Income received from clandestine work is accountable in like manner as work income and according to the same calculation rules specific to the work performed. Exclusions and deductions must apply. However, when this income is not declared diligently, the recipient may eventually not benefit from the advantages provided in sections R-84, 10) and R-99 when the income ceases.
When a recipient does not declare his or her work income, the officer uses the means which seems the most appropriate to ensure the actual compliance of the recipient’s situation: request of document, meeting, hand over of the cheque direct, notice of 10 days, budget analysis, reference to the investigation unit. He or she will make a decision whose reason corresponds to the answer of the recipient (ex.: cancellation for refusal to provide a document or information, or renunciation of assistance notified by the recipient).
The recipient must produce a written statement containing the name and address of the employer, a description of the position, the number of hours worked per week or per month, the earnings obtained, the period of work as well as the reason for the employment stoppage as appropriate.
If the position is still occupied, the assistance is reduced based on the statement of the recipient who will produce a confirmation of his or her earnings by the employer. In the event of a refusal from the recipient without a serious reason, assistance is cancelled for refusal to provide information required to examine his or her eligibility for the current period. If the recipient is self-employed, his or her work income is evaluated according to the procedure to be followed in the case of self-employed workers.
If the remuneration paid does not comply with the Act respecting Labour Standards, the recipient is required to exercise his or her rights, failing which he or she is accountable for the income he or she was denied.
If the recipient no longer performs clandestine work and there are reasons to believe that he or she may be eligible to employment insurance, such a remedy is required from him or her if it is not obsolete or abusive. It is the duty of the recipient to use this approach when his or her statements lead to believe, or if it is established that he or she occupied an insurable position considering that his or her eligibility to employment insurance is based on a minimum number of hours of work. This number varies according to the unemployment rate of the region of residence.
If the reason for work stoppage is coupled with a reduction of the assistance for renunciation of a suitable job without a serious reason or for dismissal, this reduction applies as of the month following the knowledge of the default.
Before proceeding to the cancellation or claim of the benefits, it is essential to have sufficient evidence and be able to demonstrate that the recipient is uneligible to the benefits or part of the benefits he or she received. A written statement by the recipient may represent such an evidence as long as it assembles all the elements allowing to establish clearly the amount of assistance unduly paid.
A claim is established based on the evidence in hand, including the written statement of the recipient or still, only based on this statement if he or she admits it. It must be remembered that admission represents the best evidence, provided that it is admitted freely. It is therefore essential that this admission be as detailed and explicit as possible to allow for the calculation of the claim to be made.
If the recipient did not receive remuneration appropriate or in compliance with the Act respecting Labour Standards, a claim is established for any period covering this situation, considering the resources this individual did not receive. This claim may be reviewed should the individual obtain the amounts covering the same periods following a remedy to the Commission des normes du travail who may relate back one year as of the date of the application.
If the clandestine work may have qualified a recipient to employment insurance benefits, a claim must be made based on these unclaimed benefits as long as the rate and eligibility period are clearly determined.
When the recipient recognizes performing or having performed clandestine work but that he or she cannot establish his earnings, he or she must be notified that he or she is liable to a claim for the total of the assistance paid for the admitted period of work. If required, a time limit may be granted to the recipient in order to produce a statement of his or her work income. If he or she fails to do so, the total assistance paid is claimed for the period(s) of work as it is impossible to determine the income earned. The burden of proof is in some way subverted and it is the duty of the recipient to demonstrate that he or she is eligible to the assistance received while he or she was working clandestinely.