Some members from CPS who received Article 24 – notice of position elimination, have been contacted by EI and told that they must pay back EI benefits received during their layoff. This generally happens only when the member continues to collect EI after their six month layoff.

When employees request that their severance be paid out at the end of their six month layoff, the company sends a new record of employment to EI noting that the employee has received severance. If the employee has not ended their claim before they apply for severance, EI treats them as if they had the right to access severance from the start of the layoff and may send out a notice that all EI benefits must be repaid.

To avoid this situation, make sure to end your EI claim a day or two before you apply for severance.

Be aware that if you go past the six months on layoff, you may forfeit your right to receive severance.

The Union will be appealing the repayment for the employees involved.