Non-assignment of Benefits and Liability to Return Benefits and Pay Penalties
Marginal note:Benefits not assignable
Marginal note:Exception — recovery of amounts payable
(2) Any amounts payable under this Act by any person and required to be credited to the Employment Insurance Operating Account may be recovered out of any benefits payable to that person, without affecting any other mode of recovery.
Marginal note:Exception — payment to other governments
(3) If the Government of Canada, a provincial or municipal government or any other prescribed authority pays a person an advance or assistance or a welfare payment for a week that would not be paid if unemployment benefits were paid for that week, and unemployment benefits subsequently become payable to that person for that week, the Commission may, subject to the regulations, deduct from those or any subsequent benefits and pay to the government or the prescribed authority an amount equal to the amount of the advance, assistance or welfare payment paid, if the person had, on or before receiving the advance, assistance or welfare payment, consented to the deduction and payment by the Commission.
- 1996, c. 23, s. 42;
- 2001, c. 4, s. 74(F);
- 2010, c. 12, s. 2194;
- 2012, c. 19, s. 606.
Marginal note:Liability for overpayments
43 A claimant is liable to repay an amount paid by the Commission to the claimant as benefits
(a) for any period for which the claimant is disqualified; or
(b) to which the claimant is not entitled.
Marginal note:Liability to return overpayment
44 A person who has received or obtained a benefit payment to which the person is disentitled, or a benefit payment in excess of the amount to which the person is entitled, shall without delay return the amount, the excess amount or the special warrant for payment of the amount, as the case may be.
Marginal note:Return of benefits by claimant
45 If a claimant receives benefits for a period and, under a labour arbitration award or court judgment, or for any other reason, an employer, a trustee in bankruptcy or any other person subsequently becomes liable to pay earnings, including damages for wrongful dismissal or proceeds realized from the property of a bankrupt, to the claimant for the same period and pays the earnings, the claimant shall pay to the Receiver General as repayment of an overpayment of benefits an amount equal to the benefits that would not have been paid if the earnings had been paid or payable at the time the benefits were paid.
Marginal note:Return of benefits by employer or other person
46 (1) If under a labour arbitration award or court judgment, or for any other reason, an employer, a trustee in bankruptcy or any other person becomes liable to pay earnings, including damages for wrongful dismissal or proceeds realized from the property of a bankrupt, to a claimant for a period and has reason to believe that benefits have been paid to the claimant for that period, the employer or other person shall ascertain whether an amount would be repayable under section 45 if the earnings were paid to the claimant and if so shall deduct the amount from the earnings payable to the claimant and remit it to the Receiver General as repayment of an overpayment of benefits.
Marginal note:Return of benefits by employer
(2) If a claimant receives benefits for a period and under a labour arbitration award or court judgment, or for any other reason, the liability of an employer to pay the claimant earnings, including damages for wrongful dismissal, for the same period is or was reduced by the amount of the benefits or by a portion of them, the employer shall remit the amount or portion to the Receiver General as repayment of an overpayment of benefits.
46.01 No amount is payable under section 45, or deductible under subsection 46(1), as a repayment of an overpayment of benefits if more than 36 months have elapsed since the lay-off or separation from the employment in relation to which the earnings are paid or payable and, in the opinion of the Commission, the administrative costs of determining the repayment would likely equal or exceed the amount of the repayment.
- 2012, c. 19, s. 607.
Marginal note:Liability of directors to pay penalties
46.1 (1) If a penalty is imposed on a corporation under section 38 or 39 for an act or omission, the directors of the corporation at the time of the act or omission are, subject to subsections (2) to (7), jointly and severally, or solidarily, liable, together with the corporation, to pay the amount of the penalty.
Marginal note:Limitations on liability
(2) A director is not liable unless
(a) a certificate for the amount of the corporation’s liability for the penalty has been registered in the Federal Court under section 126 and execution for that amount has been returned unsatisfied in whole or in part;
(b) the corporation has commenced liquidation or dissolution proceedings or has been dissolved and a claim for the amount of its liability has been proved within six months after the date of commencement of the proceedings or the date of the dissolution, whichever is earlier; or
(c) the corporation has made an assignment or a bankruptcy order has been made against it under the Bankruptcy and Insolvency Act and a claim for the amount of its liability has been proved within six months after the date of the assignment or bankruptcy order.
Marginal note:Defence of due diligence
(3) A director is not liable if the director exercised the degree of care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances to prevent the act or omission for which the penalty is imposed.
Marginal note:Limitation period
(4) No action or proceedings to recover any amount payable by a director shall be commenced more than six years after the occurrence of the act or omission for which the penalty is imposed.
Marginal note:Amount recoverable
(5) If execution referred to in paragraph (2)(a) has issued, the amount recoverable from a director is the amount remaining unsatisfied after execution.
(6) If a director pays an amount in respect of a corporation’s liability that is proved in liquidation, dissolution or bankruptcy proceedings,
(a) the director is entitled to any preference that Her Majesty in right of Canada would have been entitled to if that amount had not been paid; and
(b) if a certificate that relates to that amount has been registered, the director is entitled to an assignment of the certificate to the extent of the director’s payment and the Commission shall make the assignment.
Marginal note:Contribution from other directors
(7) A director who has satisfied a claim under this section is entitled to contribution from the other directors who are liable for the claim.
- 1996, c. 23, s. 46.1;
- 1999, c. 31, s. 77(F);
- 2004, c. 25, ss. 133, 197.
Marginal note:Debts to Crown
47 (1) All amounts payable under section 38, 39, 43, 45, 46 or 46.1 are debts due to Her Majesty and are recoverable in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act.
(2) If benefits become payable to a claimant, the amount of the indebtedness may be deducted and retained out of the benefits.
(3) No amount due under this section may be recovered more than 72 months after the day on which the liability arose.
(4) A limitation period established by subsection (3) does not run when there is pending an appeal or other review of a decision establishing the liability.
Marginal note:Claim required
48 (1) No benefit period shall be established for a person unless the person makes an initial claim for benefits in accordance with section 50 and the regulations and proves that the person is qualified to receive benefits.
Marginal note:Information required
(2) No benefit period shall be established unless the claimant supplies information in the form and manner directed by the Commission, giving the claimant’s employment circumstances and the circumstances pertaining to any interruption of earnings, and such other information as the Commission may require.
(3) On receiving an initial claim for benefits, the Commission shall decide whether the claimant is qualified to receive benefits and notify the claimant of its decision.
Marginal note:Proof required
49 (1) A person is not entitled to receive benefits for a week of unemployment until the person makes a claim for benefits for that week in accordance with section 50 and the regulations and proves that
Marginal note:Benefit of the doubt
(2) The Commission shall give the benefit of the doubt to the claimant on the issue of whether any circumstances or conditions exist that have the effect of disqualifying the claimant under section 30 or disentitling the claimant under section 31, 32 or 33, if the evidence on each side of the issue is equally balanced.
(3) On receiving a claim for benefits, the Commission shall decide whether benefits are payable to the claimant for that week and notify the claimant of its decision.
- Date modified: