Bill C-4, An Act relating to certain measures in response to COVID-19 – Senate Committee of the Whole, October 1, 2020

Overview

Part 1 would enact the Canada Recovery Benefits Act to authorize the making of income support payments to certain workers who are not working for reasons related to the coronavirus disease 2019 (COVID-19). The proposed legislation would establish three new temporary income support benefits:

• the Canada Recovery Benefit would provide $500 per week for up to 26 weeks to workers who meet the eligibility criteria, including that they do not qualify for Employment Insurance and were not employed or they had a reduction of at least 50% in their employment or self-employment income, and were available and looking for work
• the Canada Recovery Sickness Benefit would provide $500 per week for up to two weeks to workers that are unable to work at least 50% of their normal work because: they contracted COVID-19; they self-isolated for reasons related to COVID-19; or they have underlying conditions that in the opinion of a medical practitioner or nurse practitioner would make them more susceptible to COVID-19; and
• The Canada Recovery Caregiving Benefit would provide $500 per week for up to 26 weeks per household for eligible workers. It would be available to individuals who are unable to work at least 50% of their normal work and need to take unpaid leave to care for their child under 12 due to a school, daycare or day program closure or a family member who requires supervised care who is unable to attend a day program, or because the usual caregiver is not available due to COVID-19. The benefit would also be available if the child or family member could not attend their normal school or care facility because they were sick, in quarantine or at high risk of serious health implications due to COVID-19

The legislation also sets out provisions to support the administration of the new benefits, including the review of decisions and the ability to request reconsideration, the recovery of overpayments, as well as new integrity measures to prevent deliberate fraud.

Clause-by-clause [Section redacted]

Key messages

Questions and answers

Q. Why is the Government proposing a new Canada Recovery Benefits Act?

A. The Canada Recovery Benefits respond to the gradual re-opening of the economy and the need to help Canadian workers transition back to work. As the economy recovers there remains a need to continue to offer income supports for workers affected by the pandemic, both within and outside of the Employment Insurance Program. These temporary recovery benefits are being put in place to support those not typically supported by the federal government through Employment Insurance, including the self-employed.

Q. What measures are proposed for workers who still cannot return to work because of COVID-19 and are not eligible for Employment Insurance?

A. The Canada Recovery Benefit would provide $500 per week for up to 26 weeks to workers who meet the eligibility criteria, including that they are not eligible for Employment Insurance and were not employed, or they had a reduction of at least 50% in their employment income, and were available and looking for work.

Q. What measures are proposed to encourage persons who receive Canada Recovery Benefit to return to work?

A. Individuals who claim the Canada Recovery Benefit would have to attest that they have not quit or turned down reasonable employment and are seeking work or prepared to return to work as soon as it is reasonable to do so.  They may work in the weeks for which they claim the benefit as long as they continue to meet the eligibility criteria. Those who have a net income greater than $38,000 in 2020 or 2021 (excluding the Canada Recovery Benefits they receive) will be required to repay the benefit at a rate of $0.50 for every dollar earned above the threshold, up to the full amount of Canada Recovery Benefit received. This balances income support with the incentive to work, and ensures that benefits remain targeted to those who need them the most.

Q. What measures are proposed to help people who may have to take time off work because they contract COVID-19?

A. The Canada Recovery Sickness Benefit would provide $500 per week for up to two weeks to certain workers that are unable to work at least 50% of their normal work because they contracted COVID-19; they self-isolated for reasons related to COVID-19; or they have underlying conditions that in the opinion of a medical practitioner or nurse practitioner would make them more susceptible to COVID-19.

Q. What measures are being proposed for people who have to care for someone because schools or care facilities remain closed?

A. The Canada Recovery Caregiving Benefit would provide $500 per week for up to 26 weeks per household for eligible workers. It would be available to individuals who are unable to work at least 50% of their normal work and need to take unpaid leave to care for their child under 12 due to a school, daycare or day program closure or a family member who requires supervised care who is unable to attend a day program or their usual caregiver is not available due to COVID-19. The benefit is also available if the child or family member could not attend their normal school or care facility because they were sick, in quarantine or at high risk of serious health implications due to COVID-19.