New COVID-19 Regulation Gives Temporary Relief From Constructive Dismissal Under The ESA

The Ontario government introduced a new regulation on May 29, 2020 under the Employment Standards Act, 2000 (the "ESA" or the "Act") that changes how the layoff and constructive dismissal provisions of the ESA will apply to employees who have been laid off or had their hours or wages reduced as a result of the COVID-19 pandemic.  

Many employers have had to layoff employees or reduce their employees' hours or wages as a result of the economic impact of COVID-19.  There has been some uncertainty as to what termination entitlements employees may have as a result under the ESA.  

Ontario Regulation 228/20 (the "Regulation") addresses some of this uncertainty and should prevent a flood of employees seeking payouts of termination and severance pay as a result of layoffs or pay reductions. Employers should note that the Regulation does not prevent employees from seeking damages under the common law. Further, most of the provisions of the Regulation do not apply to