Government of Canada announces changes to Employment Insurance and Work-Share Program as part of $1 billion COVID-19 fund
As employees and employers grapple with the practical implications of a potential COVID-19 outbreak, the Government of Canada has stepped up to the plate with an announcement of a $1 billion fund to finance a range of measures aimed at limiting the spread of the virus and preparing the country for what seems like an inevitable wider outbreak across Canada.
One of the announced measures, which will ease concerns of many employees, is waiving the mandatory one week waiting period for Employment Insurance (“EI”). The impact of this is that employees who are unable to work due to COVID-19 will now be able to claim EI from the first day of sickness, rather than having to wait a week before they can receive any payments. This measure will also benefit those who are in quarantine or who have been directed to self-isolate as a precaution. This may not apply to those who voluntarily self-isolate without direction from public health officials, but may cover those asked to quarantine by their employer where this measure was recommended by public health officials. At this stage, it is also unclear what documentation would be required. Unfortunately, this announcement does not address those not eligible for EI sickness benefits; however, the government has confirmed that it will be considering what help may be available to those individuals, including income support.
The announcement also included enhancements to the Work-Sharing program. This is a program “designed to help employers and employees avoid layoffs when there is a temporary reduction in the normal level of business activity that is beyond the control of the employer. The measure provides income support to employees eligible for Employment Insurance benefits who work a temporarily reduced work week while their employer recovers.”¹ Ordinarily, this program can be used for a maximum of 38 weeks, however, this has now been extended to 76 weeks to help employers and employees during any economic downturn as a result of COVID-19. It should be noted that both the employer and employee must agree to the Work-Sharing arrangement.
The other measures included in the $1 billion package include:
- $50m to the Public Health Agency of Canada for public education and communications;
- $550m to the provinces and territories for “critical health care system needs” in support of its statement that financial considerations will not and should not be an obstacle to the necessary preparations;
- $100m for federal health measures, including supporting the preparations of the First Nations and Inuit communities;
- $275m towards research into COVID-19, including vaccines and potential treatments;
- $50m to the Public Health Agency of Canada for purchases of personal protective equipment for the provinces and territories; and
- $50m to the World Health Organization to support global efforts.
The full statement from the Government of Canada can be found here.
¹ Employment and Social Development Canada, https://www.canada.ca/en/employment-social-development/services/work-sharing.html
This article is provided for general information only. If you have any questions about the above, please contact a member of our Labour and Employment Group.
Click here to subscribe to Stewart McKelvey Thought Leadership.
Archive
Rick Dunlop and Will Wojcik Nova Scotia’s COVID-19 Paid Sick Leave Program (“Program”) is now open for applications. Employers can now be reimbursed for employees’ time off work to comply with public health requirements, including…
Read MoreSean Kelly and Will Wojcik A recent decision of the Human Rights Tribunal of Alberta (“Tribunal”) dismissing a customer’s allegations of discrimination based on physical disability and religious belief against a Natural Food Store’s mandatory mask…
Read MoreClarence Bennett and Lara Greenough In ExxonMobil Business Support Centre Canada ULC v Birmingham, the New Brunswick Court of Appeal considered the equitable remedy of unjust enrichment in the context of an ordinary wrongful dismissal…
Read MoreBrian Johnston, QC and Katharine Mack COVID-19 vaccination policies have become more prevalent. Public sector employees have been mandated to get vaccinated in a number of jurisdictions, the federal government has mandated vaccinations in the…
Read More*Last updated: December 17, 2021 (originally published December 1, 2021) Mark Tector and Will Wojcik Bill 27, Working for Workers Act (“Act”), 2021, received Royal Assent on December 2, 2021, and is now in force in Ontario.…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 09 (also available in French, here) Tessa Belliveau In its recent and interesting decision regarding Zaki v. University of Manitoba, 2021 MBQB 178 (CanLII), the…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 09 Conor O’Neil and Sarah-Jane Lewis Construction lien legislation exists in every province and territory in Canada. Liens are a creature of statute introduced, at…
Read MoreChristopher Marr, TEP and Michael Forestell As detailed in our previous update , in March 2020 New Brunswick implemented the Unclaimed Property Act (“Act”), with the intention that the New Brunswick Financial and Consumer Services…
Read MoreMargaret Anne Walsh and Graeme Stetson Beneficial Ownership and Corporate Transparency On September 1, 2020, the Government of Prince Edward Island proclaimed into force Bill no. 34 which amends the Business Corporations Act (“BCA”). The…
Read MoreIncluded in Discovery: Atlantic Education & the Law – Issue 09 Brendan Sheridan With the 2021 fall school semester under way, it has been a year and a half since the COVID-19 pandemic first resulted…
Read More