Federal Government introduces the Canada Emergency Response Benefit Act to Support Employees and Self-Employed Workers

LAST UPDATED APRIL 20, 2020

On March 25, the federal government introduced the Canada Emergency Response Benefit Act (CERB). The CERB is a taxable benefit for workers who may lose or have lost their income as a result of the COVID-19 pandemic. Eligible workers can receive $2000 a month, equivalent to $500 per week, for up to four months. The application process to apply for the CERB is open as of April 6, 2020. Canadians can expect to receive payments within three to five business days through direct deposit or within 10 days by cheque. This measure is intended to be simpler and more accessible than the previously announced Emergency Care Benefit and Emergency Support Benefit.

The CERB aims to support workers including those who are self-employed, and those who are still employed but must stop working due to the COVID-19 pandemic – and do not have access to paid leave or other income support. Additionally, CERB will assist workers who have lost their jobs, or are sick or quarantined, or who are taking care of someone who is sick with COVID-19. It will also support working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures.

To be eligible for CERB, workers must:

• be residing in Canada, and at least 15 years old;

• have stopped working because of the COVID-19 pandemic;

• have had an income of at least $5,000 in 2019 or in the 12 months prior to the date of their application; and

• be or expect to be without employment or self-employment income for at least 14 consecutive days in the initial four-week period. For subsequent benefit periods, they must expect to have no employment income.

On April 15, the Government announced changes to the eligibility rules, including:

• Allowing people to earn up to $1,000 per month while collecting the CERB.

• Extending the CERB to seasonal workers who have exhausted their Employment Insurance (EI) regular benefits and are unable to undertake their regular seasonal work because of the COVID-19 pandemic.

• Extending the CERB to workers who have recently exhausted their EI regular benefits and are unable to find a job because of COVID-19.

Workers must be wage earners, contract workers, or self-employed individuals, who would not otherwise be eligible for EI. Additionally, the CERB applies to workers who are still employed but are not receiving income because of disruptions to their work situation due to COVID-19.

Applicants will receive their CERB payments within 10 days of application. The CERB benefit will be paid every four weeks and available from March 15, 2020, until October 3, 2020.

Impact on Nonprofit Workers

The Ontario Nonprofit Network (ONN) has provided an analysis of the impacts of the CERB on nonprofits. Given that the majority of nonprofit sector staff are women, many are primary caregivers who will need to take time off to care for their families. The CERB provides relief for workers in the nonprofit sector who need to take time off to care for others as well as those who do not have access to work-from-home options or paid workplace leave. Additionally, the broad qualification criteria are particularly critical for nonprofit workers who do not qualify for EI – such as contract, freelance, gig, or self-employed workers – and for those in subsectors not currently prioritized to receive emergency COVID-19 relief – such as Arts and Culture, and Sport and Recreation.

As the COVID-19 pandemic continues to rapidly evolve and organizational closures have significant impacts on the economy, nonprofits and charitable organizations are put at a higher risk of vulnerability. The CERB provides some relief for nonprofit workers during this difficult time.

The application for CERB is now available on the Canada Revenue Agency website. Click here to apply. For more information and eligibility for the CERB, click here.

CCVO will continue to monitor any relevant policy announcements regarding COVID-19 and will update the sector on these developments.

For resources and policy updates, visit our COVID-19 Resources page.