April 27 Update – Quick Summary Of Options For Reducing Workforce Due To COVID-19

Our Workplace Law Group is regularly receiving questions about employers needing to reduce their workforce during this difficult time.  These questions tie into several of our recent blog posts about the different options available to employers.  Here is a quick summary of those questions and our condensed/summary answers.

Question 1- what are my options for reducing my workforce/payroll costs because my business has declined during this COVID-19 crisis?

Option 1 - Keep people employed using the Canada Emergency Wage Subsidy  (CEWS) program. 

Even if employers have significantly reduced revenue, or have virtually shutdown during the COVID-19 crisis, they can keep their employees on the payroll and apply for the Canada Emergency Wage Subsidy (CEWS). Basically, the government is trying to provide incentives for companies to keep their employees on the payroll rather than everyone being laid off or terminated and applying for EI. The applications can be made