fbpx

Government of Canada introduces legislation to implement targeted COVID-19 support

November 25, 2021

The Government of Canada has introduced Bill C-2 in Parliament to implement the recently announced support measures. This bill would:

  • Extend the Canada Recovery Hiring Program until May 7, 2022, for eligible employers with current revenue losses above 10% and increase the subsidy rate to 50%. The extension would help businesses continue to hire back workers, increase hours, and create the additional jobs Canada needs for a robust recovery.
  • Deliver targeted support to businesses still facing significant pandemic-related challenges. Support would be available through three streams:
    • Tourism and Hospitality Recovery Program, which would provide support through wage and rent subsidies to, for example, hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75%. The types of business that would be eligible are detailed in the proposed legislation and in the backgrounder associated with the announcement.
    • Hardest-Hit Business Recovery Program, which would provide support through wage and rent subsidies to other businesses that have faced deep losses, with a subsidy rate of up to 50%.
    • Local Lockdown Program, which would provide businesses that face temporary new local lockdowns up to the maximum amount available through the wage and rent subsidy programs.

To ensure workers continue to have support and that no one is left behind, the proposed legislation would:

  • Extend the Canada Recovery Caregiving Benefit and the Canada Recovery Sickness Benefit until May 7, 2022, and increase the maximum duration of benefits by 2 weeks. This would extend the caregiving benefit from 42 to 44 weeks and the sickness benefit from 4 to 6 weeks.
  • Establish the Canada Worker Lockdown Benefit which would provide $300 a week in income support to eligible workers who are directly impacted by a COVID-19-related public health lockdown in their region up until May 7, 2022. Eligible workers would be able to apply to receive this support retroactively from October 24, 2021.