Ontario Government Extends Temporary Layoff Exemption to September 25, 2021 - Sherrard Kuzz LLP

On May 29, 2020, the Government of Ontario introduced a regulation under the Employment Standards Act, 2000 (“ESA”) that provided relief to any employer that had temporarily laid off or reduced the wages and/or hours of a non-union employee due to COVID-19. The regulation largely exempts any such layoff or reduction from being deemed a termination of employment, such that there is no obligation to provide ESA notice or severance pay. The employee is deemed to be on an Infectious Disease Emergency Leave (“IDEL”).

If this regulation had not been passed, any such layoff or wage/hour reduction would have crystallized into a termination of employment, triggering ESA notice of termination and severance pay obligations.

Initially, the regulation applied to a temporary layoff or reduction in wages and/or hours between March 1, 2020, and September 4, 2020 (the “COVID-19 Period”). The COVID-19 Period was then extended to January 2, 2021, then to July 3, 2021 and now again to September 25, 2021. The net result is that an employee who has been laid off or had their wages and/or hours reduced for COVID-19 related reasons can continue to be on an IDEL until September 25, 2021, without triggering termination and severance pay obligations under the ESA (unless the employee is laid off due to a permanent discontinuance of business, in which case the employee is entitled to severance pay under the ESA).

However, as discussed in a recent briefing note, this regulation does not affect an employee’s right to pursue a common law claim for constructive dismissal based on a temporary layoff or reduction of hours related to COVID-19.

To learn more and for assistance, contact your Sherrard Kuzz lawyer or any member of our team at info@sherrardkuzz.com. We’ll respond promptly.