Digest of Benefit Entitlement Principles Chapter 18 - Section 8

18.8.0 Warning letters

EIA 41.1 authorizes the Commission to issue a warning letter instead of imposing a monetary penalty. A warning letter may be imposed on a claimant, an employer or a third party. In an employer situation, a warning letter can be imposed only if the misrepresentation is adjudicated under EIA 39(2). The wording of EIA 41.1 does not allow a warning letter to be issued when a penalty is adjudicated under EIA 39(4). Warning letters are considered a penalty within the meaning of the Employment Insurance legislation, but do not carry the greater consequence of a monetary sanction. Warning letters are subject to different time restrictions, and may be issued up to 72 months following the misrepresentation.

A warning letter is issued:

• when the Commission is of the opinion that circumstances are so mitigating that any monetary penalty is punitive; or
• when the infraction(s) occurred more than 36 months prior to their discovery; or
• by policy, when the final penalty amount is less than $20.00 when all calculations and mitigating circumstances are taken into account.

Warning letters carry no immediate consequence. There is no monetary penalty attached to a warning letter. Neither do the increased entrance requirements, discussed below, apply unless there is a subsequent misrepresentation for which a monetary penalty is imposed.

If there is a situation in which subsequent misrepresentation is discovered, the warning letter and any previous unclassified violation, count in determining there is repetitive misrepresentation. For example, if there is only a non-monetary penalty (the warning letter) and an unclassified violation, but the subsequent misrepresentation triggers a monetary penalty and a violation, the penalty will be considered at a second level and calculated at 100% of the overpayment. The violation will be coded as subsequent.

[ September 2010 ]