06/01/2020
The Ontario government has made some important COVID-19 related changes to regulations under the Employment Standards Act, 2000 (ESA).
The ESA allows employers to temporarily lay off (furlough) employees for up to 13 weeks in any period of 20 consecutive weeks, without having to pay ESA Termination Pay in lieu of notice or ESA Severance Pay. After 13 weeks, the lay-off is deemed a termination and the employee is automatically entitled to ESA Termination Pay and ESA Severance Pay. In certain cases (for example, where employers maintain payments to a pension plan or maintain benefits during the temporary lay-off), the period is extended to up to 34 weeks.
If a company laid off a worker in mid-March at the start of the emergency and did not continue paying benefits, the 13 week deadline would be fast approaching. After 13 weeks, laid off employees could seek their ESA entitlements through the Ministry of Labour, without charge or the need of a lawyer. They would be entitled to the money whether or not the company called them back to work.
The government has now stepped in to remove the looming financial hit those companies possibly faced in June. The new regulatory change applies to non-unionized employees who have had their hours reduced or eliminated because of the pandemic. Those workers will not be deemed terminated after 13 weeks (or 34 weeks). Instead they will be deemed to be on Infectious Disease Emergency Leave. This change is back-dated to March 1.
For companies this is good news. For workers, the news is not so good, as it makes it easier for companies to impose lay-offs. However, the regulatory change allows workers to remain employed with legal protections and be eligible for federal emergency income support programs.
These regulatory changes affect statutory entitlements. Workers can still claim common law rights under their employment contracts. Basically, rather than go to the Ministry of Labour, workers could claim the lay-off or reduced salary amounts to a constructive dismissal and litigate matters in the civil courts. Workers should consult an employment lawyer to consider their options.
Alan McConnell
416 402-3729