Ontario has passed Bill 284 that amends the Employment Standards Act to support the COVID-19 Putting Workers First initiative.
Under this new standard employers must pay employees for up to three days of work (to a maximum of $200 per day) for any time lost due to COVID-19. This is retroactive to include the period April 19, 2021 through September 25, 2021. Employers may be reimbursed through the Workplace Safety and Insurance Board (WSIB). Here are some of the particulars.
Employee Qualifications
• Unable to work because they were/are affected by COVID-19 and are under investigation, supervision, or treatment. This includes the vaccine inoculations and any side effects that may have ensued.
• Directed to stay home because of COVID-19 symptoms
• Self-isolating due to COVID-19
• Caring for a COVID-19 patient
The employer cannot require a medical certificate but can require reasonable evidence.
Calculation of the Leave Benefit
The employer must pay the lesser of:
• Payment of $200 to the employee
• Wages the employee would have earned
• If the employee regularly receives commissions or tips, the greater of:
◦ Employee’s hourly rate for the number of hours the employee would have worked that day
◦ The minimum rate usually earned for the number of hours the employee would have worked that day
In any event, there is a cap of $200 that the employer would be obligated to pay.
There are a couple of exceptions:
• If the employee is currently entitled to three or more days of paid sick leave, the employee is not entitled to an extra three days
• If the employee is entitled to less than three days of sick leave, this Bill 284 will cover the difference
• If the paid leave falls during what would have been overtime, shift premium, or a public holiday, the employee only receives his or her regular rate
• These three days are applicable before any unpaid leave days
Reimbursement for Employers
So there is no undue hardship for the employer, they can apply for reimbursement from the WSIB.
• Completed WSIB application
• Statement that:
◦ Confirms payment
◦ Dates of the leave
◦ Date of payment
◦ Amount of payment
◦ Confirms that the employer was not otherwise required to make the payment
• Record of the payment
• Information about any claims filed with the WSIB about the employee
• Any other information they may require
The employer has 120 days after making payment to apply for the reimbursement.
Government forms can be confusing so be sure to double check all the information on the application and appropriate documentation. While the deadline is now September 25, it may be extended since COVID-19 is still impacting the economy.
If all of this is disorienting, don't hesitate to contact your accountant for clarification. New regulations can be difficult to understand and the forms unclear at times. A good accountant can help with advice and suggestions about the best options for your company.
Contact your Accountants today click on this link —> https://capexcpa.com/contact
- The Capex Team