Any substantive changes in this Legislative Summary that have been made since the preceding issue are indicated in bold print.
Bill C-4, An Act relating to certain measures in response to COVID‑19 (short title: COVID‑19 Response Measures Act)1 was introduced in the House of Commons on 28 September 2020 by the Honourable Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion, and given first reading the same day.
On 29 September 2020, the bill received second reading in the House of Commons, was referred to the Committee of the Whole and reported without amendments, was concurred in at report stage, and received third reading. The bill then proceeded to the Senate, where it was passed without amendment and received Royal Assent on 2 October 2020.
Bill C-4 replaces Bill C-2, An Act relating to economic recovery in response to COVID‑19 (short title: COVID‑19 Economic Recovery Act).2 Bill C-2 was introduced and given first reading on 24 September 2020 and will now die on the Order Paper. The provisions in Bill C-4 relating to the eligibility criteria for the Canada recovery sickness benefit and the corresponding job-protected leave of absence are broader than those contained in Bill C-2, as they include underlying conditions, ongoing treatments and other sicknesses that would make an employee more susceptible to coronavirus disease 2019 (COVID‑19).
Bill C-4 has three parts, comprising 10 clauses, and a schedule:
This Legislative Summary provides a brief description of the main measures proposed in Bill C-4 by summarizing the substance of each part.
Clause 1 establishes the short title of Bill C-4, namely, the COVID‑19 Response Measures Act.
Clause 2 of Bill C-4 enacts the CRBA, which includes provisions for three new temporary benefits as part of Canada’s economic response to the COVID 19 pandemic: the Canada recovery benefit, the Canada recovery sickness benefit and the Canada recovery caregiving benefit, which are explained in greater detail below.
These benefits were introduced following the phase-out of the temporary Canada Emergency Response Benefit (CERB). The CERB was introduced by the Canada Emergency Response Benefit Act, which was part of the COVID‑19 Emergency Response Act (formerly Bill C-13, An Act respecting certain measures in response to COVID‑19).3
Part 1 of the CERB introduces the Canada recovery benefit.
Individuals are eligible for this benefit for any two-week period falling between 27 September 2020 and 25 September 2021 if they
A person may apply for this benefit for any two-week period falling between 27 September 2020 and 25 September 2021, provided that the application is made within 60 days of the end of that period (section 4).
The weekly amount for the Canada recovery benefit is $500 (section 8(1)). The benefit is payable to a person for a maximum of 13 two-week periods, minus a two-week period for every two weeks between 27 September 2020 and 25 September 2021 during which the applicant received regular EI benefits6 in relation to a benefit period7 that was established on or after 27 September 2020 (section 9(1)). The maximum number of two-week periods is reduced by five each time a person is not entitled to the benefit because they did not return to employment or self-employment when it was reasonable to do so, or because they declined a reasonable offer of work (section 9(3)).
Individuals who receive the Canada recovery benefit and have an income of more than $38,000 in 2020 or 2021 will be required to repay 50 cents for every dollar of income earned above $38,000 in the year in question. The repayment amount can be up to the total of Canada recovery benefits received that year (not including erroneous payments or overpayments). The amount must be recovered through income taxes by the Minister of Employment and Social Development (the Minister) by the balance-due day for the year (section 8(2)).8
For the purposes of repayment, “income” refers to the person’s income for 2020 or 2021 as determined by Part I of the ITA, with certain exclusions that are set out in section 8(3) of the CRBA.
Section 8(4) of the CRBA clarifies how specific ITA provisions should be read in the context of repayment of the Canada recovery benefit. Consequential amendments to the ITA are added under section 42 of the CRBA.
The CRBA also amends the Income Tax Regulations9 to clarify what employers should deduct or withhold when making lump sum payments to employees (sections 44(1), 44(2) and 44(3)), and this change is deemed to have come into force on 27 September 2020 (section 44(4)).
Part 2 of the CRBA introduces the Canada recovery sickness benefit.
Individuals are eligible for this benefit for any week falling between 27 September 2020 and 25 September 2021 if they
A person may apply for the Canada recovery sickness benefit for any week falling between 27 September 2020 and 25 September 2021, provided that the application is made within 60 days of the end of the week to which the benefit applies (section 11).
The weekly amount for the Canada recovery sickness benefit is $500 (section 15). The benefit is payable to a person for a maximum of two weeks, but the Governor in Council may establish another maximum number of weeks by regulation (section 16).
Part 3 of the CRBA introduces the Canada recovery caregiving benefit.
Individuals are eligible for this benefit for any week falling between 27 September 2020 and 25 September 2021 if they
A person may apply for the Canada recovery caregiving benefit for any week falling between 27 September 2020 and 25 September 2021, provided that the application is made within 60 days of the end of the week to which the benefit applies (section 18).
The weekly amount for the Canada recovery caregiving benefit is $500 (section 22). The benefit is payable to a person – and to members of the person’s household – for a maximum of 26 weeks, but the Governor in Council may establish another maximum number of weeks by regulation (sections 23(1), 23(2) and 23(4)). If two or more persons reside in the same household, only one of them will be paid the benefit for a given week (section 23(3)).
Individuals applying for the Canada recovery benefit, the Canada recovery sickness benefit, or the Canada recovery caregiving benefit must attest in their application that they meet the eligibility conditions of the benefit for which they are applying. However, applicants who attest that they have already received a benefit under the CRBA are not required to attest to their income to confirm that they have earned the required $5,000 (sections 5, 12 and 19).
Part 4 of the CRBA provides further detail about the administration of the benefits offered under the Act, including on matters of erroneous payment or overpayment, non-compliance and debt repayment.
Section 24 of the CRBA allows the Governor in Council to make regulations prescribing other sources of income to be considered when calculating whether a person meets the income threshold to be eligible for a benefit under the CRBA.
The Governor in Council may also make regulations prescribing additional sources of income that, if payable to the person during the period for which they are applying for a benefit, would make them ineligible.
Sections 6, 13 and 20 (Parts 1 to 3 of the CRBA) state that applicants to the Canada recovery benefit, Canada recovery sickness benefit or Canada recovery caregiving benefit must provide the Minister with any information that is required related to their application.
Section 25 of the CRBA authorizes the Minister to collect and use applicants’ social insurance numbers for the purposes of administration and enforcement of the CRBA.
Note that under the ITA, disclosure of a person’s information for enforcement and other purposes may also be allowed. Section 43 (under Part 5 of the CRBA) amends section 241(4)(d) of the ITA to indicate that a person’s information may be disclosed to certain officials under certain circumstances.
Section 27 of the CRBA clarifies that benefits under the CRBA are not subject to bankruptcy or insolvency laws; cannot be assigned, charged, attached or given as security; cannot be retained by way of deduction, set-off or compensation under any Act of Parliament other than the CRBA; and are not garnishable moneys for the purposes of the Family Orders and Agreements Enforcement Assistance Act.
Section 28 requires that, in the case of erroneous payment or overpayment of a benefit under the CRBA, the person repay the amount as soon as is feasible. The amount constitutes a debt to Her Majesty and is payable to, and recoverable by, the Minister. The money owed may also be garnished from the indebted person’s financial institution or employer (section 29).
Section 30(1) of the CRBA allows the Minister to reconsider an application for benefits under the CRBA for up to 36 months after the benefits have been paid (or, if the Minister suspects a false or misleading statement has been made in an application, 72 months (section 30(5)). If the person received money to which they were not entitled, this constitutes an erroneous payment or overpayment and the person must repay the amount (section 30(3)). If the person did not receive money to which they were entitled, then the amount is payable to the person (section 30(4)).
Pursuant to section 34(2) of the CRBA, no interest is payable on debt that is the result of erroneous payment or overpayment – including the debt owed by a financial institution or employer that has been served a notice – or on debt that is the result of a penalty for a violation.
Section 31 of the CRBA allows a person (or a financial institution or employer that received a garnishment notice) to request a review of the Minister’s decision within 30 days (or any further time as allowed by the Minister) of the date they are notified of the decision. If a request is made, the Minister must review the decision and either confirm, vary or rescind it.
As set out in section 32 of the CRBA, the amount of debt a person owes under the CRBA can be certified by the Minister. The certificate’s registration in Federal Court is equivalent to a Federal Court judgment for the amount specified in the certificate plus related registration costs.
Section 33(2) states that money owed under the CRBA can be recovered at any time through deduction from, set-off against, or compensation against any sum of money payable to the person by Her Majesty, including a benefit under the CRBA, but excluding deemed overpayments for the purposes of the Canada child benefit.12
Any action or proceeding to recover the debt must take place within six years of the day on which the money became payable (section 33(1)), subject to conditions related to acknowledgement of liability (sections 33(3) and 33(5)) and limitation and prescription periods (sections 33(4) and 33(6)). However, the section does not apply in cases of action or proceedings related to the execution, renewal or enforcement of a judgment (section 33(7)).
Section 35 provides information on violations under the CRBA.13 A person has committed a violation if they have
The Minister may impose a penalty of up to 50% of the benefit that would have been received as a result of the violation, to a maximum of $5,000 (sections 35(2) to 35(5)). Pursuant to section 38 of the CRBA, a penalty constitutes a debt due to Her Majesty. It is payable to, and recoverable by, the Minister as of the date the penalty is imposed.
However, section 36 of the CRBA clarifies that this penalty should not be imposed if a prosecution for the act that would constitute the violation has already been instituted against the person, or more than three years have passed since the violation took place. Further, section 37 of the CRBA states that the Minister may rescind or reduce the penalty if new facts are presented, or if the Minister believes the penalty was imposed without knowledge of – or based on a mistake about – a certain fact.
Section 39 sets out offences under the CRBA. A person has committed an offence if they
Individuals will not be prosecuted for these offences if they have already been subject to a penalty for the same act under section 35 of the CRBA, which pertains to violations (section 39(3)). Per section 39(4) of the CRBA, those who have not already been prosecuted under that section and are guilty of the above offences are liable on summary conviction to one or both of the following punishments:
To enforce this, the Minister may designate any person or class of persons as an investigator and may also authorize the Commissioner of Revenue to designate as an investigator any employee or class of employees at the Canada Revenue Agency (sections 40(1) and 40(2)). Proceedings for an offence under the CRBA must be instituted within five years of the day the Minister becomes aware of the subject matter of the prosecution (section 40(3)).
Section 41 of the CRBA states that until 31 March 2024, money required by the Minister or by the Canada Revenue Agency to administer and enforce the CRBA may be paid out of the Consolidated Revenue Fund.
Under section 239.01(1) of the CLC, employees in a federally regulated workplace are entitled to an unpaid leave of absence from employment if they are unable to work for reasons related to COVID-19. Although originally fixed at 16 weeks under section 239.01(1) of the CLC, at the time of the introduction of Bill C-4, this leave was available for 28 weeks in accordance with now repealed section 33.1 of the Canada Labour Standards Regulations. The leave related to COVID-19 was introduced through the COVID-19 Emergency Response Act and came into force on 25 March 2020.
Clause 3 of Bill C-4 amends and renumbers section 239.01(1) of the CLC to modify the reasons for which an employee is entitled to take the leave related to COVID-19, along with the number of weeks of leave an employee may take for each of those reasons.15 While on leave, employees may have access to income support payments made under the CRBA.
Specifically, under the amended provisions and similar to the criteria for the Canada recovery sickness benefit, employees are entitled to up to two weeks of leave related to COVID-19, or to another number of weeks if fixed by regulation, if they are unable to work for any of the following reasons:
Similar to the criteria for the Canada recovery caregiving benefit, employees are entitled to up to 26 weeks of leave related to COVID-19, or to another number of weeks if fixed by regulation, if they are unable to work because they must care for a child who is under 12 years of age (new section 239.01(1)(b)(i)) or a family member requiring supervised care (new section 239.01(1)(b)(ii)), for any of the following reasons:
The term “family member” is defined in this context as including “anyone whom the person considers to be like a close relative or who considers the person to be like a close relative.”17
Clause 3 of Bill C-4 further provides that the aggregate amount of leave that may be taken under new section 239.01(1)(b) by an employee, or by two or more employees residing in the same household, is not to exceed 26 weeks, or another number of weeks if prescribed. Employees residing in the same household, however, are not allowed to take this leave simultaneously. Any leave related to COVID-19 that was taken by an employee previously does not count towards the new 26-week entitlement.
The leave related to COVID-19, as amended by the bill, may be taken in one or more periods, but the employer reserves the right to require that each period be of at least one day’s duration.
Clause 4 of the bill amends section 264(1) of the CLC to expand the regulation-making powers of the Governor in Council under Part III of the CLC. Under the new provision, the Governor in Council may make regulations providing that any requirements or conditions regarding certificates issued by a health care practitioner (including those that relate to certain leaves of absence) do not apply, and providing for alternative requirements and conditions (new section 264(1)(j.5)). This provision is in place until 25 September 2021, in accordance with clause 9(3) of the bill.
Clause 8 of Bill C-4 makes coordinating amendments regarding the leave related to COVID-19. Specifically, clause 8(1) stipulates that if the bill receives Royal Assent on 1 October 2020, provisions amending the leave related to COVID-19 and related amendments are deemed to have produced their effects or to have come into force prior to this date.
However, if the bill receives Royal Assent after 1 October 2020, clause 8(2) stipulates that clauses 3, 5 to 7, 9(1) and 9(2) are deemed never to have come into force and are repealed. The bill is then amended by adding the following:
Part 3 of the COVID-19 Emergency Response Act, which received Royal Assent on 25 March 2020, enacted the Public Health Events of National Concern Payments Act (PHENCPA).18
Section 2(1) of the PHENCPA provides that if, after consulting with the Chief Public Health Officer and provincial and territorial officers occupying a similar position, the Minister of Health determines that there is a public health event of national concern, the federal government may make payments of all money required to do anything in relation to that event.
The provisions of the COVID-19 Emergency Response Act repeal the PHENCPA as of 30 September 2020.
If Bill C-4 receives Royal Assent before 30 September 2020, clause 10 would replace section 2 of the PHENCPA. Under the new section, a federal minister, with the concurrence of the Minister of Finance and Minister of Health no later than 30 September 2020, may requisition all money required to do anything in relation to the measures specified in the schedule to the bill in respect of COVID-19.
Section 3 of the PHENCPA would limit payments made under section 2 to the amounts specified for each measure in the schedule to Bill C-4, entitled “Payment Limits.”
Clause 11 of Bill C-4 would add the schedule after section 3 of the PHENCPA.
Clause 12 would amend section 11 of the COVID-19 Emergency Response Act to change the date of repeal of the PHENCPA to 31 December 2020.
If Bill C-4 receives Royal Assent on 30 September 2020, under clause 13(1), section 12 of Bill C-4 would be deemed to have come into force before section 10 of the COVID-19 Emergency Response Act, which repeals the PHENCPA as of 30 September 2020.
If Bill C-4 receives Royal Assent after 30 September 2020, under clause 13(2), it will enact a new PHENCPA, incorporating the amendments noted above. The new PHENCPA will come into force or be deemed to have come into force on 1 October 2020.
As Bill C-4 received Royal Assent on 2 October 2020, clause 13(2) applies.
* Notice: For clarity of exposition, the legislative proposals set out in the bill described in this Legislative Summary are stated as if they had already been adopted or were in force. It is important to note, however, that bills may be amended during their consideration by the House of Commons and Senate, and have no force or effect unless and until they are passed by both houses of Parliament, receive Royal Assent, and come into force. [ Return to text ]
This refers to “identity information” as defined in the Criminal Code – specifically,
any information – including biological or physiological information – of a type that is commonly used alone or in combination with other information to identify or purport to identify an individual, including a fingerprint, voice print, retina image, iris image, DNA profile, name, address, date of birth, written signature, electronic signature, digital signature, user name, credit card number, debit card number, financial institution account number, passport number, Social Insurance Number, health insurance number, driver’s licence number or password.
See Criminal Code, R.S.C. 1985, c. C-46, s. 402.1.
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