COVID-19 Update: Federal Government Announces Changes to CEWS to Allow Greater Access by Employers
July 21, 2020

Federal Government Announces Changes to the Canada Emergency Wage Subsidy (CEWS) to Allow Greater Access by Employers

On July 17, 2020, the Government of Canada announced proposed changes to the Canada Emergency Wage Subsidy (CEWS). The aim of the proposed changes is to broaden the reach of the program and provide better-targeted support so that more workers can return to their jobs quickly as the economy restarts. The proposed changes loosen eligibility requirements and allow employers to receive wage subsidy amounts in proportion to any revenue loss. 

The proposed changes in the Government’s draft legislative proposals would: 

  • allow the extension of the CEWS until December 19, 2020, including redesigned program details until November 21, 2020 
  • make the subsidy accessible to a broader range of employers by including employers with a revenue decline of less than 30 percent and providing a gradually decreasing base subsidy to all qualifying employers 
  • introduce a top-up subsidy of up to an additional 25 percent for employers that have been most adversely affected by the pandemic (50 percent or more loss in revenue) 
  • provide certainty to employers that have already made business decisions for July and August by ensuring they would not receive a subsidy rate lower than they would have had under the previous rules 
  • address certain technical issues identified by stakeholders 

The changes, if passed, will be effective retroactive to July 5, 2020 for the fifth claim period. 

The previous CEWS scheme was put in place for a 12-week period from March 15 to June 6, 2020, providing a 75 percent wage subsidy to eligible employers. It was later extended by an additional 12 weeks to August 29, 2020. The proposed changes would extend the program until November 21, 2020, with the intent to provide further support until December 19, 2020. 

Please note that we have based this article on press release material from the Department of Finance and will be updated with further details once the draft legislation is released. 

We will continue to update our clients with information as soon as it becomes available. If you have any questions about this topic, other COVID-19 related questions or would like assistance with developing and/or reviewing pandemic plans, please do not hesitate to contact Michelle Raven at [email protected] or 905-448-5908. 

SUBSCRIBE TO OUR MAILING LIST

CONTACT US

GET IN TOUCH

We’d love to work with you. Let’s talk.

Oakville Office
860 Progress Court
Oakville, ON L6L 6K1

Toronto Office
67 Mowat Ave, Suite 441
Toronto, ON M6K 3E3

(905) 448 3495

(289) 919 2494

CONTACT US

GET IN TOUCH

We’re ready when you need us. Let’s talk.

[email protected]

Tel: (905) 448 4395

Fax: (289) 919 2494

Oakville Office
860 Progress Court, Oakville, ON L6L 6K1

Toronto Office
67 Mowat Ave, Suite 441, Toronto, ON M6K 3E3