Digest of Benefit Entitlement Principles - Chapter 18

18.4.0    VIOLATIONS

18.4.1     Application of Violations
18.4.2     Classification of the Violation

18.4.0    VIOLATIONS

As stated earlier¹ there is a violation whenever a notice of violation is issued as a result of the imposition of a sanction, monetary or not, or there is a court judgement against the claimant, the employer, or anyone acting on their behalf.

The date of the violation is the date the notice of violation is issued; a violation does not exist until a notice of violation is issued. Claimants who have accumulated violations in the 260 weeks prior to the establishment of their benefit period or since June 30, 1996 whichever comes first, are subject to the increased entrance requirements sanction. When referring to the 260-week period it is the date the notice of violation is issued that is considered. [Also see National Policy]

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1. see 18.1.2, " A Violation."

18.4.1    Application of Violations

A notice of violation is issued when a sanction, monetary (a penalty) or non-monetary (a warning letter), is imposed pursuant to the provisions imposing penalties on claimants or anyone acting on their behalf, on an employer or a person pretending to be or act for an employer, or a penalty under Part II of the Act because the person perpetrated a fraudulent or misleading act or omission¹. The issuance of this notice of violation constitutes a violation.

A notice of violation issued for a warning letter is a violation but not a classified violation². This means that on its own a warning letter or any number of warning letters will not increase the entrance requirements for a claimant. It will however have the effect of increasing the number of insurable hours required when a classified violation follows the warning letter. The violation will be classified a subsequent violation.

A violation that occurs within 260 weeks of a previous violation is a subsequent violation. It does not matter if the second violation is the result of a notice of violation issued for acts or omissions committed before the first violation.

Once a violation has been characterized as a subsequent violation it remains a subsequent violation for a period of 5 years from the date of its establishment as a subsequent violation, or until the establishment of two subsequent benefit periods, whichever occurs first. Should the previous violation be overruled on appeal, the subsequent violation is re-classified and becomes a first violation.

A violation accumulated in the 260 weeks prior to the establishment of a benefit period or since June 30, 1996, whichever is first, causes the increased entrance requirements sanction provision³ to apply for the next two initial claims for benefit established for that claimant. However, a violation outside the 260 weeks period prior to the establishment of the benefit period, not followed by another violation i.e. a subsequent violation within that 260 week period, has no effect on the entrance requirements.

When a person is found guilty of one or more offences under the Act or Regulations as a result of an act or omission mentioned in the Act⁴, a notice of violation is issued and constitutes a violation. The same will occur when a person is found guilty under the criminal code as a result of an act or omission relating to the application of the Act.

Every time the Commission imposes a penalty on an insured person and issues a notice of violation, a violation exists for that insured person and is classified depending on the value of violation. A violation can be accumulated by any insured person mentioned under the relevant sections of the Act⁵, and may include any person acting on behalf of a claimant or employer or a person pretending to be or act for an employer.

When the Commission imposes a monetary penalty or a warning letter on an insured person acting for a claimant and issues a notice of violation to that person who acted on behalf of the claimant, a violation exists for that person. The value of the violation is determined using the total amount of the overpayment, real and estimated, created for the claimant. Third party violations are also classified⁶.

Although a penalty can be imposed on a corporation⁷, it cannot be followed by a notice of violation because only insured persons can accumulate violations. When a sanction is imposed on the officer, director or agent of the corporation⁸, a notice of violation is issued provided they are insurable persons. These persons accumulate a violation classified on the basis of the value of the violation.  [Also see National Policy]

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1. EIA 38; EIA 39; EIA 41.1; EIA 65.1;
2. see 18.4.2, "Classification of the Violation";
3. EIA 7.1;
4. EIA 135; EIA 136;
5. EIA 38; EIA 39; EIA 41.1; EIA 65.1;
6. see 18.4.2, "Classification of the Violation";
7. EIA 39;
8. EIA 39; EIA 41.1.

18.4.2    Classification of the Violation

The value of the violation determines its classification and consequently the increase on the entrance requirements. The value of the violation is the amount of the overpayment of benefits resulting from the acts or omissions plus 50 percent of the benefit rate multiplied by the number of weeks of entitlement remaining in the claimant's benefit period if the claimant is disqualified or disentitled, or if a recalculation occurs as a result of the act or omission¹. The value of the violation does not include the amount of penalty.

A violation² will be classified as minor, serious or very serious:

• minor violation-when the value of the violation is less than $1000.00, the violation is classified as minor. When a notice of violation is issued because a penalty was imposed and the overpayment is nil, the violation is classified as a minor violation.
• serious violation-when the value of the violation is $1000.00 or more but less than $5000.00, the violation is classified as serious.
• very serious violation-when the value of the violation is $5000.00 or more, the violation is classified as very serious.

A violation that occurs within 260 weeks of a previous violation is a subsequent violation.

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1. EIA 7.1(6); EIR 13;
2. EIA 7.1(5).