SHARED BY McDonald HR Law
Shared June 2, 2020
Summary
On May 29, 2020, the Ontario Government introduced new law (Regulation 228 of the Ontario Employment Standards Act, 2000) that provides relief to employers who have reduced or eliminated an employee’s hours and/or wages due to COVID-19.
The new law provides that a reduction of an employee’s hours/wages due to COVID-19 :
- Is not a layoff. Therefore, the reduction of hours can’t crystallize into a termination (as a layoff would, in the normal course after 13 (or 35) weeks) and the employer will not be responsible for paying termination or severance pay.
- Is not a constructive dismissal under the ESA. As such, an employee cannot protest the reduction in hours/wages, resign and claim termination or severance pay.
This law applies from March 1, 2020 to the date which is six (6) weeks after the state of Emergency ends. This is referred to as the COVID-19 Period in the law and in this E-Blast.
Details of Reg. 228 are discussed in the attached document