Dear members,

Since the Guild’s successful push to extend emergency benefits through the end of August, we’ve stayed engaged with the government on the next phase in their pandemic support plan.

As you’ve likely seen, late last week, the Federal government announced another four-week extension of the Canada Emergency Relief Benefit (CERB) with new benefit programs to follow soon.

Below, we've gathered the best available information on what's been announced so far, what we know about these new initiatives and the questions we’ve put forward to government.

The Guild remains engaged with the government on the key questions regarding these programs. We will monitor any changes or additional details and provide members with further updates as soon as possible. If you have any other questions you wish to have us put to the government, please send them to mail@dgc.ca.

Sincerely and in solidarity,

Dave Forget,
National Executive Director

Benefits for those who’ve lost work

The government’s final four-week extension of CERB provides benefits through September 27th with the last payments to be sent in late August. At that time, two new benefit options will be made available.

First, the government has announced expanded Employment Insurance benefits. For Canadians who pay into EI, it typically takes between 420 to 700 hours of work to qualify for benefits depending on the unemployment rate in your region. On a one-time basis, that requirement will be reduced to 120 hours. Those who qualify will be eligible for a minimum of at least 26 weeks of benefits and a minimum benefit payment of $400 per week.

Second, the Federal government will create a new Canada Recovery Benefit for those not eligible for EI, meant to serve “mainly the self-employed and including those working in the gig economy.” The benefit provides $400 per week for up to 26 weeks. It will be available to Canadian residents who i) earned at least $5,000 in income in either 2019 or 2020, ii) stopped working due to the COVID-19 pandemic and iii) are not eligible for Employment Insurance.

Earning money over and above the benefit is allowed, but those earning over $38,000 in additional income will have to repay 50 cents for every dollar earned beyond the $38,000 benefit. In other words, someone receiving 10 weeks of benefits ($4,000) who then earns $46,000 in addition income would have to return the entire $4,000 in benefits when paying their taxes for 2020.

The benefit is taxable at the time you file your annual return.

Key question: We have asked the government if Canadian residents who exhausted their EI prior to the shutdown be eligible for the Canada Recovery Benefit?

Canada Recovery Sickness Benefit

The Canada Recovery Sickness Benefit will provide $500 per week in sick leave benefits for a maximum of two weeks to workers who are unable to work because they are sick or must self-isolate due to COVID-19. The benefit will be effective as of September 27th and be available for one year.

Canadians residents must be employed or self-employed at the time of the application and must have earned at least $5,000 in 2019 or in 2020. Workers would not be required to have a medical certificate to qualify for the benefit, but could not claim the benefit if they are receiving other paid sick leave for the same benefit period. Workers must miss a minimum of 60% of their scheduled work in the week to be eligible for the benefit in that week.

The benefit is taxable at the time you file your annual return.

Key question: We’ve asked the government to clarify what occurs if an employee is out sick for a period long enough to qualify, but a portion of those sick days are covered by employer provided sick leave benefits and a portion are not (eg. 5 days out, 2 days covered)?

Canada Recovery Caregiving Benefit

The Canada Recovery CaregivingBenefit will provide $500 per week for a maximum of 26 weeks to workers who are unable to work because they must care for a child under 12 years old, or a family member or dependent with a disability, due to specific circumstances related to COVID-19.

The precise circumstances allowing a worker to claim this benefit are listed in the Government of Canada backgrounder on increased access to EI and recovery benefits, but they include school or care facility closures and schools or care facilities operating under an alternative schedule for reasons related to COVID-19.

This benefit is available to Canadian residents who were employed or self-employed on the day immediately before the period for which they are applying for benefits and who earned at least $5,000 in 2019 or in 2020. Families may claim only one Canada Recovery CaregivingBenefit per household and cannot be receiving employment insurance, any form of paid leave or sick leave benefit or any other relief or recovery benefit.

The benefit is taxable at the time you file your annual return.