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Business owners are being challenged by a rapidly changing work environment due to the COVID-19 (coronavirus) pandemic. Canadian officials are implementing policies that affect businesses, consumers, and employees daily. Here is a brief overview of Canadian businesses’ rights and responsibilities concerning employment issues and creating a safe workplace. Many of these regulations are brand new, and the details are still being determined.
The Better Business Bureau strongly encourages business owners to check their provincial websites directly for updates, as policies can vary. Check with the Canadian Government website to ensure that you are receiving accurate information.
Employers: To provide immediate relief and ensure the Canadian economy is position to adequately recover from the coronavirus crisis, several initiatives were enacted:
- Canada Emergency Business Account, which provides interest-free loans of up to $40,000 to small businesses and not-for-profits through their financial institutions. Up to 25% of the loan will be forgiven if repaid by December 31, 2022. More details to follow.
- Canada Emergency Wage Subsidy (CEWS) applied at a rate of 75% on the first $58,700 earned by employees, representing a benefit of $847 per week. The program will be in place for a 12-week period, retroactive to March 15 and ending June 6, 2020. Eligible businesses of all sizes and from all sectors of the economy, regardless of the number of workers they employ, that suffer a drop of at least 30% in gross revenues due to COVID-19 in March, April or May, when compared to the same month in 2019, would be able to access the subsidy.
- A new loan guarantee was created through Export Development Canada (EDC), which provides operating credit and cash-flow term loans of up to $6.25 million.
- A new co-lending program through the Business Development Bank of Canada (BDC), which will team up with financial institutions to co-lend term loans to support cash-flow requirements.
Employees: The Prime Minister announced initiatives to cover salaries for small and medium businesses. The Canada Emergency Response Benefit (CERB) provides $2,000 a month for up to four months to workers and entrepreneurs who are not receiving a paycheque.
- The one week waiting period has been waived for required medical documents to obtain employment (EI) and extra Canada Child Benefit payments to help working families are available.
- They’re cancelling the penalties for Canadians who are unable to file tax returns or make tax payments on time.
- Additional information for employees may be found on the COVID-19 Economic Response Plan page.
More information on these initiatives and benefits can be found on the Resources for Canadian Businesses website.
BBB has compiled business resources for localities across the United States and Canada at BBB.org/resources and BBB.org/SmallBusiness. Also see BBB.org/COVID.
More coronavirus information is available, including information on scams, price gauging, and charitable donations, at BBB.org/Coronavirus.