Order Amending the Lockdown Regions Designation Order (COVID-19): SOR/2021-277
Canada Gazette, Part II, Volume 156, Number 2
Registration
SOR/2021-277 December 29, 2021
CANADA WORKER LOCKDOWN BENEFIT ACT
P.C. 2021-1072 December 29, 2021
Whereas “lockdown orders”, as defined in section 2 of the Canada Worker Lockdown Benefit Act footnote a, have been made with respect to COVID-19 outbreaks in additional regions to those set out in the Lockdown Regions Designation Order (COVID-19) footnote b, imposing measures referred to in subparagraphs (a)(i) and (ii) of that definition that apply to those regions for at least seven consecutive days;
And whereas the Minister of Employment and Social Development is of the opinion that it is in the public interest that an order designating those additional regions as lockdown regions be made for the benefit periods set out in the annexed Order;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Employment and Social Development, pursuant to section 3 of the Canada Worker Lockdown Benefit Act footnote a, makes the annexed Order Amending the Lockdown Regions Designation Order (COVID-19).
Order Amending the Lockdown Regions Designation Order (COVID-19)
Amendment
| Item | Column 1 Lockdown region |
Column 2 Benefit period |
|---|---|---|
| 11 | Ontario | Beginning on December 19, 2021 and ending on the Saturday of the week in which the lockdown measures imposed by the government of Ontario cease to apply in the region |
| 12 | Quebec | Beginning on December 19, 2021 and ending on the Saturday of the week in which the lockdown measures imposed by the government of Quebec cease to apply in the region |
| 13 | Nova Scotia | Beginning on December 19, 2021 and ending on the Saturday of the week in which the lockdown measures imposed by the government of Nova Scotia cease to apply in the region |
| 14 | New Brunswick | Beginning on December 19, 2021 and ending on the Saturday of the week in which the lockdown measures imposed by the government of New Brunswick cease to apply in the region |
| 15 | Manitoba | Beginning on December 19, 2021 and ending on the Saturday of the week in which the lockdown measures imposed by the government of Manitoba cease to apply in the region |
| 16 | British Columbia | Beginning on December 19, 2021 and ending on the Saturday of the week in which the lockdown measures imposed by the government of British Columbia cease to apply in the region |
| 17 | Prince Edward Island | Beginning on December 19, 2021 and ending on the Saturday of the week in which the lockdown measures imposed by the government of Prince Edward Island cease to apply in the region |
| 18 | Alberta | Beginning on December 19, 2021 and ending on the Saturday of the week in which the lockdown measures imposed by the government ofAlberta cease to apply in the region |
| 19 | Newfoundland and Labrador | Beginning on December 19, 2021 and ending on the Saturday of the week in which the lockdown measures imposed by the government of Newfoundland and Labrador cease to apply in the region |
| 20 | Nunavut | Beginning on December 19, 2021 and ending on the Saturday of the week in which the lockdown measures imposed by the government of Nunavut cease to apply in the region |
Coming into Force
2 This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issues
In September 2020, the Government of Canada introduced the Canada Recovery Benefit to provide financial support for workers who lost employment because of the COVID-19 pandemic. While economic recovery and labour market conditions have improved and employment has regained pre-pandemic levels, lockdown measures continue to be important in controlling the spread of COVID-19 in some regions. In October 2021, the Government of Canada announced the intention to introduce targeted benefits for workers who lose employment income in regions where public health lockdowns are occurring. The Canada Worker Lockdown Benefit Act (the Act) was created to provide financial assistance in specified regions for specified periods of time. The Order Amending the Lockdown Regions Designation Order (COVID-19) [the Order] designates specific regions as “lockdown regions” within the meaning of the Act and allows affected workers in these areas to apply for income support through the Canada Worker Lockdown Benefit (CWLB).
Without this designation, the benefit would not be accessible to eligible workers in regions that currently have or had lockdown measures imposed.
The Order directly supports the Government of Canada’s flexible response to COVID-19 and the analytical requirements have been adjusted to permit a timely and effective response.
Objective
To designate regions which meet the definition of a “lockdown region” under the Act thereby allowing eligible workers to claim income support through the CWLB for a specified period.
Description and rationale
Recognizing that some workers require targeted income support if a lockdown is imposed in a region to prevent the spread of COVID-19, the Government introduced Bill C-2, An Act to provide further support in response to COVID-19, which received royal assent on December 17, 2021. This bill enacted the Canada Worker Lockdown Benefit Act (the Act), which provides for the CWLB, available until May 7, 2022.
The CWLB is designed to provide targeted and temporary income support to workers whose employment is interrupted by a designated COVID-19 public health lockdown. These payments will provide income support to workers who have lost their employment or are unable to perform work as a self-employed person, or who have a reduction in income of at least 50%, due to a measure in a lockdown order.
The Regulations Amending the Canada Worker Lockdown Benefit Act (Lockdown Order Definition and Minimum Lockdown Period) [the Regulations] have been introduced to temporarily expand the definition of “lockdown order” to include capacity-limiting restrictions of 50% or more. These amendments will permanently remove the requirement that non-compliance with an order must be an offence resulting in a sanction or administrative monetary penalty. They will also reduce the required number of consecutive days of eligible lockdown orders from 14 to 7.
The Act specifies that the Governor in Council (GiC), on the recommendation of the Minister of Employment and Social Development (the Minister), may designate by order any region in Canada as a lockdown region, for a specific period. The Minister may make the recommendation to the GiC only if the Minister is of the opinion that it is in the public interest and that measures referred to in the definition of “lockdown order” in section 2 of the Act, as modified by the Regulations, have been in place for at least seven consecutive days.
Benefit access is retroactive to the week beginning December 19, 2021.
Regions recommended as meeting the definition of a lockdown region
Newfoundland and Labrador
Since December 27, 2021, public health orders have been imposed across the province for at least seven consecutive days requiring some non-essential businesses and facilities to reduce capacity to 50%. These include, but are not limited to, gyms, fitness facilities, dance or yoga studios and arenas. In addition, bars can operate at 50% capacity with physical distancing requirements, and restaurants at 75% with physical distancing. These orders are made by the Chief Medical Officer of Health pursuant to section 28 of Newfoundland and Labrador’s Public Health and Promotion Act.
Nova Scotia
Since December 29, 2021, a public health order has been imposed for at least seven consecutive days requiring some non-essential businesses and facilities for the entire province of Nova Scotia to restrict capacity to 50% for restaurants, casinos, retail stores, indoor recreation, leisure activities, fitness facilities, museums and libraries. In addition, movie theatres can operate at 25% capacity. These orders are made under section 32 of Nova Scotia’s Health Protection Act.
Prince Edward Island
Since December 29, 2021, an order has been imposed for at least seven consecutive days requiring many non-essential businesses and facilities to reduce capacity to 50% for the entire province of Prince Edward Island. This includes, but is not limited to, restaurants, fitness facilities, and facilities hosting organized gatherings. This order implemented stricter public health measures that continue to meet the definition of a lockdown. These measures were made under section 39 of Prince Edward Island’s Public Health Act.
New Brunswick
Since December 24, 2021, a public health order has been imposed for at least seven consecutive days requiring some non-essential businesses and facilities to restrict capacity to 50% for the entire province of New Brunswick. This includes, but is not limited to, movie theatres, professional sporting venues, and casinos. Restaurants must adhere to two metres of distance. The provisions are under Regulation 2021-67 of New Brunswick’s Public Health Act.
Quebec
Since December 27, 2021, a public health order has been imposed for at least seven consecutive days requiring some non-essential businesses and facilities to be closed to the public for the entire province of Quebec. This includes, but is not limited to, the closure of bars, casinos, movie theatres, physical training rooms, amusements, recreational centres, and zoos. In addition, there are capacity limits for other businesses based on square footage, indoor dining restrictions, and restrictions on schools and daycares. These orders are made under section 118 of Quebec’s Public Health Act.
Ontario
Since December 27, 2021, the Ontario government, in consultation with the Chief Medical Officer of Health, has imposed for at least seven consecutive days an order that some non-essential businesses and facilities are limited to 50% capacity. These include, but are not limited to, restaurants, bars, personal care services, retailers, gyms, recreational facilities, meeting and event space, museums, casinos, concert venues, theatres, cinemas and bingo halls. These measures are made under Ontario Regulation 364/20 of the Reopening Ontario (A Flexible Response to COVID-19) Act.
Manitoba
Since December 28, 2021, a public health order has been imposed for at least seven consecutive days requiring many non-essential businesses and facilities to reduce capacity to 50% for the entire province of Manitoba. This includes, but is not limited to, restaurants, premises subject to a liquor service licence, movie theatres, gyms, libraries, museums, and sporting and recreational facilities. The order is made under clauses 67(2)(c), (d), and (d.1) of Manitoba’s Public Health Act.
Alberta
Since September 27, 2021, an order has been imposed for at least seven consecutive days requiring that some non-essential businesses have to reduce capacity below 50% or to 33% of their capacity. Additional measures were added on December 21, 2021. This includes, but is not limited to, retail and shopping malls which are restricted to 33% of the fire code occupancy, and other facilities which do not implement the Restrictions Exemption Program requiring proof of vaccination, negative test results or medical exemption for patrons 12 years of age and over. These measures are made under section 29 of Alberta’s Public Health Act.
British Columbia
Since December 29, 2021, an order has been imposed for at least seven consecutive days that some non-essential businesses and facilities are closed to the public. This includes bars, nightclubs, lounges, adult gyms, fitness centres and dance studios. In addition, indoor events at venues are restricted to 50% capacity while restaurants must adhere to two-metre physical distancing or physical barriers between tables. The order is pursuant to sections 30, 31, 32, 39, 54, 56, 67(2), and 69 of British Columbia’s Public Health Act.
Nunavut
Since December 28, 2021, an order has been imposed for at least seven consecutive days that some non-essential businesses have to reduce capacity below 50% or 25% of their capacity. This includes gyms, fitness centres, pools, libraries, museums, galleries and arenas. This order is pursuant to subsection 41(1) of Nunavut’s Public Health Act.
The Minister is of the opinion that the “lockdown order” definition has been met for the provinces and territory listed above, and has made a recommendation to the Governor in Council. The Order, made pursuant to section 3 of the Act, designates the provinces of Newfoundland and Labrador, Nova Scotia, Prince Edward Island, New Brunswick, Quebec, Ontario, Manitoba, Alberta and British Columbia and the territory of Nunavut as lockdown regions and allows workers who meet the eligibility requirements in these provinces and territory to receive lockdown benefits under the Act from December 19, 2021, to the Saturday of the week in which the lockdown measures end.
Consultation
Members of Parliament and Senators have examined Bill C-2, An Act to provide further support in response to COVID-19, as part of the legislative process and asked witnesses to provide their views on aspects of the CWLB contained in the legislation, including the process to designate lockdown regions. Generally, members acknowledged the need to continue providing financial supports to workers during the ongoing COVID-19 pandemic, particularly with the emergence of the Omicron variant. Some questions and concerns were raised with respect to the administration and post-verification methods of the past benefits, i.e. the Canada Emergency Response Benefit (CERB) and the Canada Recovery Benefit. An amendment was made to the Bill requiring the Auditor General to complete a performance audit of the Act, one year following royal assent.
The CWLB has received public and media attention since it was announced on October 21, 2021. Initial reaction was primarily neutral and factual. There was some reaction to the announcement that the benefit would not be available to those who lost work due to non-compliance with their employer’s vaccination policies. Currently, the majority of Canadians strongly or somewhat support COVID benefits. iPolitics reported a new poll by Mainstreet Research that found that about one third of Canadians are strongly in favour of keeping the COVID supports in place, while one quarter is somewhat in favour. Another quarter is strongly opposed, while 16% are somewhat opposed. footnote 1
On December 22, 2021, the Government of Canada announced its intention to temporarily expand eligibility for key support programs, including the CWLB, to ensure Canadians are protected, and workers get the financial support they need to sustain them through the new public health restrictions.
The Order responds directly to the continuing and extraordinary economic circumstances posed by the COVID-19 pandemic. These measures need to be in place expeditiously to be effective. Consequently, consultations were not undertaken and the Order was granted an exemption from prepublication in the Canada Gazette, Part I.
Cost-benefit analysis
The proposal directly supports the Government of Canada’s response to COVID-19 and the analytical requirements for cost-benefit analysis have been adjusted to permit a timely and effective response.
The program costs for designating each of the provinces as a lockdown region is estimated to be the following:
| Region | Cost estimate in billions (low) | Cost estimate in billions (high) |
|---|---|---|
| Newfoundland and Labrador | 0.1 | 0.2 |
| Nova Scotia | 0.1 | 0.3 |
| Prince Edward Island | 0.02 | 0.05 |
| New Brunswick | 0.1 | 0.2 |
| Quebec | 1.1 | 2.6 |
| Ontario | 1.9 | 4.3 |
| Manitoba | 0.2 | 0.4 |
| Alberta | 0.6 | 1.4 |
| British Columbia | 0.7 | 1.5 |
| Nunavut | 0.04 | 0.1 |
| Total | 4.8 | 10.8 |
The higher end of the range of the cost estimate is calculated as two weeks multiplied by the labour force size (in 2016) in the province (designated region), multiplied by the weekly benefit rate ($300). The low end of the range of the cost estimate is the high end of the cost estimate multiplied by the percentage of the Canadian labour force that applied for the CERB during the time it was available (44%).
Benefit periods begin on the Sunday of the week in which the lockdown measures began to apply in the designated region and will end on the Saturday of the week in which those measures cease to apply in the designated region. The program cost estimates do not reflect lockdowns continuing beyond a two-week period; however, it is possible that the lockdowns in some or all of these regions will continue beyond that date. The regions will remain designated as lockdown regions until the Saturday of the week in which the lockdown measures cease to apply in the region and these forward-looking scenarios are not reflected in the estimates.
Estimates for administrative costs for the Canada Revenue Agency (CRA) are not available.
All of the program and operating costs will be sourced from the Consolidated Revenue Fund (CRF), until March 31, 2026, in accordance with section 29 of the Act.
Health benefits
The Order is also expected to have some health benefits related to mitigating the spread of COVID-19. Monetizing the health benefits is difficult, in part due to the uncertainties regarding the path of the pandemic, the frequency that public health lockdowns will be introduced and their duration. However, it is likely that the monetized value of these benefits would be significant.
Indirect economic benefits
The additional income supports to individuals who, because of the lockdown order, are unable to work and would otherwise have no or reduced income will provide indirect economic benefits that arise from the spending of these income supports in the economy. This spending will likely help keep some self-employed individuals and businesses, who would have experienced revenue loss or which would have otherwise had to close, operational during and after the lockdown. This in turn will likely assist with accelerating the economic recovery coming out of the lockdown. In addition, access to the additional income supports could have indirect societal impacts by reducing the risk of homelessness or childhood poverty.
Small business lens
Analysis under the small business lens concluded that the Order will not impact Canadian small businesses. No regulatory administrative or compliance burden on small businesses has been identified.
One-for-one rule
The one-for-one rule does not apply, as there is no incremental change in administrative burden on business.
Regulatory cooperation and alignment
The Order does not have implications for international agreements (trade, environmental, human rights, etc.) obligations, or voluntary standards. It is not aimed at minimizing or reducing regulatory differences, nor at increasing regulatory compatibility with another jurisdiction. It does not introduce specific Canadian requirements that differ from existing regulations in other jurisdictions for an international program. It does not seek to enable regulatory alignment with the United States as committed to under the Joint Action Plan for the Canada-United States Regulatory Cooperation Council.
Implementation
Health Canada and the Public Health Agency of Canada monitor and report on the COVID-19 pandemic across Canada and will support and inform Employment and Social Development Canada on the current public health restrictions across the country. This information will assist the Minister in making a recommendation to the GiC to designate a region as a lockdown region.
The CRA administers and enforces the recovery benefits programs and the CWLB on behalf of the Government of Canada and will utilize the same systems and processes for the CWLB as were used for the administration of the recovery benefits. The CRA already has the infrastructure in place and the processing system is prepared to allow the CWLB benefits to be paid.
Existing implementation and enforcement mechanisms contained in the CRA’s adjudication and controls procedures will ensure proper implementation. These include for instance, functionality to perform client accounting, withholdings, issuance of tax slips to applicants, support for individual eligibility and entitlement, tax assessment activities, and support for post-payment compliance and verification activities.
The Order comes into force upon registration.
Contact
George Rae
Director
Employment Insurance Policy
Skills and Employment Branch
Employment and Social Development Canada
140 Promenade du Portage, 7th Floor
Gatineau, Quebec
K1A 0J9
Email: george.rae@hrsdc-rhdcc.gc.ca