguments submitted to it, the Court acquires jurisdiction over the matter and must dispose of it.
Section 31 of the Act is declared inoperative as inconsistent with the Charter. The complete denial of entitlement to unem ployment insurance benefits to persons 65 years of age or older could no longer be justified in light of recent changes made to the Act and Regulations. The legislator could achieve his objective of avoiding overlapping with other social programs such as old age assistance by applying other relevant provisions of the Act or Regulations.
Per Desjardins J. (concurring in the result): An agency responsible for interpreting the law must deal with the issue before it in its entirety. The determination of whether legisla tion is of no force or effect as contrary to the Charter is a responsibility of the agency, subject to judicial review.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Alcoholic Liquor Act, R.S.Q. 1941, c. 255.
An Act to amend the Quebec Pension Plan, S.Q. 1977, c. 24.
An Act to favour early retirement and improve the surviving spouse's pension, S.Q. 1983, c. 12.
Canada Pension Plan, R.S.C. 1970, c. C-5 (as am. by S.C. 1974-75-76, c. 4; 1986, c. 38).
Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.), ss. 1, 15(1), 24(1).
Charter of Human Rights and Freedoms, R.S.Q. 1977, c. C-12.
Constitution Act, 1867, 30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 5] (as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Consti tution Act, 1982, Item 1), ss. 91, 96.
Constitution Act, 1940, 3 & 4 Geo. VI, c. 36 (U.K.) [R.S.C. 1970, Appendix II, No. 27] (as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Consti tution Act, 1982, Item 18), s. 91.2A.
Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.), s. 52(1).
Family Allowances Act, 1973, S.C. 1973-74, c. 44. Family Allowances Regulations, C.R.C., c. 642.
Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28(1),(4).
Health Insurance Act, R.S.Q. 1977, c. A-29.
Income Tax Act, S.C. 1970-71-72, c. 63, ss. 109(1)(b), 117(1)(c).
Lord's Day Act, R.S.C. 1970, c. L-13.
Old Age Security Act, R.S.C. 1970, c. O-6.
Quebec Pension Plan, S.Q. 1965, c. 24, s. 119(a).
The Old Age Security Act, S.C. 1951, c. 18 (as am. by S.C. 1957-58, c. 3; 1966-67, c. 65).
The Unemployment Insurance Act, 1940, S.C. 1940, c. 44 (as am. by S.C. 1955, c. 50).
Unemployment Insurance Act, 1971, S.C. 1970-71-72, c. 48, ss. 19 (as am. by S.C. 1976-77, c. 54, s. 32), 22(2) (as am. by S.C. 1976-77, c. 54, s. 34), 24(1), 25, 31 (as am. by S.C. 1974-75-76, c. 80, s. 10), (I) (as am. by S.C. 1976-77, c. 54, s. 39), (2),(4), 34 (as am. by S.C. 1976-77, c. 54, s. 41), 35(1) (as am. by S.C. 1976-77, c. 54, s. 41), 91, 92(1) (as am. by S.C. 1980-81-82-83, c. 158, s. 55), 94, 95(b) (as am. by S.C. 1976-77, c. 54, s. 56), 96 (as am. by S.C. 1976-77, c. 54, s. 56).
Unemployment Insurance Benefit Entitlement Adjust ments (Pension Payments) Act, S.C. 1987, c. 17.
Unemployment Insurance Regulations. C.R.C., c. 1576, ss. 57(1),(2)(e),(3)(j) (as am. by SOR/87-188), 66(1), 70(4) (as am. by SOR/82-1046, s. 1).
CASES JUDICIALLY CONSIDERED
APPLIED:
R. v. Big M. Drug Mart Ltd., et al., [1985] 1 S.C.R. 295; Zwarich v. Canada (Attorney General), [1987] 3 F.C. 253 (C.A.); Nixon v. Canada (Canada Employment and Immigration Commission) (A-649-86 and A-728-86, Urie, Mahoney and Hugessen JJ., judgment dated 14/12/87, (C.A.), not yet reported); Douglas/Kwantlen Faculty Assn. v. Douglas College (1988), 21 B.C.L.R. (2d) 175 (C.A.); Union des employés de commerce, local 503 c. W.E. Bégin Inc., (December 19, 1983, Québec, 200-09-000-709-821, J.E. 84-65 (C.A.) not reported); R. v. Oakes, [1986] 1 S.C.R. 103; R. v. Edwards Books and Art Ltd., [1986] 2 S.C.R. 713; Northern Telecom Canada Ltd. v. Communications Workers of Canada, [1983] 1 S.C.R. 733; Théberge (J.R.) Ltée v. Syndicat National des Employés de l'Aluminum d'Arvida Inc. et al, [1966] S.C.R. 378; Roncarelli v. Duplessis, [1959] S.C.R. 121; P.P.G. Industries Canada Ltd. v. The Attor ney General of Canada, [1976] 2 S.C.R. 739; Capital Cities Communications Inc. et al. v. Canadian Radio- Television Commn., [1978] 2 S.C.R. 141; Innisfil (Cor- poration of the Township) v. Corporation of Township of Vespra et al., [1981] 2 S.C.R. 145; Northern Telecom Canada Ltd. v. Communications Workers of Canada, [1980] 1 S.C.R. 115; Côté v. Canada Employment and Immigration Commission (1986), 69 N.R. 126 (F.C.A.); Bliss v. Attorney General (Can.), [1979] 1 S.C.R. 183; Attorney General of Canada v. Walford, [1979] 1 F.C. 768 (C.A.); Hills v. Canada (Attorney General), [1988] 1 S.C.R. 513.
DISTINGUISHED:
Canada (Attorney General) v. Vincer, [1988] 1 F.C. 714 (C.A.); Canada (Attorney General) v. Alli, [1988] 3 F.C. 444 (C.A.); Canada (Attorney General) v. Sirois (A-559- 86, Pratte J., judgment dated 24/6/88, not yet reported); Schachter v. Canada, [1988] 3 F.C. 515 (T.D.); Sémi- naire de Chicoutimi v. La Cité de Chicoutimi, [1973] S.C.R. 681.
REFERRED TO:
Ontario Public Service Employees' Union v. Algonquin College of Applied Arts and Technology, Divisional Court (Steele, Holland and White JJ., April 16, 1987, not yet reported); Moore v. B.C. (Govt.) (1988), 23 B.C.L.R. (2d) 105 (C.A.); Terminaux portuaires du Québec v. Association des employeurs maritimes (A-1080-87, Pratte, Marceau and Desjardins JJ., judg ment dated 11/8/88 (C.A.), not yet reported).
AUTHORS CITED
Ouellette, Yves "La Charte canadienne et les tribunaux administratifs" (1984), 18 R.J.T. 295.
Duplessis, Yvon "Un tribunal inférieur peut-il se pro- noncer sur une disposition législative ultra vires" (1984), 15 R.G.D. 127.
Pépin, Gilles "La compétence des cours inférieures et des tribunaux administratifs de stériliser, pour cause d'in- validité ou d'ineffectivité, les textes législatifs et réglementaires qu'ils ont mission d'appliquer" (1987), 47 R. du B. 509.
Pinard, Danielle "Le pouvoir des tribunaux administratifs québécois de refuser de donner effet à des textes qu'ils jugent inconstitutionnels" (1987), 33 McGill L.J. 170.
Garton, Graham R., Charter Issues in Civil Cases, Toronto: Carswell, 1988.
Gibson, Dale, The Law of the Charter: General Princi ples, Toronto: Carswell, 198 S.
Sack, Jeffrey "Procedures in Charter Cases; Procedures and Remedies—Examination of Questions Pertaining to: WHICH" (1986), Charter Cases, Causes invo- quant la Charte; Cdn. Bar Assoc. 11.
Canada. Law Reform Commission. Administrative Law Series, Study Paper: Council on Administration, Ottawa: Minister [sic] of Supply and Services Canada, 1980.
COUNSEL:
Jean-Guy Ouellet and Gilbert Nadon for applicant.
Carole Bureau and Claude Joyal for the respondent and the mis -en-cause, the Deputy Attorney General of Canada and the Attor ney General of Canada.
SOLICITORS:
Campeau, Cousineau & Ouellet, Montréal, for applicant.
Deputy Attorney General of Canada for respondent and the mis -en-cause, the Deputy Attorney General of Canada and the Attor ney General of Canada.
The following is the English version of the reasons for judgment rendered by
LACOMBE J.: The applicant was born on Sep- tember 8, 1921. On September 8, 1986, therefore, she was 65 years old. On September 19, 1986 she lost her employment as a co-ordinator with the Association -locataires Villeray Inc., which she had held since March 24, 1986 at a weekly salary of $301.60. On September 22, 1986 she filed an application for benefits pursuant to the Unemploy ment Insurance Act, 1971 [S.C. 1970-71-72, c. 48]. She met all the other conditions set by the Act except for being excluded because of her age: under section 24, she would have been entitled to unemployment insurance benefits amounting to $180 a week for a period of several weeks.
Additionally, before obtaining employment with the Association -locataires Villeray Inc., she had received unemployment insurance benefits of $185 a week for 37 weeks, from June 16, 1985 to March 22, 1986.
On October 14, 1986 the Employment and Immigration Commission informed her that because of her age she was no longer entitled to receive ordinary unemployment insurance benefits, but that under section 31 of the Act she was entitled to the special retirement benefit of $540, amounting to three weeks of benefits.
The applicant appealed from this decision of the Commission to a board of referees, on the ground that section 31 of the Act was contrary to the Canadian Charter of Rights and freedoms [being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.)]. At the hearing, the applicant stated that since her last birthday she had received $481 a month in pension payments, but did not indicate the nature of these payments or give any details about them.' She also stated that she was actively looking for work. In support of her position relating to the Charter she entered certain documents in evidence, including extracts from the minutes of a subcommittee of the House of Commons dealing with mandatory retirement, extracts from the report of the Forget Commission, a working paper titled "Equality Issues in Federal Law" published by the Depart ment of Justice of Canada, and so on. Without rendering any decision on the constitutional point, the board of referees on December 12, 1986 upheld the Commission's decision that because of her age the applicant was no longer entitled to receive ordinary unemployment insurance benefits.
Without bothering with a subsequent appeal to an umpire, the applicant by her application to review and set aside, under section 28 of the Federal Court Act [R.C.S. 1970 (2nd Supp.), c. 10], directly challenged the decision of the Board
' From the documentation in the record it can be extrapolat ed that she was receiving the base amount of the old age pension payable to her in December 1986 ($294.43 a month), the balance of $186.57 coming from a pension she received from the Quebec Pension Plan.
of Referees in this Court and again raised the inconsistency of section 31 of the Act with section 15 of the Charter. By an interlocutory decision rendered by a judge of this Court, the parties were authorized to submit whatever evidence they thought proper in connection with the constitution al question raised by the appeal. This evidence, by affidavit and by the filing of copious documenta tion, was entered in the record of the Court.
Preliminary question
Before considering the basic issue there is the question of whether the substantive point raised can be decided using the remedy chosen by the applicant. In other words, could the applicant ask the Board of Referees to decide on the constitu tional validity of section 31 of the Act, and could she submit the same question to the Court by an application to review and set aside pursuant to section 28 of the Federal Court Act? The jurisdic tion of the lower courts, and in particular of administrative tribunals, to decide questions involving the Canadian Charter of Rights and Freedoms has been a matter of dispute both in case law and in legal literature. 2
In its subsection 52(1), the Constitution Act, 1982 [Schedule B, Canada Act 1982, 1982, c. 11 (U.K.)] provides:
52. (1) The Constitution of Canada is the supreme law of Canada, and any law that is inconsistent with the provisions of the Constitution is, to the extent of the inconsistency, of no force or effect.
In R. v. Big M Drug Mart Ltd. et al., [1985] 1 S.C.R. 295, Dixon C.J. of the Supreme Court of Canada wrote at page 353:
If a court or tribunal finds any statute to be inconsistent with the Constitution, the overriding effect of the Constitution Act,
2 See, for example, Yves Ouellette, "La Charte canadienne et les tribunaux administratifs" (1984), 18 R.J.T. 295, at pp. 321 et seq; Yvon Duplessis, "Un tribunal inférieur peut-il se pro- noncer sur une disposition législative ultra vires?" (1984), 15 R.G.D. 127; Gilles Pépin, "La compétence des cours inférieures et des tribunaux administratifs de stériliser, pour case d'invali- dité ou d'ineffectivité, les textes législatifs et réglementaires qu'ils ont mission d'appliquer" (1987), 47 R. du B. 509; Gilles Pépin, "La compétence du Tribunal du travail de juger une loi ineffective (inopérante)" (1988), 48 R. du B. 125; Danielle Pinard, "Le pouvoir des tribunaux administratifs québécois de refuser de donner effet à des textes qu'ils jugent inconstitution- nels" (1987), 33 McGill L.J. 170.
1982, s. 52(1), is to give the Court not only the power, but the duty, to regard the inconsistent statute, to the extent of the inconsistency, as being no longer "of force or effect".
This statement was certainly an obiter dictum as regards the reference to administrative tri bunals, since the case concerned the power of a court of inferior criminal jurisdiction to rule on the validity of the Lord's Day Act [R.S.C. 1970, c. L-13], in light of the provisions of the Charter.
In reliance on this guideline given by the Supreme Court of Canada, this Court has twice held that under the Unemployment Insurance Act, 1971 a board of referees and an umpire have the power to rule on application of the Charter. In Zwarich v. Canada (Attorney General), [1987] 3 F.C. 253, Pratte J. wrote for the Court at page 255:
It is clear that neither a board of referees nor an umpire have the right to pronounce declarations as to the constitutional validity of statutes and regulations. That is a privilege reserved to the superior courts. However, like all tribunals, an umpire and a board of referees must apply the law. They must, therefore, determine what the law is. And this implies that they must not only construe the relevant statutes and regulations but also find whether they have been validly enacted. If they reach the conclusion that a relevant statutory provision violates the Charter, they must decide the case that is before them as if that provision had never been enacted. The law on this subject, as I understand it, was clearly and accurately stated by Macfarlane J. A. of the Court of Appeal of British Columbia in Re Schewchuk and Ricard; Attorney-General of British Columbia et al; Intervenors: 2
2 (1986), 28 D.L.R. (4th), at pp. 439-440.
It is clear that power to make general declarations that enactments of Parliament or of the Legislature are invalid is a high constitutional power which flows from the inherent jurisdiction of the superior courts.
But it is equally clear that if a person is before a court upon a charge, complaint, or other proceeding properly within the jurisdiction of that court then the court is com petent to decide that the law upon which the charge, com plaint or proceeding is based is of no force and effect by reason of the provisions of the Canadian Charter of Rights and Freedoms, and to dismiss the charge of complaint or proceeding. The making of a declaration that the law in question is of no force and effect in that context, is nothing more than a decision of a legal question properly before the court. It does not trench upon the exclusive right of the superior courts to grant prerogative relief, including general declarations.
It should be noted that in that case it was argued before both the Board of Referees and the Umpire that a provision of the Unemployment Insurance Act, 1971 was inconsistent with two sections of the Charter, and both these tribunals, maintaining that they lacked jurisdiction, declined to dispose of the point. A few months later, in Nixon v. Canada (Canada Employment and Immigration Commission) (A-649-86 and A-728-86, Urie, Mahoney and Hugessen JJ., judg ment dated 14/12/87, not yet reported), this Court reiterated:
The learned Umpire declined to deal with that argument on the ground that he was not a tribunal of competent jurisdiction under section 24. In that, he was clearly wrong. This Court's unreported decision in Zwarich v. A. G. of Canada, file A-521-86, rendered June 17, 1987, after the Umpire's decision, is conclusive of that.
It should be recalled that this judgment was rendered after the majority decision of the Court in Canada (Attorney General) v. Vincer, [1988] 1 F.C. 714 (C.A.) 3 which held that a review com mittee created pursuant to the Family Allowances Regulations [C.R.C., c. 642] was not a competent court for the purposes of subsection 24(1) of the Charter.
Vincer does not apply to the case at bar. In that case, the review committee decided to award a father, who was separated from his wife, half the allowances payable to the children of whom he had joint custody with his wife, though the legislative and regulatory provisions (which the committee held were in breach of the Charter) did not authorize such a compromise solution but instead provided that the allowances should be paid to the mother, and in exceptional cases to the father, but under very specific circumstances. The committee had thus ordered the departmental officials to do something not authorized by the Act; in doing this, it ordered a remedy which it thought was fair and reasonable under subsection 24(1) of the Charter, although the committee only had jurisdiction to decide appeals brought to it consistent with the Act [Family Allowances Act, 1973, S.C. 1973-74, c. 44], and Regulations. In Alli, a similar commit
3 This decision was followed in Canada (Attorney General) v. Alli, [1988] 3 EC. 444 (C.A.) and Canada (Attorney General) v. Sirois (A-559-86, Pratte J., judgment dated 24/6/88, not yet reported).
tee held inter alio that a provision of the Act directing that family allowances should be paid to a parent with visitor status but not to a resident who was awaiting a determination of political refugee status was discriminatory under section 15 of the Charter. Here again the committee exceed ed its jurisdiction, extending to residents benefits granted by the Act to visitors. It ordered redress within the meaning of subsection 24(1) of the Charter. The Court held that the review commit tee did not have jurisdiction to do this because it was not a tribunal competent to order a remedy within the meaning indicated in subsection 24(1) of the Charter. Pratte J., writing for himself and his brother judges Urie and Stone JJ., said at pages 450-451:
It is certainly difficult to reconcile what I said in Zwarich with what was said in Vincer. However, for the purposes of this case, it is not necessary to choose between those two apparently conflicting decisions since there is nothing in Zwarich that can help the respondent. Clearly, for the reasons given by Marceau J. and Stone J. in Vincer, an Appeal Committee established pursuant to section 15 of the Family Allowances Act, 1973 is not a "tribunal of competent jurisdiction" within the meaning of section 24 of the Charter. Nothing was said on this subject in Zwarich. It was held in Zwarich that a tribunal, in making a decision that it is empowered to make, may ignore the statutory provisions which in its view, contravene the constitution and are, for that reason, "of no force or effect". That proposition has no application here. Counsel for the respondent agreed that paragraph 3(1)(a) and subparagraph 3(1)(b)(i) are not dis criminatory. His only contention in this regard was that sub- paragraph 3(1)(b)(ii) was too narrowly drawn and should, in order not to discriminate, have included persons in the situation of the respondent. If that submission were well founded, sub- paragraph 3(1)(b)(ii) would contravene section 15 of the Charter and be, for that reason, of "no force or effect". This, of course, would not help the respondent who cannot succeed unless the Appeal Committee had the right, in deciding her appeal, to apply a new version of subparagraph 3(1)(b)(ii) incorporating the changes necessary to make it constitutional. Obviously, the Committee had no such right.
In the case at bar it is subsection 52(1) of the Constitution Act, 1982 that is relied on, not sub section 24(1) of the Charter. The applicant has not asked the Board of Referees or this Court to find that section 31 of the Unemployment Insurance Act, 1971 should be amended to make it consistent with section 15 of the Charter or to order a
remedy that would require the adoption of appro priate legislative adjustments. 4
Rather, the only question is whether section 31 of the Act is of no force or effect as a whole because it is inconsistent with section 15 of the Charter. The applicant is not asking the Court, to take an extreme example, to give her under the Charter the same benefits the Act gives a pregnant claimant or an adoptive mother. She is only seek ing a finding, consistent with the requirements of the Charter, that section 31 of the Act is of no force or effect because it deprives her solely on account of her age of the unemployment insurance benefits given to other claimants who are in the same situation as she is, that is, unemployed and equally entitled to benefits.
The provisions giving boards of referees and umpires jurisdiction contain no limitations such as that they shall decide solely in accordance with the Act or Regulations, as was the case in Vincer under the 1973 Family Allowances Act and Regu lations. All section 94 of the Act does is to state, without more, that an appeal can be made to a Board of Referees from any decision of the Commission. 5 Section 95 further provides for a subsequent appeal to an umpire, in particular in paragraph (b), on the ground that "the board of referees erred in law in making its decision or order, whether or not the error appears on the face
4 This was the case in Schachter v. Canada, [1988] 3 F.C. 515 (T.D.), in which Strayer J. awarded the natural father of a child the same benefits given by section 32 of the Unemploy ment Insurance Act, 1971 to an adoptive father, in declaratory conclusions suggesting that the Act should eventually be amended; this explains the relevance of his observations that in such a case it was advisable to proceed by a declaratory action under section 18 of the Federal Court Act rather than by an appeal to the umpire under the Unemployment Insurance Act, 1971.
5 94. (1) The claimant or an employer of the claimant may at any time within thirty days from the day on which a decision of the Commission is communicated to him, or within such further time as the Commission may in a particular case for special reasons allow, appeal to the board of referees in the manner prescribed.
(2) A decision of a board of referees shall be recorded in writing and shall include a statement of the findings of the board on questions of fact material to the decision.
on the record; '. 6 Additionally, under section 96 "An umpire may decide any question of law or fact that is necessary for the disposition of any appeal taken pursuant to section 95 and may dismiss the appeal, give the decision that the board of referees should have given, ... confirm, rescind or vary the decision of the board of referees in whole or in part."
This means that the Board of Referees itself has jurisdiction to decide any question of law which, because there is no specific provision in the Act, cannot be confined solely to questions of law regarding the implementation of the Unemploy ment Insurance Act, 1971 and its Regulations, but must include any question of law involving the implementation of any other Act, and of course of the supreme law of Canada, of which the Canadi- an Charter of Rights and Freedoms is a part. It is often said that subsection 24(1) of the Charter does not confer particular jurisdiction on the courts, in addition to or apart from the jurisdiction conferred on them by their enabling legislation. The converse of this proposition is that it also cannot be used to limit such jurisdiction. If a court is not ordinarily competent to issue a declaratory judgment, it does not acquire such a power because it has been asked to rule on application of the Charter. Similarly, if an administrative tri bunal has jurisdiction under its enabling Act to rule on a question of law, it does not lose that jurisdiction because the question of law to be decided involves considerations which call for applying a provision of the Charter. Deciding that a provision of the Act is of no force or effect because it is inconsistent with the Charter is a question of law like any other which boards of referees have to decide, even though their mem bers do not have to possess legal training as such.
6 95. An appeal lies as of right to an umpire in the manner prescribed from any decision or order of a board of referees at the instance of the Commission, a claimant, an employer or an association of which the claimant or employer is a member, on the grounds that
(b) the board of referees erred in law in making its decision or order, whether or not the error appears on the face of the record; or ...
Though their constitution is of a special nature,' boards of referees are not created by the Employ ment and Immigration Commission. As we have seen in section 96 of the Act, they may render decisions and issue orders which the Commission may appeal to an umpire. Under subsection 66(1) of the Unemployment Insurance Regulations [C.R.C., c. 1576], "A board of referees shall give each of the parties interested in an appeal a reasonable opportunity to make representations concerning any matter before the board".
Since Big M Drug Mart Ltd., supra, the courts of inferior jurisdiction in penal matters have been recognized as competent courts for the purposes of subsection 24(1) of the Charter. This competence is part of the concept of a full and complete defence.
It is hard to see that a board of referees should allow parties the right to present their "representa- tions concerning any matter before [the Board]", yet that such an obligation should cease as soon as the argument raises the invalidity of a provision of
' Unemployment Insurance Act, 1971:
91. (1) There shall be boards of referees, consisting of a chairman and one or more members chosen from employers or representatives of employers and an equal number of members chosen from insured persons or representatives of insured persons.
(2) The Chairmen of boards of referees shall be appointed by the Governor in Council for a term of three years subject to renewal on expiry, shall cease to hold office on attaining the age of seventy-five years and may be removed at any time by the Governor in Council for cause.
(3) Panels of employers and representatives of employers and insured persons and representatives of insured persons shall be established by the Commission, and the members of the boards of referees shall be selected from those panels in the manner prescribed.
(4) There shall be paid such remuneration to the chair man and members of a board of referees and such travelling, subsistence and other allowances, including compensation for loss of remunerative time, to a chairman or member of a board of referees or to-any other person required to attend before the board, and such other expenses in connection with the operation of a board of referees as the Treasury Board approves.
(5) Subject to this section, the Commission may, with the approval of the Governor in Council, make regulations for the constitution of boards of referees, including the appoint ment of the members thereof, the number of members con stituting a quorum, and the practice and procedure for proceedings before a board of referees.
the Act or Regulations in light of the requirements of the Charter. The Charter must be equally avail able to all litigants, those who must defend them selves in penal tribunals before which they appear as well as those who have actions to bring in the civil or administrative tribunals against acts of the government or when legislation invades their rights and freedoms. So long as the procedure in such tribunals presents no obstacle to their doing so, litigants should be able to assert the rights secured by the Charter in the natural forum to which they can apply. For a claimant, the usual procedure for objecting to the decisions of the Commission is, first, an appeal to a board of referees, then to an umpire, and thence to the Court under section 28 of the Federal Court Act, or directly from the board of referees to the Federal Court of Appeal. These are speedy, inexpensive and readily access ible proceedings, which should be within the immediate reach of the persons for whom they were enacted. The right to be heard by each and every one of these tribunals includes the right to effectively present arguments regarding the supremacy of the Constitution of Canada.
Zwarich, supra, treated boards of referees and umpires as more or less on the same footing as regards their power to find legislative or regulatory provisions of no force or effect due to their incon sistency with a provision of the Charter. These judicial or quasi-judicial bodies are similar in insti tutional and functional terms, though there may be differences between them in the exercise of their jurisdiction, and under subsection 92(1) of the Act umpires are appointed from among judges of the Federal Court of Canada by the Governor General in Council, who may also determine their powers. 8 In any case, they are administrative tri bunals with the same type of jurisdiction, but at different levels of appeal. To determine the juris diction of this Court under section 28 of the Federal Court Act, no distinction is necessary depending on whether the application to review
s 92. (1) The Governor in Council may, from among the judges of the Federal Court of Canada, appoint such number of umpires as he considers necessary for the purposes of this Act and, subject to this Act, may prescribe their jurisdiction.
and set aside was made against a decision of an umpire or made directly against that of the board of referees. In this connection it is paradoxical, if not significant, to note that subsection 70(4) of the Unemployment Insurance Regulations contem plates the possibility of an umpire finding a provi sion of the Act or the Regulations to be ultra vires and directs that in such a case the payment of benefits in other cases shall be suspended until the appeal decision has been rendered by the Federal Court of Appeal. 9 This provision is of course not a basis for saying that a board of referees can make declaratory judgments, valid erga omnes and plac ing in question the constitutional validity of the Act or the Regulations, for a breach of the provi sions of the Charter. It may even be that subsec tion 70(4) is itself of questionable validity. This does not have to be decided. All that has to be said for the moment is that in this regulatory provision, which dates from November 26, 1982 (SOR/82- 1046), after the Charter came into effect, the possibility was considered that an administrative tribunal like an umpire could find a provision of the Act itself to be ultra vires. A provision of the Regulations may be ruled ultra vires; but if this is possible for a provision of the Act itself, such a ruling may well be possible on the ground of inconsistency with the requirements of the Chart er. This means that there is nothing incongruous in recognizing that an administrative tribunal, like a board of referees or an umpire, has the power to find that a legislative or regulatory provision is of no force or effect because it is inconsistent with the Canadian Charter of Rights and Freedoms. The power to refuse to give effect to a legislative or regulatory provision which has been found to be unconstitutional is inherent in any body exercising
9 70. (4) Where, in respect of a claim for benefit, an umpire has declared a provision of the Act or these Regulations to be ultra vires and an application is made by the Commission in accordance with the Federal Court Act to review the decision of the umpire, benefits are not payable in respect of any claim for benefit made subsequent to the decision of the umpire until the final determination of the claim under review, where the benefit would not otherwise be payable in respect of any such subsequent claim if the provision had not been declared ultra vires.
the power of adjudication between the rights of parties in a particular instance.
In Douglas/Kwantlen Faculty Assn. v. Douglas College (1988), 21 B.C.L.R. (2d) 175, the British Columbia Court of Appeal made a ruling similar to this Court in Zwarich, supra, recognizing that an arbitrator sitting pursuant to the Labour Code of that province had a right to determine the invalidity of a clause of a collective agreement under the Charter. In its joint opinion, the Court said at pages 184-185:
The third issue on this appeal concerns the right of the arbitrator to consider the question of whether the provision for mandatory retirement was void under the Charter. No relief was sought under s. 24 of the Charter and, therefore, the issue as to whether or not an arbitrator is a court of competent jurisdiction to grant Charter relief under that provision does not arise.
It is the duty of an arbitrator to decide questions submitted according to the legal rights of the parties and to decline to make an award enforcing an illegal contract. In David Taylor & Son Ltd. v. Barnett Trading Co., [1953] 1 W.L.R. 562, [1953] 1 All E.R. 843 (C.A.), Lord Denning stated at page 847:
There is not one law for arbitrators and another for the court, but one law for all. If a contract is illegal, arbitrators must decline to award on it just as the court would do.
The remedy that would flow from a conclusion that art 4.04, the mandatory provision of the collective agreement, infringed s. 15(1) of the Charter would be to declare that article of the collective agreement of no force and effect pursuant to s. 52 of the Charter, something which in our opinion is within the jurisdiction of an arbitrator in the circumstances of this par ticular case.
Similarly, as Mr. Pinard observes in his article cited above, at pages 181 and 187, notes 44 and 74, which also reviews the case law of the Quebec courts on the point, the Quebec Court of Appeal acknowledged in Union des employés de com merce, local 503 c. WE. Bégin Inc. 10 that an arbitration tribunal had the same power to refuse to give effect to a clause of a collective agreement which conflicted with a paramount provision of the Charter of Human Rights and Freedoms, R.S.Q. 1977, c. C-12. "It was not the arbitrator", Tyndale
1 0 December 19, 1983, Québec, 200-09-000-709-821, J.E. 84-65 (C.A.) not reported (leave to appeal to the Supreme Court of Canada denied, [1984] 1 S.C.R. v).
J. said, "who modified the agreement, but a law of public order, which rendered null the discriminato ry aspect of the clauses; and the arbitrator was therefore entitled to disregard them, and to decide the grievances as though they were not there".
The Board of Referees accordingly erred in refusing to consider the constitutional arguments submitted to it by the applicant. That being so, the Court must consider and dispose of them.
It is accordingly necessary to determine the constitutional validity of section 31 of the Unem ployment Insurance Act, 1971. It reads as follows:
31. (1) Notwithstanding section 19, a benefit period shall not be established for a claimant if at the time he makes an initial claim for benefit he is sixty-five years of age or over.
(2) An insured person who makes a claim for benefit and proves that he
(a) is sixty-five years of age or over,
(b) has had twenty or more weeks of insurable employment
(i) in the fifty-two week period immediately preceding the week in which he makes the claim, or
(ii) in the period between the commencement date of his last benefit period and the week in which he makes the claim,
whichever period is the shorter, and
(c) has not previously been paid an amount under this subsection as it now reads or as it read before January 1, 1976,
shall, subject to sections 48 and 49, be paid an amount equal to three times the weekly rate of benefit provided under section 24.
(3) Subsections (2) to (5) of section 18 apply to the period mentioned in subparagraph (i) of paragraph (b) of subsection (2) with such modifications as the circumstances require.
(4) Any benefit period established for a claimant under this Part, if not earlier terminated under this Part, terminates at the end of the week in which he attains the age of sixty-five years.
(5) If the total benefit paid to a major attachment claimant in a benefit period terminated under subsection (4) is less than an amount that is equal to three times the weekly rate of benefit payable to him in that benefit period, that claimant shall, subject to sections 48 and 49 but notwithstanding any other provision of Part II, be paid benefit at the weekly rate of benefit payable to him in that benefit period for the number of weeks that is required to ensure that the total benefit paid to him in respect of that benefit period is not less than the aforementioned amount.
Additionally, subsection 15(1) of the Canadian Charter of Rights and Freedoms states:
15. (1) Every individual is equal before and under the law and has the right to the equal protection and equal benefit of the law without discrimination and, in particular, without discrimination based on race, national or ethnic origin, colour, religion, sex, age or mental or physical disability.
Historical review
The Unemployment Insurance Act dates from 1940—S.C. 1940, c. 44 [The Unemployment In surance Act, 19401—after the constitutional amendment made to section 91 of the Constitution Act, 1867 [30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 5] (as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Consti tution Act, 1982, Item 1)], by the Constitution Act, 1940 [3 & 4 Geo. VI, c. 36 (U.K.) [R.S.C. 1970, Appendix II, No. 27] (as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Constitution Act, 1982, Item 18)], section 91.2A. It was extensively amended in 1955 and in 1971: S.C. 1955, c. 50 and S.C. 1970-71-72, c. 48.
The aim of the Act, which has always been the same however amended, is to create a social insur ance plan to compensate unemployed workers for loss of income from their employment and to provide them with economic and social security for a time, thus assisting them in returning to the labour market."
Ineligibility for unemployment insurance ben efits on grounds of age appeared for the first time in the Unemployment Insurance Act, 1971. In the 1960's, commissions of inquiry were created and reports made to the federal government, which in 1970 published a white paper on "Unemployment Insurance in the 70's" which preceded the adop tion of the new Act in June 1971. Under section 31, a claimant became ineligible for benefits if he was 70 years of age or over or if he was already entitled to receive a pension or a retirement annui ty under the Canada Pension Plan or the Quebec Pension Plan. He was paid a lump sum amounting to three weeks' benefits. Under these plans, which
'] Bliss v. Attorney General (Can.), [1979] 1 S.C.R. 183, at pp. 185-186; Attorney General of Canada v. Walford, [1979] 1 F.C. 768 (CA); Hills v. Canada (Attorney General), [1988] 1 S.C.R. 513, at p. 534.
both date from 1965, a pension or a retirement annuity was payable to a contributor who had attained the age of 70 years or to one 65 years old who had given up his regular employment. 12 The philosophy underlying the adoption of section 31 in the Unemployment Insurance Act, 1971 was that the persons covered by this new measure were no longer, or should no longer be regarded, as form ing part of the active population. The intent was by this means to avoid unemployment insurance overlapping with other government social pro grams. Older persons, who had retired from the labour market, were regarded as abusing the unemployment insurance scheme and receiving an unfair proportion of benefits compared with other unemployed persons, to add to their pension incomes or take their place. It was felt that such persons had left the labour market more or less voluntarily or, once driven out of it by a period of unemployment, were no longer interested in or capable of returning, nor of looking for new employment while collecting unemployment insur ance benefits. The new legislation was designed to help remedy such abuses.
Though the introduction of section 31 into the Unemployment Insurance Act, 1971 was not for mally connected with the payment of old age pensions, the government took this factor into account in developing its policy for rationalizing its social programs. The old age security scheme had existed since 1927 in a joint plan with the provinces. The first federal statute on old age security was adopted in 1951, S.C. 1951, c. 18 [The Old Age Security Act]. It provided for the payment of a pension to persons 70 years old who had lived in Canada for twenty years. The length of the residence period was lowered to ten years in 1957: S.C. 1957-58, c. 3. In 1965, the qualifying age was reduced to 65 years. In 1966 the federal government set up the guaranteed monthly supple ment program which added a supplementary pay ment to the old age pension for recipients whose
2 "Is retired from regular employment", in the wording of the federal statute, S.C. 1964-1965, c. 51, sub-paragraph 44(1)(a)(i), and "is retired from regular employment" in the Quebec Pension Plan, S.Q. 1965, c. 24, subsection 119(a).
pension was their principal or only source of income (S.C. 1966-67, c. 65).
Section 31 of the Act was amended in 1975 (S.C. 1974-75, c. 80, s. 10). A single ineligibility factor was applied: the claimant's age, reduced from 70 to 65 years. The result was the disappear ance of the other factor based on a claimant's right to receive a pension from one or other of the pension plans, federal or provincial, which came into effect at age 70 or at age 65 if the recipient had withdrawn from the labour market, or at least from his regular employment. Section 31 has remained unchanged since that time. At the same time, pension plans have been amended, the Canada Plan in 1975 (S.C. 1974-75-76, c. 4) and the Quebec Plan in 1977 (S.Q. 1977, c. 24) [An Act to amend the Quebec Pension Plan], to make pensions payable at age 65.
The old option of collecting pensions after reaching age 65 but retiring from regular employ ment has been eliminated from both statutes. In 1983, by the adoption of An Act to favour early retirement and improve the surviving spouse's pension (S.Q. 1983, c. 12), the Quebec Plan made possible the payment of early retirement annuities with appropriate actuarial adjustments at age 60. The Canada Pension Plan was amended in the same way in 1986: S.C. 1986, c. 38.
Since January 5, 1986, by an amendment to section 57 of the Regulations (SOR/86-58), pen sions arising out of employment or paid under one or other of these government pension plans are treated as earnings and deducted from unemploy ment insurance benefits. A further amendment to section 57 of the Regulations, in effect on April 5, 1987, allows a person who has retired and is receiving a pension to return to the labour market. If he has been working long enough to be again eligible for unemployment insurance benefits, he will receive the full amount of benefits in his next period of unemployment without deductions being made for pensions paid to him since he retired from his first job.
In recent years task forces and commissions of inquiry, such as the report of the task force on Unemployment Insurance in the 1980s, the Com mission of Inquiry on Unemployment Insurance (Forget Commission) in December 1986 and the Parliamentary Standing Committee on Labour, Employment and Immigration throughout 1987, have recommended to the federal legislator the abolition of ineligibility for unemployment insur ance benefits on account of age and the elimina tion from the special retirement benefit of a lump sum amounting to three weeks' benefits at age 65 to take the place of regular benefits. However, in a formal ministerial statement given in the House of Commons on May 15, 1987 the federal govern ment decided to reject these recommendations and to maintain the status quo on keeping section 31 of the Act in its present form.
Section 15 of the Charter
The applicant argued that section 31 of the Act discriminates against her in that, solely because of her age, it subjects her to treatment that is differ ent and less advantageous than the class of employees to which she belongs, namely unem ployed persons under 65 years of age. An examina tion of the record indicates that the applicant has successfully discharged the initial burden on her of showing that section 31 of the Act infringes her right to equality guaranteed by section 15 of the Charter, so that it is now the duty of the respon dents to show justification, in accordance with the provisions of section 1 of the Charter" and the criteria laid down by the Supreme Court of Canada, inter alia, in R. v. Oakes, [ 1986] 1 S.C.R. 103, and R. v. Edwards Books and Art Ltd., [1986] 2 S.C.R. 713.
It can be seen just from reading section 31 that it imposes different treatment based solely on the age of claimants, which is the ground of discrimi nation listed in section 15 of the Charter. "Not-
" 1. The Canadian Charter of Rights and Freedoms guaran tees the rights and freedoms set out in it subject only to such reasonable limits prescribed by law as can be demonstrably justified in a free and democratic society.
withstanding section 19", 14 subsection 31(1) of the Act reads, a benefit period shall not be established for a claimant 65 years of age. Instead, he will receive a severance benefit amounting to three weeks of benefits (subsection 31(2)). A benefit period which has already been established for a claimant ceases automatically as soon as he reaches age 65 (subsection 31(4)).
Section 31 of the Act therefore deprives the applicant of the ordinary protection against unem ployment which is made available to other unem ployment persons. The social and financial security against the uncertainties of unemployment which the Act is designed to provide employees has been taken from her permanently, not only for the period of unemployment following her discharge on September 19, 1986.
Before being laid off on that date, the applicant had accumulated 26 weeks of insurable employ ment since returning to work on March 24, 1986, after collecting benefits for 37 weeks. Subsection 22(2) 15 entitled her to a basic minimum of 25 weeks' benefits as long as she remained unem ployed, quite apart from the additional benefits to which she might have been entitled under subsec tion 35(1) 16 of the Act, which are unfortunately not mentioned in the record for lack of any evi dence on the regional unemployment rate appli cable to her. The applicant received only three weeks' benefits because of section 31. Had it not
14 19. When an insured person who qualifies under section 17 makes an initial claim for benefit, a benefit period shall be established for him and thereupon benefit is payable to him in accordance with this Part for each week of unemployment that falls in the benefit period.
' 5 22.
(2) The maximum number of weeks for which initial benefit may be paid in a benefit period is the number of weeks of insurable employment of the claimant in his qualifying period or twenty-five, whichever is the lesser.
16 (1) When no further benefits are payable to a claim
ant in a benefit period under sections 22 and 34 and the regional rate of unemployment that applies to him in the last week for which benefits were payable under those sections exceeds four per cent, he may, subject to subsection (2), be paid extended benefit for each week of unemployment that falls in the remaining portion of his benefit period.
been for that section, the total unemployment insurance benefits she could have received would have been much higher than the lump sum of $540 which she did receive, even taking into account the pension payable to her under the Quebec Pension Plan ($187 a month), which since January 1986 must be deducted from unemployment insurance benefits. The applicant has lost the status of an insured person for good. Even if she were able to find new insurable employment and to hold it long enough to again become eligible for benefits, she would receive nothing from the unemployment insurance plan. Further, an employee between 55 and 65 years old can claim full benefits under the Act more than once and for more than one full benefit period (for as many as fifty weeks at a time, if we take into account all the theoretical qualifying factors: the number of weeks of insur- able employment, complementary benefits depend ing on the qualifying period and the regional unemployment rate applicable to a particular claimant—sections 34 and 35 of the Act).
Counsel for the respondent and the mis -en-cause maintained that the applicant is not in the same position as other unemployed persons, or if she is, she is not disadvantaged because the lack of earn ings of which she is deprived by section 31 is otherwise offset by the fact that at age 65 she is now entitled to social assistance provisions, such as the old age pension payable under the Old Age Security Act (R.S.C. 1970, c. O-6), the pension payable under either the Quebec Pension Plan or the Canada Pension Plan, supra, the additional tax exemption of $2,610 added to the basic individual exemption for persons 65 years old (Income Tax Act, S.C. 1970-71-72, c. 63, paragraphs 109(1)(b) and 117(1)(c)) and the program of free medica tion made available to persons 65 years old by the Quebec Health Insurance Act (R.S.Q. 1977, c. A-29).
The only provision which is relevant to the point at issue is the pension payable under the federal or provincial pension plans, as only it is connected with employment: the others are only connected with the recipient's age. The additional tax exemp-
tion is available to everyone, working or unem ployed, rich or poor. The Old Age Security Act is general in application: it makes payments to all persons 65 years old and the same amount goes to a person who is well off as to a welfare recipient, regardless of whether the recipient has always worked or has never done so in his life, or has never paid tax. The only qualifications are age and the period of residence in Canada: this statute has nothing to do with employment; it confers benefits on everyone who is 65 years old and does not deprive anyone of anything because of having reached that age, as section 31 of the Act does.
The most harmful and singular aspect of section 31 of the Act is that it permanently deprives the applicant, and any other person of her age, of the status of a socially insured person by making her a pensioner of the state, even if she is still looking for a new job. Regardless of her personal skills and situation, she is as it were stigmatized as belonging to the group of persons who are no longer part of the active population. Nothwithstanding the social and legislative changes that have taken place since 1971, section 31 in its present form perpetuates the same insidious stereotype applied when it was adopted in the Unemployment Insurance Act, 1971, namely that a person who is 65 years or older and has been unfortunate enough to lose his job can no longer be retrained for the labour market and must at that point become the com plete responsibility of the special social assistance programs of the government, instead of allowing free play to the laws of nature and the ordinary application of social insurance legislation such as the Unemployment Insurance Act, 1971. Individu als like the applicant are irremediably labelled and catalogued with the image of a group to which they are supposed to belong: persons 65 years or over are less able to work, a high proportion are not interested in doing so, most are retired and no longer can or want to return to the labour market; the same must be true of everyone else; what good is it to continue protecting them against unemploy- ment?—they are all excluded from the plan regardless of their personal skills and wishes.
That being so, the respondents accordingly had a duty to show that the clearly unfavourable dis tinctions perpetrated by section 31 of the Act in breach of the principle of equal rights and the equal protection and benefit of the Act, guaran teed by section 15 of the Charter, can be demonstrably justified in a free and democratic society, in accordance with section 1 of the Charter.
Criteria of assessment
In adopting the rule of ineligibility on account of age in the Unemployment Insurance Act, 1971, the legislator was pursuing an entirely valid objective and one that is in keeping with the Act itself. At the time it was adopted especially, when the age limit was set at 70 and the right to benefits was also denied to claimants 65 years old who might come under federal and provincial pension plans, which necessarily involved withdrawal from the labour market or at least giving up their regular jobs, the government was right to want to avoid double compensation in the event of loss of income resulting from older persons becoming unem ployed. The government is therefore to be com mended for seeing to it that public funds, which are necessarily limited, were used in the best possi ble way, whether they come from a pension plan or the unemployment insurance account. Avoiding abuses of the system was certainly a sufficiently important objective to justify prohibiting those receiving pensions when they ceased work from receiving the compensation designed to replace income under the Unemployment Insurance Act, 1971. At that time it was possible to conclude that the great majority of older persons received unem ployment insurance benefits only to supplement their pensions from employment or to take their place, but without intending to continue participat ing actively in the labour market.
In 1975, however, it was less clear that the same imperatives were equally urgent and pressing, when the age limit was lowered to 65 years and was used as the only exclusionary factor, since the other reason, withdrawal from the labour market, had disappeared as the result of parallel amend ments to pension plans. At age 65 employees could receive them without necessarily giving up their employment. However, the postulate that older
workers had ceased to be active in the labour market, which was used when section 31 was initially adopted in 1971, had lost its application in 1975. If a person who is 65 becomes unemployed, he is more likely and more willing to return to the labour market than at age 70; if the right to receive an early pension is no longer tied to the condition of leaving his employment, he will no longer be legally unable to return to the labour market if he becomes unemployed.
In any case, even assuming that in 1975 the government was still acting in response to urgent and pressing concerns, it is far from certain that the means chosen to attain the desired objective met the standard of proportionality and its essen tial components laid down in Oakes and restated in Edwards Books and Art Ltd. In Oakes, Dickson C.J. wrote, at page 139:
Second, once a sufficiently significant objective is recognized, then the party invoking s.1 must show that the means chosen are reasonable and demonstrably justified. This involves "a form of proportionality test": R. v. Big M Drug Mart Ltd., supra, at p. 352. Although the nature of the proportionality test will vary depending on the circumstances, in each case courts will be required to balance the interests of society with those of individuals and groups. There are, in my view, three important components of a proportionality test. First, the measures adopt ed must be carefully designed to achieve the objective in question. They must not be arbitrary, unfair or based on irrational considerations. In short, they must be rationally connected to the objective. Second, the means, even if rational ly connected to the objective in this first sense, should impair "as little as possible" the right or freedom in question: R. v. Big M Drug Mart Ltd., supra, at p. 352. Third, there must be a proportionality between the effects of the measures which are responsible for limiting the Charter right or freedom, and the objective which has been identified as of "sufficient importance".
Despite the changes made in the Act and the Unemployment Insurance Regulations, as well as in the Canada Pension Plan and the Quebec Pen sion Plan, there was no change in the means selected and the reasons given by the legislator to attain the desired objective by the introduction of the concept of ineligibility for benefits into the 1971 Act and its continuance in legislation since that date. To avoid overlapping between social programs for persons 65 years and over and to check abuses, the legislator introduced and perpe trated the principle of an absolute, outright denial
of the right to unemployment insurance benefits for employees 65 years and over, regardless of the personal situation of such individuals or of this class of claimants. As the government officials of the day indicated, of 600,000 persons unemployed in 1974, 17,500 were 65 years and over; of this number, 10,500 had withdrawn from the labour market and 7,000 were actively looking for work. The 1986 statistics show that 175,000 persons 65 years and over were still active in the labour market, and that of this number 4,000 were unem ployed but were still actively looking for work.
Most of the studies made and information col lected, such as those entered in evidence by the respondent and the mis -en-cause in support of their defence of justification under section 1 of the Charter, are concerned with workers 55 years and over, whether placed in the class of people 55-60 years old, 60-65 years old or over 65 years old. These statistics show that the tendency to gradual ly withdraw from the labour market begins at age 55 and the progression does not accelerate appreci ably at the 65-year watershed. Thus, a survey conducted in 1977 showed that less than 5 percent of unemployed persons between 55 and 64 years old had looked for work. The evidence indicates that it is the financial incentives to retirement which prompt people to retire from the active population at an increasingly early age, not the fact of reaching age 60 or 65. The prohibition in section 31 of the Act applies only to people 65 years and over, but in that case it is total and absolute. It takes in all persons 65 years old, those who are unemployed and looking for work because they must work in order to survive just as much as employees who retire with a substantial pension from their employer or from one or other of the government pension plans. No account is thus taken of those who have no pensions or a small pension, and even assuming that it is relevant, those who have not accumulated a sufficient number of years of residence in Canada to qualify under the Old Age Security Act.
Section 31 of the Act is discriminatory as com. pared with claimants 55 years and over, whose behaviour in the labour market is the same of almost the same as unemployed workers 65 years and over. No evidence was put forward to indicate that the extension of unemployment insurance benefits to unemployed persons 65 years and over would place an additional burden on the unem ployment insurance fund which neither the fund nor the public treasury could bear. The Court must conclude from this absence of evidence that the additional cost is not a relevant factor in considering the matter. It also was not demonstrat ed that it is impossible or more difficult for the Employment and Immigration Commission tc identify cases of fraud or abuse among unem ployed persons 65 years old than it is for claimants under 65, in particular those between 55 and 65 years old. It will be recalled that the control of abuses was one of the legislator's major concerns in adopting and maintaining the rule of ineligibili ty on grounds of age. It is hard to see this as a measure that has been carefully designed with the problem for solution in mind. It applies to all unemployed persons 65 years old indiscriminately. It is arbitrary and unfair in more than one respect, since it takes no account of the personal needs and particular situation of individuals. It is grounded on the idea which the historical taboos against older workers have projected onto a much larger proportion, the population aged 55 years and over, than the category actually excluded from unem ployment insurance benefits by section 31 of the Act.
Since January 5, 1986 the Unemployment In surance Regulations have been amended (SOR/ 86-58) to make any amount received as a pension deductible from unemployment insurance benefits. Subsections 57(1) and (2)(e) [as am. by SOR/84- 32, s. 8] read in part as follows:
57. (1) In this section,
"pension" means any retirement pension
(a) arising out of employment, service in the Canadian Forces or in any police force,
(b) under the Canada Pension Plan, or
(c) under a provincial pension plan.
(2) Subject to this section, the earnings to be taken into account for the purpose of determining whether an interruption of earnings has occurred and the amount to be deducted from benefits payable under section 26 or subsection 29(4), 30(5) or 32(3) of the Act and for all other purposes related to the payment of benefit under Part II of the Act are
(e) the moneys paid or payable to a claimant on or after January 5, 1986, on a periodic basis or in a lump sum on account of or in lieu of a pension.
Section 57 was further amended as of April 5, 1987 (SOR/87-188, s. 1), by the addition to sub section 57(3) of paragraph (j):
57....
(3) That portion of the income of a claimant that is derived from any of the following sources is not earnings for the purposes mentioned in subsection (2):
(j) the moneys referred to in paragraph (2)(e), if the number of weeks of insurable employment required by section 17 of the Act for the establishment of the benefit period of the claimant were accumulated after the date on which those moneys became payable and during the period in respect of which the claimant received those moneys.
This amendment allows persons who have retired from their regular jobs and are receiving pensions to actively return to the labour market and hold another job. If they are able to accumu late the required number of weeks of insurable employment in accordance with the usual rules and re-establish their right to benefits, they may if they again become unemployed receive the full amount of such benefits without any deduction being made for the amount of their pension which has been payable to them since retirement from their first employment. A special statute, the Unemployment Insurance Benefit Entitlement Adjustments (Pension Payments) Act [S.C. 1987, c. 17], was adopted on April 5, 1987 retroactive to January 5, 1986, authorizing the Commission to reimburse claimants eligible for this rebate since pension income relating to employment had become deductible from unemployment insurance benefits. It can be seen that this amendment to the regulations was adopted primarily in order to ben efit persons who had retired early and applies to older claimants, especially those between 55 and 64 years old.
Accordingly, since January 5, 1986, as a conse quence of section 57 of the Unemployment Insur-
once Regulations, the legislator has attained ir respect of claimants under 65 the important objec tive he is supposed to have had in mind in denying unemployed persons 65 years and over the right tc receive benefits under section 31 of the Act: he ha. checked double payments of unemployment insur ance benefits to claimants under 65 who are receiving pensions arising out of employment. The pension is simply deducted from unemployment insurance benefits. There was no indication at the hearing that what the legislator had been able tc do for claimants under 65 by a simple amendment to the Regulations could not be done in the same way for unemployed persons 65 years and over.
There is a clear disproportion between the only means chosen for attaining the desired objective, by maintaining section 31 of the Act in effect in its present form, and the draconian effects it has on all those to whom it applies indiscriminately. The complete denial of entitlement to unemployment insurance benefits to unemployed persons 65 years old is therefore unreasonable and can no longer be justified in view of the changes which have been made to the Act and Regulations since the Act was introduced in 1971.
Section 25 of the Act provides:
25. A claimant is not entitled to be paid initial benefit for any working day in a benefit period for which he fails to prove that he was either
(a) capable of and available for work and unable to obtain suitable employment on that day, or
(b) incapable of work by reason of prescribed illness, injury or quarantine on that day, and that he would be other wise available for work.
Section 31 of the Act denies its ordinary ben efits to unemployed persons 65 years old, absolute ly and without qualification depending on the per sonal situation of the individuals affected. It was not shown that the legislator could not achieve the same objectives which are the very basis of the prohibition in section 31 by simply applying the other relevant provisions of the Act or the Regula tions, such as section 25 of the Act and paragraphs 57(2)(e) and 57(3)(j), to such persons. Unem ployed persons, even those 65 years old, have no vested right in the payment of unemployment in surance benefits either under the Unemployment
Insurance Act, 1971 17 or under section 15 of the Charter. However, this section of the Charter guarantees them all the same protection and ben efit of the Act, regardless of any discrimination based on the claimant's age. Age is the only criterion in section 31 used to exclude unemployed persons 65 years old who are still part of the active population and would like to continue being so. It is a radical measure, unreasonable and out of proportion to the objectives sought. It cannot be reconciled with the principle of equal rights con tained in section 15 of the Canadian Charter of Rights and Freedoms. As it is not consistent with the Constitution of Canada, of which the Charter is a part, section 31 of the Unemployment Insur ance Act, 1971 is of no force or effect. Having said this, it follows that the Board of Referees erred in giving effect to a provision that is inconsistent with the Constitution of Canada. As it failed to notice this, the Court must do so in its place in keeping with the jurisdiction conferred on it by section 28 of the Federal Court Act.
For these reasons I would allow the application to review and set aside; I would quash the decision of the Board of Referees rendered on December 12, 1986 and refer the matter at bar back to a board of referees to be again decided by it on the assumption that section 31 of the Unemployment Insurance Act, 1971 is inconsistent with section 15 of the Canadian Charter of Rights and Freedoms, and is accordingly of no force or effect under subsection 52(1) of the Constitution Act, 1982.
HUGESSEN J.: I concur.
* * *
The following is the English version of the reasons for judgment rendered by
DESJARDINS J. (concurring in the result): I entirely concur in the reasons stated by my brother Lacombe J. However, in view of the importance of the threshold question and the debate occasioned
' 7 Côté v. Canada Employment and Immigration Commis sion (1986), 69 N.R. 126 (F.C.A.).
by it, both in legal literature 18 and in the courts, 19 I add my own observations on the point.
It matters little whether the Board of Referees can rule on the constitutional validity of section 31 of the Unemployment Insurance Act, 1971, since this Court can do so. In a proceeding under sub section 28 (4) or (1) of the Federal Court Act, this Court can rule on a constitutional point "arising as a threshold question in the review of the adminis trative action in issue" (Northern Telecom Canada Ltd. v. Communications Workers of Canada, [1983] 1 S.C.R. 733, at page 744). In a similar way, on an application to review and set aside a decision of an administrative agency, this Court can determine whether the administrative decision exists in constitutional terms before reviewing it, although of course the standards ap plicable in a review are entirely different from those in an appeal. If it were otherwise, what would be the point of having judicial review of an administrative decision which has no basis?
In my opinion this suffices to dispose of the threshold question. Once again, however, as I have no difficulty with the reasons stated by my brother Lacombe J., I will proceed.
Administrative tribunals are far from following a standard pattern. In 1965 Professor Jean Beetz, now a judge of the Supreme Court of Canada,
18 To the authors cited by Lacombe J. at note 2 on p. 4 of his reasons I would add: Graham R. Garton, "Civil Litigation Under the Charter" in Charter Issues in Civil Cases, ed. Neil R. Finkelstein and Brian MacLeod Rogers (Toronto: Carswell, 1988) at p. 81; Dale Gibson, The Law of the Charter: General Principles (Toronto: Carswell, 1986) at pp. 280-281; "Proce- dures in Charter Cases; Procedures and Remedies—Examina- tion of Questions Pertaining to: WHICH", Jeffrey Sack, Q.C., Toronto, Ontario, at pp. 11 et seq in Charter Cases, Causes invoquant la Charte, Canadian Bar Association, October 24-25, 1986, Montréal, Québec.
19 To the cases cited by Lacombe J., I would add Ontario Public Service Employees' Union v. Algonquin College of Applied Arts and Technology, Divisional Court (not yet report ed) (Steele, Holland and White JJ. heard: April 7 and 8, 1987, released April 16, 1987); Moore v. B.C. (Govt.) (1988), 23 B.C.L.R. (2d) 105 (C.A.); Terminaux portuaires du Québec v. Association des employeurs maritimes (A-1080-87, Pratte, Marceau and Desjardins JJ., judgment dated 11/8/88 (C.A.), not yet reported).
wrote both for the Quebec and the federal administrative agencies:
[TRANSLATION] Whatever point of view we take in trying to study these administrative agencies, their diversity defies anal ysis: they are almost unreal in this respect and the reason or basis for all these differences is rarely apparent, even to the most determined researcher. (Beetz J, "Uniformité de la procé- dure administrative", a brief submitted to the legislative over sight committee created by the Bar, (1965) 25 R. du B. 244, at page 248.)
The Canada Law Reform Commission was of the same opinion some years later in discussing the federal administrative agencies. 20
It is clear that administrative tribunals are not courts of law (Théberge (J. R.) Ltée v. Syndicat National des Employés de l'Aluminum d'Arvida Inc. et al., [1966] S.C.R. 378, at pages 382-83). The courts have recognized in the following deci sions that the administrative tribunals in question were independent in that they were not agents or extensions of the government. This has been the case with the Quebec Liquor Commission created under the Alcoholic Liquor Act, R.S.Q. 1941, c. 255 (Roncarelli v. Duplessis, [1959] S.C.R. 121, at page 185); the Anti-dumping Tribunal (P.P.G. Industries Canada Ltd. v. The Attorney General of Canada, [1976] 2 S.C.R. 739, at page 742); the C.R.T.C. (Capital Cities Communications Inc. et al. v. Canadian Radio-Television Commn., [1978] 2 S.C.R. 141, at page 172) and the Ontario Municipal Board (Innisfil (Corporation of the Township) v. Corporation of Township of Vespra et al., [1981] 2 S.C.R. 145, at page 171). In the last case, Estey J. indicated specifically what was meant by an independent agency:
If on its face an agency is held out in the constituting legisla tion as "independent" of the executive, that is with functions independent of the executive branch, it remains that way for all purposes until the Legislature exercises its undoubted right to alter, by providing for policy directions for example, the posi tion and procedure of the agency. (My emphasis)
My brother Lacombe J. has analysed the com position and powers of boards of referees. I con
20 Law Reform Commission of Canada, Council on Adminis tration, Administrative Law Series, Study Paper (Ottawa, Minister [sic] of Supply and Services Canada, 1980), by Alan Leadbeater, at p. 1.
dude from this that they are not extensions of the executive. I further conclude, as he does, that these agencies are not creations of the Canada Employ ment and Immigration Commission.
The precedents seem largely silent on whether, in pre-Charter cases, independent administrative agencies could declare unconstitutional a provision of the Act they were called upon to apply. They might certainly be required to consider constitu tional concepts in order to determine their jurisdic tion (Northern Telecom Canada Ltd. v. Com munications Workers of Canada, [1980] 1 S.C.R. 115). When their powers were challenged, how ever, parties would rely on prerogative writs or other similar remedies in the courts of law rather than proceeding by way of objection or defence before the said agencies. This may be why there are no precedents.
It is true that in Séminaire de Chicoutimi v. La Cité de Chicoutimi, [1973] S.C.R. 681, the Supreme Court of Canada held that only a court consisting of judges appointed in accordance with section 96 of the Constitution Act, 1867 could rule on whether a municipal by-law was ultra vires under the said section 96. It further held that a judge of the Quebec Provincial Court could rule on his jurisdiction (or lack of it) in the matter, if it came before him. The Court's reasoning was based on the fact that the power to quash a municipal by-law for invalidity in constitutional terms was not in conformity with the kind of jurisdiction exercised by the courts of summary jurisdiction in 1867, but conformed rather to the kind of jurisdic tion exercised by the courts described in section 96. In my view, the reasoning in Séminaire de Chicoutimi does not automatically apply here despite its apparent parallelism. This decision could not be taken as authority for saying that only a court described in section 96 of the Consti tution Act, 1867 may invalidate legislation under the Charter. The Charter adds a new dimension to the Canadian legal system, in that it confers rights and freedoms on individuals. The Charter is a new constitutional document which did not exist in 1867, any more than did the present subsection
52(1) of the Constitution Act, 1982, which provides:
The Constitution of Canada is the supreme law of Canada, and any law that is inconsistent with the provisions of the Constitution is, to the extent of the inconsistency, of no force or effet. (My emphasis)
It should not be a matter for surprise that individuals claiming to have such rights assert them before agencies created to provide a speedy determination of their rights in relation to govern mental authority. Many writers have noticed the anomalous position in which agencies find them selves when, on the one hand, they are responsible for applying the law, and on the other, are required to determine whether legislation is of no force or effect under the Charter. Nonetheless, if such agencies are responsible for interpreting the law they must deal with the issue in its entirety, subject to judicial review.
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