New benefit for workers when there's a COVID-19 lockdown
The following excerpts are taken from On The Radar newsletter.
In late 2021, the federal government introduced the Canada Worker Lockdown Benefit (CWLB).
Workers in Ontario could get the CWLB starting on December 19, 2021, when Ontario was confirmed as a lockdown region.
What counts as a lockdown
The CWLB is for workers who can't work or who are making a lot less money during the COVID-19 pandemic because the government orders a lockdown or certain restrictions. This means that:
businesses and services have to close, or
there are capacity limits that require businesses and services to lower the number of people allowed inside by 50% or more
The order must come from a part of the government with the power to make decisions about public health. For example, this could be the Ontario government, a local public health unit, a municipality, or a band council.
And, the government of Canada must confirm that the region is a lockdown region.
Ontario has been a lockdown region since December 19, 2021.
Who qualifies
Workers in many businesses have been affected by this lockdown.
The CWLB is meant for workers who don't qualify for Employment Insurance (EI), such as gig workers, people who are self-employed, and employees who are working reduced hours.
Whether someone is eligible for the CWLB instead of EI depends on many factors, such as:
how many insurable hours they've worked
whether they're an independent contractor or an employee
whether they've used up all their EI benefits
To be eligible for the CWLB, the worker must either:
not be working, or
earning 50% or less than their average weekly earnings over the past 12 months or in the years 2020 or 2021.
And to qualify, all of the following must apply to the worker:
they're 15 or older
they have a valid Social Insurance Number (SIN)
they live in Canada
they filed their taxes for 2020
they earned $5,000 or more in 2020 or 2021, or in the 12 months before they apply for the CWLB
The $5,000 can include money from the Canada Emergency Recovery Benefit (CERB), the Canada Recovery Benefit (CRB), and EI benefits.
For more information about qualifying for regular EI benefits, read I lost my job for reasons beyond my control. Can I get EI?
If someone is not sure what they're eligible for, they can contact their local community legal clinic, Service Canada, or another employment service.
How much workers can get
Workers can get $300 a week, which is $270 after taxes.
There's no limit on the number of weeks workers can get the CWLB as long as they're working in a lockdown region.
Workers can apply online or by phone. To apply, workers must wait until the Monday after the week they missed work.
And, they must apply within 60 days of missing work. For example, if the worker missed work the week of December 19, 2021, the last day they can apply for the benefit is February 16, 2022.
Who does not qualify
People usually won't qualify for the CWLB if they can't work because:
they refuse to follow their employer's vaccination policy, or
they're in quarantine or isolation after returning from a trip outside Canada.
Workers also can't apply for the CWLB for a week in which they're getting EI benefits, short-term disability benefits, the Canada Recovery Sickness Benefit, or the Canada Recovery Caregiving Benefit.
And, they must be available to work. This means that workers need to:
go back to work when it's reasonable to do this, or
accept another reasonable offer of work.
It's very hard to get the CWLB if the worker quits their job or asks to work fewer hours. If they're self-employed, it's also very hard to get if they decide to work less.
View the Ontario Business Costs Rebate Program and Ontario Covid-19 Small Business Relief Grant to learn more information on how to apply.