Toronto Star

What workers, employers can expect under new rules

- David Aston

New regulation­s released by the Ontario government are rewriting history by changing what was formerly a temporary layoff into an “emergency leave.”

The new rules, which apply to the period from March 1 until six weeks after Ontario’s emergency order is lifted, have both good and bad implicatio­ns for employees. It generally strengthen­s job and benefit rights, but it reduces some rights to take legal action for “constructi­ve dismissal.”

The Star talked to Stuart Rudner, an employment lawyer with Rudner Law based in Markham, to find out what workers and employers should expect.

“They’ve rewritten history and changed all those (temporary) layoffs into leaves of absence,” says Rudner.

He says the new regulation­s under Ontario’s Employment Standards Act (ESA) will have several major direct impacts. Firstly, if you have been temporaril­y laid off, your employer is required to give you your old job back by the end of the emergency period. While you had rights to getting your job back under existing temporary-layoff provisions, your rights weren’t as explicit and the timing was less clear-cut.

Secondly, under the emergency leave provisions, your employer is now required to continue to pay benefits, whereas employers doing temporary layoffs didn’t always have to do that previously. However, the regulation­s won’t require employers to start paying benefits now if they had temporaril­y laid off employees in the early stages of the crisis without benefits, says Rudner.

Thirdly, the regulation­s defuse the “ticking time bomb” created by time limits that go with temporary layoffs made previously under the ESA, says Rudner. The temporary layoffs as defined by the original act are limited to 13 weeks (although they can be extended to 35 weeks under certain circumstan­ces), after which they are deemed

to be permanent terminatio­ns.

The 13-week limit was fast approachin­g for layoffs which took place in the early phases of the COVID-19 crisis in midMarch. The new rules suspend that 13 week period, which will resume for temporary layoffs after the temporary measures are lifted.

The changes also curtail some employee rights to bring legal action for “constructi­ve dismissal” during the COVID-19 period. Temporary layoffs, reduced hours, and cuts in pay will not be considered constructi­ve dismissal under the

ESA during this period. However, the larger and more substantia­l legal actions for constructi­ve dismissal usually come under common law, and employees continue to have those rights, says Rudner.

David Aston, a freelance contributi­ng columnist for the Star, is the author of “The Sleep-Easy Retirement Guide.” He is a personal finance and investment journalist. He has an MA in economics and is a chartered profession­al accountant. Reach him via email: davidaston­star@gmail.com

 ?? ADRIAN WYLD THE CANADIAN PRESS FILE PHOTO ?? New regulation­s under Ontario’s Employment Standards Act are expected to have several major direct effects on workers and employers.
ADRIAN WYLD THE CANADIAN PRESS FILE PHOTO New regulation­s under Ontario’s Employment Standards Act are expected to have several major direct effects on workers and employers.
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