Employers in Ontario have been waiting for clarification on the interpretation of COVID-19 leave provisions throughout much of the pandemic. Employers had hoped that the Court of Appeal’s decision in Taylor v Hanley Hospitality Inc. would provide clarity on the implications of Employment Standards Act, 2000 infectious disease emergency leave (IDEL) on an employee’s employment status. Instead, the Ontario Court of Appeal declined to comment on the interpretation of the Employment Standards Act, 2000 leave provisions and solely determined that the lower court judge had erred by dismissing the action by way of a Rule 21 motion.
The employee, Candace Taylor, commenced the action against her employer, Hanley Hospitality Inc., after she was laid off on March 27, 2020. Taylor was temporarily laid off until September 2020, and she did not receive payment during this time. Taylor claimed that she was constructively dismissed from her position because Hanley Hospitality continued its operations during her layoff. Specifically, Taylor argued that her layoff was “‘in response to unfavourable economic conditions,’” not because of the COVID-19 pandemic. Hanley Hospitality argued that it temporarily laid off more than fifty employees because of the emergency measures imposed by the government of Ontario in response to COVID-19.
Hanley Hospitality brought a motion to dismiss the action under Rule 21 of the Rules of Civil Procedure arguing that Taylor was on an IDEL and was...
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