Below are the key announcements from Federal, Ontario, Alberta and BC governments that touch on workplace issues for the for April 2, 2020:
The Federal Government
Update on the Canada Emergency Response Benefit (CERB)
The Prime Minister announced more details on the CERB. Some of the key highlights are as follows:
Eligibility criteria – Applicants must:
reside in Canada,
be at least 15 years old,
have not voluntarily quit working,
have stopped working because of COVID-19 or for reasons that make them eligible for Employment Insurance (EI),
had an income of at least $5,000 in 2019 or the last 12 months, and
have been, or expect to be, without income for at least 14 days in the initial 4-week period, and have no income thereafter.
not be receiving or waiting to receive the 75% wage subsidy (CEWS).
Duration and amount of CERB benefits – Applicants will receive $500 per week between March 15 and October 3, 2020.The benefits are taxable.
Coordination of CERB and EI – Applicants cannot receive both CERB and EI benefits at the same time. The following coordination rules will apply:
If the applicant is currently receiving EI, the applicant will continue to receive EI until the end of the benefit period. If the applicant’s EI benefits end before October 3, 2020, they can apply for the CERB.
If the applicant has already applied for EI and became eligible before March 15, 2020 (because they stopped working before March 15, 2020), the applicant will receive EI benefits.
If the applicant has already applied for EI and became eligible on or after March 15, 2020 (because they stopped working on or after March 15, 2020), the applicant will receive CERB benefits.
Payment of CERB benefits – Applicants must choose whether to receive the CERB by mail or by direct deposit. Those who choose to receive a cheque by mail will receive it within 10 days, while those who choose direct deposit will receive payment within 3 to 5 days. After applying for the CERB, Applicants must confirm they do not have a job once a month to continue receiving this benefit.
Preparing to Apply - Workers can apply for the CERB starting April 6, 2020 at Canada.ca/coronavirus.
The government recommends that Canadians get ready to apply for the CERB by signing up to My Account or My Service Canada Account.
They should also make sure their direct deposit and mailing information is up to date with the CRA.
Whether you apply online or by phone, to manage the best service for everyone, the government has set up specific days for you to apply.
Individuals are asked to use the following guidelines:
If you were born in the month of:
January, February or March
April, May or June
July, August or September
October, November or December
Any month
Apply for CERB on:
Mondays
Tuesdays
Wednesdays
Thursdays
Fridays, Saturdays & Sundays
Your best day to apply:
April 6
April 7
April 8
April 9
Learn more about the CERB from the Federal Government’s website.
Update on the Canada Emergency Business Account (CEBA)
Canadian banks are announcing their fully digital application process to apply for the CEBA.
The CEBA is an interest-free loan of $40,000 for qualifying businesses. Up to $10,000 of that amount will be eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022.
Financial institutions are set to begin accepting online enrollments the week of April 6, 2020.
Banks such as RBC and CIBC have reached out to their customers, letting them know they will be alerted when the process is live.
For more information about the loan including eligibility and how to enroll and prepare:
Check your emails to see if you received an announcement from your financial institution and;
Learn more about the Business Credit Availability Program (BCAP) on the government website.
Canada Emergency Wage Subsidy (CEWS)
The federal government’s newly revised 75% Canada Emergency Wage Subsidy (CEWS) now has a price tag attached to it: $71 billion.
Today, on Wednesday, April 1, 2020, the following details (that can also be found on the Government of Canada website) were announced for the proposed CEWS program:
The Canada Emergency Wage Subsidy will apply at a rate of 75% of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week. The program would be in place for a 12-week period, from March 15 to June 6, 2020.
Eligible employers who suffer a drop in gross revenues of at least 30 per cent in March, April or May, when compared to the same month in 2019, will be able to access the subsidy.
Eligible employers will include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
For non-profit organizations and registered charities similarly affected by a loss of revenue, the government will continue to work with the sector to ensure the definition of revenue is appropriate to their circumstances. The government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19. Further details will be announced in the near term.
An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees. All employers would be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered.
The CEWS will not replace the previously announced 10% temporary wage subsidy. For employers that are eligible for both subsidies for a period, any benefit from the 10% wage subsidy an employer receives is expected to reduce the amount available to that employer from the CEWS.
Employees will not be able to receive both the CEWS and the Canada Emergency Response Benefit (CERB).
Finance Minister Bill Morneau stated that businesses will be able to apply for the wage subsidy through an online portal soon to be available through the Canada Revenue Agency website.
For now, Morneau urges companies to rehire employees quickly while relying on extra credit to bridge the gap until they receive the CEWS - since businesses will need to show that they are paying their employees in order to be eligible for the subsidy.
More details on how to apply for the program are still to come. See this government backgrounder for more information on the sage subsidy.
Small Business is Concerned
The Canadian Federation of Independent Business says that there are “several design features and unanswered questions that may prevent the (wage subsidy) program from meeting its intended goal of reducing layoffs.”
Many new and seasonal businesses will find it challenging to prove a 30% decline figure. And for some businesses with tight profit margins, even a very small drop in sales will require significant layoffs to lower costs.
It's also concerning that even when the application portal is up and running, Canadian businesses will have to wait approximately 6 weeks to receive money from the new federal wage subsidy program.
Ontario
Support Development of Essential Supplies & Equipment through New Ontario Together Fund
A new $50 million Ontario Together Fund is being launched to stop the spread of COVID-19. The Fund will help businesses across the province stay in business while adjusting their operations to manufacture essential medical supplies and equipment, including gowns, coveralls, masks, face shields, testing equipment and ventilators.
The fund will be available to companies and organizations across the province. Businesses can submit proposals to the government through the Ontario Together web portal.
Alberta
Expanded Child Care for Essential Workers
Child care is now available to anyone who works in the critical areas that the government outlines as essential. Parents who qualify for the subsidy will receive it and centres will charge their typical rate, within reason. Parents who are eligible should only access this childcare if it is the only way they will be able to go to their work in a core service sector. Child care centres will be financially compensated for reopened spaces that are not filled.
Learn more about the expanded child care subsidy.
British Columbia
New guidance for Preventing Exposure to COVID-19 in the Workplace
The British Columbia Workers Compensation Board has issued new guidelines for preventing exposure to COVID-19 at workplaces in British Columbia.
Download the Preventing exposure to COVID-19 in the workplace: A guide for employers.