Paid Sick Leave Rebate for employers and self-employed

  • About the program
  • Employers
  • If you're self-employed

The Paid Sick Leave Rebate provides up to 40 hours of wages for eligible workers who are sick with illness (or injury not covered by any other act, benefit or program).

This program helps Yukoners prioritize their health and reduce the spread of illness in the workplace.

 


  1. About the program

    How long does the program run?

    The program is split into two 12-month blocks:

    • April 1, 2023 – March 31, 2024
    • April 1, 2024 – March 31, 2025

    The application and supporting documentation must be submitted within 30 days of the claimed sick leave period.

    Unused sick leave will not carry over from one program year to the next.

    You must submit your application and supporting documentation within 30 days of the sick leave period you're claiming for.

     

    What does the program cover?

    The program covers up to 40 hours of wages per employee per year. The program is open to employers and self-employed workers.

    Employees must use all paid sick leave available to them annually through their employer before they are eligible for the program.

    Employees must have worked for the employer for at least 90 days consecutively in the year prior to the 1st day of leave. Returning seasonal workers who are Yukon residents (such as university students) may count days worked in the previous season towards this total.

    What does the program not cover?

    This program does not provide rebates for the following:

    • Employers with an established paid sick leave program which was reduced or terminated on or after April 25, 2023.  
    • Workers who are receiving wages during the sick leave period for reasons other than sick leave (for example, wages from the Yukon Workers' Safety and Compensation Board or wages for vacation pay).
    • Overtime (defined by the Yukon Employment Standards Act as more than 8 hours per day and 40 hours per week)

    Other considerations

    This rebate is different than the previous COVID-19 Paid Sick Leave Rebate. We have expanded eligibility to all illnesses, as COVID-19 is now being managed alongside other respiratory viruses. This program helps Yukoners prioritize their health and reduce the spread of illness in the workplace.

    Unlike the COVID-19 Paid Sick Leave Rebate, which covered 10 days of paid sick leave, this program covers up to 40 hours every 12 months.

    Any unused hours in a program year will expire and cannot be used in a future program year.

    Unused sick leave from the Covid-19 Paid Sick Leave Rebate will not be carried over to the 2023–25 program.

    No unused sick leave entitlements will be paid out to employers.


  2. Employers

    You may be eligible to receive up to 40 hours of wages per employee every program year.

    Who's eligible?

    This program applies only to Yukon employees of Yukon employers whose regular hourly wage is less than or equal to the average Yukon private sector wage of $33.94 per hour.

    Employees must first use all paid sick leave available to them annually through their employer.

    Yukon-based businesses are those that meet 3 of the following criteria:

    • has an office with a physical address in the Yukon;
    • are subject to the Yukon Income Tax Act;
    • are registered as per the Business Corporations Act or the Partnership and Business Name Act, where applicable; and
    • have a valid municipal business licence where applicable.

    The employee must:

    • be a Yukon resident with a valid Yukon health care card; and
    • have worked for the employer for at least 90 consecutive days in the year leading up to the 1st day of leave. Returning seasonal workers who are Yukon residents (such as university students coming back for summer employment) may count days worked in the previous season towards this total.

    Ineligible applicants

    This rebate is not available to:

    • the Government of Yukon and its corporations;
    • the Government of Canada and its corporations;
    • Yukon First Nation governments; 
    • federally-regulated industries;
    • municipalities; and
    • commission-based employees.

    What does the rebate cover?

    The rebate covers up to 40 hours of wages per employee. This does not include overtime, benefits, payroll taxes or deductions.

    No one is eligible for more than 40 hours of government paid sick leave through this program, regardless of the number of jobs they hold.

    What does the program not cover?

    This program does not provide rebates for the following:

    • Employers with an established paid sick leave program which was reduced or terminated on or after April 25, 2023.
    • Workers receiving wages during the sick leave period for reasons other than sick leave (for example, wages from the Yukon Workers' Safety and Compensation Board or wages for vacation pay).
    • Overtime (defined by the Yukon Employment Standards Act as more than 8 hours per day and 40 hours per week).

    Does the employee need to provide proof of illness to their employer?

    No. The employee must declare to the employer that they are unable to work due to illness, (or injury not covered by any other act, benefit or program). 

    Does the Government of Yukon require proof of illness?

    No.

    The employee must declare to the employer that they are unable to work due to illness (or injury not covered by any other act, benefit or program). The employer must affirm that they are using the program in good faith and that all the information submitted is complete and accurate.

    Rebate applications are subject to audit by the Government of Yukon.

    Employer discretion

    Participation in the program is voluntary, and employers can decide how to implement the program in their workplace.

    For example, although the Yukon government does not require proof of illness, employers may ask for proof of illness from their employees.

    How long will the rebate program run?

    The program is split into two 12-month blocks:

    • April 1, 2023 – March 31, 2024
    • April 1, 2024 – March 31, 2025

    Unused sick leave will not carry over from one program year to the next.

    You must submit your application and supporting documentation within 30 days of the claimed sick leave period you're claiming for.

    How the program works

    1. The employee informs their employer that they need to take sick leave.
    2. The employee uses all the paid sick leave available through their employer.
    3. If the employee needs more paid sick leave than their employer provides, the employer approves and pays the employee for that additional sick leave.
    4. The employer applies for the Paid Sick Leave Rebate and submits all supporting documents within 30 days of the claimed sick leave period. 
    5. The Paid Sick Leave Rebate program reimburses the employer for the additional sick leave amount they paid.

    What employers need to apply

    Make sure you have these documents before you apply:

    • A valid copy of your business licence, or equivalent, to identify the location of your business.
    • A copy of:
      • the employee’s paystub with a separate line item for the sick leave hours you've paid out that exceed your contract with the employee; and
      • the paystub previous to that.
    • A copy of the employer's sick leave policy (if applicable). 

    We may ask you for the employee’s timesheet and schedule for the leave period.

    Other considerations

    • Employers must comply with the Employment Standards Act.
    • Hours must be based on the employee’s scheduled hours and not include overtime. We may determine average hours for the sick leave period based on the previous 4 weeks of working hours. 
    • You must record the sick leave hours to be claimed as a separate pay category on the paystubs.
    • The business name must be registered and in compliance with the Government of Yukon's Corporate Affairs Branch.

    How to apply

    You can only apply to the program online.

    Employers: apply for the Paid Sick Leave Rebate


  3. If you're self-employed

    As a self-employed worker, you may be eligible to receive up to 40 hours of wages per program year.

    Who is eligible?

    This program is only available to self-employed Yukon workers whose average earnings are less than or equal to $33.94 per hour.

    Self-employed workers can apply if they are:

    • a Yukon resident with a valid Yukon health care card; and
    • Yukon-based.

    Yukon-based businesses are those that meet 3 of the following criteria:

    • have an office with a physical address in the Yukon;
    • are subject to the Yukon Income Tax Act (you submit payroll remittances to the Canada Revenue Agency);
    • are registered as per the Business Corporations Act or the Partnership and Business Name Act
    • have a valid municipal business licence; and
    • have worked in the Yukon for 90 days prior to the 1st day of leave. 

    Ineligible applicants

    This rebate is not available to:

    • commission-based self-employed workers; and
    • self-employed workers who are receiving wages during the sick leave period for reasons other than sick leave (for example: wages from the Yukon Workers' Safety and Compensation Board).

    What does the program cover?

    The rebate program covers a maximum of 40 hours of average daily earnings in a program year.

    If you cannot prove Gross Self-Employment Income, the maximum daily rate will be set to the current EI maximum of $16.25 per hour (based on a maximum of $650 per week).

    Does the Government of Yukon require proof of illness?

    No, we do not require a doctor's note.

    The self-employed worker must affirm that they are using the program in good faith and that all the information submitted is complete and accurate.

    Rebate applications may be subject to audit by the Government of Yukon.

    How long will the program run?

    The program is split into two 12-month blocks:

    • April 1, 2023 – March 31, 2024
    • April 1, 2024 – March 31, 2025

    Unused sick leave will not carry over from one program year to the next.

    You must submit your application and supporting documentation within 30 days of the sick leave period you're claiming for.

    Prepare your application

    Before you apply, make sure you have:

    • a copy of your most recent Notice of Assessment from Canada Revenue Agency;
    • a copy of the Income and Tax Benefit Return that provides evidence of Self-Employment Income (line 13500);
    • a copy of your registration with the Government of Yukon's Corporate Affairs Branch and be in compliance (if applicable);
    • a copy of your valid business licence or equivalent; and
    • proof of your office location (such as a utility bill or lease).

    Apply online

    You can only apply to the program online.

    Self-employed: apply for the Paid Sick Leave Rebate


Contact 

For more information, email [email protected], or phone 867-456-3803, toll free in the Yukon 1-800-661-0408, extension 3803.