Big Changes for COVID-19 Layoffs in Ontario: New O. Reg 228/20 Infectious Disease Emergency Leave Curtails Constructive Dismissal Claims
As many of our readers and clients know, we have been cautioning that the legality of certain layoffs and job changes necessitated by COVID-19 is uncertain. Generally, layoffs are only legal if the employment contract gives the employer the right to layoff, and many other job changes, such as reductions in hours or pay, raise the risk of constructive dismissal. We anticipated that at some point the Ontario government may weigh in and change the law – on Friday they did.
Note that none of these changes apply to unionized employees.
The provinces are opening back up and various guidance has been issued to employers regarding how to do so safely, but the virus still exists and it’s still contagious. Governments who have been encouraging people to stay home are now contemplating how to get people to go out when really conditions regarding the virus have not drastically changed. This juxtaposition will have an impact on workplaces.
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