Paid Sick Leave Rebate for employers and self-employed

How long does the program run?

The program runs from April 1, 2023 until March 31, 2025.

The application and supporting documentation must be submitted within 30 days of the claimed sick leave period, and within 60 days of claimed dates in April 2023 to allow for backdating.

What does the program cover?

The program covers up to 40 hours of regular wages per employee every 12 month period (April 1, 2023, to March 31, 2024; and April 1, 2024 to March 31, 2025). 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, the new program covers up to 40 hours every 12 months.

Any unused hours in a program year will expire and cannot be used by the employee 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.

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

• April 1, 2023, to March 31, 2024; and
• April 1, 2024, to March 31, 2025).

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.

Employers are eligible to apply if their employees and business are Yukon-based.

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

• has an office with a physical address in the Yukon;
• is subject to the Yukon Income Tax Act;
• is registered as per the Business Corporations Act or the Partnership and Business Name Act, where applicable; and
• has 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 a maximum of 40 hours of regular 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 pay, 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 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).

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 runs from April 1, 2023 until March 31, 2025. It is split into two program years (April 1 2023 to March 31, 2024; and April 1, 2024 to March 31, 2025). 

Unused sick leave from the previous Paid Sick Leave program will not be carried over to this new program.

You must submit the application and supporting documentation within 30 days of the claimed sick leave period, and within 60 days of claimed sick leave dates in April 2023.

How the program works

1. The employee informs their employer that they need to take leave because they are sick with illness (or injury not covered by any other act, benefit or program).
2. The employee uses up the paid sick leave available through their employer.
3. The employee informs their employer that they require additional paid sick leave beyond the sick leave provided in their employment contract.
4. The employer approves and pays the employee’s wages for hours that exceed the employer-provided paid sick leave. This payment covers up to 40 hours of sick pay.
5. The employer applies for the Paid Sick Leave Rebate to cover the exceeded hours based on the employee's missed scheduled hours, excluding overtime.
6. The employer submits the application and supporting documentation within 30 days of the claimed sick leave period.
7. The Paid Sick Leave Rebate program reimburses the employer for the 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 identifying 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

As a self-employed worker, you may be eligible to receive 40 hours of wages per program year (April 1, 2023, to March 31, 2024, and April 1, 2024, to March 31, 2025).

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;
• is subject to the Yukon Income Tax Act;
• is registered as per the Business Corporations Act or the Partnership and Business Name Act, where applicable; 
• have a valid municipal business licence where applicable; and
• have worked in the Yukon for at least 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 documented average daily earnings in a program year.

If you are not able to 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 runs from April 1, 2023 until March 31, 2025. It is split into two program years (April 1, 2023 to March 31, 2024; and April 1, 2024 to March 31, 2025).

Self-employed workers cannot carry over unused sick days 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, and within 60 days of claimed sick leave dates in April 2023.

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