Bill C-2 explained in plain English
An Act relating to economic recovery in response to COVID-19
Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Parliament of Canada snapshot for 43rd Parliament, 2nd Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
Bill C-2 establishes three temporary income-support benefits for eligible Canadians affected by COVID-19, amends workplace leave provisions, and extends payment authorities for COVID-19 response measures.
Bill C-2, the COVID-19 Economic Recovery Act, is a federal bill passed in response to the COVID-19 pandemic. It has three main parts. Part 1 creates a new law called the Canada Recovery Benefits Act. This law establishes three new financial benefits for eligible Canadians: - The Canada Recovery Benefit: provides $500 per week for up to 13 two-week periods to people who lost work or had at least a 50% reduction in income due to COVID-19 between September 27, 2020 and September 25, 2021. - The Canada Recovery Sickness Benefit: provides $500 per week for up to 2 weeks to people who were unable to work because they contracted or might have contracted COVID-19, or isolated on health advice, during the same period. - The Canada Recovery Caregiving Benefit: provides $500 per week for up to 26 weeks to people who had to care for a child under 12 or a family member requiring supervised care due to COVID-19 closures or health concerns during the same period. To qualify for these benefits, applicants must have a valid Social Insurance Number, be at least 15 years old, be resident in Canada, and have earned at least $5,000 from employment, self-employment, or certain other sources in 2019 or in the year they apply. Applicants must attest to their eligibility when applying. The Minister of Employment and Social Development administers these benefits. People who earn more than $38,000 per year must repay some or all benefits received (50 cents for every dollar earned above $38,000). Part 1 also makes related changes to the Income Tax Act and Income Tax Regulations to allow people to deduct repayments of these benefits from their taxes. Part 2 amends the Canada Labour Code to change the COVID-19-related leave provisions for federally regulated employees. It extends certain leave periods and gives the Governor in Council power until September 25, 2021 to make regulations that waive or modify health practitioner certificate requirements in certain circumstances. It also updates related provisions in the COVID-19 Emergency Response Act and repeals certain interim regulations. Part 3 amends the Public Health Events of National Concern Payments Act (from the earlier COVID-19 Emergency Response Act) to limit the payments that can be made from October 1 to December 31, 2020 to specified COVID-19 measures up to set dollar amounts, and postpones the repeal of that Act from September 30, 2020 to December 31, 2020. The bill was at second reading stage in the House of Commons when the provided information was created.
- Creates the Canada Recovery Benefit: a temporary benefit paying $500 per week for up to 13 two-week periods to people aged 15+ with a minimum $5,000 prior income who lost work or had a 50%+ income reduction due to COVID-19 between September 27, 2020 and September 25, 2021
- Creates the Canada Recovery Sickness Benefit: a temporary benefit paying $500 per week for up to 2 weeks to people aged 15+ with a minimum $5,000 prior income who were unable to work due to COVID-19 infection, possible infection, or isolation on health advice during the same period
- Creates the Canada recovery caregiving benefit: a temporary benefit paying $500 per week for up to 26 weeks to people aged 15+ with a minimum $5,000 prior income who had to care for a child under 12 or a family member requiring supervised care due to COVID-19-related closures or health concerns during the same period
- Requires applicants to attest to their eligibility and provide information requested by the Minister
- Establishes a repayment requirement: people earning over $38,000 per year must repay 50 cents of benefits for every dollar earned above that threshold, up to the total benefits received
- Allows benefit repayments to be deducted from taxable income under the Income Tax Act
- Permits the Minister to reconsider benefit applications within 36 months (or 72 months if fraud is suspected) and to recover overpayments as a debt
- Allows people to request a review of the Minister's decision within 30 days
- Creates penalties of up to 50% of benefits received (maximum $5,000 per person) for making false or misleading statements or knowingly applying while ineligible
- Creates offences for using false identity information to obtain benefits, counselling someone to apply to steal their benefit, or making three or more false statements in applications totalling at least $5,000 in benefits
- Permits the Minister to garnish bank accounts and employer wages to recover overpaid benefits
- Amends the Canada Labour Code to extend the scope and duration of COVID-19-related leave for federally regulated employees
- Gives the Governor in Council temporary authority (until September 25, 2021) to waive or modify health practitioner certificate requirements for certain employment leave provisions under the Canada Labour Code
- Amends the Income Tax Regulations to treat payments under the Canada Recovery Benefits Act as allowable deductions for employers making lump sum payments
- Limits payments under the Public Health Events of National Concern Payments Act from October 1 to December 31, 2020 to specified COVID-19 measures and amounts
- Postpones the repeal of the Public Health Events of National Concern Payments Act from September 30, 2020 to December 31, 2020
- Canadian residents aged 15 and older who lost work or had significant income reduction due to COVID-19 between September 27, 2020 and September 25, 2021
- Canadian residents aged 15 and older who were unable to work due to COVID-19 infection, possible infection, or isolation on health advice during the period
- Canadian residents aged 15 and older who had to care for children under 12 or family members requiring supervised care due to COVID-19-related closures or health concerns
- Applicants must have earned at least $5,000 from employment, self-employment, EI benefits, provincial maternity/parental benefits, or other prescribed sources in 2019 or during the application period
- People who received recovery benefits and earned more than $38,000 per year (subject to repayment obligations)
- Federally regulated employees under the Canada Labour Code who may take COVID-19-related leave
- Employers of federally regulated employees who must accommodate COVID-19-related leave
- Financial institutions and employers who may receive garnishment orders to recover overpaid benefits
- Government of Canada departments and agencies administering or evaluating the recovery benefits
- Provincial and territorial governments receiving funding under the Public Health Events of National Concern Payments Act for specified COVID-19 measures
- Applicants have the right to apply for Canada Recovery Benefits if they meet eligibility criteria, and must receive payment if eligible
- Applicants must attest to their eligibility under penalty of misrepresentation
- Applicants must provide any information the Minister requests to verify compliance
- Applicants must appear before the Minister (in person, by phone, or videoconference) if required to verify eligibility
- Applicants have the right to request a review of the Minister's decision within 30 days of notification
- Benefit recipients earning over $38,000 per year are obligated to repay a portion of benefits (50 cents per dollar above threshold)
- People who received overpaid benefits are obligated to repay the overpayment as soon as feasible
- Employers must accommodate COVID-19-related leave for federally regulated employees under the Canada Labour Code
- Employees have the right to take up to 2 weeks of leave for COVID-19 reasons (or longer if seeking work) and up to 26 weeks for caregiving due to COVID-19
- Employees have the right to be informed of employment and promotion opportunities during COVID-19-related leave
- Employees' benefits continue to accrue during COVID-19-related leave
- Employers are prohibited from dismissing, suspending, laying off, demoting, or disciplining employees for taking COVID-19-related leave
- Benefits cannot be seized, assigned, or used as collateral (except the government may recover overpayments)
- September 27, 2020 - Start date for Canada Recovery Benefit eligibility period
- September 25, 2021 - End date for Canada Recovery Benefit eligibility period and deadline for certain Governor in Council authorities under Canada Labour Code
- September 30, 2020 - Original repeal date for Public Health Events of National Concern Payments Act (extended to December 31, 2020 by this bill)
- October 1, 2020 - Date when amended Public Health Events of National Concern Payments Act takes effect and payment limits apply
- December 31, 2020 - New repeal date for Public Health Events of National Concern Payments Act, and end of Public Health Events of National Concern payment authority
- 60 days after the end of any two-week or one-week period - Deadline for applying for Canada Recovery Benefits
- 30 days after notification of the Minister's decision - Deadline for requesting a review of a benefit decision
- 36 months after benefits are paid - Deadline for the Minister to reconsider applications (72 months if fraud is suspected)
- Royal assent date - Multiple provisions have commencement dates contingent on when the bill receives royal assent (the text addresses scenarios for October 1, 2020 and after October 1, 2020)
- The Canada Recovery Benefit pays $500 per week for up to 13 two-week periods (maximum $13,000 per person unless reduced by EI receipt)
- The Canada Recovery Sickness Benefit pays $500 per week for up to 2 weeks (maximum $1,000 per person)
- The Canada Recovery Caregiving Benefit pays $500 per week for up to 26 weeks per household (maximum $13,000 per household, shared among residents)
- People earning above $38,000 in a year must repay benefits at a rate of $0.50 for every $1.00 earned above the threshold
- The government may recover overpaid benefits by garnishing bank accounts or wages
- Interest may be charged on benefits repaid under the income threshold provision
- Penalties of up to 50% of benefits received (maximum $5,000 per person) may be imposed for false statements or ineligible applications
- Repayments of benefits are tax-deductible under the Income Tax Act
- Public Health Events of National Concern Payments are limited to specified amounts from October 1 to December 31, 2020 (e.g., CERB limited to $3 billion, various health and business support programs have specific limits listed in the schedule)
- The Minister may impose penalties of up to 50% of the benefit value for each violation (knowingly making false statements or applying while ineligible), with a maximum of $5,000 per person
- Offences include using false identity information, counselling fraud, or making three or more false statements in applications totalling at least $5,000 in benefits; guilty persons face fines up to $5,000 plus up to double the benefit amount, and/or imprisonment for up to 6 months
- The Minister may reconsider applications within 36 months of payment (or 72 months if fraud is suspected) and recover any overpaid amounts as a debt
- The Minister may garnish bank accounts and employer wages to recover debts
- Debt certificates may be registered in Federal Court with the same effect as a judgment
- No prosecution for offences may be instituted if a penalty has already been imposed under the civil violation provisions
- The Minister may require applicants to provide information and appear for interviews to verify compliance
- People who fail to comply with the Minister's information or appearance requirements are not eligible for benefits
- Criminal Code identity fraud provisions apply to use of false identity information
- The bill text does not specify how the Minister will verify eligibility or determine what qualifies as 'reasonable' work availability or job offers under the Canada Recovery Benefit requirements
- The bill references 'any other source of income' that may be prescribed by regulation for eligibility purposes, but does not specify what these sources are
- The bill references 'any other income' that may be prescribed by regulation for the purpose of disqualifying payments, but does not specify what these sources are
- The Governor in Council has authority to adjust maximum benefit periods and income reduction percentages by regulation, but no specific amounts or limits are provided in the bill
- The text does not specify the exact procedures, timelines, or standards the Minister will use to determine whether repayment of benefits is required based on income
- The bill states that an applicant must 'seek work' but does not define what constitutes adequate job search effort
- The bill does not specify how the Minister will define or identify qualifying COVID-19-related reasons for leave under the caregiving benefit
- The bill gives the Governor in Council power to waive health practitioner certificate requirements 'if satisfied' that it is necessary, but provides no objective criteria for this determination
- The bill text does not clarify how benefits interact with other income support programs beyond Employment Insurance, provincial benefits, and Employment Insurance sickness benefits
- Commencement dates depend on when the bill receives royal assent (on or after October 1, 2020), and different provisions have different commencement dates that are conditional on the royal assent date
A new federal law is created establishing three temporary income-support benefits (recovery benefit, sickness benefit, caregiving benefit) for Canadians affected by COVID-19, with eligibility criteria, payment amounts, maximum periods, application procedures, appeal processes, and enforcement mechanisms.
Modified to allow taxpayers to deduct amounts repaid under the Canada Recovery Benefits Act from their taxable income, and to allow tax officials to share taxpayer information with officials administering the recovery benefits for verification and policy purposes.
Modified to allow payments made under the Canada Recovery Benefits Act to be treated as allowable deductions when employers make lump sum payments to employees, without certain other restrictions normally applying.
Extended and modified to clarify the scope, duration, and conditions for COVID-19-related leave for federally regulated employees, including caring for children and family members, and to give the Governor in Council temporary authority until September 25, 2021 to waive or modify health practitioner certificate requirements through regulation.
Modified to ensure that employees may continue to take COVID-19-related leave until September 25, 2021, and to synchronize the timing of commencement of certain provisions with other amendments in this bill.
Modified to limit payments from October 1 to December 31, 2020 to specified COVID-19 measures (such as PPE, testing, CERB, business support) up to specified dollar amounts, and to postpone the repeal date of the Act from September 30, 2020 to December 31, 2020.
Section 33.1 and related provisions are repealed, likely to remove interim COVID-19 measures that are being superseded by amendments to the Canada Labour Code itself.
Interim regulations amending the Canada Labour Standards Regulations are repealed as the amendments are incorporated into the Canada Labour Code.
The definition of 'financial institution' from the Bank Act is used in the Canada Recovery Benefits Act to identify institutions that may be required to comply with garnishment orders for recovery of overpaid benefits.
Eligibility criteria for recovery benefits reference Employment Insurance benefit definitions and receipt to ensure applicants have appropriate prior income and do not double-dip with EI benefits.
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
Official textThe official summary published alongside the bill, shown exactly as written.
Source: Parliament of Canada (LEGISinfo)
Bill C-2, An Act relating to economic recovery in response to COVID-19 (short title: COVID-19 Economic Recovery Act), was introduced in the House of Commons on 24 September 2020 by the Honourable Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion. Among other aspects, the bill enacts the Canada Recovery Benefits Act, amends the Canada Labour Code in connection with the leave related to COVID-19, and re-enacts a modified Public Health Events of National Concern Payments Act. The text of Bill C-2 was incorporated into Bill C-4, An Act relating to certain measures in response to COVID-19 (short title: COVID-19 Response Measures Act). However, Bill C-4’s provisions relating to the eligibility criteria for the Canada recovery sickness benefit, and the corresponding job-protected leave of absence, are broader than those contained in Bill C-2 as they include underlying conditions, ongoing treatments or other sicknesses that would make an employee more susceptible to COVID-19. Bill C-4 received Royal Assent on 2 October 2020.
This is the official summary published by the Parliament of Canada, shown verbatim. Not legal advice. PoliticalData.ca did not write or edit this text.
View on LEGISinfoParliamentary Process
We don't have a plain-language summary for First reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.
We don't have a plain-language summary for First reading yet. The official source linked below is the full record.
The House of Commons sat on September 24, 2020, to introduce Bill C-2, pay tribute to John Turner, hear petitions, discuss privilege, and debate the Speech from the Throne.
This artifact is a record of a sitting of the House of Commons on September 24, 2020. It details the introduction of Bill C-2, the "An Act relating to economic recovery in response to COVID-19". The sitting also included tributes to the late Right Hon. John Turner, the presentation of various petitions on topics such as Hong Kong, human organ trafficking, and health care, as well as discussions on a question of privilege concerning the provision of documents to the Standing Committee on Finance. The main debate of the day was the resumption of debate on the Speech from the Throne, with many members from different parties offering their perspectives and amendments.
We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Consideration in committee yet. The official source linked below is the full record.
We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.
We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.
Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.
Vote Summary
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No published representative vote breakdown
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Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
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