Why is this important?
- The Regulation extends the time period by which an employer may temporarily lay-off an employee before the employee is deemed to be terminated.
- Employees whose hours and/or wages have been temporarily reduced due to COVID-19 are not constructively dismissed.
COVID-19 Period
- The Regulation was effective for the “COVID-19 period” defined as the period between March 1, 2020 to six weeks after Ontario’s declaration of emergency ends. Ontario’s declaration of emergency ended on July 24, 2020 which meant the last day of the “COVID-19 period” was September 4, 2020.
- On September 4, 2020, the Government of Ontario extended the Regulation to January 2, 2021.
What does this mean for employers?
Employers may continue operating with reduced hours and/or wages for employees due to COVID-19.
Employers should contact their lawyer to plan for the gradual reintegration of employees back into the workplace on or before January 2, 2021.
These comments are of a general nature and not intended to provide legal advice as individual situations will differ and should be discussed with a lawyer.