Update from Lancaster Brooks & Welch Partners.
Minister of Finance confirms that the Canada Emergency Wage Subsidy will be available to employers who have seen a 30% or more decline in revenue since this time last year.
The subsidy is 75% for normal salary up to a maximum of $58,700.00 and a maximum of $847.00 per week.
The subsidy is available to Canadian for profit, not for profit corporations and charities and includes the hospitality industry.
Employers will be required to re-apply for the subsidy each month. Employers must attest that they are doing everything they can to pay the remaining 25% of salary to their employees.
Applications can be filed on line through a CRA portal and funds will be available within six weeks for approved applications.
Revenue has not specifically been defined as yet however in light of the fact that this is a Federal program, it may be reasonable to reference the definition of revenue under the Income Tax Act.
The program is a never been seen before program from the Federal Government with an estimate cost of $71 Billion which is also expected to reduce the estimate cost of the Canadian Emergency Response Benefit introduced March 25, 2020.
The Government is committed to assisting employers bring employees back to work and working through this crisis together.
Lancaster Brooks & Welch LLP’s Labour and Employment department is very busy helping employers during this pandemic and if you require a discussion about your legal options, please reach out to us 905-641-1551.