COVID-19: government income-replacement programs in place on January 19, 2022

The federal government sponsors a range of income-replacement options designed to support Canadians whose jobs are affected by the COVID-19 pandemic. Canadian workers who are ill and/or unable to work for reasons related to COVID-19 may have multiple public income-support options.

The summary information below will help Canadian employers navigate the options that may be available to their employees in the event they experience a COVID-19-related work interruption. It is not meant to be an exhaustive explanation of programs and benefits; but rather, provides a snapshot of program eligibility requirements, processes, and benefits. Each situation should be assessed on its own merits and viewed alongside relevant legal requirements, private plan documentation, employer policy, and resources that provide full detail on government programs.

Information provided in this document is current to January 19, 2022 and is subject to change.

Aon is not providing legal or other professional advice by forwarding this information and this should not be considered as such. Although the information has been produced and processed from sources believed to be reliable, no warranty express or implied is made regarding its accuracy, adequacy, completeness, legality, reliability, or usefulness. Aon will not be liable for any loss or damage suffered as a result of the use of this information. We recommend you consult a lawyer or a professional as needed.

Identifying Income-replacement Opportunities

The information below is intended for general reference only. Each situation should be evaluated on its merits. Specific carrier adjudication practices should be investigated in all cases as procedures may be specific to individual carriers and contracts.

Short-term Disability

Employee is COVERED under a short-term disability plan

Income Replacement Options

Consult plan documentation and current carrier practice to confirm allowable conditions under your plan.

A – POSITIVE TEST –

Employee has tested positive for COVID-19 via PCR or rapid test

Employees may be eligible for Short-Term Disability benefits if unable to work (including remotely) but waiting period will apply. Confirmation of Illness form may also be required. General offset provisions may be triggered if employee is in receipt of government income replacement benefits.

B – NO TEST AVAILABLE - SYMPTOMATIC –

PCR and/or rapid test unavailable, but employee is symptomatic

See above

C – NO TEST AVAILABLE - ASYMPTOMATIC – ORDERED TO ISOLATE by medical authority

Likely ineligible because the claimant is not disabled but exceptions may be possible.

Salary Continuance

Employee is COVERED under a salary continuance plan

Income-replacement Options

D – POSITIVE TEST or NO TEST AVAILABLE BUT SYMPTOMATIC and/or ORDERED TO ISOLATE by medical authority

Employer or government benefits depending on plan provisions. May qualify for government programs.

No Short-term Disability or Salary Continuance

Employee is NOT COVERED or NOT ELIGIBLE for benefits under a Short-term Disability or Salary Continuance Plan

Income-replacement opportunity (programs noted below have detailed eligibility requirements – refer to government web resources for full scope)

EI Eligible

NOT EI ELIGIBLE

E – POSITIVE TEST or SYMPTOMATIC or ORDERED TO ISOLATE by medical authority

Employment Insurance (EI) – Sickness Benefit

Canada Recovery Sickness Benefit (CRSB)

F – HOUSEHOLD MEMBER SICK OR ISOLATING DUE TO COVID-19 - Employee must stay at home to take care of a family member who is sick with COVID-19 or who must self-isolate as ordered by a medical authority.

Canada Recovery Caregiving Benefit (CRCB)

G – SCHOOL/DAY PROGRAM CLOSURE - Employee must stay at home to take care of their child because of a daycare, day program or school closure/reduced hours.

Canada Recovery Caregiving Benefit (CRCB)

H – LAYOFF OR JOB LOSS Employee was laid-off or lost their job due to COVID-19, but layoff or job loss is not related to non-compliance with mandatory vaccination policy

Employment Insurance (EI) – Regular Benefit

Canada Worker Lockdown Benefit (CWLB)

I – REDUCED WORK HOURS - Employee’s normal working hours have been reduced (50 per cent or more reduction in earnings) due to COVID-19

Canada Worker Lockdown Benefit (CWLB)

J – UNABLE TO ATTEND WORK – DOCUMENTED UNDERLYING CONDITION - Employee stays home as a preventive measure because advised to by a medical authority

Employment Insurance (EI) – Sickness Benefit

Canada Recovery Sickness Benefit (CRSB)

K – UNABLE TO ATTEND WORK – FEAR - Employee decided to stay home because they are afraid of contracting the virus. Employee has no underlying health condition.

No benefit available

L – JOB LOSS OR UNPAID LEAVE OF ABSENCE due to non-compliance with employer mandatory vaccination policy

No benefit available

Insurance Carrier Short-term Disability Administration Practices for Claims Related to COVID-19

Most insurance carriers in Canada will administer claims in the following manner:

STD claims from plan members who have COVID-19 symptoms but have been unable to procure a test will be adjudicated using the normal process for disability claims and the waiting period will apply. While carriers generally process claims based on the results of a PCR or rapid test, where testing is unavailable, claims may be processed using other criteria.

STD claims from plan members who have received a positive COVID-19 PCR or rapid test result will generally be approved as “disabled” for an initial period (usually 5-10 days) after which additional evidence may be required to continue the claim. Typical waiting periods are in effect and offsets may apply if member is also in receipt of government income-replacement benefits (depending on individual carrier policy).

Confirm Administrative Practices with Your Carrier

Not all carriers administer COVID-19-related claims in the same way. Processes regarding acceptable forms of evidence (e.g., PCR, Rapid Antigen, no test result), claims periods, attestations or other medical evidentiary requirements, government benefit offsets, and other adjudication factors vary and are subject to change as the pandemic evolves. It is very important for organizations to review the most current guidance provided by their insurance carrier to ensure they are aware of unique procedures for evaluating claims.

Special Provisions for Temporary Layoff

Some insurers have adapted existing options to extend group coverage in the event of a temporary layoff in the context of COVID-19. Your Aon advisor can work with you to determine what is available for your plan.

Government Income Replacement Benefits

The charts below provide high level summary information only. Consult government web resources for complete information on eligibility, applying for benefits, and payment of benefits.

Note that individuals cannot receive more than one government benefit for the same period.

Employment Insurance (EI) – Regular Benefit

For employees who have lost their jobs, though no fault of their own (for example, shortage of work, mass lay-offs) and are available for and able to work but can’t find a job.

Benefits are not payable if job loss is attributable to contravention of mandatory vaccination policy.

420 insured hours to qualify (temporary provision until September 24, 2022).

Minimum of 14 weeks up to a maximum of 45 weeks.

55% of regular weekly earnings up to a maximum of $638/week.

Employment Insurance (EI) – Sickness Benefit

For employees who are unable to work for medical reasons, including illness, injury, quarantine, or any medical conditions that prevents a person from working. Medical certificate is required.

420 insured hours to qualify (temporary provision until September 24, 2022).

Up to 15 weeks of benefits regardless of regional unemployment rate.

55% of regular weekly earnings up to a maximum of $638/week.

Canada Worker Lockdown Benefit (CWLB)

Targeted to workers who temporarily lose their jobs or have a 50 per cent or more reduction in earnings because of a designated COVID-19 lockdown in their region.

Available only when a COVID-19 lockdown order is designated for the region in which the employee works.

Available for designated regions between October 24, 2021 and May 7, 2022.

Maximum available benefit weeks depends on region.

Each benefit period is a specific 1-week period.

Workers apply for each week separately.

Weekly payment is $300 ($270 after taxes withheld).

Applications for the first 8-week period (beginning October 24, 2021) are open until February 16, 2022.

Workers who can work from home (telework), are not eligible.

Canada Recovery Sickness Benefit (CRSB)

For employed and self-employed individuals who are unable to work because they are sick or need to self-isolate due to COVID-19 or have an underlying health condition that puts them at greater risk of getting COVID-19.

Weekly payment is $500 ($450 after taxes withheld)

Maximum 6 weeks of benefits available between September 27, 2020 and May 7, 2022. The 6 weeks do not have to be taken consecutively

Each benefit period is a specific 1-week period.

Workers apply for each week separately.

Workers who become sick or must self-isolate due to COVID-19, part way through a period, can only apply for the period if they missed more than 50% of that work week. If the worker missed less than that, they need to wait to apply for the next eligibility period

Canada Recovery Caregiving Benefit (CRCB)

For employed and self-employed individuals who are unable to work because they must care for their child under 12 years old or a family member who needs supervised care. This applies if their school, regular program or facility is closed or unavailable to them due to COVID-19, or because they are sick, self-isolating, or at risk of serious health complications due to COVID-19.

Weekly payment is $500 ($450 after taxes withheld).

Each household can apply up to a maximum of 44 periods between September 27, 2020 and May 7, 2022. The 44 weeks do not need to be taken consecutively.

Workers apply for each week separately.

If a worker started caring for a family member part way through a period, they can only apply for that period if they missed more than 50% of that work week. If they missed less than that, they will need to wait to apply for the next eligibility period.

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