New COVID-19 Federal programs, CERB to move to EI

September 25, 2020

Transition from CERB to EI, new COVID-19 related federal programs outlined.

Over the past two days the federal government has revealed the specifics of plans outlined on August 20 for programs to support Canadians impacted by the continuing COVID-19 pandemic.

One of these plans is the transitioning of Canadians receiving the CERB (Canada Emergency Response Benefit) to a temporarily altered EI (Employment Insurance) program.

In addition, for workers not eligible for EI, Bill C-2, An Act relating to economic recovery in response to COVID-19
 was tabled in Parliament on September 24 to create three new temporary Recovery Benefits to help support Canadians unable to work for reasons related to COVID-19. 

I have provided top line information for you below. Full details can be found on the Government of Canada website:

Transition from CERB to EI
Programs included in Bill C-2
 


Transition from CERB to EI

Timing

The transition from CERB to the revised EI will begin September 27.

The majority of Canadians still receiving the CERB through Service Canada who are eligible for EI will be automatically transitioned. 

Service Canada will contact all EI clients to confirm whether they need to apply or are being transitioned automatically. (Exceptions noted below)

Details

  • Canadians receiving EI are eligible for a taxable benefit at a rate of at least $500 per week, or $300 per week for extended parental benefits. 
  • Canadians claiming EI benefits for job loss would be eligible for at least 26 weeks.
  • Returning to the EI program will allow claimants to benefit from the Working While on Claim rules. 
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The rules allow claimants to keep receiving part of their EI benefits and all their earnings from work.

NOTE: Employers are able to make use of registered Supplemental Unemployment Benefit (SUB) plans to provide support to employees.  

The EI program will also allow Canadians with 120 hours of insurable work or more to qualify by providing a temporary, one-time credit of 300 insurable hours for those claiming EI regular and work-sharing benefits. 

  • Canadians claiming EI special benefits – including maternity, parental, sickness, compassionate care, and family caregiver – will be provided with a temporary, one-time credit of 480 insurable hours.
  • Waiting period will be waived for EI sickness benefit claimants to encourage compliance with public health measures. 
  • Requirement to provide a medical certificate will also be waived for all sickness claimants
    • Service Canada will retain the ability to request evidence of sickness for integrity purposes.  

Some Canadians will need to apply to Service Canada to access EI benefits. These include:

  • 900-series Social Insurance Numbers holders;
  • self-employed workers who received benefits through Service Canada; and,
  • Canadians who received the CERB from the Canada Revenue Agency but could have 120 hours of insurable and meet the other eligibility criteria.

As is normally the case, Canadians become eligible for their first EI payment at the end of the two weeks that they are out of work. This means, for example, that those switching to EI from CERB effective September 27, 2020, will be eligible for their first EI payment as of October 11. 



Programs outlined in Bill C-2


If passed, the legislation would create:

  • A Canada Recovery Benefit (CRB) of $500 per week for up to 26 weeks, to workers who are self-employed or are not eligible for EI and who still require income support. This Benefit would support Canadians who have not returned to work due to COVID-19 or whose income has dropped by at least 50%.
  • A Canada Recovery Sickness Benefit (CRSB) of $500 per week for up to two weeks, for workers who are sick or must self-isolate for reasons related to COVID-19 and do not have a paid sickness benefit plan or granted paid leave for that period.
  • A Canada Recovery Caregiving Benefit (CRCB) of $500 per week for up to 26 weeks per household, for eligible Canadians unable to work because they must care for a child under the age of 12 or family member because schools, day-cares or care facilities are closed due to COVID-19 or because the child or family member is sick and/or required to quarantine.  

The announcement also changes the established minimum weekly benefit payment for all EI recipients to $500 — the same level as the CRB.
 
Canadians will be able to apply for the CRB, CRSB, and CRCB through the Canada Revenue Agency (CRA) for one year up until September 25, 2021.