Yukon introduces government-funded paid sick leave program

The Yukon is set to become the first jurisdiction in Canada to offer government-funded paid sick leave for workers and people who are self-employed.

Premier Ranj Pillai made the announcement on Tuesday. The two-year rebate program replaces a paid sick leave program that was introduced in Yukon in 2020 in response to the COVID-19 pandemic and expired on March 31. That program was aimed specifically at COVID-19, whereas the new rebate program covers all illnesses.

The rebate program offers people up to 40 hours of paid sick leave per year at no cost to their employer. Eligible workers must earn no more than $33.94 per hour.

The new program will cover sick leave taken between April 1 of this year and March 31, 2025. 

"There's an economic incentive to work while you're sick, and this isn't good for anyone, long term," Pillai said on Tuesday.

The premier said the pandemic showed how important it is for people to have access to paid sick leave. He said the rebate program is meant to balance the needs of workers and employers.

"What we're trying to do is look at small businesses that have come through really challenging times, they're dealing with inflation, they're dealing with a tight labour market, and we want them to understand that we are watching some of the challenges," he said.

"But we are going to step up like we did before, to support them."

Under the program, an employee who takes a sick sick day will continue to be paid by their employer, as normal. The employer must then apply to the government for a rebate to cover the costs, within 30 days of the claimed sick leave period.

Employees must have worked for their employer for at least 90 before they're eligible under the program. 

'We do get sick'

Teresa Ward of Teslin, Yukon, started her small business in 2016. She makes and sells bannock by the bag in about two dozen businesses in the territory. She's also aiming to expand into the U.S.

She welcomes the new rebate program.

"It would be really nice to be able to figure out how to apply for that. I guess it's through the government," she said.

"Sure, having a sick day is great because we do get sick."

Romi Yu, however, is not so sure he likes the idea. He owns a sushi restaurant in downtown Whitehorse and he's concerned that paid sick leave means more absentee workers.

"If you don't need doctors papers, then it's free money from the government. And we're working so hard. I think it's totally unfair," he said.

According to a government news release, the documents employers must file include a copy of their business licence or society registration, and a copy of the employee's most recent pay stub. 

They must also file "an affirmation ... that the employer is using the program in good faith."