Keep records of paid IDEL or face potential repayment

▤ Summary

On September 3, 2021, the provincial government filed a new regulation under the ESA (O. Reg 637/21) setting out the process for recovering Paid IDEL overpayments. In addition, O. Reg 637/21 permits an ESO to issue repayment orders for up to 4 years after the date on which the overpayment was made by the WSIB to the employer. That said, while there may be a small minority that seek reimbursement for funds they have not incurred, the vast majority of employers act in good faith. Given both the 4-year limitation period and restricted circumstances within which Paid IDEL may be claimed, however, it is important for all employers to consider taking the following steps to avoid inadvertent liability: • ensure the employee requires leave for one of the limited scenarios in which Paid IDEL applies; • create clear records for each instance of leave, setting out the reason for the leave and the payment being made to the employee; • retain in a safe place, for at least four years from receipt of reimbursement, a file for each employee who has taken IDEL. This file should include all relevant documents (such as explanatory emails and pay stubs to corroborate the timing and amount of payment).

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$1M to $5M