# Does my court case have to stop while the government reviews my benefits?

- Jurisdiction: Canada
- Practice area: Employment Law
- Published: 2026-11-03
- Last updated: 2026-11-03
- Canonical: https://lawasked.com/ca/employment-law/my-court-case-stop-while-government-reviews-my

## Question

I am currently in the middle of a legal dispute in British Columbia regarding a settlement from my previous employer. Back in March of last year, I was let go from my job, and I have been fighting for the unpaid wages and the severance pay cheque that they promised me in my contract. The total amount they owe me is about $12,500. However, a huge complication arose during our hearing last Tuesday. The employer's representative argued that the money I am claiming should be treated as employment insurance benefits rather than regular wages, which changes how the taxes and my benefits are calculated. Because of this disagreement, the judge seemed unsure about how to move forward with the final decision. I have already tried talking to the payroll department and even sent a formal letter to the company's director to clarify the nature of the payment, but they refused to budge. Now, I am sitting here wondering if the judge is going to pause everything and wait for a formal ruling from the tax authorities or the government before they can actually give me a final judgment on my case. Will my court proceedings just sit in limbo for months while they wait for that paperwork?

## Summary

It depends on whether the judge decides to refer the specific question about your money to the government. If the judge makes this referral, your court case will be paused until the Canada Revenue Agency provides a ruling.

## Analysis

In your dispute regarding the $12,500 owed by your former employer, the central issue is whether the payment is considered regular wages or employment insurance (EI) benefits. Under the Employment Insurance Act, there is a specific process for when a court case hits this kind of roadblock. 

If a question regarding EI benefits arises during your legal proceedings, the law states that "the justice, judge or court before whom it arises shall... defer further proceedings until the officer’s ruling is received" [1]. This means that if your judge decides that the tax and benefit implications are too complex to decide without expert input, they are required to pause (or 'defer') your case. This pause lasts until an authorized officer from the Canada Revenue Agency (CRA) provides a formal ruling [1]. Once that ruling is received, the judge must "proceed with the hearing and judgment of the legal proceedings" [1].

Additionally, if there is an ongoing appeal regarding this decision, the judge must wait for a decision from the Minister of National Revenue or the Tax Court of Canada before making a final judgment [1].

Whether your case actually sits in 'limbo' depends on whether the judge chooses to exercise this power of referral. The law does not strictly mandate that the judge *must* refer every question, but rather describes what they *shall* do if they choose to refer the question to an authorized officer. If the judge decides they can resolve the matter themselves without a formal government ruling, your case could move forward immediately. However, if the employer's argument about the nature of the payment creates enough uncertainty, a deferral is a likely outcome.

## Statutory citations

- Employment Insurance Act, S.C. 1996, c. 23, s. 131 - Question under section 90 [in force] (https://laws-lois.justice.gc.ca/eng/acts/E-5.6/index.html#s-131)
  > If a question specified in section 90 arises in any legal proceedings, the justice, judge or court before whom it arises shall... defer further proceedings until the officer’s ruling is received
- Employment Insurance Act, S.C. 1996, c. 23, s. 131 - Question under section 90 [in force] (https://laws-lois.justice.gc.ca/eng/acts/E-5.6/index.html#s-131)
  > on receipt of the ruling, proceed with the hearing and judgment of the legal proceedings

---
General information only, not legal advice. See https://lawasked.com/disclaimer