A new Paid Sick Leave Rebate Program will provide workers and self-employed Yukoners with up to 40 hours of paid sick leave per 12-month period – at no cost to their employer.

Premier Ranj Pillai made that pledge Tuesday.

The program – which will not be legally mandated – will cover all eligible workers earning less than or equal to the average Yukon private-sector wage of $33.94 per hour.

It’s estimated it will cover about 7,000 people and cost the government about $11.8 million over two years.

“Workers who earn below this threshold are most likely to experience financial hardship if they take unpaid sick leave,” the government said in a statement.

When employees take time off because they are sick, they will continue to be paid by their employer as if they had been at work.

The employer will then apply to the government for a rebate to cover those costs.

The rebate program aims to:

provide financial stability to employees who must take time off work because of sickness or injury;

help keep people healthy in the Yukon;

encourage workers to stay home if they’re feeling unwell;

allow Yukon employers to provide more employee benefits without paying extra costs;

strengthen Yukon businesses’ competitiveness in the labour market; and

help Yukon businesses attract and retain workers.

The new program will cover sick leave taken from April 1, 2023 to March 31, 2025.

It replaces the paid sick leave program which was launched in response to COVID-19 and which expired March 31.

Unlike the previous program, this new rebate covers any illness or injury that isn’t covered by another act and is not restricted to those missing work due to COVID-19.

“The COVID-19 pandemic emphasized how important it is for people to have access to paid sick leave,” Pillai said.

“Our government is proud to become the first jurisdiction in Canada to provide government-funded paid sick leave.

“We are confident that this will help balance the needs of employers and workers while contributing to public health and economic resilience.”

He told the legislature Tuesday, “Support for employers and their employees is still needed outside of the pandemic response.

“We gained valuable insight from the COVID-19 pandemic and the new rebate program will reflect this knowledge. Of course, we will be sure to consult with stakeholders regarding how to best continue offering this support moving forward,” he told MLAs.

The rebate, paid to employers and self-employed Yukoners, covers up to 40 hours of sick leave for eligible employees and self-employed workers making less than or equal to $33.94 hourly and who do not have access to 40 hours of paid sick leave through their employer.

“I would also like to note that we have expanded the program eligibility to all illnesses as COVID-19 is now being managed alongside other respiratory viruses,” Pillai told the House.

The threshold to qualify repre-sents the average Yukon private-sector wage. Pillai said in an interview Tuesday that people who make lower wages tend to be the most vulnerable.

“Those are the folks that really, they can’t miss a paycheque and so they’re going back to work, in some cases when they shouldn’t be, when they’re sick, and then their co-workers are getting sick,’’ he said.

“And in the end that, of course, also drives things like hospital visits.’’

Though the program is not a legal requirement, Pillai believes it’s something employers will embrace.

“If employers are mistreating their staff by not providing the appro-priate benefits, those employees are just going to go somewhere else,” he said.

Employers will be responsible for filing rebate applications.

This will include:

documents like a copy of their business licence or society registration;

a copy of the employee’s most recent pay stub; and

an affirmation from the employer that the employee was unable to work due to illness and that the employer is using the program in good faith.

The Department of Economic Development – for which Pillai is minister – will be responsible for administering the program.

Funding has been allocated for two years of the program.

Not eligible for benefits are workers employed by the Yukon, federal and First Nations governments or their corporations, municipalities or federally-regulated industries

Also not eligible are employers or the self-employed who already have an established paid sick leave program of 40 hours or more.

Workers with access to fewer than 40 hours of paid sick leave per year will be able to take the balance of leave up to the 40-hour threshold.

“By introducing this program, this government is signalling its firm commitment to a healthy future for its residents, its businesses and NGO communities, and the economy as a whole,” the premier told the legislature.

– With a file from The Canadian Press.