Emergency COVID-19 Aid and Job Protections

Summary#

This federal bill responds to COVID-19 with quick income supports, temporary job protections, and tools to stabilize the financial system. It creates the Canada Emergency Response Benefit (CERB), adds one‑time boosts to the GST/HST credit and Canada Child Benefit (CCB), pauses student and apprentice loan payments, and reduces required withdrawals for some retirees. It also gives the government time‑limited powers to spend, borrow, and support credit markets and drug supplies during the crisis.

• One‑time extra GST/HST credit in May 2020 for low‑ and modest‑income households (Part 1, s.122.5(3.001), (4.1)).
• Extra $300 per child through the CCB paid for May 2020 (Part 1, s.122.61(1.01)).
• CERB income support for up to 16 weeks within March 15–October 3, 2020 (Part 2).
• 10% temporary wage subsidy for eligible small employers from March 18–June 19, 2020 (Part 1, s.153(1.02)–(1.04)).
• Up to 16 weeks unpaid job‑protected COVID‑19 leave; no medical notes required; later replaced by quarantine leave (Part 10).
• Broad, time‑limited authorities to spend from the Consolidated Revenue Fund, borrow, and support CMHC, EDC, BDC, FCC, and deposit insurance (Parts 3–6, 8, 11).

What it means for you#

• Households

  • You may have received a one‑time extra GST/HST credit in May 2020. The amount depended on your 2018 income, family status, and dependants (Part 1, s.122.5(3.001), (4.1)).
  • If you received the CCB, you got an extra $300 per child for May 2020 (Part 1, s.122.61(1.01)).
  • Drug and medical product shortages could be addressed faster, as the government can require information and make rules to prevent or ease shortages (Part 9).

• Workers

  • CERB provided income support if you stopped working for COVID‑19 reasons and met eligibility rules, for up to 16 weeks within March 15–October 3, 2020; applications closed December 2, 2020 (Part 2: Application; Eligibility; Maximum number of weeks).
  • You could take up to 16 weeks of unpaid, job‑protected COVID‑19 leave, with benefits and seniority continuing; no medical note required during the emergency period (Part 10).
  • Employment Insurance rules could be adjusted quickly by interim orders, and medical note requirements were waived until September 30, 2020 (Part 18).

• Small employers and charities

  • A temporary 10% wage subsidy applied on eligible remuneration paid March 18–June 19, 2020, up to prescribed per‑employee and per‑employer caps (Part 1, s.153(1.02)–(1.04)). Amounts reduced required payroll remittances.

• Students and apprentices

  • No payments or interest were due on Canada student loans or apprentice loans from March 30–September 30, 2020 (Parts 13, 15, 17).

• Seniors and retirees

  • Minimum withdrawals from RRIFs were reduced by 25% for 2020. Similar relief applied to money purchase registered pension plans (Part 1, s.146.3(1.4); Reg. 8506(7.1)).

• Homeowners and mortgage borrowers

  • CMHC’s capital and housing finance limits were increased to support mortgage insurance and funding markets (Parts 5, 11). This aimed to keep mortgage credit available; it did not change your mortgage terms directly.

• Provinces and territories

  • You received a one‑time additional $500 million in 2019–2020, allocated by province/territory in the Act (Part 7).

• Depositors

  • The Minister of Finance could temporarily raise deposit insurance above $100,000 until September 30, 2020; it reverted to $100,000 on October 1, 2020 (Part 4).

• Innovators and health suppliers

  • During the emergency, the government could authorize use of patented inventions needed to address the public health emergency, with compensation to patent holders (Part 12).

Expenses#

Estimated net cost: Data unavailable; the Act authorizes large temporary spending and borrowing. Key known figures below.

Notes:

• Where “Data unavailable” appears, the Act grants authority but does not set a dollar amount. Actual spending depended on subsequent regulations, uptake, and ministerial determinations.

Proponents' View#

• Delivers fast cash to households and parents through existing systems (GST/HST credit in May 2020; CCB in May 2020), aiding low‑ and modest‑income families without new applications (Part 1, s.122.5(4.1); s.122.61(1.01)).
• Provides simple, time‑limited income support to workers who lost income due to COVID‑19, reducing pressure on EI (Part 2: Eligibility; Maximum number of weeks).
• Helps small employers keep staff with a quick‑to‑administer 10% wage subsidy by reducing payroll remittances (Part 1, s.153(1.02)–(1.04)).
• Protects jobs and public health by creating up to 16 weeks of job‑protected COVID‑19 leave and waiving medical notes across EI and the Canada Labour Code (Part 10; Part 18).
• Stabilizes credit and mortgage markets by boosting CMHC/EDC/BDC/FCC capacity and allowing temporary deposit insurance flexibility, reducing the risk of a credit crunch (Parts 4–6, 8, 11, 16).
• Lets the government act fast against drug shortages and use patents if needed, with compensation, to protect health (Part 9; Part 12).

Opponents' View#

• Grants very broad spending and borrowing powers with limited advance parliamentary approval until September 30, 2020, making total fiscal exposure unclear at the time (Part 3; Part 8). Oversight relies on later reports (Part 8, s.49.1(2)).
• Creates significant long‑term fiscal costs; early estimates for CERB alone ranged from about $24–35 billion, with more for tax credits and subsidies (PBO; Department of Finance). Actual totals depended on uptake and later regulations, adding uncertainty.
• CERB eligibility rules could exclude very recent workers or those with under $5,000 prior income; voluntary quits are ineligible, creating edge cases and potential inequities (Part 2: Definitions; Eligibility).
• The 10% wage subsidy was modest and complex to calculate via payroll remittances compared to later programs; caps and “prescribed” details were set by regulation, creating initial confusion (Part 1, s.153(1.02)–(1.04)).
• Expanding EDC/BDC/FCC roles to domestic support, even with a “complementary” requirement, risks crowding out private lenders or misallocating credit (Part 6, s.10(1)(a), (1.02); Parts 14, 16).
• Patent authorization power, though compensated and time‑limited, could deter private investment in urgent health innovations if used unpredictably (Part 12).