In response to the ongoing global COVID-19 pandemic, the Canadian introduced a variety of economic and financial measures. One of those key financial support tools was the Canada Emergency Response Benefit (CERB) for employed and self-employed Canadians who were directly affected by COVID-19.
CERB was available for workers who stopped working because of reasons related to COVID-19. To qualify, workers must:
- have earned employment and/or self-employment income of at least $5,000 in 2019 or in the 12 months prior to the date of their application; and,
- Who have not quit their job voluntarily.
If eligible, CERB payments consisted of $2,000 for a 4-week period (or $500 a week).
When applying for CERB (or renewing each monthly claim), workers cannot have earned more than $1,000 in employment and/or self-employment income for 14 or more consecutive days within the four-week benefit period.
End of CERB Benefits and Transition to EI Benefits
As the economic begins to open up, the government has indicated that the CERB payments will stop and transition to a revamped EI program, as of September 27, 2020. The aim will be to continue providing income support to workers impacted by the coronavirus pandemic – that is, workers who are still unemployed and would otherwise have continued to meet the requirements of CERB (see above).
Specifically, CERB will be extended by an additional four (4) weeks, providing a new maximum of up to 28 weeks of benefits. More importantly, the requirements to receive EI more easily:
- workers will only need to have worked 120 insurable hours required to qualify (retroactive to March 15, 2020)
- previously, a minimum of 420 insurable work hours was required
- workers will receive a minimum benefit rate of $400 per week
- workers will receive no less than 26 weeks of regular EI benefits (55% of their average weekly earnings)
- previously, the number ranged from 14-45 weeks
Other COVID-19 Financial Support
For workers who do not qualify for CERB or the transition to EI benefits, there is a new “Canada Recovery Benefit” (CRB). This measure begins on September 27, 2020 and will last one (1) year, providing a benefit amount of $400 per week for up to 26 weeks to workers who are not eligible for EI, are mainly the self-employed and including those working in the gig economy (e.g., temporary/contract workers).
To qualify for the new CRB benefit, workers will have to meet the same requirements as those for CERB (see above).
Canada Recovery Sickness Benefit
This new “Canada Recovery Sickness Benefit” (CRSB) is intended to support workers unable to work because they are sick or are required to isolate because of COVID-19. It will provide weekly benefits of $500, for up to 2 weeks.
Workers do not need to provide a medical certificate to qualify for the the CRSB benefit. However, they could not apply for this new sickness benefit while also receiving other paid sick leave from their employer for the same benefit period. Also, workers would need to have missed a minimum of 60% of their scheduled work in the week for which they claim the CRSB benefit.
How to Apply
Canadians already receiving CERB benefits through Service Canada will generally be transitioned to the EI program once they have received the maximum CERB benefits for which they are entitled – as long as they are eligible for EI and continue to need income support. However, in order to ensure a simple transition with no interruption in financial support, workers are encouraged to contact/apply for the EI benefits through Service Canada.
Contact Bune Law
If you are an employer, you should speak with an employment lawyer to discuss your options before making the decision to terminate employment and obtain the proper termination documentation for your employee to avoid a discrimination claim.
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No matter which side you are on, our employment lawyer is ready to assist with your case. Please feel free to reach out to Bune Law at 647-822-5492.
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