COVID fixes to benefits, courts, wage subsidy

Summary#

This bill adds several COVID-19 measures across tax, benefits, courts, and deadlines. It adjusts the wage subsidy rules so more hard‑hit employers can qualify. It pauses or extends legal and regulatory time limits. It enables a one‑time payment to persons with disabilities by allowing limited information‑sharing. It also tightens and clarifies Canada Emergency Response Benefit (CERB) rules, adds penalties for fraud, and creates a right to internal review.

• Changes wage subsidy eligibility and the “baseline pay” period; applies retroactively to April 11, 2020 (Part 1; Coming into Force).
• Pauses many court time limits March 13–September 13, 2020, and lets ministers extend listed regulatory deadlines up to 6 months, but not past December 31, 2020 (Part 2 — Suspensions; Other Time Limits and Periods).
• Requires public posting of any deadline orders within 5 days and sunsets these powers on September 30, 2020 (Part 2 — Transparency; Sunset provision).
• Authorizes CRA and ESDC to share taxpayer information only to deliver a one‑time disability payment related to COVID‑19 (Part 3; ITA s.241(4)(h.1); Children’s Special Allowances Act s.10(2)(b)).
• Extends CERB application periods, adds a return‑to‑work condition, creates a 30‑day review right, and sets penalties and offences for false claims; some measures apply retroactively to March 25, 2020 (Part 4; CERB ss.5, 6, 8.1, 12.1–14.3; Coming into Force).

What it means for you#

• Workers (CERB):
  • You can apply for 4‑week periods from March 15–July 4, 2020 and for 2‑week periods from July 5–October 3, 2020 (Part 4; CERB s.5(1)).
  • You are not eligible if you fail to return to work when reasonable and your employer asks, fail to resume self‑employment when reasonable, or decline a reasonable job offer when able to work (Part 4; CERB s.6(2.1)).
  • You can ask the Minister to review a CERB decision within 30 days; the review result is final (Part 4; new s.8.1).
  • If you knowingly make false claims, hide income, or receive payments you are not eligible for, you may face administrative penalties up to three times the weekly benefit per violation, and offences with fines up to $5,000 plus up to double the benefit amount, and up to six months in jail (Part 4; ss.12.1, 14.1).
  • No interest is charged on CERB overpayments or penalties (Part 4; s.14).
  • The government can recover debts and garnish amounts payable to you; there is a 5‑year limit to start prosecutions from when the Minister became aware (Part 4; ss.12.5, 12.6, 14.3(4)).
• Businesses and non‑profits (Wage Subsidy/CEWS):
  • “Baseline remuneration” (average pre‑crisis pay) can be calculated using Jan 1–Mar 15, 2020, or if you elect for all periods, Mar 1–May 31, 2019 for the first claim periods; this can help more employees qualify (Part 1; ITA s.125.7(1) baseline remuneration).
  • Entities using a payroll service provider on March 15, 2020 can qualify if CRA is satisfied specific conditions are met (Part 1; ITA s.125.7(1) qualifying entity (d)(ii)).
  • Trusts can be eligible entities (other than tax‑exempt trusts and public institutions); early periods have special reading that excludes trusts (Part 1; ITA s.125.7(1) eligible entity; Coming into Force).
  • Amalgamations are treated as a continuation for CEWS unless done mainly to qualify for CEWS, an anti‑avoidance rule (Part 1; ITA s.87(2)(g.6)).
• Persons with disabilities:
  • Government can use and share limited tax and benefit data only to run a one‑time COVID‑19 disability payment program; no other uses are allowed by this clause (Part 3; ITA s.241(4)(h.1); Children’s Special Allowances Act s.10(2)(b)).
  • The bill does not set the payment amount, who qualifies, or payment dates. Data unavailable.
• Courts, regulated parties, and service users:
  • Court time limits for starting or taking steps in proceedings are suspended March 13–September 13, 2020, unless lifted earlier; courts can vary within a 6‑month cap (Part 2 — Suspensions).
  • For listed Acts and regulations in the Schedule, ministers can suspend or extend time limits or other periods up to 6 months, but not beyond December 31, 2020; orders can be retroactive to March 13, 2020 (Part 2 — Other Time Limits and Periods).
  • Orders must be posted on a Government of Canada website within 5 days and published in the Canada Gazette within 14 days; they must be tabled in Parliament within 3 sitting days (Part 2 — Transparency).
  • These special powers cannot be used after September 30, 2020 (Part 2 — Sunset provision).
  • Criminal investigations and proceedings, and time limits under the Corrections and Conditional Release Act, are excluded (Part 2 — Non‑application — offences).

Expenses#

• Estimated net fiscal impact: Data unavailable.

• The bill text contains no explicit appropriations or cost totals. Impacts depend on program uptake and enforcement outcomes. Data unavailable.

Proponents' View#

• Targets wage help to hard‑hit employers by widening who can qualify and by allowing an alternate pre‑COVID pay window, which reduces denial risk for seasonal or variable‑pay workers (Part 1; ITA s.125.7(1)).
• Prevents abuse by treating amalgamations as a continuation unless done mainly to trigger subsidy eligibility (Part 1; ITA s.87(2)(g.6)).
• Keeps justice and regulatory systems fair during the pandemic by pausing court deadlines March 13–September 13, 2020 and allowing up to 6‑month extensions for listed federal requirements, with a firm end date of December 31, 2020 for any extended limit (Part 2 — Suspensions; Other Time Limits and Periods).
• Builds transparency and oversight: orders must be posted within 5 days, published within 14 days, tabled in Parliament, and all special powers sunset September 30, 2020 (Part 2 — Transparency; Sunset provision).
• Enables fast delivery of a one‑time payment to persons with disabilities while tightly limiting data use to that purpose (Part 3; ITA s.241(4)(h.1)).
• Protects CERB integrity and supports return to work by adding clear ineligibility for refusing reasonable work, a right to internal review, scaled administrative penalties, and no interest on overpayments, which reduces hardship when people must repay (Part 4; CERB ss.6(2.1), 8.1, 12.1, 14).

Opponents' View#

• Risk of deterring legitimate CERB claims: broad offence and penalty clauses, retroactive application for penalties and recoveries, and finality of internal reviews could chill access or create inequities for good‑faith mistakes (Part 4; Transitional provisions; ss.8.1, 12.1–12.6, 14.1).
• “Reasonable” return‑to‑work standard is vague; without detailed criteria, workers and employers may face inconsistent decisions and disputes (Part 4; CERB s.6(2.1)).
• Privacy concerns: even limited taxpayer‑data sharing for the disability payment adds a new exception; safeguards depend on program administration not described in the bill (Part 3; ITA s.241(4)(h.1)).
• Ministerial power to suspend or extend regulatory deadlines may create uneven treatment across sectors; orders are exempt from the Statutory Instruments Act, which reduces pre‑publication scrutiny (Part 2 — Ministerial orders; General).
• Pausing court time limits can add to backlogs and delay resolutions, affecting access to justice; courts can vary suspensions, but capacity to do so differs across regions (Part 2 — Suspensions).
• CEWS rule changes increase complexity; small employers and trusts may still struggle to navigate elections, payroll‑provider tests, and anti‑avoidance rules without clear guidance (Part 1; ITA s.125.7(1); s.87(2)(g.6)).