Employment Insurance (EI) Records of Employment (ROE) and the new Emergency Benefit (CERB)
This is the sixth part of the six-part series relating to employer obligations and employee rights during the COVID-19 pandemic. It discusses Employment Insurance (“EI”) Records of Employment (“ROE”) and the new CERB benefit. If you have questions about an issue relating to EI or a ROE, please contact a member of the Turnpenney Milne LLP team.
The Employment Insurance Act provides temporary financial assistance to individuals who are off work and suffering loss of employment income. Eligible employees can avail themselves of the following employment insurance benefits during the COVID-19 pandemic:
1. Sickness Benefits
Where an employee is sick or in quarantine and they suffer a reduction in normal weekly earnings of at least 40%, they may be entitled to sickness benefits, provided they meet the eligibility requirements. Sickness benefits would provide employees with 55% of their average insurable weekly earnings, up to a maximum of $573 per week. On March 11, 2020, the federal government announced that it would be waiving the mandatory one-week waiting period to receive sickness benefits, as well as the requirement to provide a medical certificate to access the benefit. Employees who are off on sick leave, who are quarantined or under a self quarantine should be issued a ROE coded “D – Illness or Injury”.
Note: Employees who refuse to work due to COVID-19 or can not work due to childcare responsibility should be issued a ROE coded “N – Leave of Absence”.
The Government of Canada is advising that, to access EI benefits quickly and efficiently, Employers should be mindful while issuing ROE’s and not add any comments.
2. Regular Benefits
Regular EI benefits are provided to individuals who lose their jobs through no fault of their own (e.g. in the case of a layoff or termination without cause) and remain out of work. These benefits provide individuals 55% of their average insurable weekly earnings, up to $573 per week. Individuals must meet the eligibility requirements to receive this benefit.
Employees laid off due to COVID-19 should be issued an ROE coded “A – Shortage of work (lay off)”.
3. Caregiving Benefits
Caregiving Benefits could be extended to eligible individuals who are on a leave to care for a family member or someone considered to be like family who is ill, injured or needing end-of-life care. These benefits provide income support of up to 55% of earnings, to a maximum of $573 a week. They are to last up to 52 weeks following the date the person was certified by a doctor or nurse to be critically ill, injured, or in need of end-of-life care.
4. Work Sharing Program
The Work Sharing program was introduced by the federal government to help employers and employees avoid layoffs when there is a temporary reduction in the normal level of business activity that is beyond the employer’s control. The program allows eligible employers to temporarily reduce their employees’ work hours and share the available work amongst them. The employees participating in the program must agree to the reduction of their hours and to sharing work over a specified period. The maximum duration of the program is 76 weeks for businesses affected by COVID-19.
Work Sharing programs require written agreement between the employer and the affected employee. Should you need assistance with such agreements, please reach out to one of our team members.
5. Canada Emergency Response Benefit
On March 25th, Federal Government has announced the roll out of the Canada Emergency Relief Benefit (“CERB”) to respond to the financial needs of Canadians as a result of the COVID-19 pandemic. The new system replaces the previously announced Emergency Care Benefit and the Emergency Support Benefit. The aim of the CERB is to streamline benefits for those whose qualify for EI and those who do not.
The CERB will provide $2,000 a month for up to 16 weeks for workers who lose their income as a result of the COVID-19 pandemic. The CERB includes individuals who have lost their jobs, are quarantined, caring for someone with COVID-19, and for parents who must stay home to take care of their children. The CERB is available to wage earners, contract workers, and self-employed people who do not qualify for EI. However, anyone already receiving EI benefits or who have applied for benefits, should not apply for CERB.
On April 15th, Prime Minister Justin Trudeau announced that eligibility for the CERB will be expanded to include seasonal workers and those who have recently run out of EI. In addition, individuals who make less than $1,000 per month, due to reduced work hours, will also qualify for the CERB under this announced eligibility expansion.
CERB is currently accessible through an online portal on the Government of Canada website and a dedicated phone line. Payments will begin ten days after an application is filed, be paid out every four weeks, and will be available from March 15, 2020 to October 3, 2020.
6. Wage Boost
On April 15th, Prime Minister Justin Trudeau announced a temporary “wage boost” for workers who are “deemed essential” and make less than $2,500 per month, including those working in elderly care facilities and food retail. This program will be administered by the Provinces and partially funded by the Federal Government. The Federal Government is still working with Provinces on the details of how the wage boost will be delivered.
Conclusion
If you need legal advice about EI or how to issue ROEs for your employees, reach out to a lawyer at Turnpenney Milne LLP. We would be happy to assist you.
Updated April 15, 2020