SelfUnlike employees, self-employment employed people and employment as an independent contractor are '''not''' insurable employmentautomatically covered by the EI system. Those who fall under this category are not eligible for employment insurance benefits (see s 5 These workers have the option of opting in to the ''EI Act'')system,and are not even considered part of the workforce for attachment purposes. This means that a person returning to insurable employment after one or more years of self-employment will in which case they may be treated as a re-entrant to the workforceentitled toreceive certain special benefits, and will need 910 hours of work to qualify for but not regular benefits .

Many Even though self-employed people and independent contractors are not automatically covered by the EI system, claimants may get into trouble for trying if they try to start their own up a business while receiving benefits. Failure to report such activity will usually lead to overpayments and penalties or charges for misrepresentationcollecting EI after losing their job. Contrary to many claimants’ belief, self-employment amounts to “working” within the meaning of the question on the weekly reports even if the person has no expectation of receiving any income from it. Section 30 of the ''EI Regulations'' provides that, in most cases, a claimant engaged in self-employment is deemed to have worked a full week, unless the self-employmentis“ so employment is “so minor in extent that a person would not normally follow it as a principal means of livelihood”. . Failure to report such activity will usually lead to overpayments and penalties or charges for misrepresentation. Decisions by the Commission on overpayment and/or the imposition of penalties should always be appealed.  If a claimant wishes to start a business while on EI, he or she should contact the Commission '''before''' doing anything to pursue self-employment. Special benefits may be available if the claimant enters an approved self-employment agreement for the development and implementation of a business plan.