Employment lawyer on pay reductions, relocating, and working from home

Interview Summary

As a result of the pandemic and the shift to remote working for many employees across the province, many workers have decided to relocate or remain working from home. Some employers as a result have decided to impose pay reductions. Are employers legally permitted to reduce an employee’s wages?

Jon Pinkus, a Toronto employment lawyer and partner at Samfiru Tumarkin LLP joins Jeff McArthur on Global News Radio 640 Toronto to answer this question and more on employee rights.

Interview Notes

Are employees experiencing pay reductions as a result of moving to a region that has a lower cost of living?

While it does not appear to be happening en masse, there are some employers that have decided to impose pay reductions as a result of employees moving. Employers are not permitted generally to reduce an employee’s pay without their consent. A minor and marginal change will not result in any consequences however significant pay cuts can lead to constructive dismissal.

Can employers offer employees the alternative to return to the office or take a pay cut?

Employers are permitted to ask employees and offer alternatives however an employee also has the right to refuse changes. Employers cannot impose a change without acceptance. Employees that have refused a change and were then terminated must be offered their full severance entitlements. Employees who previously worked in the office before the pandemic who refuse a return are giving employers a reason for dismissal.

Are more employees requesting to remain working from home?

Employees who worked at the office prior to the pandemic must return to the workplace if requested by their employers. A refusal to return to the office can be considered grounds for dismissal and employees should communicate their concerns with their employers and work towards a compromise.