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ARTICLE · 15 AUGUST 2020

Federal Government Extends The Canada Emergency Wage Subsidy Program: What Employers Need To Know

The Canada Emergency Wage Subsidy ("CEWS") program was launched in April of 2020 to help mitigate the impact of the COVID-19 pandemic to Canadian employers.

CanadaEmployment and HR

The Canada Emergency Wage Subsidy ("CEWS") program was launched in April of 2020 to help mitigate the impact of the COVID-19 pandemic to Canadian employers. Originally intended to run for a 24-week period from April to July, (see previous article here) the CEWS program has now been extended through to December 19, 2020.

This second wave of the program also differs from the first wave in some significant respects.

  1. As of July 5, 2020, CEWS claims are subject to modified eligibility criteria. Employers can claim a wage subsidy in respect of eligible remuneration1 paid to employees in a given month, provided that the employer has experienced any drop in revenue as compared to either that same month in 2019, or an average of January and February 2020 revenues. However, the amount of the subsidy will vary depending on the severity of the revenue decline and the month in respect of which the subsidy is sought. Employers that have experienced a revenue drop of 50% or

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