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Expanding the CERB: Is Temporary Basic Income Coming?

Prime Minister Justin Trudeau announced today that the government is looking into how to help individuals who do not currently qualify for the CERB. For instance, individuals who are currently working but receiving less than the $2,000 benefit amount are ineligible for the CERB because they do not meet the eligibility requirement that they have been out of work for 14 consecutive days. Individuals who are able to work but have seen a drop in their income due to COVID-19 are also ineligible for the same reason. For instance, a private self-employed music teacher who continues to teach remotely but experiences a drop in enrolment is currently ineligible because he or she remains working.

The Prime Minister's announcement also alluded to how the government might remedy this situation. During the question period, Mr. Trudeau suggested that the government might extend the CERB to individuals who, for instance, meet a threshold number of reduced working hours due to COVID-19, or who are earning less than $500.00 per week. If this is the case, then one approach the government could take is to structure the CERB as a temporary basic income where the benefit provides a "top-up" equal to the difference between an individual's weekly pay and the CERB $500 weekly entitlement (as the benefit is $2,000 every 4 weeks). How the government extends the benefit further remains to be seen.

More to Come 

There are clearly more announcements to come on this topic and it appears that Parliament may soon be recalled to address the Wage Subsidy and perhaps the CERB as well. For updates, be sure to check the Sheppard Law Blog on a regular basis.

In the meantime, if you currently qualify for the CERB, be sure to review the CRA website for information on how to apply and apply through your CRA My Account.

For more information on whether you are eligible, please see our previous blog post about the CERB and the associated links.

Note: while this blog and the information above provides general information, it does not constitute legal advice. The best way to get guidance on your specific legal issue is to contact a lawyer. For more information about the benefits available to you, or if you have any other questions regarding your employment issue, please contact our office for a consultation with one of our lawyers.

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