Summary#

This bill extends and targets federal COVID-19 supports for workers and businesses. It continues wage and rent subsidies for select sectors through May 7, 2022, with an option to extend to July 2, 2022. It creates a new benefit for workers in regions under a COVID-19 lockdown, extends sickness and caregiving benefits, orders an Auditor General audit, and adds job-protected COVID-19 leave to the Canada Labour Code.

• Wage and rent subsidies continue for tourism/hospitality, the hardest-hit firms, and businesses under health restrictions (Part 1; Income Tax Act s.125.7).
• New Canada Worker Lockdown Benefit pays $300/week during designated lockdowns (Part 2, Amount of payment).
• Sickness benefit weeks rise from 4 to 6; caregiving weeks rise from 42 to 44; both extended to May 7, 2022 (Part 3, ss.10,16,17,23).
• Auditor General must audit key COVID-19 benefits and overpayments (Part 3.1).
• New job-protected leave for COVID-19 illness/isolation (up to 6 weeks) and caregiving (up to 44 weeks) under the Canada Labour Code (Part 4, s.239.01).

What it means for you#

• Households and workers

  • New lockdown support: If your region is designated as under a COVID-19 lockdown for at least 14 days, you may get $300/week if you lost your job, cannot work self-employed, or had a 50% income drop for reasons tied to the lockdown (Part 2, Eligibility; Designation of region; Amount of payment).
  • Who qualifies: Age 15+, resident and present in Canada, with at least $5,000 in work-related income in the prior year or last 12 months; must file tax returns on time; cannot also receive EI, CRSB, CRCB, or provincial parental benefits for the same week (Part 2, Eligibility).
  • Limits: You are not eligible if your job or income loss is because you refused a COVID-19 vaccination requirement (Part 2, ss. (3), (4)). Travel quarantine after entering Canada generally disqualifies you, unless specific medical exceptions apply (Part 2, Eligibility (i)).
  • Application: Apply within 60 days after the week; you must attest to eligibility and may have to provide information; overpayments must be repaid; penalties apply for knowing false claims (Part 2, Application; Attestation; Provision of information; Return of erroneous payment; Violations).
  • CRSB and CRCB: You may claim up to 6 weeks of sickness benefit and up to 44 weeks of caregiving benefit, for weeks up to May 7, 2022; eligibility windows can be extended by regulation to July 2, 2022 (Part 3, ss.10–11,16–19,23–24.1).

• Businesses and non-profits

  • Targeted wage and rent help: Support continues for periods through May 7, 2022, focused on:
    • Tourism and hospitality entities (hotels, restaurants, travel, arts/culture, recreation, events, and related listed activities) with at least a 40% current-month revenue drop and a 12‑month average drop of at least 40% (Income Tax Regulations s.8901.1(2); Income Tax Act s.125.7(1) “prior year revenue decline”).
    • Hardest-hit entities with a 12‑month average revenue drop ≥50% and a current-month drop ≥50% (Income Tax Act s.125.7(1) “base percentage” (l)(ii), (m)(ii)).
    • Entities under a qualifying public health restriction for ≥7 days affecting ≥25% of revenues (Income Tax Act s.125.7(1) “qualifying public health restriction”).
  • Subsidy rates and caps:
    • For Nov 21, 2021–Mar 12, 2022, base wage/rent subsidy rates can reach up to 75% for eligible tourism/hospitality or restricted entities; up to 50% for hardest-hit entities (Income Tax Act s.125.7(1) “base percentage” (l)).
    • For Mar 13–May 7, 2022, maximum base rates drop by half (up to 37.5% and 25%) (s.125.7(1) “base percentage” (m)).
    • Rent subsidy per-location cap increases to $1,000,000 for periods after Oct 23, 2021 (s.125.7(2.1) D: E.1= $1,000,000 for periods 22+).
    • A 25% rent “top-up” for public-health restrictions continues through May 7, 2022 (s.125.7(1) “rent top-up percentage”).
  • Conditions for public companies: No subsidy if taxable dividends to common shareholders are paid in the claim period; executive pay clawback applies if executive compensation rises above 2019/2021 baselines (Income Tax Act s.125.7(2.01); s.125.7(14), (14.1)).
  • Administration: Government may extend periods by regulation but not past July 2, 2022 (s.125.7(1)(d); Part 1; Part 2 “Replacement of May 7, 2022”).

• Federally regulated employees

  • Job-protected leave: Up to 6 weeks if you have COVID-19, are at higher risk, or must isolate on advice; up to 44 weeks to care for a child under 12 or a family member needing supervised care for COVID‑19 reasons (Part 4, s.239.01(1)).
  • Household limit: Only one household member can take caregiving leave at a time; total caregiving leave per household capped at 44 weeks (Part 4, s.239.01(5), (8)).
  • Benefits: Seniority, pension, health, and disability benefits continue during leave, with normal employee and employer contributions, unless the employee opts out of contributions (Part 4, s.239.01(15)–(18)).
  • Vacations: You can interrupt or postpone vacation to take COVID-19 leave (Part 4, ss.187.1, 187.2).

Expenses#

Estimated net cost: Data unavailable.

• No official fiscal note is included in the bill text. The bill authorizes payments from the Consolidated Revenue Fund to administer and pay benefits until March 31, 2026 (Part 2, Consolidated Revenue Fund; Part 3, s.41).
• Program parameters with fiscal impact:
  • Canada Worker Lockdown Benefit: $300 per eligible week per person (Part 2, Amount of payment).
  • Wage and rent subsidies: Targeted rates up to 75% (then 37.5%) for tourism/hospitality or restricted entities, and up to 50% (then 25%) for hardest-hit entities through May 7, 2022 (Income Tax Act s.125.7(1) “base percentage” (l), (m)).
  • Rent subsidy per-location cap: $1,000,000 for periods after Oct 23, 2021 (Income Tax Act s.125.7(2.1) D: E.1).
  • CRSB/CRCB weeks increased to 6 and 44, respectively, and extended to May 7, 2022 (Part 3, ss.16, 23).
• Aggregate federal cost or savings: Data unavailable.

Proponents' View#

• Targets help where need is highest: Focus on tourism/hospitality, the hardest-hit, and businesses under public health restrictions directs limited funds to those with large, sustained revenue losses (Income Tax Act s.125.7(1) “base percentage” (l), (m); Regulations s.8901.1(2)).
• Maintains jobs and businesses: Continuing wage and rent supports through May 7, 2022 helps employers keep staff and cover fixed costs during winter waves (Part 1; Income Tax Act s.125.7).
• Quick worker relief during lockdowns: $300/week gives workers a simple safety net when local lockdowns occur, with clear rules and a 60‑day application window (Part 2, Eligibility; Application; Amount of payment).
• Stronger safeguards: Dividend prohibitions and executive pay clawbacks prevent public companies from using subsidies while rewarding shareholders or boosting executive pay (Income Tax Act s.125.7(2.01), (14), (14.1)).
• Oversight and learning: Auditor General audit of major benefits and overpayments promotes accountability and program improvement (Part 3.1).
• Supports public health: Extra CRSB/CRCB weeks and job-protected leave make it easier to isolate, seek care, or look after children or family members, reducing workplace spread (Part 3; Part 4, s.239.01).

Opponents' View#

• Complexity and red tape: Detailed revenue tests, sector lists, and changing rates may burden small firms and create confusion, leading to uneven access (Income Tax Act s.125.7; Regulations s.8901.1(2)).
• Risk of gaps and exclusions: Sector-based eligibility may miss businesses hurt by the pandemic but not on the tourism/hospitality list; caregiving leave is capped per household, which may constrain larger families (Regulations s.8901.1(2); Part 4, s.239.01(5), (8)).
• Uncertain and potentially high cost: Total fiscal impact depends on the scale and length of lockdowns and revenue declines; no aggregate cost is provided in the bill (Expenses: Data unavailable).
• Enforcement and hardship concerns: Overpayments become debts; the government can garnish bank accounts or wages, which may strain low-income recipients who made errors (Part 2, Return of erroneous payment; Garnishment).
• Work incentive debate: Some argue $300/week could discourage a return to work at the margin; others note eligibility requires a 50% income loss and excludes those who quit without reason (Part 2, Eligibility (f), (h)).
• Dividend and executive pay limits may deter uptake: Public companies may forgo aid to preserve dividends, possibly affecting workers at those firms (Income Tax Act s.125.7(2.01), (14.1)).