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Federal government extends expanded availability of Local Lockdown Program and Canada Worker Lockdown Benefit

On February 9, 2022, the federal government (the “Government”) announced that it would extend certain expansions to COVID-19 support programs to assist businesses and workers through ongoing public health restrictions. Using regulatory authority provided in Bill C-2 (our article on which can be found here), the Government proposed to extend the expanded access to the following programs by one month from the initial expiry date, February 12, 2022, to March 12, 2022:

  • Local Lockdown Program: Employers subject to capacity-limiting restrictions of 50% or more, and with current-month revenue declines of at least 25% would continue to be eligible. Based on the percentage of revenue loss, eligible employers would receive wage and rent subsidies from 25% up to a maximum of 75%. As before, employers need not satisfy the 12-month revenue decline test.

  • Canada Worker Lockdown Benefit: Workers in regions with capacity-limiting restrictions of 50% or more would continue to be eligible for a benefit of $300 per week in income support if they are subject to a COVID-19-related public health lockdown order and as a result are unable to work or have lost 50% or more of their income.

The news release relating to the Government’s announcement can be found here.

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For assistance, please contact any member of our National Tax or Labour & Employment teams.

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