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ARTICLE · 11 JUNE 2021

Infectious Disease Emergency Leave Is Not Common Law Constructive Dismissal

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In May 2020, Ontario Regulation 228/20 was introduced to Ontario's Employment Standards Act (ESA), exempting COVID-19-related temporary hours or wage reductions from the usual layoff and constructive dismissal provisions.

CanadaEmployment and HR
Lisa Talbot
Lisa Talbot
Irfan Kara
Irfan Kara
Craig Gilchrist
Craig Gilchrist
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In May 2020, Ontario Regulation 228/20 was introduced to Ontario's Employment Standards Act (ESA), exempting COVID-19-related temporary hours or wage reductions from the usual layoff and constructive dismissal provisions. We published a detailed bulletin on the new  regulation last spring. At that time, while it was clear that the Regulation provided statutory protection to employers who sought to impose hours and/or wage reductions as a result of COVID-19, it was less clear how the Regulation would affect claims for common law constructive dismissal. On June 7, 2021, the Ontario Superior Court provided some long-awaited guidance on this issue.

In Taylor v. Hanley Hospitality Inc.1, Justice Ferguson granted the defendant employer's Rule 21 motion to strike the employee's claim for constructive dismissal on the basis that the Regulation applies not only to statutory constructive dismissal claims, but also to common law constructive dismissal claims. The Court

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