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CEWS Extended to December 2020

An Act Respecting further COVID-19 Measures received Royal Assent on July 27, 2020. This Act in part extends the Canada Emergency Wage Subsidy (CEWS). As outlined in a press release also published on July 27, the this legislation:

  1. Changes the CEWS eligibility threshold so that certain employers who cannot meet the 30% revenue loss test, but who are still struggling, can receive the benefit;
  2. Adds a top-up to the subsidy of an additional 25% for employers that have been most adversely affected by COVID-19; and
  3. Suspends some of the limitation periods applicable to civil and other non-criminal Federal Court proceedings, previously introduced in Bill C-17.

The government has posted an updated CEWS calculator to help employers calculate the subsidy amount for the new qualifying periods of:
  • June 7, 2020 to July 4, 2020;
  • July 5, 2020 to August 1, 2020 (Claim Period 5);
  • August 2, 20202 to August 29, 2020 (Claim Period 6);
  • August 30, 2020 to September 26, 2020 (Claim Period 7);
  • September 27, 2020 to October 24, 2020 (Claim Period 8);
  • October 25, 2020 to November 21, 2020 (Claim Period 9); and
  • "a prescribed period that ends no later than December 31, 2020"
There is also a list of which employers can apply for the CEWS. 

Revenue Drop Rate Determines Subsidy Amount

Rather than requiring employers to show a minimum revenue drop of 30% in 2020 when compared to the prior reference period (as an employer must prove for the first few qualifying periods), the revenue drop rate now determines the subsidy amount for Claim Periods 5 to 9. The improved online calculator takes employers through a step-by-step process to determine the subsidy amount.
 

Period 5 Application Opening August 17, 2020

The CEWS application for Claim Period 5 (July 5, 2020 to August 1, 2020) opens August 17, 2020. Before applying for the subsidy in any claim period, employers can confirm whether the application is open with respect to any particular claim period. Employers can currently apply for the CEWS for any Claim Period from March 15, 2020 to July 4, 2020 (i.e. Claim Periods 1 to 4).
 
For more information about the CEWS, please see our previous blog posts.

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 CEWS, or if you have any other questions regarding your employment or other legal issue, please contact our office for a consultation with one of our lawyers.
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