Canada Worker Lockdown Benefit Act

An Act establishing the Canada worker lockdown benefit Short title This Act may be cited as the Canada Worker Lockdown Benefit Act. Definitions The following definitions apply in this Act. benefit period means the period set out in an order made under subsection 3(1). (période de prestations) competent authority means any entity lawfully entitled to impose public health measures, including the Government of Canada; the government of a province or territory; a municipality; a public health authority; and a council, government or other entity that is authorized to act on behalf of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982. (autorité compétente) COVID-19 means the coronavirus disease 2019. (COVID-19) Her Majesty means Her Majesty in right of Canada. (Sa Majesté) lockdown benefit means a Canada worker lockdown benefit referred to in section 8. (prestation de confinement) lockdown order means an order, regulation or other instrument made by a competent authority imposing, in the region specified in the order, regulation or other instrument, for reasons related to COVID-19, among other measures, during the period beginning on December 19, 2021 and ending on March 12, 2022, the closure to the public of premises where persons carry out commercial activities or provide services, that are not essential to preserving life, health, public safety or basic societal functioning, restrictions reducing by at least 50% the maximum number of persons that can enter or occupy premises where persons carry out commercial activities or provide services whether essential or not essential to preserving life, health, public safety or basic societal functioning, or a requirement that persons stay at home except for reasons that are essential to preserving life, health, public safety or basic societal functioning, or during any other period, the closure to the public of premises where persons carry out commercial activities or provide services that are not essential to preserving life, health, public safety or basic societal functioning, or a requirement that persons stay at home except for reasons that are essential to preserving life, health, public safety or basic societal functioning. (ordre de confinement) lockdown region means the region designated as a lockdown region in an order made under subsection 3(1). (région confinée) medical practitioner means a person who is entitled to practise medicine under the laws of a province. (médecin) Minister means the Minister of Employment and Social Development. (ministre) return of income means a return of income filed or required to be filed under Part I of the Income Tax Act in respect of a taxation year, other than a return of income filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4) of that Act. (déclaration de revenu) week means the period of seven consecutive days beginning on and including Sunday. (semaine) Designation of region The Governor in Council, on the recommendation of the Minister, may, for the purposes of this Act, designate by order, for the period set out in the order, any region in Canada as a lockdown region. Recommendation The Minister may make a recommendation only if the Minister is of the opinion that it is in the public interest to do so and that measures referred to in subparagraphs (a)(i) and (ii) of the definition lockdown order in section 2 that are set out in one or more lockdown orders apply in respect of a region for a period of at least 14 consecutive days or, if a lower number of days is fixed by regulation, that lower number of consecutive days. Period The period referred to in subsection (1) must begin on the Sunday of the week in which the measures referred to in subsection (2) begin to apply in the lockdown region, and end on the Saturday of the week in which those measures cease to apply in the lockdown region. Eligibility A person is eligible for a lockdown benefit for any week that falls within the period beginning on October 24, 2021 and ending on May 7, 2022 and within a benefit period if they have a valid Social Insurance Number; they were at least 15 years of age on the first day of the week; they were resident and present in Canada during the week; in the case of an application made in respect of a week beginning in 2021, they had, for 2020 or in the 12-month period preceding the day on which they make the application, a total income of at least $5,000 from the following sources: employment, self-employment, benefits to which they were entitled under the Canada Emergency Response Benefit Act or the Canada Recovery Benefits Act that were paid to them, benefits, as defined in subsection 2(1) of the Employment Insurance Act, paid to them under that Act, allowances, money or other benefits paid to them under a provincial plan because of pregnancy or in respect of the care by them of one or more of their newborn children or one or more children placed with them for the purpose of adoption, and any other source of income that is prescribed by regulation; in the case of an application made in respect of a week beginning in 2022, they had, for 2020 or for 2021 or in the 12-month period preceding the day on which they make the application, a total income of at least $5,000 from the sources referred to in subparagraphs (d)(i) to (vi); for reasons related to measures imposed by a lockdown order that applies in a lockdown region, they lost their employment in the period that begins on the first day on which the measures referred to in subsection 3(2) began to apply in the lockdown region and that ends on the expiry of the week and they were unemployed during the week, they were unable, during the week, to perform the work that they normally performed as a self-employed person immediately before those measures began to apply in the lockdown region, or if they were employed during the week or they performed self-employment work during the week, they had a reduction of at least 50% in their average weekly employment income or self-employment income for the week relative to in the case of an application made in respect of a week beginning in 2021, their total average weekly employment income and self-employment income for 2020 or in the 12-month period preceding the day on which they make the application, and in the case of an application made in respect of a week beginning in 2022, their total average weekly employment income and self-employment income for 2020 or for 2021 or in the 12-month period preceding the day on which they make the application; no income referred to in any of the following subparagraphs was paid or was payable to them in respect of the week: allowances, money or other benefits paid to them under a provincial plan because of pregnancy or in respect of the care by them of one or more of their newborn children or one or more children placed with them for the purpose of adoption, a Canada recovery sickness benefit or a Canada recovery caregiving benefit under the Canada Recovery Benefits Act, benefits, as defined in subsection 2(1) of the Employment Insurance Act, and any other income that is prescribed by regulation; during the period beginning on the first day on which the measures referred to in subsection 3(2) began to apply in the lockdown region and ending on the expiry of the week, they have not quit their employment or voluntarily ceased to work, unless it was reasonable to do so, and they have not failed to return to their employment when it was reasonable to do so, if their employer had made a request, failed to resume self-employment when it was reasonable to do so, or declined a reasonable offer to work in respect of work that would have started during the week; they were not, at any time during the week, required to quarantine or isolate themselves under any order made under the Quarantine Act as a result of entering into Canada or if they were required to do so at any time during the week, the only reason for their having been outside Canada was to receive a medical treatment that has been certified by a medical practitioner to be necessary, or accompany a person who has been certified by a medical practitioner to be incapable of travelling without the assistance of an attendant and whose only reason for having been outside Canada was to receive a medical treatment that has been certified by a medical practitioner to be necessary, or if, as a result of entering into Canada, they were required to isolate themselves under such an order at any time during the week, they are a person to whom the requirement to quarantine themselves under the order would not have applied had they not been required to isolate themselves; and they have filed a return of income in respect of the 2020 taxation year. Income from self-employment For the purpose of paragraphs (1)(d) to (f), income from self-employment is revenue from the self-employment less expenses incurred to earn that revenue. COVID-19 vaccination — paragraph (1)(f) Despite paragraph (1)(f), a person is not eligible for a lockdown benefit if they lost their employment, were unable to perform self-employment work or had a reduction in income because they refused to comply with a requirement to be vaccinated against COVID-19. COVID-19 vaccination — paragraph (1)(h) For the purposes of paragraph (1)(h), the refusal by a person to comply with a requirement to be vaccinated against COVID-19 is not a reasonable excuse to have quit their employment or voluntarily ceased to work or to have done anything referred to in subparagraphs (1)(h)(i) to (iii). 2021 return of income Despite subsection (1), a person who is paid a lockdown benefit in respect of a week beginning in 2021 who does not file a return of income for the 2021 taxation year by December 31, 2022 is deemed not to have been entitled to the lockdown benefit in respect of the week. 2021 and 2022 returns of income Despite subsection (1), a person who is paid a lockdown benefit in respect of a week beginning in 2022 who does not file a return of income for the 2021 and 2022 taxation years by December 31, 2023 is deemed not to have been entitled to the lockdown benefit in respect of that week. Application A person may, in the form and manner established by the Minister, apply for a lockdown benefit for any week that falls within the period beginning on October 24, 2021 and ending on May 7, 2022 and within a benefit period. Limitation No application is permitted to be made on any day that is more than 60 days after the end of the week to which the benefit relates. However, an application in relation to any week that ends before the day on which this subsection comes into force may be made within 60 days after the end of the week during which this subsection comes into force. Attestation Subject to subsection (2), a person must, in their application, attest that they meet each of the eligibility conditions referred to in paragraphs 4(1)(a) to (j). Exception — paragraphs 4(1)(d) and (e) A person is not required to attest to their income under paragraphs 4(1)(d) and (e) if they have previously received a lockdown benefit and they attest to that fact. Obligation to provide information An applicant must provide the Minister with any information that the Minister may require in respect of the application. Payment of benefit The Minister must pay a Canada worker lockdown benefit to a person who makes an application under section 5 and who is eligible for the benefit. Amount of payment The amount of a lockdown benefit for a week is $300. Regulations The Governor in Council may, by regulation, amend the definition lockdown order in section 2; fix a lower number of days for the purpose of subsection 3(2); prescribe any other source of income for the purpose of subparagraph 4(1)(d)(vi); and prescribe any other income for the purpose of subparagraph 4(1)(g)(iv). Replacement of May 7, 2022 The Governor in Council may, by regulation, on the recommendation of the Minister, amend subsections 4(1) and 5(1) to replace the date of May 7, 2022 by a date not later than July 2, 2022 and, if those provisions are amended by such a regulation, to amend those provisions again by replacing the date set out in them as a result of the previous regulation by a date not later than July 2, 2022. Social Insurance Number The Minister is authorized to collect and use, for the purposes of the administration and enforcement of this Act, the Social Insurance Number of a person who makes an application for a lockdown benefit. Provision of information and documents The Minister may, for any purpose related to verifying compliance or preventing non-compliance with this Act, by a notice served personally or by a confirmed delivery service, require that any person provide any information or document within the reasonable time that is stated in the notice. Obligation to appear The Minister may, for any purpose related to verifying compliance or preventing non-compliance with this Act, require a person who is applying for a lockdown benefit, or who has received such a benefit, to be at a suitable place — or to be available by audioconference or videoconference or in any other suitable manner — at a suitable time in order to provide any information or any document about their application for the benefit that the Minister may require in respect of the application. Entitlement to benefits A person who fails to fulfill or comply with a requirement under subsection (1) or (2) is not eligible for a lockdown benefit in respect of the week to which the application relates. Minister of Health The Minister of Health may assist the Minister in verifying whether a person meets the eligibility condition referred to in paragraph 4(1)(i) and may, for that purpose, disclose to the Minister personal information obtained under the Quarantine Act in respect of any person who is required to quarantine or isolate themselves under any order made under that Act as a result of entering into Canada, including their name and date of birth; the date on which they entered into Canada; and the date of the last day on which they are or were required to quarantine or isolate themselves under the order. Payments cannot be charged, etc. A lockdown benefit is not subject to the operation of any law relating to bankruptcy or insolvency; cannot be assigned, charged, attached or given as security; cannot be retained by way of deduction, set-off or compensation under any Act of Parliament other than this Act; and is not garnishable moneys for the purposes of the Family Orders and Agreements Enforcement Assistance Act. Return of erroneous payment or overpayment If the Minister determines that a person has received a lockdown benefit to which they are not entitled, or an amount in excess of the amount of such a benefit to which they are entitled, the person must repay the amount of the payment or the excess amount, as the case may be, as soon as feasible. Recovery as a debt to Her Majesty The amount of the erroneous payment or overpayment, as determined by the Minister, constitutes a debt due to Her Majesty as of the day on which the amount was paid and the debt is payable and may be recovered by the Minister as of the day the Minister determined the amount of the erroneous payment or overpayment. Garnishment — financial institution The Minister may, by a notice served personally or by a confirmed delivery service, order a financial institution, as defined in section 2 of the Bank Act, that holds or maintains a deposit account for a person who is indebted to Her Majesty under this Act to pay to the Receiver General from the deposit account all or part of the amount in respect of which the person is indebted to Her Majesty under this Act on account of the person’s liability to Her Majesty. Garnishment — employer The Minister may, by a notice served personally or by a confirmed delivery service, order the employer of a person who is indebted to Her Majesty under this Act to pay to the Receiver General from the remuneration that would be otherwise payable by the employer to the person all or part of the amount in respect of which the person is indebted to Her Majesty under this Act on account of the person’s liability to Her Majesty. Debt to Her Majesty An amount not paid as required by a notice under subsection (1) or (2) is if a day is specified in the notice as being the day on which the amount is to be paid, a debt due to Her Majesty as of the day after the day specified in the notice and the debt is payable and may be recovered by the Minister as of the day after the day specified in the notice; or if no day is specified in the notice as being the day on which the amount is to be paid, a debt due to Her Majesty as of the day after the day on which the notice is served and the debt is payable and may be recovered by the Minister as of the day after the day on which the notice is served. Discharge of liability The receipt by the Receiver General of money paid as required under subsection (1) or (2) is a good and sufficient discharge of the original liability of the person to the extent of the payment. Reconsideration of application Subject to subsection (5), the Minister may reconsider an application for a lockdown benefit within 36 months after the day on which the benefit has been paid. Decision If the Minister decides that a person has received money by way of a lockdown benefit to which they were not entitled, or has not received money by way of a lockdown benefit to which they were entitled, the Minister must calculate the amount of the money and notify the person of the Minister’s decision. Amount repayable Section 16 applies if the Minister decides that a person has received money by way of a lockdown benefit to which they were not entitled. Amount payable If the Minister decides that a person was entitled to receive money by way of a lockdown benefit, and the money was not paid, the amount calculated under subsection (2) is payable to the person. Extended time to reconsider claim If, in the opinion of the Minister, a false or misleading statement or representation has been made in connection with an application for a lockdown benefit, the Minister has 72 months within which to reconsider the application. Request for review A person who is the subject of a decision of the Minister made under this Act may make a request, in the form and manner established by the Minister, to the Minister for a review of that decision at any time within 30 days after the day on which they are notified of the decision or any further time that the Minister may allow. Clarification For the purpose of this section, a decision of the Minister includes the issuance of an order under subsection 17(1) or (2) and the person to whom the order is served and the person who would not be paid an amount as the result of the issuance of the order are each deemed to be a person who is the subject of a decision of the Minister. Review The Minister must review the decision if a request for its review is made under subsection (1). On completion of the review, the Minister must confirm, vary or rescind the decision. Notification The Minister must notify the person who made the request of the Minister’s decision under subsection (3). Certificate of default The amount of any debt due to Her Majesty under this Act may be certified by the Minister, and registration of the certificate in the Federal Court has the same effect as a judgment of that Court for the amount specified in the certificate and all related registration costs. Limitation or prescription period Subject to subsections (2) to (7), no action or proceedings are to be taken to recover money owing under this Act after the expiry of the six-year limitation or prescription period that begins on the day on which the money becomes payable. Deduction, set-off or compensation Money owing by a person under this Act may be recovered at any time by way of deduction from, set-off against or compensation against any sum of money, including any lockdown benefit, that may be payable by Her Majesty to the person, other than an amount payable under section 122.61 of the Income Tax Act. Acknowledgment of liability If a person’s liability for money owing under this Act is acknowledged in accordance with subsection (5), the time during which the limitation or prescription period has run before the acknowledgment does not count in the calculation of that period. Acknowledgment after expiry of limitation or prescription period If a person’s liability for money owing under this Act is acknowledged in accordance with subsection (5) after the expiry of the limitation or prescription period, an action or proceedings to recover the money may, subject to subsections (3) and (6), be brought within six years after the date of the acknowledgment. Types of acknowledgment An acknowledgment of liability means a promise to pay the money owing, made by the person or their agent or mandatary or other representative; an acknowledgment of the money owing, made by the person or their agent or mandatary or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay; a part payment by the person or their agent or mandatary or other representative of any money owing; or an acknowledgment of the money owing, made in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts, by the person, their agent or mandatary or other representative or the trustee or administrator. Limitation or prescription period suspended The running of a limitation or prescription period in respect of money owing under this Act is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the person to recover money owing under this Act; or during any period in which any review of a decision establishing the liability in respect of money owing under this Act is pending. Enforcement proceedings This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment. No interest payable No interest is payable on any debt due to Her Majesty under subsection 17(3), under section 26 and under any provision of this Act as a result of an erroneous payment or overpayment. Violations A person commits a violation if they knowingly make, in relation to an application for a lockdown benefit, a representation that is false or misleading; or make an application for, and receive, a lockdown benefit knowing that they are not eligible to receive it. Penalty The Minister may impose a penalty on a person if the Minister is of the opinion that the person has committed a violation. Amount of penalty The Minister may set the amount of the penalty for each violation at not more than 50% of the lockdown benefit that was or would have been paid as a result of committing the violation. Maximum The maximum amount of all penalties that may be imposed on a particular person under this section is $5,000. For greater certainty For greater certainty, no penalty may be imposed on a person if they mistakenly believe that a representation is true or that they were eligible to receive the lockdown benefit, as the case may be. Purpose of penalty The purpose of a penalty is to promote compliance with this Act and not to punish. Limitation of imposition of penalties A penalty must not be imposed under section 23 if a prosecution for the act that would constitute the violation has been instituted against the person; or more than three years have passed after the day on which that act occurred. Rescission or reduction of penalty The Minister may rescind the imposition of a penalty under section 23, or reduce the penalty, on the presentation of new facts or on being of the opinion that the penalty was imposed without knowledge of, or on the basis of a mistake as to, some material fact. Recovery as debt due to Her Majesty A penalty imposed under section 23 constitutes a debt due to Her Majesty and the debt is payable and may be recovered by the Minister as of the day on which the penalty is imposed. Offences Every person commits an offence who for the purpose of obtaining a lockdown benefit for themselves, knowingly uses false identity information or another person’s identity information; with intent to steal all or a substantial part of another person’s lockdown benefit, counsels that person to apply for the benefit; or knowingly makes, in relation to one or more applications under this Act, three or more representations that are false or misleading, if the total amount of the lockdown benefits that were or would have been paid as a result of the applications is at least $5,000. For greater certainty, a person does not commit an offence under paragraph (1)(a) in relation to false identity information if they mistakenly believe that the identity information is not false and does not commit an offence under paragraph (1)(c) if they mistakenly believe that the representations are true. Prosecution No prosecution for an offence under this section may be instituted if a penalty for the act that would constitute the offence has been imposed under section 23. Punishment Every person who is guilty of an offence under subsection (1) is liable on summary conviction to a fine of not more than the sum of $5,000 plus an amount of not more than double the amount of the lockdown benefit that was or would have been paid as a result of committing the offence, to imprisonment for a term of not more than six months, or to both. Definition of identity information In paragraph (1)(a), identity information has the same meaning as in section 402.1 of the Criminal Code. Designation — investigators The Minister may designate as an investigator any person or class of persons for the purpose of enforcing section 27. Authorization The Minister may authorize the Commissioner, as defined in section 2 of the Canada Revenue Agency Act, to designate as an investigator any employee or class of employees of the Agency, as defined in that section 2, for the purpose of enforcing section 27. Limitation period Proceedings in respect of an offence under this Act may be instituted at any time within, but not later than, five years after the day on which the Minister became aware of the subject matter of the prosecution. Consolidated Revenue Fund All money required to do anything in relation to this Act, including all money required by the Minister to administer and enforce this Act or by the Agency, as defined in section 2 of the Canada Revenue Agency Act, to administer and enforce this Act on behalf of the Minister, may, until March 31, 2026, be paid out of the Consolidated Revenue Fund. The Auditor General of Canada must, during the first year after the coming into force of this section, complete a performance audit of the benefits paid under the Canada Worker Lockdown Benefit Act and the Canada Recovery Benefits Act; the benefits paid under the Canada Emergency Response Benefit and the Canada Emergency Wage Subsidy programs; the efficiency of the benefits referred to in paragraphs (a) and (b) and the means to measure the effectiveness of those benefits; and any payments made under the Canada Emergency Response Benefit, the Canada Emergency Wage Subsidy, the Canada Worker Lockdown Benefit Act and the Canada Recovery Benefits Act to ineligible recipients and the response of the Canada Revenue Agency with respect to those payments. A report on the review completed under subsection (1) must be submitted to the Speaker of the House of Commons, who must table it before that House as soon as feasible after receiving it, or if the House is not then sitting, on the first day of the next sitting of the House.