Umpire rules on appeal of "overpayment" of EI benefits to Bill 29 claimants
NEW April 24, 2012
An Umpire has upheld a decision by the Employment Insurance Commission to issue “overpayment” notices to 2,200 EI claimants who received compensation under the Bill 29 settlement agreement.
The ruling was made on an appeal of an earlier decision of the Board of Referees which had in turn upheld the EI Commission’s actions.
The Umpire referred a second issue – the matter of what time frame the compensation payments should be allocated in – to a new Board of Referees. The determination of this issue could affect the amount of money an EI claimant would be required to repay.
HEU is currently reviewing the decision and its implications.
Please check back here for any updates or call our hotline at 1-800-909-4994.
Update December 12, 2011: HEU has been advised by the office of the Umpire that we should expect the decision in the new year.
Update August 26, 2011: On August 24, the Umpire heard a full day of arguments in the appeal of the earlier decision of the Board of Referees on the Bill 29 settlement payments. The Umpire anticipates issuing a decision on the matter between the end of October and mid-December.
Update June 22, 2011: HEU has been advised by the Registrar that the Umpire-level appeal will be heard on August 24, 2011.
Update December 3, 2010: The Canada Revenue Agency (CRA) has been sending out form letters demanding payment and advising interest will be accruing. The unions have confirmed with the EI Commission that no collections will occur until after the Umpire hearing the appeal has issued a decision.
You may want to contact Service Canada Telephone Information Services 1-800-206-7218 to request that collection action on the overpayment be suspended.
No date has been set for the appeal hearing with an Umpire, but is expected to be scheduled early in 2011.
Update October 4, 2010: Service Canada has now confirmed that any new appeals to the Board of Referees where the issue under appeal is identical or similar to the original group appeal will be placed on hold, pending the outcome of the Umpire decision. This will also apply to any new referral to the Umpire.
If you have been recently contacted by Service Canada (EI) advising you of an overpayment due to receiving a Bill 29 Settlement, you will still be required to file an appeal. You should indicate that the reason for the delay in filing is that you have just been notified and therefore you were unable to join the group appeal (Andrea Rachel, et al.). You will then request that your appeal be placed in abeyance (on hold) pending the outcome of the Umpire's decision.
Update September 10, 2010: If you have been required to file an individual appeal with the Board of Referees or a subsequent appeal with the Umpire, you should request that further proceedings on your individual file be put on hold pending the outcome of the unions' group appeal. For more information, please refer to this letter from the unions to Service Canada.
CRA issues hardship kits
In front of the Board of Referees, HEU and BCGEU argued that the money paid to workers as a result of the Bill 29 Settlement Agreement was not employment earnings because it was paid to address serious charter violations by the government's decision to implement Bill 29.
Despite rejecting the appeal, the Board of Referees did urge the EI Commission to exercise its discretion to forgive the overpayments given the undue hardship on the claimants and because to collect would "sully the reputation of the Commission."
The unions sent a letter asking the EI Commission for this consideration. In response, the Commission told the unions that the Canada Revenue Agency (CRA) will make a determination on hardship on a case-by-case basis.
This is why affected workers will receive soon, or have already received, a letter and questionnaire directly from the CRA.
The unions strongly encourage affected workers to complete and return the CRA questionnaire regarding hardship because it is a necessary step toward having any overpayment forgiven.
Members must decide on whether or not to reply to the CRA letter. If they are going to reply, they must do so within 30 days of receiving the CRA letter.
Here are some guidelines to help respond to the CRA letter and questionnaire.
More information will be posted as it becomes available.