Many businesses have been forced to close or reduce operations
to comply with emergency orders intended to slow the spread of
COVID-19. According to Statistics Canada, Ontario has seen a 2,496
per cent increase in temporary layoffs compared to the previous
year.
Employers who initially laid off employees in many
jurisdictions, including Ontario, were faced with the reality that
any possibility of recall would not be possible within the timeline
set out in legislation where employment is deemed terminated from
the first date of layoff. Under the Ontario Employment
Standards Act (the "ESA"), a temporary layoff for a
non-unionized employee is a layoff (i) not more than 13 weeks in a
period of 20 consecutive weeks, or (ii) less than 35 weeks in a
consecutive 52-week period if the employer satisfies one of six
prescribed conditions, including the employer providing the
employees with substantial payments.
