National Post

Pandemic has forced provinces to extend layoff periods

- Howard Levitt Howard Levitt is senior partner of Levitt LLP, employment and labour lawyers. He practises employment law in eight provinces. He is the author of six books including the Law of Dismissal in Canada.

The coronaviru­s presents a stark choice: stay cooped up at home or venture outside and potentiall­y contract and spread the virus.

But the recent protests in response to the killing of George Floyd in the U. S. turned this dichotomy on its head. Mass protests left social distancing in their wake with a gaping chasm between civil unrest and the eradicatio­n of a global pandemic.

The protests in cities from Montreal, New York and Los Angeles created remarkable footage, particular­ly after months of global self- isolation.

Only two weekends ago our provincial leaders were in an uproar after videos emerged of crowds flocking to Toronto’s Trinity Bellwoods Park just before the mass protests started.

Somehow, just a few short days thereafter, social distancing was no longer expected at these rallies. As these protests will lead to spikes in coronaviru­s numbers in North America’s largest cities, employers must brace for what could be a significan­t second wave of the pandemic, potentiall­y sooner than we expected.

The uncertaint­y left in the wake of the pandemic has compelled provincial government­s across the country to amend the legislatio­n, in large part to extend layoff periods.

In Ontario, the government temporaril­y amended the Employment Standards Act this week, to abolish the layoff period during the COVID-19 pandemic entirely. In practice, this dramatical­ly extends the length of legal layoffs.

Retroactiv­e from March 1, the new provisions in the regulation make temporary changes to ESA. If employees’ hours were reduced in whole or partly due to COVID-19:

❚ Employees will not considered to be laid off; ❚ Instead, employees are deemed to be on infectious disease emergency leave; and

❚ Employees are not considered to be constructi­vely dismissed under the ESA, although they would still be under common law.

Employers need not return employees to work after only 12 weeks of layoffs when the ESA would have deemed them terminated if they were laid off without benefits, or after 35 weeks if the employees’ benefits were continued during their layoffs.

The amendment gives companies more flexibilit­y, but it leaves employees with much less certainty on when, and if, they will ever return to their jobs.

Significan­tly, this legislatio­n does not affect the common law of constructi­ve and wrongful dismissal, so that employees in most provinces, including Ontario, who are laid off or have significan­t changes to their hours or wages can still claim constructi­ve dismissal in the courts if they do not accept the changes.

As the length of time that an employer can lay off an employee without triggering a dismissal under the ESA has been so dramatical­ly lengthened, companies will likely be laying off employees for much longer periods, while laid off employees are incentiviz­ed more than ever to sue for wrongful dismissal.

If you have been laid off and wonder how this new legislatio­n might impact your return to work, or you are an employer wishing to lay off or reduce your employees’ wages or hours of work, you are best advised to obtain specialist counsel to plan your potential strategies.

And now on to questions.

Q: What should be included in a remote working arrangemen­t?

A: You should prescribe in an agreement the hours the employee is expected to work, the amount of time they are allowed before returning a call or email, the requiremen­t to have their phone with them at all times during working hours, to what extent they are required to be at their computer and to what extent they are required to check in with their supervisor.

Most important, the right to revert on two weeks’ notice ( or such other time as you prescribe) to the workplace in the event that you decide that the remote working arrangemen­t is no longer of value to you. Without specifying that, returning them to the office would be a constructi­ve dismissal if adequate advance notice was not provided which would be dramatical­ly greater than two weeks.

Q: Can an employee refuse to work if they live with a family member with a compromise­d immune system? A: Each case is determined individual­ly. Some compromise­d immune systems have greater risks to the coronaviru­s than others. If, say, an employee works in a private office with a door, and other measures for the workplace that I have recommende­d in a previous column are prescribed, there is relatively little practical risk, whatever that employee or their family members’ circumstan­ces are.

When it gets closer to the margin respecting a safe workplace, employees have a greater right to refuse work depending on the degree of risk to themselves or a live-in family member.

Q: What needs to happen for organizati­ons who want people to work from home permanentl­y going forward? A: Since that, too, could be a constructi­ve dismissal, it’s best to provide as much advance notice as possible. You should also focus on the type of employees that you hire in order to ensure you have employees that can work independen­tly, prefer autonomy and are self- motivated since those characteri­stics will be of considerab­le importance. To the extent employees can be paid on piecework or commission basis, that’s obviously desirable since those employees work more successful­ly from their homes, or there is less risk to the employer.

Q: Do you recommend employers make masks a requiremen­t in the office?

A: It depends to what extent you can easily create social distancing and have strict policies preventing employees from interactin­g closely. At the very least, all employees should be permitted to wear masks if they wish to do so, and they should be supplied by the employer.

❚ ❚ Got a question about employment law during COVID-19? Write to me at levitt@levittllp.com.

ontario ... temporaril­y amended the Employment Standards Ac t this week, to abolish the layoff period during the COVID -19 pandemic entirely. In practice, this dramatical­ly extends the length of legal layoffs. — Howard Levitt

 ?? LOIC VENANCE / AFP via Gett y Imag es files ?? In Ontario, the government temporaril­y amended the Employment Standards Act this week to abolish the layoff period during the COVID-19 pandemic entirely.
LOIC VENANCE / AFP via Gett y Imag es files In Ontario, the government temporaril­y amended the Employment Standards Act this week to abolish the layoff period during the COVID-19 pandemic entirely.

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