COVID-19: Federal Government Benefits for Employees and Employers

In response to the coronavirus pandemic (“COVID-19”), the Canadian government has enacted a variety of financial measures intended to alleviate the economic and financial consequences of COVID-19. To help employers, employees, seniors and students navigate through the myriad of financial benefits available to Canadians, the government launched a new online interactive tool. It can be accessed here.

The tool is helpful in allowing Canadians to get accurate and timely information about the range of federal programs in response to COVID-19. To use it, individuals answer a few questions about their specific circumstances. In turn, the tool then recommends a list of relevant financial benefits that may be available to them, such as CESB, the Canada Emergency Response Benefit (CERB), and the wage top-up.

To assist, we have provided a short summary of some of those financial benefits:

SUPPORT FOR EMPLOYEES

Canada Emergency Response Benefit (CERB)

The CERB provides employees across all work sectors temporary income support if they have lost their job as a result of COVID-19. If an employee qualifies for the CERB, they will receive a $500 payment per week (or $2,000 per month) for up to 4 months total.

There are two ways to apply for the CERB benefit:

By telephone at 1-800-959-8281, or online with a CRA My Account (https://www.canada.ca/en/services/benefits/ei/cerb-application.html)

It is important to note that with the CERB benefit, an worker is NOT eligible for CERB if they quit their job voluntarily OR they have received employment income in the time period described above. However, they are allowed to earn up to $1,000 monthly and still be eligible to receive the CERB benefits. Lastly, a worker cannot be paid employment insurance (EI) benefits and CERB for the same period of time.

Temporary Wage Top-Up for Essential Workers with Low-Income

With the assistance of the federal government, all provinces will provide all essential workers (e.g., front-line staff in hospitals and nursing homes, grocery store workers) who earn less than $2,500 monthly with a wage boost. For instance, in Ontario, approximately 350,000 employees qualified for a temporary $4 per hour salary increase as its “pandemic pay premium” for low-income essential workers.

Canada Emergency Student Benefit (CESB)

This financial benefit is intended as emergency financial relief to unemployed students and recent graduates due to reasons related to COVID-19. It is also available for students who are working but not making more than $1,000 (before taxes) over the 4-week period for which they are applying.

This benefit provides $1,250 per month for eligible students or $2,000 per month for eligible students with dependents or disabilities. The CESB benefit will be available from May to August 2020.

SUPPORT FOR EMPLOYERS

Canada Emergency Wage Subsidy (CEWS)

Some employers who meet qualifying conditions receive financial support covering 75% of their employees’ wages (up to $847 per week), for up to 24 weeks. The CEWS benefit will be in place until August 29.

This CEWS wage subsidy will enable eligible employers to re-hire workers previously laid off as a result of COVID-19, as well as to help prevent further job losses and resume normal business operations after the COVID-19 crisis.

Employee Work-Sharing

Under the Work-Sharing program (which is typically intended to support businesses experiencing a temporary downturn in business activity), employees are provided with income support through Employment Insurance (EI) benefits, if they agree to reduce their normal working hours and share available work with co-workers. This pr which helps the employer continue operations and avoiding avoid employee temporary layoffs and terminations. The government recently expanded the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19. This measure will provide income support to employees eligible for Employment Insurance who agree to reduce their normal working hours because of developments beyond the control of their employers.

Contact Us

With years of experience in employment law, Bune Law is happy to provide insight and advice on your specific circumstances. If you’re looking for an employment lawyer and would like more information about what Bune Law can do for you, please contact us online or by phone at 647-822-5492 today.

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