Relief for Workers Announced – Federal Government Passes Emergency COVID-19 Response Benefits and Leaves for Federal Workers
Last week, Prime Minister Trudeau announced Canada’s COVID-19 Economic Response Plan which included measures to support individuals who are not working as a result of the virus. We wrote about the measures and support anticipated to be available to workers in a recent blog. Parliament has now come together in an emergency session and, on March 25, 2020, passed Bill C-13 – The COVID-19 Emergency Response Act (the “Act”) – to formalize this support.
The following is a summary of the support and benefits which have been implemented for individuals impacted by COVID-19 business closures and work stoppages.
Updated Income Support Benefits Available Immediately
The issue top of mind for most is that of support for workers who suffer a loss of income for reasons related to COVID-19, particularly those not eligible for EI. For this, the federal government has introduced the Canada Emergency Response Benefit (the “CERB”), a combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.
What is the CERB?
The CERB will provide a taxable income support benefit in the amount of $2,000 per month (payable every four weeks), for a maximum of 16 weeks, for any “worker” who applies. A “worker” for the purposes of the CERB is any individual who:
(a) is 15 years old or older;
(b) is a resident of Canada; and
(c) for 2019, or for the 12-month period preceding the application for benefits, has total income of at least $5,000 from:
employment;
self-employment;
pregnancy benefits, parental benefits, pregnancy benefits for a self-employed person or parental benefits for a self-employed person under the Employment Insurance Act; or
allowances, money or other benefits paid to the worker under a provincial plan because of pregnancy or in respect of the care by the person of their new-born or adoptive children.
To be eligible for the benefit, a worker, whether employed or self-employed, must:
cease working (whether they remain employed or not) for reasons related to COVID-19 for at least 14 consecutive days within any four-week period during the period of March 15, 2020 and October 3, 2020, unless the worker ceases working because they voluntarily quit their employment; and
not have received (during the said 14 consecutive days that is the basis of their application),
a) income from employment or self-employment, subject to the regulations;
b) unemployment benefits under Part I, VII.1 or VIII of the Employment Insurance Act;
c) allowances, money or other benefits under a provincial plan because of pregnancy or in respect of the care by the person of their new-born or adoptive children; or
d) any other income prescribed by regulation.
It is irrelevant whether the worker would be entitled to receive EI or EI sickness benefits or not.
How to Apply
Applications for the CERB benefit must be submitted on or before December 2, 2020. The government is hopeful the online portal for applications will be available beginning April 6th.
Can You Receive EI and CERB?
Yes, but not at the same time. Workers will have the opportunity to choose between regular EI benefits and the CERB based on which may offer greater financial support.
Any worker who receives regular EI benefits of less than $5,000 and whose claim expires before October 3rd may apply for the CERB if they remain unable to return to work. Likewise, any worker who receives the CERB for the 16-week period, is eligible for EI benefits and who remains unemployed, may apply for regular EI benefits thereafter.
Those who have filed for EI since March 15, 2020 but whose application has not yet been processed will automatically be considered as having applied for the CERB benefit. Most importantly, though not part of the legislation, the federal government has represented that benefits will be received 10 days after an application is received.
Introduction of Job Protected COVID-19 Leave for Federal Employees
What is the Leave?
The federal government has amended the Canada Labour Code to provide a leave related of up to 16 weeks for federally-regulated employees who cannot work because of:
(i) quarantine; or
(ii) being unable or unavailable to work for reasons related to COVID-19.
How Does a Federally-Regulated Employee Qualify for the Leave?
An employee who intends to take a COVID-19-related leave must notify their employer in writing as soon as possible, including providing the reason for the leave (i.e., sickness, quarantine or caregiving responsibilities) and the anticipated length of the leave.
An employer is permitted to ask the employee for a written declaration in support of the reason for the leave of absence, or any change in the length of the leave. Much like the existing Medical Leave under the Code, an employee cannot be punished, disciplined or terminated for taking a COVID-19-related leave.
To What is a Federally-Regulated Employee Entitled During the Leave?
During the leave of absence, the employee’s pension, health and disability benefits, and seniority continue to accumulate. Employees and employers remain responsible for payment of their respective shares or contributions to any benefit premium unless the employee notifies the employer of the employee’s intention to discontinue contributions during the leave period.
This new leave of absence comes into effect immediately but will not be available on or after October 1, 2020.
Medical Documentation and Other Federal Leaves
Finally, for the period of March 24 to September 30, 2020, federal employees who seek Compassionate Care Leave, Leave Related to Critical Illness and/or Medical Leave will be entitled to the leave regardless of whether a supporting certificate is issued by a health care professional. In the case of Compassionate Care Leave, for example, this means that an employee may be eligible for a leave of absence for up to 28 weeks to provide care or support to a family member that has a serious medical condition with a significant risk of death within 26 weeks regardless of whether or not a health care practitioner issues a certificate supporting the medical illness or condition.
PH Tips
As noted in our earlier blog, the availability of the CERB and the new COVID-19 Leave for federally-regulated employees does not relieve employers from compliance with their contractual and legal obligations, including obligations relating to temporary layoffs, constructive dismissal, accommodation obligations under both Accommodation Policies and the applicable human rights, workplace safety, and common law obligations.
We continue to encourage employers to seek legal advice before making decisions regarding their workforce in response to COVID-19.
