On July 13, 2020, Prime Minister Justin Trudeau announced that the Canada Emergency Wage Subsidy (CEWS) will be extended until December 2020. This extension will give employers some certainty as they plan for the rest of the year.
The CEWS covers 75% of the first $58,700 of wages for each worker employed by an eligible business, which is up to $847 per week. As discussed in our earlier article, in May, the federal government extended the CEWS until the end of August 2020, and expanded the eligibility criteria for the subsidy.
Prime Minister Trudeau previously noted that the CEWS has had a slower uptake by employers than expected, but the use of the subsidy has increased as more workers transition away from the Canada Emergency Response Benefit (CERB). While critics have argued that the eligibility criteria for the CEWS has prevented many employers from benefiting from the subsidy, the Prime Minister has not indicated whether the eligibility criteria will be adjusted.
This blog is provided as an information service and summary of workplace legal issues. This information is not intended as legal advice.