Canadian employers having difficulty hiring due to CERB payouts

As businesses begin reopening throughout Canada, complete with new measures to meet social distancing guidelines, some employers are finding it hard to entice staff to return to work.

Though some people are not returning to work for fear of the potential health and safety risks associated with the current pandemic, others also appear to be hesitant as they are making a similar amount or more on the Canada Emergency Response Benefit (CERB), according to Freshdaily.

As business owners struggle with the issue, some say that if the $2,000 per month that people are receiving from CERB is more attractive when compared to returning to the workplace—maybe certain companies have to rethink their pay scales.

As the federal government rolls out billions in financial aid, fraud is a concern. Prime Minister Justin Trudeau continues to say that quickly getting money to Canadians who aren't able to work is the main priority.

Last month, Trudeau said that CERB applications will be retroactively vetted by the Canadian Revenue Agency in order to ensure that the people who received it were actually in need of it, and the people who received it unfairly will be forced to pay it back.

He has also been encouraging businesses to use the Canada Emergency Wage Subsidy (CEWS) program so they can rehire workers and offer them sufficient wages as they transition from CERB.

Employers across Canada say that even when using the CEWS to pay employees, they are having a hard time hiring staff and need to “beg” workers to come back.

On the other hand, there are many residents whose workplaces still have not opened and who have children to take care of while daycares and schools are closed. Though these workers are interested in stopping their CERB payments, there are more issues that are stopping them from doing it.

Financial experts say that employees who refuse to go back to work are leaving themselves ineligible for CERB, since that can be seen as declining work.

Employers who reduced the hours of, or laid off employees due to coronavirus actually breached contract—though if the action was accepted by a worker then "that change becomes a new term of their employment."

There is more complexity when it comes to self-employed workers, seasonal workers, part-time workers and gig workers.

The Canadian government has paid out $39 billion to claimants as of May 21.