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ARTICLE · 19 JULY 2021

Can Temporary Layoffs Due To COVID-19 Be Considered Constructive Dismissal?

Field Law
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During the COVID-19 pandemic, all Canadian provinces and territories declared a state of emergency and implemented strict measures to help curb the spread of the virus

CanadaEmployment and HR
Lee Carter
Lee Carter
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During the COVID-19 pandemic, all Canadian provinces and territories declared a state of emergency and implemented strict measures to help curb the spread of the virus. Consequently, many businesses were directly or indirectly forced to lay off employees, reduce work hours, and even close their doors. Some of these actions, however, exposed employers to liability for constructive dismissal.

In response, many provincial governments, including Alberta, amended their employment standards legislation to permit temporary layoffs due to COVID-19 and related government restrictions. 

The Alberta government amended the Employment Standards Code  to allow temporary layoffs of up to 180 days for reasons related to COVID-19. In Ontario, the provincial government implemented Regulation 228/20: Infectious Disease Emergency Leave. The Regulation states that between March 1, 2020 and July 3, 2021 the temporary reduction or elimination of an employee's hours of work or wages for

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