Due to the new public health restrictions driven by the Omicron surge, the federal government has temporarily expanded the eligibility of several support programs through Bill C-2. This Bill received Royal Assent on December 17, 2021.
These programs offer support to employers who have seen a drop in revenue during the pandemic. Employers may be eligible for a subsidy to cover part of the wages paid to employees to enable them to re-hire workers and help prevent further job losses.
Patrick Stepanian, Legal Manager at Peninsula Canada, a consulting company, has provided important information on government support programs for small businesses and workers.
"We understand the worry and stress for small business and employees during the lockdown and all the challenges that follow. With the new COVID-19 Federal Support Measures we want to answer any questions you may have and guide employers and employees in the right direction with our expert advice."
What employer support programs have been introduced or extended?
The Local Lockdown Program: This program offers support to businesses under temporary new local lockdowns up to the maximum amount available through the wage and rent subsidy programs. This also includes employers subject to capacity-limiting restrictions of 50 per cent or more.
Tourism and Hospitality Recovery Program: This program provides wage and rent subsidy support to hotels, tour operators, travel agencies and restaurants with a subsidy rate of up to 75%.
Hardest-Hit Business Recovery Program: This provides wage and rent subsidies to other businesses that have faced deep losses, with a subsidy rate of up to 50%. Businesses that apply for these recovery programs will use a new “two-key” eligibility system where they will need to show significant revenue losses over the course of 12 months of the pandemic, in addition to revenue losses in the month they apply.
The Canada Recovery Hiring Program (CRHP): Has been extended from its original expiry date of November 20, 2021, to May 7, 2022. This program helps eligible employers who have experienced losses of over 10% in current revenue due to COVID-19. The subsidy rate has also been increased to 50%. This extension is designed to assist businesses as they continue to hire back workers and create additional jobs.
What employee support programs have been introduced or extended?
The Federal government has introduced the Canada Worker Lockdown Benefit (CWLB): This provides temporary income support to eligible employed and self-employed individuals who can’t work due to the imposition of a COVID-19 lockdown in their region or due to public health orders imposing capacity restrictions of 50% or more on businesses. Eligible applicants also include those who experienced a 50% reduction in their average weekly income due to the said measures.
The Canada Recovery Caregiving Benefit and the Canada Recovery Sickness Benefit: have been extended until May 7, 2022. The maximum duration of these temporary income support programs has also been extended by 2 weeks. This means the number of weeks you can apply for CRSB has increased from 4 to 6, and for CRCB from 44 to 46 weeks.
What employer support programs have ended?
The following programs expired on October 23, 2021:
Canada Emergency Rent Subsidy (CERS): This program was in place from September 27, 2020. Through CERS, businesses who experienced a drop in revenue during the pandemic received a subsidy to cover part of their commercial rent or property expenses.
Canada Emergency Wage Subsidy (CEWS): This was first introduced on March 27, 2020. CEWS benefited Canadian employers negatively affected by COVID-19. The subsidy assisted eligible employers cover part of their employee wages to enable businesses to re-hire workers and help prevent further job loss.
What employee support programs have ended?
The Canada Recovery Benefit (CRB), formally called the Canada Emergency Response Benefit (CERB), expired on October 23, 2021. CRB came into effect on March 15, 2020. It provided financial support to employees whose employment was directly affected by COVID-19.
This program has been replaced by the Canada Worker Lockdown Benefit.
