Employment Insurance: What to expect from the revamp

The CERB extension marks the transition to a 'more flexible and generous' EI scheme

BY Rachel Ranosa 24 Aug. 2020

The federal government has extended the Canada Emergency Response Benefit (CERB) by another month to support employed and self-employed Canadians who have been financially crippled by the COVID-19 crisis.

The CERB extension, running through Sept. 27, paves the way for recipients to transition to Employment Insurance (EI) in the weeks ahead. The enhanced EI program will be “more flexible and generous,” adding more than 400,000 new beneficiaries, the government announced.

“As we begin to safely reopen our economies and businesses, our government is committed to supporting Canadians. We are helping businesses and workers get back on their feet,” said newly named Finance Minister Chrystia Freeland.

The government plans to introduce legislation that will ensure three new benefits:

Canada Recovery Benefit
Self-employed Canadians and those ineligible for EI – but who require continuing financial support amid the crisis – will receive $400 per week for up to 26 weeks under the new scheme.

The benefit gives them the leeway to “earn more income while on claim” as they look for new income opportunities. Beneficiaries can access the Job Bank and a host of career-planning tools.

The government will also work with provinces and territories to provide recipients with additional training opportunities to make sure they can successfully rejoin to the workforce.

Canada Recovery Sickness Benefit
Canadians who contract COVID-19, or who must self-isolate for reasons related to the disease, will receive $500 per week for up to two weeks.

Canada Recovery Caregiving Benefit
Canadians will receive $500 per week for up to 26 weeks per household if they need to care for:

A child under age 12 affected by school/day care closures because of COVID-19;
A family member with a disability or a dependent affected by the closure of care facilities because of COVID-19;
A child, family member with a disability, or dependent who cannot attend school, day care, or other care facilities under the advice of a medical professional, because they are at high-risk if they contract COVID-19.

“At a time of great uncertainty, the Canada Emergency Response Benefit has provided millions of Canadians with the financial support they needed to get by,” said Employment Minister Carla Qualtrough.

“We are transitioning to more nimble and flexible programs that will help get Canadians back to work, while ensuring we are able to quickly respond to any further labour market impacts due to the ongoing pandemic,” she said.

Prime Minister Justin Trudeau first announced the transition of CERB recipients to EI in late July when he promised new benefits to gig and contract workers who were traditionally ineligible for the insurance program.

“To people who need this program, don’t worry, no one will be left behind,” Trudeau said.