Coronavirus - Government measures in key jurisdictions - Flipbook - Page 19
Canada
2
Employment
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
As part of the CERP, the federal government has implemented the Canada Emergency
Wage Subsidy (CEWS) program, providing a 75% wage subsidy to eligible employers
for up to 12 weeks, retroactive to March 15, 2020. Eligibility is assessed based on the
degree of revenue lost in the relevant 4-week eligibility period.
•
Eligible Employers: Eligible employers can include individuals, taxable
corporations, registered charities (other than public institutions such as school
boards, colleges, or hospitals), and partnerships (all members of which are eligible
employers). Eligible employers must demonstrate a qualifying drop in revenue
during the eligible period. Notably, the lost revenue threshold for eligibility for the
CEWS in March of 2020 was lowered from 30% to 15% to reflect the fact that the
most significant consequences of the pandemic began in mid-March. Employers
will be required to re-apply for the CEWS each month.
•
Eligible Employees: An eligible employee is an individual who is employed in
Canada other than those who have been without remuneration for 14 or more
consecutive days in the eligibility period.
More information on the CEWS can be found here and further details on the Canada
Emergency Response Benefit (CERB) and support for essential workers are discussed here.
The federal government has also amended the Canada Labour Code by creating a new
job-protected 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.
3
Insolvency
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
Has the
government made insolvency process. In addition, guidance from other participants in the insolvency
regulatory process will affect insolvency practice and procedures. The following are
any changes
some examples:
to insolvency
legislation?
•
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.
The Office of the Superintendent of Bankruptcy Canada, which regulates Licensed
Insolvency Trustees (LITs) and is the regulator under the BIA and CCAA, has
recommended that LITs work with debtors and third parties to ensure that they are
handling insolvencies in a flexible manner that is the least prejudicial to individuals in
financial distress. Under the BIA, the courts have broad authority to allow bankruptcy
cases to move forward in irregular circumstances if the courts believe it is appropriate.
Government measures in key jurisdictions
19