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Unemployment insurance is big business in Canada — $13.5 billion per year to be exact. And the system, according to those in the know, is rife with abuse.
Between 100 and 125 thousand individuals are charged each year with defrauding the system. In most cases, there has been a misstatement on the application for benefits, for instance the length of time on the job may have been misrepresented by the claimant. In such cases, a fine is levied, usually about $1,000, and the matter is forgotten.
A plan to make it tough on offenders has been unveiled by Canada’s Human Resources Minister, Doug Young. If Young’s ideas are adopted, offenders would have to work for a longer period of time (after having been caught trying to defraud the system) before they can be approved for additional benefits.
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