Lost income in COVID crisis? Here’s what to do
Here’s how to take care of your wallet and your well-being as thousands face job loss
Tens of thousands of Canadians are losing their jobs, as the COVID-19 pandemic causes businesses across the country to shut their doors or cut back on operations.
For many, this may be a new experience. Here’s what to do if you’ve suddenly lost your income, from applying to employment insurance to taking care of your mental health.
Figure out which income support applies to you
The Trudeau government announced a new benefit Wednesday that will provide $2,000 a month for four months for Canadians who have lost their income due to the pandemic, after the government was flooded with applications for employment insurance.
Employment insurance generally doesn’t include self-employed or freelance workers, said Vancouver employment lawyer Andrea Raso. But the new benefit does. So, it’s important to check out both options and decide which one fits your situation before you apply for income support.
“People who are independent contractors or, you know, gig workers, they are typically left out.”
Figure out whether you’ve been laid off or terminated
The first thing to do if your employer lays you off is to figure out if the situation is permanent or temporary.
In other words, you need to figure out exactly what the terms of your layoff are. If it’s a temporary layoff, meaning your employer plans to bring you back later, you don’t get severance pay, Raso said.
“What it enables the employer to do is to keep the employees, because most employers in this situation want those employees back,” she said.
However, most provinces have a time cap on these types of layoffs (for example, in Ontario, it’s usually 13 weeks, with some exceptions). If the 13 weeks passes and you’re still not working, your employer has officially terminated you and you should check your contract to see what you are owed.
You also want something in writing stating whether you’ve been temporarily laid off or terminated, said Toronto employment lawyer Andrew Langille — and don’t sign anything without fully reading it, or even having it vetted by an employment lawyer.
“You have to clarify what the employer’s intention is in writing.”
If you have trouble getting termination pay from your former employer, Raso said you can escalate the situation.
“Employees have recourse through their employment standards tribunals, and those are very, very simple to access,” she said. Get a record of employment Raso said the most important document you need from your former employer is a record of employment. Whether you’ve been laid off permanently or temporarily, this document is what will help you apply for employment insurance.
Langille says you should also get your T4 from the previous year, just in case. Apply for government support, and keep track of your application
Next, it’s time to apply for either EI or the new benefit. There are few details about the new benefit, but when it comes to applying for EI, Raso warned that you will be in charge of keeping track of your application, and that with the higher volume of applicants, the process could take awhile.
Langille said it’s important to make a My Service Canada account so you can track your application using the four-digit code you’ll receive in the mail. You will also be responsible for making reports every two weeks, he said.
“You have to be very proactive in pushing your claim forward, especially in these circumstances.”
Raso said it’s also important not to expect EI to amount to what you were being paid before, especially if you were laid off from an industry that includes tips, such as food service or hairdressing. With some exceptions, tips are not EI insurable, she said. Look for other ways to save Raso said depending on your province and city, there may be ways for you to reduce your costs temporarily, while your income is lower than usual. For example, some provinces have made it impossible for landlords to evict you, and some cities are allowing residents to defer their utility bills.
As well, some landlords are allowing leniency for their tenants, and your bank may also have some flexible options for you. Raso said you should check every avenue and make decisions about what you want to prioritize during this time.
“The situation is very fluid,” she said, adding that though the news can be difficult to read or watch during such a stressful period, you should stay updated on what your city and province are doing to help you out. Keep track of your mental health
David Grauwiler, executive director of the Alberta division of the Canadian Mental Health Association, said monitoring your mental health is paramount for everyone during this time.
The longer this goes on, the more vulnerable everyone is to depression and anxiety, he said.
For people with pre-existing mental health concerns, these challenges may be exacerbated by the uncertainty around work, Grauwiler said. And for people who don’t have pre-existing conditions, it’s important to look out for depression and anxiety even if you haven’t experienced them before.
“Listen to the feedback of those who are closest to you,” Grauwiler said. If people seem concerned about you, or tell you that you seem different, maybe it’s time to call a mentalhealth hotline or find another resource. Stay connected During this time of social distancing and isolation, Grauwiler said it’s more important than ever to stay connected to family and friends.
It can be hard talking about getting laid off or about your emotions and worries. But remember that everyone is going through something similar, he said. So text, call or Skype more than you usually would. It could help you and your loved ones get through this difficult time.
“People who find themselves in a time of uncertainty and find themselves suddenly jobless are in need of human interaction.”