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ARTICLE · 11 MAY 2021

COVID Layoff Converted To Leave By Ontario Regulation Still A Constructive Dismissal

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Many Ontario employers were forced by the pandemic to make difficult decisions to secure the future of their business and to preserve as many jobs as possible.

CanadaEmployment and HR
Gillian Round
Gillian Round
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Many Ontario employers were forced by the pandemic to make difficult decisions to secure the future of their business and to preserve as many jobs as possible. Some of these unilateral actions - including layoffs and temporary reductions in pay and hours - risked exposing employers to liability for constructive dismissal.

In June of 2020, the Ontario government published O. Reg 228/20: Infectious Disease Emergency Leave (the "Regulation") under the Employment Standards Act, 2000 ("ESA") to help relieve non-unionized employers from some of these liabilities. The Regulation provides that, between March 1, 2020 and July 3, 2021, a non-unionized employee whose employer has temporarily reduced or eliminated their hours of work or wages for reasons related to COVID-19 is deemed to be on a job-protected "infectious disease emergency leave" and is not considered to be laid off for the purposes of the ESA. The Regulation states that the temporary reduction or elimination

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