Is infectious disease emergency leave a constructive dismissal in court? Two Ontario judges say yes, but a third says no. Employment law specialist, Rishi Bandhu weighs in
Ontario, and rest of the world, continues to be consumed with adapting to COVID-19.
Early in the pandemic, many employers were forced to lay off staff. At least 18 months into the pandemic, layoffs remain part of the employer’s toolkit.
In the absence of express contractual authority to layoff, employers have always been liable to complaints or lawsuits for constructive dismissal. The Ontario government attempted to mitigate that risk in May 2020 by introducing Infectious Disease Emergency Leave (“IDEL”) into the Employment Standards Act, 2000 (“ESA”).
The intent of IDEL was, in large part, to shield employers from liability for laying off without express contractual authority. The question that arose in May 2020, and remains to this day, is whether IDEL insulated employers from court claims, as well as Ministry of Labour complaints.
Ontario employers continue to wait for definitive guidance from the legislature or the Court.
Background
Dual Regimes
Under Ontario law, an employer may terminate without cause by providing lawful notice of termination and, if applicable, severance pay.
Employers may specify an employee’s entitlement to notice in a written contract of employment, provided the employer complies with the minimum requirements under the ESA. Those minimums include:
- Notice or termination pay...
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