Digest of Benefit Entitlement Principles - Chapter 9
CHAPTER 9
REFUSAL OF EMPLOYMENT
9.6.0 WAGES
9.6.1 Usual Occupation
9.6.2 Employment of a Different Kind
9.6.3 Commission or Piece Work
9.6.4 Move to Another Area
One reason often put forward for refusing employment is that the wages offered are inadequate. Whether the employment is in the claimant's usual occupation or not, wages are obviously an important consideration in determining suitability1. Even where the prospective employment can be regarded as prima facie suitable employment, an appreciable difference between the wages usually enjoyed and those offered may amount to good cause for refusal.
Cases included in this category are grouped as follows:
1) Usual occupation;
2) Employment of a different kind;
3) Commission or piece work;
4) Move to another area.
The difference in wages will be taken into account even where it is not given as a reason for refusal2. If not done, a claimant could be penalized for otherwise being prepared to accept a rate of earnings that would ordinarily amount to good cause for refusal.
Low earnings by reason of the prospective employment being part-time do not necessarily amount to good cause. After a lengthy period of unemployment, refusal of work may be without good cause even though the claimant's rate of benefit is nearly equal to or even higher than the wages offered.
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- Jurisprudence Index/refusal of work/different occupation and lower wages/;
- Jurisprudence Index/refusal of work/wages or salary/.
It is understandable that a worker who has enjoyed a certain level of pay for a long time would first want to look for a comparable job. Therefore, during the first three weeks of unemployment, good cause will be considered to exist for refusing an employment which pays a rate of earnings that is not comparable to the one usually enjoyed by the claimant. What is meant by "comparable" is 95 per cent or more of the rate usually earned, which is not necessarily the same as 95 per cent of the rate earned with the last employer1. In practice, however, unless there is an indication to the contrary, it will be assumed that the rate earned with the last employer is the claimant's usual rate of earnings.
As the difficulty in finding employment grows with time, a person desirous of work will gradually relinquish initial expectations. Accordingly, after the initial three-week period, a 5 per cent reduction in wages per week may be applied. For example, in the sixth week of unemployment, a claimant should be prepared to accept a rate equivalent to 80 per cent of usual earnings unless, of course, such rate renders the employment unsuitable2. We wish to point out that this is only a rule of thumb and is not contained in the legislation. It may be applied to all claimants including skilled workers.
As an exception, the above rule will not be applied where the claimant had enjoyed an exceptionally high rate of earnings for the area of her or his residence. On the other hand, the suggested period could be extended if the rate of earnings usually enjoyed is relatively low, thereby making the opportunities of employment exceptionally numerous. The factors outlined under reasonable period of unemployment may also be used here in support of shorter or longer periods3.
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- EIA 28(2)(b); EIA 28(2)(c); Jurisprudence Index/refusal of work/wages or salary/;
- Jurisprudence Index/refusal of work/reasonable period of time/;
- see 9.4.2, "Usual Occupation"
- see 9.4.4, "Reasonable Period of Unemployment."
9.6.2 Employment of a Different Kind
With respect to unskilled workers, the rule used in calculating the applicable rate of pay for the usual occupation is also valid for a different occupation1.
However, for skilled workers, the question cannot arise in the initial stage of their unemployment since a period of time is allowed to look for employment in their own specific field. Once this period has expired, then a 5 per cent reduction in wages per week would be applicable with regard to a different occupation2.
For example, if an eight-week period was applicable to a carpenter to look for employment of the same kind and in the tenth week of unemployment that claimant refused employment in another occupation paying 90 per cent of past usual wages, it can be considered that there is no good cause. We wish to point out again that this is only a rule of thumb which is not contained in the legislation. Also the period may vary in duration depending on the absence or presence of the factors outlined under reasonable period of unemployment3.
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- Jurisprudence Index/refusal of work/different occupation/; Jurisprudence Index/refusal of work/good cause/;
- Jurisprudence Index/refusal of work/reasonable period of time/;
- see 9.4.4, "Reasonable Period of Unemployment."
9.6.3 Commission or Piece Work
Piece work and employment paid by commission are a recognized practice in many lines of work. An employment cannot be considered not suitable simply because it is paid according to either of these two methods1.
However, good cause for refusal is present where it is likely that, due to a lack of experience or another reason, the claimant will not earn a reasonable wage2. As a general rule, a person must try the job first before deciding that it will not provide an acceptable wage3.
In the logging industry, a worker must expect a substantial drop in wages upon arrival of the cold season or the melting snows4.
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- Jurisprudence Index/refusal of work/suitability/defined/;
- Jurisprudence Index/refusal of work/good cause/;
- Jurisprudence Index/refusal of work/wages or salary/;
- Jurisprudence Index/refusal of work/wages or salary/; Jurisprudence Index/refusal of work/working conditions/.
When a person leaves an industrial centre to reside in an area where employment opportunities are practically nil, the rule pertaining to the progressive reduction in wages does not apply. Under such circumstances, the claimant must be willing to accept immediately whatever can be obtained in that area1.
On the other hand, where a claimant moves from a rural area or small town to a large city, a progressive reduction in wages of less than 5% per week would be applicable.
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- Jurisprudence Index/refusal of work/moving/; Jurisprudence Index/availability for work/restrictions/geographical area/.
