Contact: LeAnne Stefl

Effective 2 October 2020, Bill C-4: An Act relating to certain measures in response to COVID-19 received Royal Assent. Bill C-4 amends the Canada Labour Code to introduce COVID-19 related unpaid leave provisions applicable to federally regulated employees. Specifically, the bill amends the reasons for which federally regulated employees are entitled to COVID-19 related leave of absence and the duration of such leave. 

The Canada Labour Code does not provide for paid leave related to COVID-19. The amendments provide federally regulated employees with entitlement to employment-protected unpaid leaves during which they may be eligible for the Canada Recovery Benefits (CRB) introduced by the same bill, namely:

  • the Canada Recovery Sickness Benefit
  • the Canada Recovery Caregiving Benefit
  • the Canada Recovery Benefit

Affected employers and employees

The COVID-19 related leave entitlements of the amendments apply to federally regulated employees and affect all federally regulated employers, which includes private sector employers in the following industries and workplaces: 

  • Air transportation, including airlines, airports, aerodromes, and aircraft operations
  • Banks, including authorized foreign banks
  • Grain elevators, feed and seed mills, feed warehouses, and grain-seed cleaning plants
  • First Nations Band Councils (including certain community services on reserve)
  • Most federal Crown corporations, for example, Canada Post Corporation
  • Port services, marine shipping, ferries, tunnels, canals, bridges, and pipelines (oil and gas) that cross international or provincial borders
  • Radio and television broadcasting
  • Railways that cross provincial or international borders and some short-line railways
  • Road transportation services, including trucks and buses, that cross provincial or international borders
  • Telecommunications, such as, telephone, internet, telegraph, and cable systems
  • Uranium mining and processing and atomic energy
  • Any business that is vital, essential, or integral to the operation of one of the above activities

COVID-19 related leave for federally regulated employees 

Bill C-4 amends the Canada Labour Code to entitle federally regulated employees to the following employment-protected leave of absence related to COVID-19:
  • An unpaid sickness leave up to 2 weeks, or the number of weeks that is specified by regulation introduced by the Governor in Council, if the employee is unable to work because:
    • they have contracted or might have contracted COVID-19 or
    • They are self- isolating on the advice of their employer, a medical practitioner, nurse practitioner, person in authority, government, or public health authority.
  • An unpaid caregiver’s leave of up to 26 weeks or the number of weeks specified by regulation introduced by the Governor in Council, if the they are unable to work because:
    • They must care for a child under the age of 12 years who is unable to attend school or other facility fully or partially closed for COVID-19 related reasons;
    • The child cannot attend the school or other facility because the child contracted or might have contracted COVID-19; is in isolation for reasons related to COVID-19 on the advice of a medical practitioner, nurse practitioner, person in authority, government, or public health authority; or the child would, in the opinion of a medical practitioner or nurse practitioner, be at risk of having serious health complications if they contracted COVID-19;
    • The person who usually cares for the child is not available for reasons related to COVID-19; or the normally provided care services at the family member’s residence are not available for COVID-19 related reasons.

The 26 weeks of COVID-19 related leave may be shared with another employee in the same household, and may be divided over multiple periods.

Furthermore, the amendments provide the Governor in Council the authority, until 25 September 2021, to introduce regulations, including regulations where under certain circumstances, a certificate by a health care practitioner would not be required, and the authority to provide for alternative requirements.

Next steps to consider 

Effective 2 October 2020, employees of federally regulated employers are, under certain conditions, entitled to 2 unpaid COVID-19 related leaves (a sickness leave of up to 2 weeks, and a caregiver’s leave of up to 26 weeks).

Retirement benefits, as well as health and disability benefits entitlement, continue to accrue during these leaves, provided the employee makes contributions as they ordinarily would. Employers must pay at least the same share of contributions as if the employee were not on COVID-19 related leave, provided the employee continues to pay their contributions. Non-payment of contributions by the employee during these leaves does not affect their employment status.

Employee years of service continues to accumulate during the entire COVID-19 related leave.

Federally regulated employers must ensure that their policies and all relevant communication materials are aligned with the new COVID-19 related leave entitlements.

Background 

The amendments providing federally regulated employees unpaid employment-protected leaves detailed above provide these employees access to the CRBs introduced by the same bill, namely:

  • the Canada Recovery Sickness Benefit
  • the Canada Recovery Caregiving Benefit
  • the Canada Recovery Benefit

Eligible employees can apply for the benefits (detailed below) online through the CRA’s My Account portal or by phone through the CRA’s automated phone line.

The Canada Recovery Sickness Benefit

Effective 27 September 2020, through 25 September 2021, the Canada Recovery Sickness Benefit (CRSB) consisting of a taxable CAD 500 per week (subject to 10% income tax withholding), for up to 2 weeks, is paid to eligible employees who are unable to work because they contracted COVID-19, are self-isolating due to COVID-19, or have underlying conditions, are undergoing treatments, or have contracted other sicknesses making them more vulnerable to COVID-19. Applications for CRB open on 12 October 2020.

The Canada Recovery Caregiving Benefit

Effective 27 September 2020, through 25 September 2021, the Canada Recovery Caregiving Benefit (CRCB) consisting of a taxable CAD 500 per week per household (subject to 10% income tax withholding), is paid to employees who are unable to work for at least 50% of the time that they would have otherwise worked in the week for which they claim the benefit, because they had to care for a child under the age of 12 or another family member who requires supervised care. Each household is entitled to a maximum of 26 weeks of CRCB. The benefit can be shared among eligible employees in the same household but only one may receive the CRCB for any given week. Applications for the CRCB opened 5 October 2020. Attestation-based applications indicating that the above criteria are met must be submitted for one-week periods.

The Canada Recovery Benefit

The Canada Recover Benefit (CRB), in effect for one year starting 27 September 2020, through 25 September 2021, provides a CAD 500 taxable benefit (subject to 10% of withholding income tax) per week for up to 26 weeks to eligible individuals who are not eligible for employment insurance (EI) or one of the other new recovery benefits (see below). The benefits are paid once every 2 weeks. If a recipient’s annual net income exceeds CAD 38,000 in the calendar year, the benefit must be repaid at a rate of 50 cents per dollar exceeding CAD 38,000 through income tax returns. Applications for CRB open on 12 October 2020. 


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