December 18, 2020

The government of Ontario announced that it is extending regulatory changes to the Employment Standards Act that were originally brought forward to address the impact of the COVID pandemic.

The changes, previously set to expire January 2, 2021, have been extended to July 3, 2021. They effect all non-union employees and unionized employees in hospitality and other hard-hit industries.

Non-union employees
Employers can put non-unionized employees on job-protected leave during the COVID-19 outbreak any time their hours of work are temporarily reduced by the employer due to the pandemic

This measure is intended to provide relief to employers while preventing temporary layoffs from becoming permanent.

Union employees in hospitality and other hard-hit industries

The government is creating a special industry regulation allowing employers to negotiate alternative arrangements with unions for putting termination and severance pay into trust for laid-off employees.

Employers with laid-off unionized workers need to put all potential termination and severance payments in a trust after 35 weeks while employees wait to be recalled to their jobs.
For companies in effected industries, employers and unions have the option to use those funds to help keep business doors open.

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NOTE: The provision is only available if unions and employers both agree to create alternative arrangements. For instance, an employer and union could agree to only 50 per cent of termination and severance pay being put into trust. Employers will not be able to implement these changes unilaterally.

For your reference I have included the full News Release below.

I hope you find this information useful and that you, your fellow workers, family and loved ones are safe and healthy and will continue to observe and practice the protocols and guidance provided by our Public Health officials, as difficult as it may be during the holiday season and coming weeks.

News Release

Ontario Supports Employers and Employees Impacted by COVID-19

Proactive measures to protect jobs by helping businesses avoid costly payouts and potential closures

December 17, 2020
Labour, Training and Skills Development

TORONTO – The Ontario government is taking action to protect jobs by helping businesses avoid costly payouts and potential closures and continues offering protection to workers that are laid off due to COVID-19. These measures are being adopted through the extension of regulatory amendments that were put in place at the outset of the pandemic and through the introduction of a new regulation.

“Business owners continue to face challenging times during this pandemic, with many struggling to keep their doors open. Having to come up with termination and severance pay at this time could drive many of them under,” said Monte McNaughton, Minister of Labour, Training and Skills Development. “Our government will continue to provide businesses with the support they need until they can reopen and return to full operations. We want to ensure employees have jobs to return to when the economy rebounds from the COVID-19 economic crisis.

For employers with non-unionized employees, the government is extending regulatory changes brought forward under the Employment Standards Act to July 3, 2021.The regulation’s changes include putting non-unionized employees on job-protected leave during the COVID-19 outbreak any time their hours of work are temporarily reduced by their employer due to the pandemic to prevent temporary layoffs from becoming permanent. Under the Act, temporary layoffs become terminations when they exceed the permitted period. Previously set to expire on January 2, 2021, the extension of this amendment ensures that workers remain employed while providing relief to employers.

To support the hospitality industry and other hard-hit industries, the government is creating a special industry regulation allowing employers to negotiate alternative arrangements with unions for putting termination and severance pay into trust for laid-off employees. Employers with laid-off unionized workers need to put all potential termination and severance payments in a trust after 35 weeks while employees wait to be recalled to their jobs.

Given the unique challenges that many employers in the tourism and hospitality industries are facing as a result of COVID-19, the government is providing employers and unions the option to use those funds to help keep business doors open. The provision is only available if unions and employers both agree to create alternative arrangements. For instance, an employer and union could agree to only 50 per cent of termination and severance pay being put into trust. Employers will not be able to implement these changes unilaterally.

“Allowing unions and employers in the hospitality, tourism and trade show industries to work together to develop a solution based approach during this crisis is critical to keep them open and allow them to fully recover,” said Lisa MacLeod, Minister of Heritage, Sport, Tourism and Culture Industries. “This initiative supports our government’s commitment laid out in the 2020 Ontario Budget to provide unprecedented support for people and jobs during this challenging time. These actions will help us lay the groundwork for a robust long-term economic recovery for the province.”

Lenoury Law

Employment and Labour Law

Extension of ESA changes to July 3, 2021

Ontario Supports Employers and Employees Impacted by COVID-19

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