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Legal backgrounder on the Canada Emergency Wage Subsidy (CEWS) | Dentons

On April 11, 2020, Income Tax Act. The Subsidy is designed to enable employers to keep employees on payroll, to enable employers to re-hire workers that were previously laid off, and to help employers hire new workers during the COVID-19 pandemic. The Subsidy was initially in place for a 24-week period from March 15 to August 29, 2020. However, on July 27, 2020, Bill C-20 - An Act respecting further COVID-19 measures, received royal assent, which extended the Subsidy to November 21, 2020, and gave the Government the ability to extend the Subsidy to December 31, 2020, by regulation. On November 19, 2020, Bill C-9 - An Act to amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy) received royal assent, which provided that the CEWS could be extended by regulation until June 30, 2020.

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