Encouraging Return to Work: From CERB to Employment Insurance

In its beginnings, the simple and quick CERB system addressed an urgent problem related to the large number of workers who found themselves without income following the arrival of the pandemic. The federal government's response was remarkable, as this program was crucial to averting an unprecedented economic and social crisis.

However, CERB is now, in some cases, a major obstacle to returning to work. Some sectors of the economy are having difficulty finding the labour needed to maintain their operations, which is adding further stress to these businesses that already have a lot on their plates! This is why the government's latest announcement of July 31, 2020, regarding the transition from CERB to Employment Insurance is very good news for multiple companies.

Timeline

Rapid closure of companies

The rapid arrival of the pandemic in Canada has slowed down many sectors of activities: Events, tourism, recreation, services and restaurants are the most affected. The temporary closure of non-essential businesses was imposed by the provincial government a few days after the first cases arrived in Quebec. Many businesses had to close or slow down their operations and, as a result, put a significant proportion of employees out of work.

Reopening

Over the past few weeks, many sectors of the economy have picked up, with a few exceptions. The recovery was also synonymous with the recall of employees who were off work, and for some companies, it was not difficult to call employees back to work. However, the same cannot be said of industries where wages are lower and hours are not guaranteed. However, given the current situation regarding the recovery of the economy, an employee who refuses work in order to maintain CERB goes against the rules and the objective of the program.

This makes it difficult for many employers to bring back some employees when they are on call, part-time or on low wages. Even so, employees who decide not to return to work should not be blamed so quickly: returning to a job paying just over $1,000 per month causes them to lose the benefits of CERB, which is $2,000 per month. The calculation can be done quickly for those who have heavy financial obligations such as rent, loans or a mortgage.

The transition to Employment Insurance

Although a labour shortage was a major constraint in many sectors of the economy before the arrival of Covid-19, it is now being artificially maintained by CERB. Indeed, a growing number of companies - offering low wages and non-guaranteed hours - deplore the harmful consequences of CERB: if it had been renewed under the same conditions, it would have been very difficult for some companies to maintain their operations with a limited number of employees.

Fortunately, the government has just announced the end of CERB by replacing it with Employment Insurance, which is a great opportunity to encourage people to return to work. This new program will be accompanied by a parallel system to provide financial assistance to contract employees and freelancers, who are not eligible for Employment Insurance. The ultimate goal of these two new programs is to facilitate the transition from CERB to returning to work.

In order to avoid increased stress for businesses and unjustified costs to taxpayers, the Employment Insurance program could include a verification system with the candidate's current or past employer. This process would allow the Employment Insurance applicant to prove that there is no work available in his or her case. This type of mechanism becomes even easier to put in place if it is combined with the Canadian emergency wage subsidy application process. The objective isn't to put the onus back on the employer, but to provide support for those who need their employees to return to work.

Solutions to facilitate the return to work

The use of technology

Employment Insurance can be coupled with other techniques to simplify the hiring process as well as employee retention. For example, by taking employee availabilities through a survey, companies can centralize employee preferences and create a database that will easily match the needs of the company with those of the workers. The collection of availabilities and the communications necessary for the return to work can be done manually, or with the help of a workforce management platform designed for this purpose. This simple system makes it possible to encourage a return to work and to adjust to the unexpected.

Example of the "Manitoba Job Restart Program"

The issue of the shortage of workers caused by CERB was so significant in Manitoba that the government has been offering a subsidy for the past few days to encourage employees to get back to work. The "Manitoba Job Restart Program" offers bonuses in the first few weeks of an employee's return to work when the employee works more than 30 hours per week. This initiative reflects the challenges of returning to work, especially for employees who are now not eligible for the $2,000 per month in benefits.

Conclusion and Analysis

In the early months of the pandemic, CERB was a necessity and the federal government was able to provide this support program in record time. It provided quick and steady access to funds for as many laid-off workers as possible.

Problem: CERB created a labour shortage despite itself. Why go back to work at a job with unsteady hours paying less than $2000 per month? The tourism, services, restaurant and entertainment industries were heavily impacted during the lockdown, and with the current shortage of staff, they were afraid that they would face a second obstacle to the successful development of their operations.

To avoid this complication for employers, the government has now chosen to insist on a resumption to work to reduce the significant costs of CERB as well as the stress caused by the labour shortage. Employment insurance will then allow a large majority of sectors in difficulty to finally be able to resume their activities.

Companies can also implement tactics to accelerate the recruitment of employees, notably by using new technologies. They allow for more flexible management of personnel and the unforeseen events related to the current situation. Following the example of measures implemented in other provinces is also beneficial; we never lose anything by drawing inspiration from the best practices of our neighbours!