On December 22, 2021, the federal government announced that it will propose to temporarily expand eligibility for two new COVID-19 support programs, the Local Lockdown Program (the “Program”) and the Canada Worker Lockdown Benefit (the “Benefit”). Both programs were introduced under Bill C-2, An Act to provide further support in response to COVID-19, which received Royal Assent on December 17, 2021.
The government intends to introduce new regulations to enact the following temporary, expanded eligibility requirements for these two support programs.
Local Lockdown Program
The Local Lockdown Program grants eligible employers wage and rent subsidies from 25% up to a maximum of 75%, depending on the extent of their revenue loss.
The federal government will propose to temporarily amend eligibility requirements for the Program such that employers subject to capacity-limiting public health restrictions of 50% or more may become eligible to receive benefits under the Program. Previously, employers could only qualify for the Program if they faced a lockdown.
Under this temporary expansion, employers would qualify for the Local Lockdown Program if:
- one or more of its locations is subject to a public health order that has the effect of reducing capacity at the location by 50% or more; and
- activities restricted by the public health order accounted for at least 50% of the employer’s total qualifying revenues during the prior reference period.
The government will also propose to temporarily reduce the current monthly revenue loss threshold from 40% to 25%. Employers would still be required to demonstrate current-month losses only, without the requirement to show a historical 12-month revenue decline.
These temporary changes, if enacted, would be in effect from December 19, 2021 to February 12, 2022.
Canada Worker Lockdown Benefit
The Canada Worker Lockdown Benefit provides temporary income support of $300 per week between October 24, 2021 and May 7, 2022 to eligible employees and self-employed people who cannot work due to a COVID-19 public health lockdown.
The federal government has proposed to temporarily expand the definition of “public health lockdown” for the purposes of the Benefit to allow more workers to qualify for the Benefit. The expanded definition would include provincial and territorial orders that establish capacity restrictions of 50% or more. The original definition of “public health lockdown” referred to “a lockdown order … that was made because of COVID-19 and required premises where commercial activities or services are carried out, in relation to non-essential services, to be closed to the public for at least 14 consecutive days”.
The government will also propose to reduce the minimum number of days that a lockdown order needs to be in place from 14 consecutive days to seven consecutive days.
These temporary changes, if enacted, would be in effect from December 19, 2021 to February 12, 2022.
Takeaways for Employers
These expanded eligibility requirements should be welcome news for employers, as they will provide an increased opportunity for more businesses and their employees to receive additional supports as new COVID-19 restrictions are implemented across the country.
Employers should additionally note that the extensions and expansions to the Canada Recovery Caregiving Benefit and the Canada Recovery Sickness Benefit, which was previously announced by the government in October 2021, remain in place until May 7, 2022.
We will continue to monitor for updates regarding COVID-19 support programs and will promptly post about relevant updates for employers.
This blog is provided as an information service and summary of workplace legal issues.
This information is not intended as legal advice.