When Employment Insurance Fraud OccursWhen a person applies for employment benefits they are doing so because they feel they are entitled to receive them. If they have paid in to the program for the prescribed number of weeks and now find themselves without a job, they are likely going to receive some payments while they search for a new employment position. The program is in place to aid individuals in their time of need however many people are taking advantage of it. Employment insurance fraud is an increasing problem.
In most instances of employment fraud cases the individual who puts in a claim to receive employment benefits commits some sort of dishonest behavior. One of the points that are strongly stressed to individuals receiving employment benefits is that they need to report any additional income they receive. If this income in not reported they are then guilty of participating in insurance fraud. Even if they don't think the amount is worth noting, it has to be reported by law. Failure to do so can result in serious consequences. What some people do while receiving employment benefits is to take on small cash jobs. This means that they agree to work for someone with the understanding that the pay that is being offered won't be reported to the income tax department. The individual then has an income coming in from their illegal work arrangement as well as their employment benefits. Although this can take place in almost every industry it seems to be more popular in some of the trades as well as for people providing services like hair styling and child care. Another way that some people commit employment fraud is by being dishonest about the amount of extra income they are bringing in. If they work part time as a server and are receiving employment benefits based on a full-time salary they may be inclined to only note the portion of their income they are receiving in actual wages. Their gratuities also compromise a portion of their income and as such needs to be noted on the employment insurance forms. This type of arrangement may be called into question and the individual may be required to explain why they haven't documented any of their gratuities. Not responding to training sessions or going to arranged job interviews also falls under the umbrella of employment insurance fraud. Many times, the representatives of the employment insurance office arrange programs that aid in helping the unemployed find work. If the person receiving the benefits continuously fails to attend these training sessions or interviews they may be guilty of committing employment insurance fraud, in which case their benefits will be suspended and they may face a fine. |