Digest of Benefit Entitlement Principles Chapter 24 - Section 6

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24.6.0 Increased entranced requirements

The EI Act prescribes an Increased Entrance Requirement Sanction for those persons who commit misrepresentation against the EI system. Violations range from minor to subsequent Footnote 1 with a related increase in the amount of self-employment earnings required to qualify for benefits.

The objective of this measure is to eliminate any advantage gained by the person as a result of making false statements and to deter repetition of such conduct. Under the EI Act, the Commission can impose penalties or prosecute persons who receive or try to receive benefits by knowingly making false or misleading statements Footnote 2 . Any finding for a false or misleading statement may have a notice of violation issued.

24.6.1 An unclassified violation

A violation may be issued when a warning letter is issued under the EI Act Footnote 3 , but does not specify a value. This is called an unclassified violation. It is unique because it does not impact subsequent claims unless there is a further finding of misrepresentation resulting in a classified violation. For example, a file may have one, ten or an indeterminate number of warnings issued under the EI Act Footnote 4 , and this will not affect subsequent claims. However, any classified violation issued within 260 weeks of the warning letter shall result in a record of subsequent violation.

24.6.2 A classified violation

When a claimant receives a classified violation, this means they will require more self-employment earnings to qualify for subsequent claims. This is called the increased entrance requirement. These provisions establish a progressively higher threshold of earnings to qualify for benefits, based on the value of the violation, so the more serious the violation; the more earnings will be required to start a claim Footnote 5 :

  • a minor violation requires 25% more earnings;
  • a serious violation requires 50% more earnings;
  • a very serious violation requires 75% more earnings; and
  • a subsequent violation requires 100% more earnings.

Increased entrance requirements affect all subsequent claims for self-employment special benefits, regardless of the type of special benefits being sought, for a 260–week period from the date of the violation. However, once a claimant has the increased hours needed to establish a claim, the violation does not affect any other calculation on the claim: a violation also does not impact the benefit rate or the number of weeks of entitlement.

Further, it does not matter whether the violation was imposed on a claim for EI benefits, EI Fishing Benefits or EI Benefits for the Self-Employed. A violation applies to all claims established pursuant to the EI Act.

No more than two established claims for benefit will be affected by a violation, within the 260-week period Footnote 6 .

A record of unclassified violation does not trigger an increased dollar requirement. However, a subsequent, classified violation recorded within the 260–week timeframe will trigger the increased earnings required under the provisions for a subsequent violation.

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