Digital Brain
digital brain
digital brain

Temporary Layoff and Constructive Dismissal Relief for Ontario Employers Extended to 2021

September 8, 2020 Labour and Employment Law Bulletin < 1 read

The Ontario government has updated its regulations under the Employment Standards Act, 2000 (“ESA”) to extend the province’s “COVID-19” period to January 2, 2021.

The extension into the new year means that the measures, introduced in Regulation 228/20, to limit the risk of a temporary layoff or wage reduction turning into a permanent dismissal or being deemed a constructive dismissal under the ESA, will continue until the new year. Those measures had previously been set to expire on September 4, 2020 (six weeks after Ontario’s state of emergency ended).

As McMillan advised in August, regulation 228/20 allows employers to temporarily reduce wages or hours for pandemic-related reasons without triggering a layoff or constructive dismissal under the ESA. Instead, affected employees are placed on deemed infectious disease emergency leave for the duration of the “COVID-19 period” – now extended to January 2, 2021.

Take away

The extension of the COVID-19 period provides further relief for employers that have been required to reduce wages or lay employees off because of the pandemic. While employers who currently have employees on layoff, or who have reduced hours or reduced pay, can continue with the status quo, employers should, nevertheless, remain mindful that the standard layoff periods under the ESA will take effect in January 2021. Employers should continue to evaluate whether they will be in a position to recall or reinstate the previous terms and conditions of employment at that time.

by Kyle Lambert and Chiedza Museredza

A Cautionary Note

The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

© McMillan LLP 2020

Related Publications (5 Posts)

Featured Insight

Major Canadian Banks Join Net-Zero Banking Alliance (NZBA) — Unpacking the Initiative and Net-Zero Commitments

On the eve of the 2021 United Nations Climate Change Conference, six of Canada’s largest banks announced they had signed on to the Net-Zero Banking Alliance.

Read More
Oct 21, 2021
Featured Insight

Antitrust Reform: Canada Too!

James Musgrove and Sarah Stirling-Moffet talk Competition law reform in Canada after the Commissioner’s CBA speech - more money, more power!

Read More
Oct 21, 2021
Featured Insight

Addressing Unique Challenges Faced by Federally Regulated Employers

Federally regulated employers have had to adapt to a number of legal changes and challenges in recent years. In addition to continuing to respond to the COVID-19 pandemic, in 2021, federally regulated employers have had to implement workplace changes to adhere to the new Work Place Harassment and Violence Prevention Regulations and begin preparing to meet their obligations under recently adopted Pay Equity Act.
This virtual workshop will focus on how to address some of the unique challenges faced by federally regulated employers.

Details
Tuesday, November 2, 2021
Featured Insight

Practical Considerations for Structuring Private REITs

Despite volatility, the market for Canadian REITs continues to rally creating opportunity for new players in a number of asset classes. This webinar focuses on the practical considerations for structuring private REITs.

Details
Tuesday, November 9, 2021
Featured Insight

Bill 64 Enacted: Québec’s Modern Privacy Regime

An in-depth analysis of Quebec's 2021 modernization of its private-sector privacy legislation.

Read More
Oct 15, 2021