Hi Melissa, yes, you’re grappling with one of the essential differences with employees and contractors. As a contractor, they may well ‘elect’ not to continue working for you.
However, if they want to qualify for the wage subsidy they need to take active steps to mitigate the impact of COVID-19 on their business and I’d suggest they’re not doing that if they walk away from their contracting engagement with you.
In addition, without knowing their current terms, if they carry on providing their services to you, they have the opportunity to earn 70% of their normal contracting fee from you AND receive the wage subsidy.