. . . you knew people who receive unemployment benefit and use it to go traveling in Europe? (Obviously, these are people who have ample untaxed income). This isn’t a theoretical question. I really want to know what is the acceptable North American way of reacting to such things.
What Would You Do If. . .
Clarissa's Blog 
If you know they are cheating the system (working ‘under the table’) you have an obligation to report them to the authourities (Revenue Agency, Employment Agency) and allow an appropriate investigation be undertaken. We cannot sustain the social structure and safety net if there is corruption and abuse.
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It would depend on the purpose of “travelling in Europe.” If they were going for a job interview or to the wedding or funeral of a relative, for example, it is perfectly OK.
Unemployment benefits are not sufficient to support a lavish lifestyle, but what people do with the money they are legally entitled to is their option. Being legally entitled involves actively looking for work, as I recall.
But abuse happens on both sides. I knew a small business owner in the 1980’s who was in financial difficulty and “laid off” one of his employees, but told him that he still expected him to come to work, since he would be still be being paid by unemployment. He was angry when the “employee” quit. He said he had not fired the worker, he had just “put him on unemployment” for a few weeks.
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That’s why I would report the alleged improprieties to the appropriate authourity, and allow them to investigate. It may be perfectly legitimate. Their may be nothing inappropriate going on – the authorities may even be perfectly aware of the going’s on. (I was on EI when I went on my honeymoon – I informed EI of the impending trip, that I wouldn’t be available for work that week, and my benefits were suspended for the period I was away – no big deal)
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I don’t know about Canada and I don’t think they have unemployment benefits in Mexico. But in US EI is insurance, not “welfare,” that you’ve paid into while working, and it ends. Meanwhile you have to report in, in person, and document that you’re looking for work. So if you were gone for any length of time you would have to let them know.
I was on EI and did as Patrick did about a trip, and they didn’t even suspend benefits that week — saying that if I was available remotely for phone interviews and to set up in person interviews, that would be good enough. Working under the table, not traveling, is the abuse.
My sister in DK uses EI, welfare, and disability a lot, a lot, to support being a stay at home mom. I think this is an abuse but then I’m an American so I am more judgmental about these kinds of things than are many Danes. The authorities know what she is doing and seem to think it is one way of working with the system.
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In Canada, it’s also an insurance, not a “welfare” measure.
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Yes. Good cartoon.
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I do know people doing that and I think the appropriate response depends heavily on the circumstance. In this circumstance I know of, the single breadwinner of a family was laid off after thirty plus years of service from a position as an attorney working for the Government.
They have plenty of money saved up for a decent retirement as long as they sell their house and no other catastrophes happen.
So the attorney and her husband decided to get to Italy for a couple of weeks to unwind after the unanticipated stress of being laid off so she can return to the USA refreshed and reasy to dive in fully to the (possibly hopeless) job hunt.*
*She may be browsing online during the vacation, I do not know. But she must also know that her chances of being rehired are very slim due to her age. She is 55+ years old.
I see nothing wrong with this. When you are working full time, you get paid vacation. I really feel for her, but I know that she is going to be ok financially, so the unemployment money seems well spent on mental health.
The Government has no say in exactly how she spends this money. What she is doing is perfectly legal providing she is job hunting over her vacation, which she mostly likely is. She’s quite the straight arrow.
So I would not be too quick to judge unless the beneficiary is financially unstable or in debt. In that case he or she should be pinching every penny!
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You can do what you like with unemployment benefits, though I think you are supposed to be free to take a job while you are on it (that’s the way it is in my state).
Several years ago, a friend (who had worked as an administrative assistant for a very small salary, which means her unemployment benefit was miniscule) was receiving unemployment benefits after a layoff. She took a week to go visit her sister and reported that to the state benefits agency. They did not pay her for that week (because she would not have been able to go on an interview or start a job if one became available), but resumed her payments when she returned. The week she did not receive benefits was not deducted from the total number of weeks to which she was entitled, and she did eventually have to use up her entire benefit before finally finding another job.
If your friends went to Europe without notifying the unemployment folks, they could lose their benefits if the agency discovered it (depending on the rules in your state).
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