Canadian Federal Bill C-2 (Passed) Dec 16, 2021

Bill C-2 An Act to provide further support in response to COVID-19

Government House Bill sponsored by Deputy Prime Minister and Minister of Finance – Chrystia Freeland (WEF)

NOTE: Third reading in the House of Commons and ALL STAGES OF SENATE REVIEW were completed in one day – December 16, 2021.

SUMMARY

Part 1 amends the Income Tax Act and the Income Tax Regulations to extend subsidies under the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Rent Subsidy (CERS), and the Canada Recovery Hiring Program until May 7, 2022, as part of the response to the COVID-19 pandemic. Support under the CEWS and the CERS would be available to the tourism and hospitality sector and to the hardest-hit organizations that face significant revenue declines. Eligible entities under these rules would need to demonstrate a revenue decline over the course of 12 months of the pandemic, as well as a current-month revenue decline. In addition, organizations subject to a qualifying public health restriction would be eligible for support, if they have one or more locations subject to a public health restriction lasting for at least seven days that requires them to cease some or all of their activities. Part 1 also allows the government to extend the subsidies by regulation but no later than July 2, 2022.

Part 2 enacts the Canada Worker Lockdown Benefit Act to authorize the payment of the Canada worker lockdown benefit in regions where a lockdown is imposed for reasons related to COVID-19. It also makes consequential amendments to the Income Tax Act and the Income Tax Regulations.

Part 3 amends the Canada Recovery Benefits Act to, among other things,

(a) extend the period within which a person may be eligible for a Canada recovery sickness benefit or a Canada recovery caregiving benefit;

(b) increase the maximum number of weeks in respect of which a Canada recovery sickness benefit is payable to a person from four to six; and

(c) increase the maximum number of weeks in respect of which a Canada recovery caregiving benefit is payable to a person from 42 to 44.

It also makes a related amendment to the Canada Recovery Benefits Regulations.

Part 3.‍1 provides for the completion of a performance audit and tabling of a report by the Auditor General of Canada in respect of certain benefits.

Part 4 amends the Canada Labour Code to, among other things, create a regime that provides for a leave of absence related to COVID-19 under which an employee may take

(a) up to six weeks if they are unable to work because, among other things, they have contracted COVID-19, have underlying conditions that in the opinion of certain persons or entities would make them more susceptible to COVID-19 or have isolated themselves on the advice of certain persons or entities for reasons related to COVID-19; and

(b) up to 44 weeks if they are unable to work because, for certain reasons related to COVID-19, they must care for a child who is under the age of 12 or a family member who requires supervised care.

It also makes a related amendment to the Budget Implementation Act, 2021, No. 1.

House of Commons:

First Reading – November 24, 2021
Second Reading December – 2, 2021
Consideration in Committee – December 14, 2021
Report Stage – December 16, 2021
Third Reading – December 16, 2021