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How Do Our Employees get Paid during this COVID-19 Pandemic Crisis?

So much information is coming in from multiple sources and it has been challenging for everyone, including employers, to try to decipher how employees are to be paid under certain circumstances to do with Covid-19 related issues.

Here is a summary of some of the information we have learned about so far:

What if the Employer is closing their doors temporarily (forced or due to lack of work)?

If your employees are healthy, however the business is out of work at this time due to a temporary stoppage of work for pandemic-related circumstances, consider these options for employees first if applicable/possible: Is there work Employees can perform at home? Do Employees have Banked Time they can use? Can Employees use accrued Vacation time to ensure they receive full pay during this unknown time? 

If the above is not an option or is not applicable (or has become exhausted & still no work):

Employees can apply for EI and the Record of Employment (ROE) code would be “A”- Shortage of Work/Lay Off. 

Apply for a company Work-Sharing program (only if hours have been reduced-not a full closure)

When there is a shortage of hours at work, there is a group EI option called Work-Sharing (WS).  All employees affected by the shortage of hours would need to agree to the work-share, and the employer would need to assist their employees with how to proceed. Work-Sharing Information

An application for a Work-Sharing agreement must be submitted a minimum of 30 days prior to the requested start date.

Supplementary Unemployment Benefit Plan (SUBP)

Another consideration for the employer (if financially feasible), is to top-up employees while they are on EI. This is referred to as a Supplementary Unemployment Benefit Plan. Although this may sound similar to that of a parental leave top-up, there are some distinct differences to be aware of (i.e. Registered versus Not Registered), and the total employee wages are not to exceed 95% of the employee’s normal earnings. 

What if we have an employee who is sick?

Firstly, remember that employees are to stay at home if they are sick– regardless of whether public health told them to get tested or not. This is still our ‘normal flu season’ and not everyone who’s sick has fallen ill with Covid-19. 

Here’s the new protocol:

Self-Assessment: Tell employees who are concerned they may have Covid-19 to take the  Self-Assessment Tool.  

The results of this assessment will instruct the employee as to what to do next (i.e. Self-isolate and contact Public Health). As an employer, start by treating this situation as you normally would. Allow the employee to use their sick days (paid sick days offered by company first, if applicable), after any paid sick days provided, employees will have access to remaining unpaid sick or family responsibility days through the ESA. 

What if an employee is diagnosed with Covid-19?

Note that the majority of COVID-19 illnesses are mild. From the results of a self-assessment, a clinician can help guide whether you will require further care or potential testing in person. Let them know that you have used this self-assessment tool.

Firstly, if Public Health allows them to be tested, it is because of their symptoms AND their circumstances suspect them to be at risk of having Covid-19.  An example of this would be a fever and cough AND they have recently travelled.  A second example is the person is experiencing symptoms AND they are living with someone who has Covid-19.  In these cases, the self-assessment says to self-isolate and contact public health.  If the Covid-19 test comes back positive, then the EI one (1) week waiting period is waived (paid) for Covid-19 Quarantines

Short-Term Disability (STD)
The employee can apply for STD when they are home sick with Covid-19.  If there is no STD in the business benefit program, then the employee would apply for EI. Employers need to be aware of the eligibility requirements of their STD.  For example, some providers will not grant STD unless employees have contracted Covid-19.

What if a High Risk or Vulnerable Employee wants to avoid the workplace as a precaution?

In these situations, such as a pregnant employee or an employee with a compromised immune system, the same pay approach as a work closure would apply here if applicable: Work from homeUse their Banked time/lieu time accrued, Use their vacation days.  Employees may apply for EI after all options with pay are exhausted or not applicable. Recall that employees applying for EI that are NOT sick with Covid-19 will have one week without pay (waiting period). In other words, EI would only kick in after employees have had a one-week waiting period (without pay from their employer).

What if an Employee is generally worried about risks, without any special circumstances?

Some workplaces are still open, and employers need to be sympathetic to a panic situation during this time of crisis.  Ontario has declared a state of emergency, and it’s understandable that it will cause employees to be generally worried about their health and the health of their families.  Ensure them that you are abiding by Public Health’s and other Regulations and preventative measures that help to keep employees safe and include what you are doing as an employer to help prevent sickness at your workplace specifically.

Despite all of this, employees may want to stay at home even if their place of work is not considered high risk for exposure. Employers are to investigate every concern brought up by an employee and confirm the findings with the employee (i.e. There is very little risk and the employee is to remain at work).  Ultimately, eligibility of EI collection is up to Service Canada in all EI cases. 

What if the employer gets it wrong? 

Let’s give employers the benefit of the doubt – We are all learning as we go, and we are in new territory with regulations rapidly adapting and changing during this time of uncertainty.  

Employers are doing their best and the top priority is keeping employees safe, while trying to stay in business with short-term interruptions.   The key here is communication and working things out together as we go. 

CulturedHR has put together a Pandemic Preparedness Page for Businesses with a listing of collected resources. If you have any questions, we would be happy to discuss your individual situation. 

The information above can be used as a general recommendation, as always it is best to discuss drastic measures with an Employment Lawyer. We would be happy to give our recommendation. 

Stay Safe

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