Government introduces legislation to support Canadian workers, businesses and persons with disabilities
July 20, 2020 - Ottawa, Ontario - Department of Finance Canada
The Government of Canada is taking immediate, significant and decisive action through Canada’s COVID-19 Economic Response Plan to support Canadians and protect jobs during the global COVID-19 pandemic, and to position them for a strong and safe economic restart in the wake of the crisis.
The Canada Emergency Wage Subsidy (CEWS) protects jobs by helping businesses keep employees on the payroll and encourages employers to re-hire workers previously laid off. Since its launch, about 3 million Canadian employees have had their jobs supported through the CEWS, and that number continues to grow.
Today Finance Minister Bill Morneau introduced in Parliament Bill C-20, An Act respecting further COVID-19 measures. Upon receiving Royal Assent, this legislation would make the CEWS more targeted, expand eligibility, and help more workers get back to their jobs as the economy continues to reopen.
Specifically, the changes proposed in Bill C-20 would:
- Allow the extension of the CEWS until December 19, 2020, including redesigned program details until November 21, 2020.
- Make the subsidy more accessible to a broader range of employers by providing a gradually decreasing base subsidy to all eligible employers that are experiencing a decline in revenues. This would help many struggling employers with less than a 30 per cent revenue loss get support to keep and bring back workers, while also ensuring those who have previously benefited could still qualify, even if their revenues recover and no longer meet the 30 per cent revenue decline threshold.
- Introduce a top-up subsidy of up to an additional 25 per cent for employers that have been most adversely affected by the COVID-19 crisis. This would be particularly helpful to employers in industries that are recovering more slowly.
- Provide certainty to employers that have already made business decisions for July and August by ensuring they would not receive a subsidy rate lower than they would have under the previous rules.
- Address technical issues with the CEWS identified by stakeholders, for example by providing continuity rules to address circumstances where an employer purchased all or substantially all of another entity’s business assets.
- Make the proposed amendments to the CEWS previously introduced in Bill C-17, An Act respecting additional COVID-19 measures.
By helping workers transition back to their jobs and supporting businesses as they increase revenues, these changes would ensure that businesses are competitive and support an increase in the number of employees being hired and re-hired because of the CEWS.
The legislation would also allow for the sharing of information to facilitate the delivery of a one-time payment for persons with disabilities. Subject to the legislation receiving Royal Assent, the Government intends to move forward with a non-taxable and non-reportable payment of up to $600 to approximately 1.7 million eligible individuals who:
- Are holders of a valid Disability Tax Credit certificate (eligible persons not yet in possession of such a certificate would be able to apply for one up to 60 days after Royal Assent to be considered for the one-time payment);
- Currently receive Canada Pension Plan disability benefits or Quebec Pension Plan disability benefits; or
- Are in receipt of disability supports provided by Veterans Affairs Canada.
In these exceptional circumstances, many Canadians, businesses and other organizations may be unable to meet numerous time limits currently set out in federal legislation, including those for civil court cases and some key regulatory matters. That is why the legislation proposes to enact a new Act that would suspend limitation periods in civil litigation proceedings as well as enable the extension or suspension of select regulatory time limits. The Time Limits and Other Periods Act (COVID-19) would ensure the continued protection of Canadians’ rights in the context of civil legal proceedings, by ensuring that individuals are not prevented from asserting their rights because of the passage of a time limit. It would also ensure that Canadians, Canadian businesses and the government are able to avoid irreversible legal consequences.
The government continues to assess and respond to the impacts of COVID-19, and stands ready to take additional actions as needed to stabilize the economy and mitigate the impacts of the pandemic.
“The Canada Emergency Wage Subsidy is helping employers of every size, across all sectors, keep and rehire millions of Canadians. The measures contained in Bill C-20 would ensure that the CEWS protects more Canadian jobs and gives businesses support as they rebound from the pandemic. It would also provide financial support for 1.7 million Canadians with disabilities. We are working to ensure our economic response plan leaves no one behind.”
- Bill Morneau, Minister of Finance
“Our Government recognizes that persons with disabilities have been disproportionately impacted by COVID-19. Last month we announced a one-time, tax-free payment of up to $600 to support Canadians with disabilities to assist with extraordinary expenses incurred during the pandemic. The legislation being tabled today will result in more Canadians with disabilities being eligible for this tax-free, one-time payment. We remain committed to a pandemic response and recovery that is disability inclusive.”
- Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion
“We recognize Canadians and Canadian businesses can be greatly impacted by the possible legal repercussions of failing to meet time limits set by law. The Government is committed to supporting Canadians and protecting their rights and freedoms, including their right to access justice, during these difficult times. We believe this new Act would offer a flexible, yet targeted solution to address these valid concerns in a transparent, efficient and effective manner.
- David Lametti, Minister of Justice and Attorney General of Canada
As part of the COVID-19 Economic Response Plan, the aim of CEWS is to prevent further job losses, encourage employers to rehire workers previously laid off as a result of COVID-19, and help better position Canadian companies and other employers to more easily resume normal operations following the crisis.
The CEWS was put in place for an initial 12-week period from March 15 to June 6, 2020, providing a 75 per cent wage subsidy to eligible employers. On May 15, Minister Morneau announced that the Government of Canada would extend the CEWS by an additional 12 weeks to August 29, 2020. The legislation would further extend the program until November 21, 2020, with the ability and intent to provide further support until December 19, 2020.
The proposed enhancements to the CEWS contained in Bill C-20 were announced by Minister Morneau on July 17, 2020.
Subject to the legislation receiving Royal Assent, the Government intends to provide a one-time payment of up to $600 to holders of a valid Disability Tax Credit certificate and proposes to extend it to include persons with disabilities who are beneficiaries as of July 1, 2020 of Canada Pension Plan disability benefits, Quebec Pension Plan disability, or one of the disability supports provided by Veterans Affairs Canada.
The Time Limits and Other Periods Act (COVID-19) would have a retroactive effect to March 13, 2020, which is the date on which Parliament had temporarily suspended its activities in response to the start of the COVID-19 pandemic.
- Supporting Canadian Workers and Businesses with a redesigned Canada Emergency Wage Subsidy
- Adapting the Canada Emergency Wage Subsidy to Protect Jobs and Promote Growth
- Minister Qualtrough announces new details on proposed financial support for persons with disabilities during COVID-19
- Proposed legislation to address legislative time limits in response to COVID-19
Media may contact:
Office of the Minister of Finance
Department of Finance Canada
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