Skip to content

Government of Canada announces changes to Employment Insurance and Work-Share Program as part of $1 billion COVID-19 fund

Jennifer Thompson

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.

SHARE

Archive

Search Archive


 
 

TTC’s Random Testing Decision: A Bright Light for Employers in the Haze of Marijuana Legalization

April 11, 2017

Rick Dunlop In my December 15, 2016 article, Federal Government’s Cannabis Report: What does it mean for employers?, I noted the Report’s1 suggestion that there was a lack of research to reliably determine when individuals are impaired…

Read More

Unionization in the Construction Industry: Vacation Day + Snapshot Rule = Disenfranchisement

April 4, 2017

Rick Dunlop and Michelle Black On March 14, 2014, CanMar Contracting Limited (“CanMar”) granted a day off to two of its hard working and longer serving employees so they could spend time with their respective families. That…

Read More

Sometimes a bad deal is just a bad deal: unconscionability and insurance claim settlements in Downer v Pitcher, 2017 NLCA 13

March 16, 2017

Joe Thorne and Meaghan McCaw The doctrine of unconscionability is an equitable remedy available in exceptional circumstances where a bargain between parties, be it a settlement or a release, may be set aside on the basis that…

Read More

Privilege Prevails: Privacy Commissioner protects solicitor-client communications

March 16, 2017

Jonathan Coady After more than five years, the Prince Edward Island Information and Privacy Commissioner (the “Privacy Commissioner”) has completed her review into more than sixty records withheld by a local school board on the…

Read More

The Latest in Labour Law: A Stewart McKelvey Newsletter – Nova Scotia Teachers Union & Government – a synopsis

March 7, 2017

Peter McLellan, QC & Richard Jordan Introduction On February 21, 2017 the Nova Scotia Government passed Bill 75 – the Teachers’ Professional Agreement and Classroom Improvement (2017) Act. This Bulletin will provide some background to what is, today,…

Read More

Scotia Mortgage Corporation v Furlong: The Supreme Court of Newfoundland and Labrador weighs in on the former client rule in commercial transactions

March 1, 2017

Bruce Grant, QC and Justin Hewitt In the recent decision of Scotia Mortgage Corporation v Furlong1 the Supreme Court of Newfoundland and Labrador confirmed that where a law firm acts jointly for the borrower and lender in the placement…

Read More

The Ordinary Meaning of Insurance: Client Update on the SCC’s Decision in Sabean

February 21, 2017

The Supreme Court of Canada released its decision in Sabean v Portage La Prairie Mutual Insurance Co, 2017 SCC 7 at the end of January, finally answering an insurance policy question that had divided the lower…

Read More

Client Update: Outlook for the 2017 Proxy Season

February 8, 2017

In preparing for the 2017 proxy season, you should be aware of some regulatory changes and institutional investor guidance that may impact disclosure to, and interactions with, your shareholders. This update highlights what is new…

Read More

Client Update: The Future of Planning and Development on Prince Edward Island – Recent Amendments to the Planning Act

January 23, 2017

Perlene Morrison and Hilary Newman During the fall 2016 legislative sitting, the Province of Prince Edward Island passed legislation that results in significant changes to the Planning Act. The amendments received royal assent on December 15, 2016 and…

Read More

Plaintiffs’ medical reports – disclosure obligations in Unifund Assurance Company v. Churchill, 2016 NLCA 73

January 10, 2017

Joe Thorne1 and Justin Hewitt2 In Unifund Assurance Company v Churchill,3  the Newfoundland and Labrador Court of Appeal considered the application of our rules of court and the common law as they relate to disclosure of documents produced in…

Read More

Search Archive


Scroll To Top