How COVID Has Impacted Wrongful Dismissal Claims
It has been a very long year for individuals and companies alike. While many companies had to resort to layoffs during the COVID-19 pandemic, it was uncertain how this would play out legally under constructive dismissal laws.
How COVID Required A Temporary Re-Assessment of Labour Law
Prior to the pandemic, labour laws were well established. Under those laws, if an employee was terminated without cause, fired, or laid off and not provided with appropriate notice or termination pay, it could be considered a wrongful dismissal. In this case, the employee could seek monetary damages. But during the pandemic and the required lockdowns and stay-at-home orders, many businesses found that they had to reduce their workforce for their survival.
Amendment to the Employment Standards Act
While the right to sue was meant to protect employees, in the case of the COVID pandemic, it became necessary for many businesses to temporarily lay off employees to preserve their business. Understanding that, in May of last year, the Ontario Superior Court amended the Employment Standards Act, 2000 to incentivize businesses to lay off employees instead of dismissing them.
Ontario Regulation 228/20: Infectious Disease Emergency Leave provided for this, stating that “An employee whose hours of work are temporarily reduced or eliminated, for reasons related to the designated infectious disease during the COVID-19 period is exempt from the application of sections 56 and 63 of the Act for the purposes of determining whether the employee has been laid off, and the employee shall not be considered laid off under those sections, other than under clause 63 (1) of the Act.” But there are cases where this has been successfully challenged.
What Are Your Rights if You Were Laid Off or Dismissed During COVID?
The COVID-19 period is set to expire on July 3, 2021. If you have been laid off during the pandemic and are not sure of your legal rights under constructive dismissal laws, we can help. Contact the wrongful dismissal attorneys at Hilborn and Konduros for a no-cost consultation.