Judgments

Decision Information

Decision Content

A-133-76
Rejeanne Rondeau (Applicant) v.
Paul A. Simard, Pierre Brouillet and Gerard Fevre (Respondents)
and
Unemployment Insurance Commission and Deputy Attorney General of Canada (Mis -en- cause)
Court of Appeal, Jackett C.J., Le Dain J. and Hyde D.J.—Montreal, November 12, 1976; Ottawa, January 21, 1977.
Judicial review—Unemployment insurance benefits— Whether error of law by Board of Referees on hearing appeal from Unemployment Insurance Commission Whether sec tions providing for disqualification under the Act can operate even though the requirements of s. 25 have not been met— Unemployment Insurance Act, S.C. 1970-71-72, c. 48, ss. 19, 20(5), 25, 33, 36, 40, 41 and 43—Unemployment Insurance Regulations, s. 151—Federal Court Act, s. 28.
Applicant claims that by virtue of section 20(5) of the Unemployment Insurance Act, 1971 and Regulation 151, her original benefit period should have been considered as cancelled and that consequently, by virtue of section 19, a new initial benefit period would have begun at the time of her second application for benefits and the illness claim would fall in that period before it was re-established or extended. In other words, there can have been no disqualification from receiving benefits under sections 40 or 41 because, having failed to meet the requirements of section 25, she was not entitled to receive benefits.
Held, the application is dismissed. A disqualification may arise by virtue of facts that fall under section 40 or section 41 even though they arise before the prima facie right to payment of benefits arises. In other words, by virtue of section 43, a person may become subject to disqualification under section 40 or section 41 at a time when he has not satisfied the require ment of section 25: once the disqualification arises it operates to prevent payment when the prima facie right to benefit crystallizes subsequently. As to whether the Board erred in law in finding the applicant available for work, availability is a question of fact and no argument has been put forward to suggest that the conclusion reached by the Board was erroneous within the meaning of section 28(1)(c) of the Federal Court Act.
APPLICATION for judicial review. COUNSEL:
Paul Faribault for applicant.
Guy Leblanc for respondents and mis -en-
cause.
SOLICITORS:
Landreville and Bourduas, Joliette, P.Q., for applicant.
Deputy Attorney General of Canada for respondents and mis -en-cause.
The following are the reasons for judgment rendered in English by
JACKETT C.J.: This is a section 28 application' to set aside a "decision" of a Board of Referees set up under the Unemployment Insurance Act, 1971 2 . After a full hearing, judgment was reserved.
As the record is scanty, I deem it advisable to summarize it. In so far as relevant, as I understand it, the record may be summarized as follows:
1. The applicant made what appears to be an "initial claim for benefit"' dated September 9, 1974, showing that she had been last employed as a waitress at "Restaurant Autoroute de l'est" from May 9, 1974 to September 5, 1974, and that she had voluntarily left that employment (apparently there was attached to the claim document a note saying that she had left the employment because,
' See section 28(1) of the Federal Court Act, which reads:
28. (1) Notwithstanding section 18 or the provisions of any other Act, the Court of Appeal has jurisdiction to hear and determine an application to review and set aside a decision or order, other than a decision or order of an administrative nature not required by law to be made on a judicial or quasi-judicial basis, made by or in the course of proceedings before a federal board, commission or other tribunal, upon the ground that the board, commission or tribunal
(a) failed to observe a principle of natural justice or otherwise acted beyond or refused to exercise its jurisdiction;
(b) erred in law in making its decision or order, whether or not the error appears on the face of the record; or
(c) based its decision or order on an erroneous finding of fact that it made in a perverse or capricious manner or without regard for the material before it.
2 S.C. 1970-71-72, c. 48.
3 Cf. section 20(1)(b) of the statute.
by reason of a change in her working hours, she had to take a taxi).
2. Supplementary information was apparently given by the applicant by telephone on September 16, 1974, to the following effect:
[TRANSLATION] When I began working for this employer my hours of work were from four o'clock to midnight. After some time, my employer decided to institute rotating shifts. I was travelling by car with my daughter—and as I had to change shifts I had no means of transportation; it cost me six dollars a day to take a taxi. When I worked from four o'clock to midnight, my husband looked after my child. I cannot leave her with anyone else, because she is deaf and "retarded". I would like to be able to find work from four o'clock to midnight. If the owner of the restaurant where I worked went back to the hours at which I started, I would be prepared to return.
3. By a document entitled "Avis d'Exclusion" dated September 25, 1974, addressed by the Com mission to the applicant, she was advised, in part, as follows:
[TRANSLATION] On the information which has been presented in connection with your claim for benefit, you are disqualified under section 41(1) of the Unemployment Insurance Act. This section of the Act provides that an insured person may be disqualified from receiving benefits if he lost his employment by reason of his own conduct or voluntarily left his employment without just cause.
In reference to your employment with Restaurant Autoroute, it is considered that you have ...
[]x left your employment without just cause
Benefit is therefore suspended for the first 2 weeks for which benefit would otherwise be payable, and it will be deemed to have been paid for such weeks. This has the effect of reducing your potential benefit entitlement by 2 weeks.
4. A notice dated September 30, 1974, to the Commission from the Manpower Division of the Department of Manpower and Immigration show ing that the applicant had refused to accept an employment offer as a waitress at "Miss Dany" restaurant contained the following comment:
[TRANSLATION] Difficult in choice of working hours. Had appropriate evening employment as requested by this client.
Availability doubtful.
5. By a document entitled "Avis d'Exclusion" dated October 8, 1974, addressed by the Commis sion to the applicant, she was advised, in part, as
follows:
[TRANSLATION] On the information which has been presented in connection with your claim for benefit, you are disqualified under section 40(1) of the Unemployment Insurance Act. This section of the Act provides that a claimant shall be disqualified
from receiving benefit if after becoming aware of an opportu nity for suitable employment he has without good cause refused, failed to apply or accept an offer of such employment.
Under section 40(1) of the Act, good cause is considered to be established if under all the circumstances the claimant acts prudently in a manner which a person will normally be expect ed to follow in like circumstances.
In your case, you were aware of a situation in suitable employ ment with Miss Dany.
On the basis of the evidence presented, it is considered that, without good cause, you have refused, failed to apply for or to accept this situation when you became aware of it, and benefit is therefore suspended for the first 3 weeks for which benefits would otherwise be payable. Benefit will be deemed to have been paid for such weeks, which has the effect of reducing your potential entitlement by 3 weeks.
6. By another document dated October 8, 1974 (entitled "Avis de Refus") addressed by the Com mission to the applicant, she was advised, in part:
[TRANSLATION] On the information which has been presented in connection with your claim for benefits, under sections 25(a), 33(2) and 360) of the Act, you have failed to prove that you are available for work. You refused employment offered by the Canada Manpower Centre on September 19, 1974. You are therefore not eligible to receive benefits after October 13, 1974, as long as this situation continues.
7. The applicant wrote a letter to the Commission bearing date October 17, 1974, the body of which reads:
[TRANSLATION] Following a telephone conversation with someone in your office this afternoon, I am providing reasons why I recently refused employment. First, I should tell you that I have a retarded child at home, and this year we have been unable to find a school for her until now, but we believe we will soon have her learn handicrafts. At that time she will be gone all day, and I will be free to go to work. I quit work at the Miss Autoroute restaurant because I was hired for four o'clock to midnight. My husband was here to look after her, but shortly before I left my job the owners had decided to institute rotating shifts, and I could not continue for the reason I gave above. This was also why I refused the job I was offered at the Miss Dany restaurant. It was for work until closing time, and there was the question of transportation also, since a taxi costs three dollars for the trip there.
Therefore, sir, I feel that my reasons are quite valid. Please take this letter into consideration and have my cheque mailed to me; I have had benefit cards for two weeks, and I assure you I very much need the money.
8. The applicant wrote to the Commission a letter bearing date November 28, 1974, and reading as follows:
[TRANSLATION] This is to inform you that I returned to work last Monday, November 18. As I told you, I went to work as soon as I could. I would like to receive the benefits owed to me. I have filled in several cards. Please send the cheques. Thank you.
9. By a document (entitled "Avis de Réexamen") dated December 18, 1974, the Commission advised
the applicant, in part:
[TRANSLATION] You were previously informed that you were not entitled to benefits. Additional information has since been received concerning your claim for benefit and examination of this information has resulted in the following decision:
the disqualification imposed from October 13, 1974, under sections 25(a), 33(2) and 36(1) of the Act, while the situa tion continued, terminated on November 15, 1974.
10. The applicant made a claim for benefit dated April 1, 1975, showing that she had been last employed by "Little Princess Childrens" from November 18, 1974 to March 10, 1975, that she left on account of illness, and that she was still ill.
11. By a document (entitled "Avis de Refus") dated April 28, 1975, the Commission advised the applicant, in part:
[TRANSLATION] On the information which has been presented in connection with your claim for benefit, you are not capable of work because of illness. Under section 33(2) of the Act, you may not receive benefit for any working day in a week in your benefit period if you fail to prove you were capable of and available for work. You are therefore not entitled to receive benefit after March 31, 1975.
12. A solicitor's letter (from Messrs. Landreville & Bourduas) bearing date July 31, 1975 was written to the Commission regarding the appli cant. The body of that letter reads:
[TRANSLATION] Following our recent conversation on the subject of this case, we hereby give you notice of our position.
Our client requests cancellation of the initial benefit period which was established for her beginning September 15, 1974.
Our client requests cancellation of this benefit period under section 20(5), because no benefit was payable since she stated that she was not available for work for the period of September 15 to November 18, 1974.
Since she was not available, the disqualifications imposed on her automatically fail, because she did not fulfil the prerequi site condition for receiving unemployment insurance benefits: when someone is not entitled to the first stage, there can be no question of imposing disqualifications, which can occur only in
the second stage of the process. This results from CUB deci sions Nos. 172 and 764.
Therefore, if no benefit was payable to her and none was paid, and since the disqualifications contained in sections 40 and 41 of the Act are not applicable, it would be proper to cancel this period and the period of benefits established for our client on September 15, 1974.
If you should reject our request, please consider this letter as an application for appeal to the Board of Referees.
13. A "Record of Proceedings and Decision of Board of Referees" concerning the applicant bear ing date September 12, 1975, reads, in part:
[TRANSLATION] ISSUE: Can the benefit period effective Sep- tember 15, 1974 be cancelled?
The claimant came to the hearing of her case with her counsel, Mr. Paul Faribault.
Referring to the record and to the statements of the claimant and her counsel, the Board of Referees is unanimous in ruling that the benefit period effective September 15, 1974 cannot be cancelled.
(A) The claimant was on the labour market at the time of her initial claim, filed on September 9, 1974.
(B) Her restricted availability brought about the disqualifica tions noted in the record.
(C) The Board of Referees is of the opinion that section 43(2) applies, rather than section 20(5) and Regulation 151(b).
The section 28 application reads, in so far as applicable, as follows:
[TRANSLATION] The claimant, through her undersigned solicitors, gives notice that she requests review and cancellation of the respondents' decision, rendered on September 12, 1975 as a Board of Referees within the meaning of the Unemploy ment Insurance Act, 1971.
To understand what is the "decision" that is the subject of this section 28 application, it is neces sary to have in mind:
(a) the provisions of the Unemployment Insurance Act, 1971, as amended, in so far as they relate to the substantive law governing the question whether the applicant has a right to be paid benefits under that Act, and
(b) the provisions of that Act, in so far as they relate to the procedure established by that Act for determining such a question in so far as relevant in
the circumstances. 4
In so far as the substantive law is concerned, the following provisions of the Act would seem to require consideration:
17. (1) Unemployment insurance benefits are payable as provided in this Part to an insured person who qualifies to receive such benefits.
(2) An insured person qualifies to receive benefits under this Act if he
(a) has had eight or more weeks of insurable employment in his qualifying period, and
(b) has had an interruption of earnings from employment.
18. The qualifying period of an insured person is the shorter of
(a) the period of fifty-two weeks that immediately precedes the commencement of an initial benefit period under subsec tion (1) of section 20, and
(b) the period that begins on the commencement date of an immediately preceding initial benefit period and ends with the end of the week preceding the commencement of an initial benefit period under subsection (1) of section 20.
19. When a person who qualifies under section 17 makes a claim for the purpose of establishing an initial benefit period, an initial benefit period shall be established for him and thereupon benefits are payable to him in accordance with this Part for each week of unemployment of the claimant that falls in the initial benefit period.'
20. (1) An initial benefit period begins on the Sunday of the week in which
(a) the interruption of earnings occurs, or
(b) the initial claim for benefit is made, whichever is the later.
(3) An initial benefit period shall not be established for the claimant if a prior initial benefit period or any benefit period that arises from the prior initial benefit period has not terminated.
(5) Where an initial benefit period is established for a claimant but benefit is not payable or has not been paid in respect of that benefit period, the initial benefit period may, subject to prescribed conditions, be cancelled and regarded as
4 Chapter 80 of 1974-75-76, which was assented to on December 20, 1975, would not seem to have any bearing on the matter as the decision that is the subject of the section 28 application was rendered on September 12, 1975.
5 It may be assumed, from the course of proceedings, that the claimant qualified under section 17 in respect of both the first and second claims.
not having begun. 6
21. (1) A week of unemployment for a claimant is a week in which he does not work a full working week.
22. The maximum number of weeks for which initial ben efits may be paid in an initial benefit period shall be based on the number of weeks of insurable employment of the claimant in his qualifying period as shown in Table 1 of Schedule A.
23. A claimant is not entitled to be paid benefit for a week in an initial benefit period until following the commencement of that initial benefit period he has served a two week waiting period that begins with a week of unemployment for which benefits would otherwise be payable.
24. (1) The rate of weekly benefit payable to a claimant for a week that falls in an initial benefit period
(a) in the case of a claimant without a dependant is an amount equal to sixty-six and two-thirds per cent of his average weekly insurable earnings in his qualifying weeks or twenty dollars, whichever is the greater, and
25. A claimant is not entitled to be paid benefit for any working day in an initial benefit period for which he fails to prove that he was either
(a) capable of and available for work and unable to obtain suitable employment on that day, or
(b) incapable of work by reason of any prescribed illness, injury or quarantine on that day.
32. Immediately following the termination of an initial ben efit period under subsection (6) of section 20, that initial benefit period shall be re-established for a further period of ten weeks from the date on which it would have terminated under that section.
33....
(2) Notwithstanding paragraph (b) of section 25, a claimant is not entitled to be paid benefit for any working day in a week in the re-established portion of his initial benefit period for
6 With this provision there should be read Regulation 151 [SOR/71-324], which reads:
151. An initial benefit period that was established in respect of a claimant shall be cancelled and regarded as not having begun
(a) where the period has terminated and no benefit was payable or paid in respect of the period, and
(b) where the period has not terminated, no benefit was payable or paid in respect of the lapsed portion of the period, and the claimant requests that it be so regarded.
which he fails to prove that he was capable of and available for work and unable to obtain suitable employment.
34....
(2) An extended benefit period begins at the termination of a re-established initial benefit period.
36. (1) Notwithstanding paragraph (b) of section 25, a claimant is not entitled to be paid benefits for any working day in a week in an extended benefit period for which he fails to prove that he was capable of and available for work and unable to obtain suitable employment.
40. (1) A claimant is disqualified from receiving benefits under this Part if without good cause
(a) he refuses or fails to apply for a situation in suitable employment that is vacant, after becoming aware that such situation is vacant or becoming vacant, or fails to accept such a situation after it has been offered to him;
41. (1) A claimant is disqualified from receiving benefits under this Part if he lost his employment by reason of his own misconduct or if he voluntarily left his employment without just cause.
43. (1) Where a claimant is disqualified under section 40 or 41 from receiving benefits, the disqualification shall be for such weeks following his waiting period, not exceeding three, for which benefit would otherwise be payable as are determined by the Commission.
(2) For the purposes of this Part, a benefit shall be deemed to be paid for any weeks of disqualification under subsection (1).
In so far as procedure is concerned, the following provisions of the Act would seem to require consideration:
53. No benefit is payable to any person under this Act unless a claim therefor has been made by him or on his behalf to the Commission, and any information required by the Commission has been supplied, in the prescribed manner.
54. No person is entitled to any benefit under this Act until he proves that
(a) he is qualified to receive benefit,
(b) he meets the requirements entitling him to receive ben efit, and
(c) no circumstances or conditions exist that have the effect of disentitling or disqualifying him from receiving benefit.
55. Upon receiving a claim for benefit the Commission shall decide whether or not benefit is payable to the claimant
pursuant to this Act and determine the amount to be paid and notify the claimant of its decision.
56. The Commission may at any time within fourteen days of receiving a claim refer that claim or a question arising therefrom to a board of referees for decision thereon.
57. (1) The Commission may at any time within thirty-six months after benefit has been paid under this Act or the former Act reconsider claims made at a prior time and if the Commis sion determines that a person has received money by way of benefit thereunder for any period in respect of which he was not qualified or any money by way of benefit to which he was not entitled, the Commission shall calculate the amount so received, and that amount is, subject to appeal under section 94, the amount repayable under section 49.
(2) The day that the Commission notifies the person of the amount calculated under subsection (1) to be repayable under section 49 shall for the purposes of subsection (4) of section 49 be the date on which the liability arises thereunder.
91. (1) There shall be boards of referees, consisting of a chairman and one or more members chosen from employers or representatives of employers and an equal number of members chosen from insured persons or representatives of insured persons.
94. (1) The claimant or an employer of the claimant may at any time within thirty days from the day on which a decision of the Commission is communicated to him, or within such fur ther time as the Commission may in any particular case for special reasons allow, appeal to the board of referees in the manner prescribed.
(2) A decision of a board of referees shall be recorded in writing and shall include a statement of the findings of the board on questions of fact material to the decision.
Assuming that I have not overlooked some rele vant provision, the matter before the Board of Referees giving rise to the decision that is the subject of this section 28 application might, on the facts appearing from the file, have belonged to one of two classes, viz:
(a) an appeal from a decision by the Commission under section 55 that benefit was not payable to the claimant, or
(b) a reference from the Commission to the Board under section 56 of a "claim" or a question arising therefrom.
There is nothing on the file that purports to be such an appeal or reference and there is therefore nothing that, in terms, purports to be a decision on
such an appeal or reference. However, when the documents on the file are read together, it would appear that it may fairly be inferred
(a) that there was a decision by the Commission under section 55 that benefit was not payable as sought by the applicant's claim dated April 1, 1975,
(b) that the lawyers' letter of July 31, 1975 was intended and accepted as an appeal from that decision, and
(c) that the decision of the Board of Referees of September 12, 1975, was, in effect, a dismissal of that appeal.
The basis of the decision from which the appli cant appealed to the Board was, as I understand it, that her claim was for benefit for a period when she was unable to work by reason of illness and, by virtue of section 33(2) or 36(1), she was not entitled to be paid benefit for that period because it consisted of days in the "re-established" or "extended" portion of an "initial benefit period".
It is common ground that the claim was in respect of a period when the applicant was ill and that the period had occurred in the "re-estab lished" or "extended" portion of an initial benefit period that had been established for her. The contention on behalf of the applicant, as I under stood counsel, is that the original initial benefit period should have been considered as cancelled by virtue of section 20(5) of the Act, which I repeat for convenience:
(5) Where an initial benefit period is established for a claimant but benefit is not payable or has not been paid in respect of that benefit period, the initial benefit period may, subject to prescribed conditions, be cancelled and regarded as not having begun.
and Regulation 151, which reads:
151. An initial benefit period that was established in respect of a claimant shall be cancelled and regarded as not having begun
(a) where the period has terminated and no benefit was payable or paid in respect of the period, and
(brwhere the period has not terminated, no benefit was payable or paid in respect of the lapsed portion of the period, and the claimant requests that it be so regarded.
If that contention is correct, then the argument would be that the application of April 1, 1975, read with section 19, would result in a new initial benefit period and the illness claim would fall in that period before it was re-established or extend ed. The respondent's reply to this contention is that section 20(5) was not and could not have been brought into play because benefit was deemed to have been paid in respect of the first period by reason of section 40(1)(a), section 41(1) and sec tion 43, which provisions are repeated for convenience:
40. (1) A claimant is disqualified from receiving benefits under this Part if without good cause
(a) he refuses or fails to apply for a situation in suitable employment that is vacant, after becoming aware that such situation is vacant or becoming vacant, or fails to accept such a situation after it has been offered to him;
41. (1) A claimant is disqualified from receiving benefits under this Part if he lost his employment by reason of his own misconduct or if he voluntarily left his employment without just cause.
43. (1) Where a claimant is disqualified under section 40 or 41 from receiving benefits, the disqualification shall be for such weeks following his waiting period, not exceeding three, for which benefit would otherwise be payable as are determined by the Commission.
(2) For the purposes of this Part, a benefit shall be deemed to be paid for any weeks of disqualification under subsection (1).
The applicant's reply to this contention is, in effect, as I understand it, that there can have been no disqualification from receiving benefit under sections 40 or 41 in this case because the applicant was never qualified to receive benefit inasmuch as it is clear on the evidence that she was never, from September 1974 until November 1974, entitled to be paid benefit because she did not, during that period, fulfil the requirement of section 25(a) 7 that she be
capable of and available for work and unable to obtain suitable employment ....
To test the validity of this contention, it is necessary in my view to recapitulate, in outline,
No question arises in respect of that period under section 25(b).
the general scheme of this complicated statutory arrangement, as I understand it. In the first place, leaving aside special rules and exceptional cases and procedural requirements, benefits prima facie become payable where an insured person
(a) becomes "qualified to receive" unemployment insurance benefits by having had 8 or more weeks of insurable employment in his qualifying period and having had an interruption of earnings (sec- tion 17),
(b) makes a "claim" as a result of which an "initial benefit period" is established for him (sec- tion 19),
(c) has served his two week waiting period (sec- tion 23), and
(d) has shown (section 25) in respect of a subse quent day in the initial benefit period that he was
(i) capable of and available for work and unable to obtain suitable employment on that day, or
(ii) incapable of work by reason of any pre scribed illness, injury or quarantine on that day.
This potential right is subject to an overriding exception in that a person to whom benefit may become so payable may be "disqualified from receiving benefits" under either section 40 or section 41.
Furthermore, such a disqualification from receiving benefits may arise by virtue of facts that fall under section 40 or section 41 even though they arise before the prima facie right to payment of benefits arise. In other words a person may become subject to disqualification under section 40 by virtue of a refusal of employment, or under section 41 by virtue of a voluntary quitting of employment, at a time when he has not yet satis fied the requirement of section 25. The point is that, once the disqualification arises, when the prima facie right to benefit crystallizes, subse-
quently, the disqualification operates to prevent payment. 8 That such is the effect of the Act is, in my view, established by section 43, which says that "the disqualification shall be for ... weeks follow ing his waiting period ... for which benefit would otherwise be payable...."
It follows, in my view, that a week of disqualifi cation in respect of which section 43(2) deems benefit to have been paid must be a week for which benefit would otherwise be payable and must, therefore, be a week in respect of which the claimant has overcome the requirement of section 25.
I now turn to the question whether the dismissal of the applicant's appeal by the Board of Referees resulted from an error of law because otherwise there would appear to be no ground before us on the basis of which this Court could interfere under section 28 of the Federal Court Act.
In so far as appears from what is before us, the only ground relied on before the Board was that the applicant was not "available" for work during the relevant period and, therefore, section 25 made benefits not payable so that the disqualification never came into operation. This question of availa bility, however, was a question of fact and the Board held that the applicant was "sur le marché du travail"—on the labour market—which is, in my view, another way of saying that she was available for work. Within wide limits, the ques tion of availability for work is, in my view, a question of fact for decision on an appraisal of the circumstances of the particular case; and no argu ment has been put forward in this case that per suades me that the conclusion reached by the Board in this case was not a conclusion that could be reached in the circumstances of this case. This Court cannot, therefore, interfere with that con clusion. It follows that section 43 (1) did operate to
e In other words the disqualification, while it might arise out of facts that bring section 25 into operation to make benefit not payable at the particular time, operates to make benefit not payable at some subsequent time when section 25 would not so operate. On the other hand, it is to be noted that a disqualifica tion cannot be imposed under either section 40 or 41 except in the case of a "claimant", who, by definition (section 2(1)(b)), is an insured person "who applies for or is in receipt of benefit", so that a person may, for example, quit his job for any reason whatever without risking the section 41 penalty provided he does not apply for benefit under the Act.
disqualify the applicant from receiving benefits during a part of the relevant period, that benefit is deemed to have been paid to her during the dis qualification period by section 43(2) and that sec tion 20(5) cannot, therefore, be invoked as sought by the claimant. That being so, it is common ground, as I understood counsel for the applicant, that the application must be dismissed.
* * *
HYDE D.J.: I agree.
* * *
The following are the reasons for judgment rendered in English by
LE DAIN J.: This is an application under section 28 of the Federal Court Act to review and set aside the decision of a Board of Referees under the Unemployment Insurance Act, 1971 in which the Board dismissed an appeal from a decision of the Unemployment Insurance Commission refusing the applicant benefit during a period of unemploy ment resulting from illness on the ground that such unemployment fell within the re-established por tion of an initial benefit period. The applicant had requested the Commission to cancel the initial benefit period, but it had refused, and the appeal from that decision was dismissed by the Board. The chairman refused leave to appeal to an umpire.
The applicant left her employment as a waitress in a restaurant in September 1974, because of a change in her hours of work. She had been work ing from four o'clock in the afternoon until mid night. She could not accept the change in hours because it would require her to use a taxi to travel to work and would make it impossible for her to look after her retarded child. She applied for unemployment insurance benefit on September 9, 1974, and an initial period of benefit was estab lished for her, effective September 15, 1974.
By notice dated September 25, 1974 the Com mission imposed a disqualification of two weeks upon her, pursuant to section 41(2) of the Act, for
having voluntarily left her employment without just cause.
On September 19, 1974, the applicant refused an offer of employment as a waitress in another restaurant despite the fact that it was night work. She stated that she refused this work for the same reason that she had left her earlier employment: the cost of transportation by taxi and the need to look after her retarded child. The report of this refusal of work made by Canada Manpower to the Unemployment Insurance Commission contained the following notations: "Difficile dans le choix de ses heures de travail" and "Disponibilité douteuse".
On October 8, 1974, the Commission advised the applicant that as a result of refusing employ ment without justification she would, in virtue of section 40(1) of the Act, be disqualified from receiving benefits for a period of three weeks. On the same day, by another notice, it advised her that as a result of her refusal of employment on September 19, 1974, she had failed to prove that she was available for work, as required by sections 25(a), 33(2) and 36(1) of the Act, and that she would accordingly not be entitled to benefit from October 13, 1974, so long as this situation continued.
The applicant resumed work on November 18, 1974. By notice dated December 18, 1974, the applicant was advised by the Commission that the disentitlement imposed from October 13, 1974, in virtue of sections 25(a), 33(2) and 36(1) of the Act, for as long as the same situation continued, had terminated on November 15, 1974.
The applicant made a claim for unemployment insurance benefit in April 1975, following termina tion of her employment on account of sickness. If the applicant had been treated as falling within an initial benefit period, she would have been entitled to benefit by virtue of paragraph (b) of section 25 of the Act, which reads as follows:
25. A claimant is not entitled to be paid benefit for any working day in an initial benefit period for which he fails to prove that he was either
(a) capable of and available for work and unable to obtain suitable employment on that day, or
(b) incapable of work by reason of prescribed illness, injury or quarantine on that day.
Instead, the applicant's claim was treated by the Commission as falling within the re-established portion of her initial benefit period, and benefit was refused on the ground that she was not capa ble of and available for work as required by section 33(2) of the Act, which reads as follows:
33. (2) Notwithstanding paragraph (b) of section 25, a claimant is not entitled to be paid benefit for any working day in a week in the re-established portion of his initial benefit period for which he fails to prove that he was capable of and available for work and unable to obtain suitable employment.
The applicant requested the Commission to cancel the initial benefit period pursuant to section 20(5) of the Act, which reads as follows:
20. (5) Where an initial benefit period is established for a claimant but benefit is not payable or has not been paid in respect of that benefit period, the initial benefit period may, subject to prescribed conditions, be cancelled and regarded as not having begun.
The Commission refused to cancel the initial benefit period and, as requested by the applicant, referred the matter for appeal to a Board of Referees. The Board dismissed the appeal for the following reasons:
[TRANSLATION] Referring to the record and to the statements of the claimant and her counsel, the Board of Referees is unanimous in ruling that the benefit period effective September 15, 1974 cannot be cancelled.
(A) The claimant was on the labour market at the time of her initial claim, filed on September 9, 1974.
(B) Her restricted availability brought about the disqualifica tions noted in the record.
(C) The Board of Referees is of the opinion that section 43(2) applies, rather than section 20(5) and Regulation 151(b).
In effect, the Board appears to have held that at the time the applicant made her claim for benefit she was available for work and therefore entitled to benefit, and that, while she was not paid benefit as a result of disqualifications, she was deemed to have been paid benefit during the periods of such disqualification in virtue of section 43(2) of the Act, which reads as follows:
43. (2) For the purposes of this Part, a benefit shall be deemed to be paid for any weeks of disqualification under subsection (1).
As I understand the contention of the applicant, it is that sections 40(1), 41(2) and 43(2) respect ing disqualification had no application to her case
and ought not to have been applied because on the record before the Commission the only possible characterization of her status from the outset of the initial benefit period was that she was not available for work within the meaning of section 25 and that accordingly she was not entitled to be paid benefit throughout the initial benefit period. As such she was not a person for whom the law could contemplate disentitlement by operation of disqualification. The applicant contends that in failing to reach this conclusion the Board of Referees erred in law.
I agree with the Chief Justice's analysis of the relationship of disqualification by virtue of sections 40 and 41 and disentitlement for failure to meet the conditions of section 25. It seems to be clear, particularly in view of the terms of section 43(1), but also in view of the general economy of the Act, that disqualification is something that is to operate separately from and in addition to disentitlement by virtue of section 25. If the facts of a particular case support disentitlement under section 25 then it is the duty of the Commission to apply that basis for denying a claim, and to apply any disqualifica tion to which the facts give rise to a period for which benefit would otherwise be payable.
On this view of the matter I also agree with the Chief Justice that in the circumstances of this case the question of whether the applicant was not available for work throughout the initial benefit period is essentially one of fact, and since it cannot be said that on the record that was before it the Board made an erroneous finding of fact of the kind described in section 28(1)(c) of the Federal Court Act, this Court is without power to inter fere. For these reasons I agree that the section 28 application should be dismissed.
* * *
The following are the reasons for judgment rendered in English by
HYDE D.J.: This is a section 28 application to set aside a "decision" of the Board of Referees set up under the Unemployment Insurance Act, 1971. I have had the advantage of reading the very complete reasons given by the Chief Justice. I do not propose to repeat all the statutory citations which he gives and, although I am in complete
agreement with him, I have for my own under standing of this somewhat complex matter set out my own reasons in reaching my conclusion that this application should be dismissed.
Applicant filed an initial claim for benefit on September 9, 1974 (a Monday) in respect of an interruption of earnings on September 5, 1974.
Being a person qualified 9 under section 17 to receive benefits under the Act an "initial benefit period" was thereby established pursuant to sec tion 19, starting from Sunday, September 8, 1974 (see section 20).
From that date ran the "two week waiting peri od" provided by section 23, i.e., September 8 to September 22, during which she was not entitled to be paid any benefit.
On September 25, 1974, by an "Avis d'Exclu- sion", she was advised by the Commission that pursuant to section 41(1) (and section 43) she would be disqualified from receiving benefits for a period of two weeks (plus the two week waiting period) because she had voluntarily left her employment "sans justification".
It should be noted here that section 43(2) pro vides that "a benefit shall be deemed to be paid for any weeks of disqualification under subsection (1)" of section 43.
On September 19, 1974, the applicant was offered employment by the Canada Manpower Centre at another restaurant (Miss Dany) which she refused for reasons set out in her letter dated October 17, 1975, namely, the difficulty she was encountering in finding day care for her hand icapped child.
The Commission, by another "Avis d'Exclu- sion", dated October 8, 1974, advised her that under section 40(1) her refusal would increase her disqualification to three weeks (the maximum pro vided for in section 43(1)). This meant that her
9 I that she had had more than eight weeks of insurable employment in her qualifying period.
benefits could not commence until October 13, 1974.
On October 8, 1974, however, she received another notice (entitled "Avis de Refus") advising that because of the reasons given for refusing the Miss Dany job offer she had not proven that she was "disponible pour travailler" as required by sections 25(a), 33(2) and 36(1), and as a conse quence she was excluded from benefits from Octo- ber 13, 1974 as long as the same situation persisted.
On November 28, 1974 the applicant wrote to the Commission advising that she had begun work again on November 18 and renewed her request for benefits.
On December 18, 1974, the Commission advised her that in view of this further information the limitation as to further benefits was terminated as of November 15, 1974 (apparently this date was fixed as it was a Friday and she had recommenced work on Monday the 18th).
She worked at her new job with "Little Princess Childrens" from November 18, 1974 to March 10, 1975 when she was obliged to give it up because of illness. She then filed a claim for benefit on April 1, 1975, stating that she was incapable of working by reason of illness which, presumably, she thought would qualify her under section 25(b).
However, on April 28, 1975, the Commission sent her an "Avis de Refus" stating that by reason of section 33(2) she was not entitled to benefits from March 31, 1975 in that she was not capable of and available for work from the date of her April 1st claim. 1 0
Following the letter from applicant's solicitor of July 31, 1975 in which the cancellation of the applicant's initial benefit period was sought under section 20(5), because no benefit had been
10 Presumably the Commission considered that at this date she was in the re-established portion of her initial benefit period which does not contain the exception of section 25(b) which entitles a person to claim for benefits during an initial benefit period when incapacity for work is due to illness, injury or quarantine.
received by her in respect thereof, the Commis sion, complying with the request that if the sub mission was rejected the letter be considered as an appeal to the Board of Referees, referred the matter to the Board of Referees.
On September 12, 1975 the Board of Referees held a hearing at which the applicant was present with her solicitor. The question which it posed for its consideration was whether the applicant's ini tial benefit period could be cancelled in the circumstances.
The Board, at the conclusion of the hearing, was unanimous that the applicant's initial benefit period which commenced September 15, 1974," could not be cancelled, because
[TRANSLATION] (A) The claimant was on the labour market at the time of her initial claim, filed on September 9, 1974.
(B) Her restricted availability brought about the disqualifica tions noted in the record.
(C) The Board of Referees is of the opinion that section 43(2) applies, rather than section 20(5) and Regulation 151(b). 12
It is against this decision that the application under section 28 of the Federal Court Act is made.
I see no error in law in this decision. The flaw in applicant's argument is found in the requirement of section 20(5), reading:
(5) Where an initial benefit period is established for a claimant but benefit is not payable or has not been paid in respect of that benefit period, the initial benefit period may, subject to prescribed conditions, be cancelled and regarded as not having begun.
whose conditions she could not meet having regard to section 43, reading:
43. (1) Where a claimant is disqualified under section 40 or 41 from receiving benefits, the disqualification shall be for such weeks following his waiting period, not exceeding three, for which benefit would otherwise be payable as are determined by the Commission.
(2) For the purposes of this Part, a benefit shall be deemed to be paid for any weeks of disqualification under subsection (1).
As benefits were deemed to have been paid to the applicant during the three weeks of disqualifi-
11 Although this is not material to the present dispute, it would appear to me that this date should be September 8, 1974, as I stated at the outset basing myself on section 20 and section 2 ( 1 )(y)•
12 Board of Referees' decision dated September 12, 1975.
cation under section 41(1) and section 42, she cannot contend that no benefit had been paid in respect of her initial benefit period.
For these reasons and those more fully set out by the Chief Justice, with which I am in full agreement, I would dismiss this application.
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