On March 25, 2020 after all-night negotiations among the four parties, Canada’s Parliament passed the COVID-19 Emergency Response Act. The Act gives the federal government sweeping powers until December 20, 2020 to respond to the pandemic.
Included in this legislation is the Canada Emergency Response Benefit Act which provides income support payments to workers. The government anticipates that workers will be able to apply starting April 6. There are still regulations to be issued.
To be entitled to the benefit, workers will need to be at least 15 years old, a Canadian resident, and have a total income of at least $5,000 (or potentially higher as determined by regulation) from employment, self employment or pregnancy/parental leave.
Workers must also have ceased working for reasons related to COVID-19 for at least 14 consecutive days within a four-week period, and during those 14 days they must be without income. “Ceased working” does not include quitting. Given British Columbia’s job-protected leave now applies to workers that need to take time off to care for children if school or day-care is cancelled due to COVID-19, it is unclear how this exclusion will apply to these workers.
The benefit is projected to be $2000 per month for a maximum of 16 weeks. But the amount can be varied and the period can be extended by regulation.
If a mistake is made by government in providing a benefit to someone who is not entitled to it the government can require the individual to repay that amount and use normal government debt collection mechanisms to enforce repayment.
Employment Insurance Act – Amendments
One important amendment is that until September 30, 2020 a medical certificate is not required to qualify for Employment Insurance sickness benefits. The government has also been given power to make interim orders for new EI benefits or other changes to the program to respond to COVID-19.
No changes have been made to EI regular benefits. These continue to last between 14 and 45 weeks, depending on the area you live in and your hours worked/claims history. EI sickness benefits last up to 15 weeks.
Other Benefits
The federal government has announced additional benefits available to individuals depending on particular circumstances, including for those that qualify for the GST/HST tax credit or the Canada Child Benefit, a wage subsidy for small employers, and the suspension of Canada Student Loan repayment.
The Government of British Columbia has also indicated that residents of BC will receive a one-time, tax-free, $1,000 benefit if they are eligible for Employment Insurance or the Canada Emergency Response Benefit. According to Minister of Finance Carole James, this benefit should be open to applications by May.
This post contains information of a general nature. It is not intended as legal advice. For more information and legal advice please feel free to contact us.