The government of Ontario has passed a regulation under the Employment Standards Act, 2000 ("ESA") extending the Infectious Disease Emergency Leave ("IDEL"). The IDEL regulation which was introduced on May 29, 2020 was originally set to apply to a temporary layoff or reduction in wages/hours from March 1, 2020 to September 4, 2020. The regulation was extended to January 2, 2021, then to July 3, 2021 and now again to September 25, 2021.
The regulation exempts layoffs or reduction in wages/hours from being deemed a termination of employment. Employers who temporarily lay off employees or reduce wages/hours due to COVID-19 have no obligation to provide ESA notice or severance pay.
The result of the latest extension is that an employee who has been laid off or had their wages/hours reduced for COVID-19 related reasons can continue to be on an IDEL until September 25, 2021, without triggering termination and severance pay obligations under the ESA. The exception to this is if the employee is terminated due to a permanent discontinuance of business, in which case they are entitled to severance pay under the ESA.
Employers should caution, however, as discussed in a recent blog, this regulation does NOT affect an employee's right to pursue a common law claim for constructive dismissal based on a temporary layoff or reduction of hours related to COVID-19.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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