Sections 38 and 39 of the Employment Insurance Act allow the Commission to impose a monetary penalty on a claimant, employer or any person who, on their behalf, makes a false or misleading statement or representation or who provides false information to the Commission.
Section 38 of the Employment Insurance Act sets out eight categories of acts or omissions which will result in the imposition of a penalty. The maximum penalty which may be imposed on a claimant per act or omission is three times the claimant's weekly rate of benefit. However, new penalty levels have been added for failure to declare earnings while on claim for benefits. The maximum penalty which may be imposed on an employer is nine times the maximum weekly rate of benefit in effect when the penalty is imposed.
Rather than impose a monetary penalty, the Commission may decide to proceed by way of criminal proceedings under section 135 of the Employment Insurance Act. A monetary penalty cannot be imposed if a prosecution has been instituted in relation to the particular offence.
A penalty may not be imposed after thirty-six months from the date on which the false or misleading statement is made. However, where the Commission is of the opinion that a false or misleading statement has been made in relation to a claim, it has seventy-two months to reconsider the claim for the purpose of requiring a claimant to repay any benefits received to which he or she was not entitled.
Sections 38, 39, 40, 52(5), 135 Employment Insurance Act
The Commission may rescind the imposition of a penalty, or reduce the penalty, on the presentation of new facts or on being satisfied that the penalty was imposed without knowledge of, or on the basis of, a mistake as to some material fact.
Section 41 Employment Insurance Act
The Commission may issue a warning instead of setting the amount of a penalty for an act or omission under subsections 38(2) or 39(2) of the Employment Insurance Act.
Subsection 41.1(1) Employment Insurance Act
An insured person who accumulates one or more violations in the 260 weeks before making his or her initial claim for benefit will have the number of hours required to qualify for benefits increased.
Section 7.1 Employment Insurance Act
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2010-03-02