Background
De Fu Mo, a self-represented real estate agent, received CERB for six four-week periods in 2020. After reviewing his eligibility, the Canada Revenue Agency concluded that he had not established that he stopped working for COVID-19-related reasons or met the applicable income threshold.
A prior judicial-review application ended by agreement, with the CRA decision set aside and the matter returned for reconsideration by a different agent. Following a telephone call with Mo, the new agent found him ineligible because he earned more than $1,000 during the applicable periods, voluntarily stopped or reduced his work, and did not stop working or reduce his hours for reasons related to COVID-19. Mo sought judicial review, challenging both the reasonableness and fairness of that decision.
The Court’s Holding
The Federal Court dismissed the application. It held that the agent reasonably treated Mo’s decision to decline client requests and limit his work because he feared contracting COVID-19 as a voluntary cessation or reduction of work. Under subsection 6(2) of the Canada Emergency Response Benefit Act, voluntarily quitting employment does not qualify as ceasing work for CERB purposes, and failure to satisfy one cumulative eligibility requirement was enough to defeat the claim.
The agent also reasonably found that Mo had not supplied records establishing when his commissions were earned or showing that his income remained below the applicable threshold. The Court further found no procedural unfairness: Mo knew the concerns he had to address, received an opportunity to respond, said he had no additional supporting documents, and declined the agent’s offer to speak with someone who could help him understand the document request. The Court dismissed the application without costs.
Key Takeaways
- A CERB claimant’s decision to decline available work because of fear of contracting COVID-19 may reasonably be treated as a voluntary work stoppage.
- CERB applicants bear the burden of providing records sufficient to establish each cumulative eligibility requirement, including when self-employment income was earned.
- A fresh reconsideration can cure procedural defects in earlier reviews, and CERB proceedings attract a relatively low duty of procedural fairness.
Why It Matters
The decision confirms that courts will assess CERB eligibility based on the statutory criteria and the evidence actually presented to the CRA, even when a claimant’s decision not to work arose from genuine health concerns during the pandemic. It also underscores that commission-based workers should preserve detailed records showing when services were performed, rather than relying only on payment or closing dates.
The ruling also illustrates the limits of language-barrier arguments on judicial review: an applicant who receives notice of the issues and an opportunity to respond generally remains responsible for arranging interpretation assistance and producing supporting documents.