Government measures in key jurisdictions 5th edition - Flipbook - Page 27
Canada
Employment
As part of the CERP, the federal government originally introduced the Canada Emergency
Wage Subsidy (CEWS) program on April 11, 2020, which provided a 75% wage subsidy to
eligible employers for up to 12 weeks, beginning on March 15, 2020. The program was
subsequently extended by regulation until August 29, 2020.
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
New legislation (Bill C-9) came into force on November 19, 2020 to not only extend, but to
redesign CEWS, making it available to a broader group of employers and extending the
program until July 2021. More information on the original CEWS program can be found here.
An overview of the key changes to CEWS, including, most importantly, as it relates to
determinations of eligibility and the calculation of subsidy entitlements, can be found here.
On August 20, 2020, the federal government announced further actions to help support
workers through the next phase of the Covid-19 pandemic. Those actions include an
extension of the Canada Emergency Response Benefit (CERB), temporary changes to the
employment insurance program, and three new income support programs. Further details
on these programs can be found here.
The federal government also amended the Canada Labour Code by creating a new jobprotected leave of absence of up to 16 weeks for employees in federally-regulated
workplaces who are unable or unavailable to work for reasons related to Covid-19. Several
Canadian provinces have similarly amended the applicable provincial employment
standards legislation to create job-protected leaves of absence for employees who are
unable to work due to Covid-19.
For more information regarding the amendments to the Canada Labour Code and
provincial employment standards legislation, please visit the Cassels Comments located
here and here.
The Ontario government also published resources for employers on its website, including
sector-specific workplace safety guidelines and posters. At present, guidelines and posters
have been published for the construction, food processing, restaurant and food services,
agriculture, manufacturing, and long-term care sectors, suggesting that these will be the
first “select workplaces” permitted to reopen.
Further information on the Ontario workplace safety guidelines can be found here.
Insolvency
Has the
government made
any changes
to insolvency
legislation?
While Canada’s main insolvency statutes, the Bankruptcy and Insolvency Act (BIA)
and Companies’ Creditors Arrangement Act (CCAA) have not been amended at the
time of writing, new legislation and amendments to existing legislation do impact the
insolvency process. In addition, guidance from other participants in the insolvency
regulatory process will affect insolvency practice and procedures. The following are
some examples:
•
As part of the federal government’s CERB program, the income support benefit
provided will not be subject to the operation of any law relating to
bankruptcy and insolvency.
•
Several provinces have enacted legislation to temporarily suspend limitation
periods, which apply to the insolvency process.
Government measures in key jurisdictions
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