Fiona Martyn on temporary layoffs and severance pay

Interview Summary

A recent court ruling regarding temporary layoffs has given employees across the province of Ontario reason to believe that despite the COVID-19 pandemic, a layoff is still considered a termination. What will this ruling mean for future layoffs? What can employers do to navigate financial difficulties and employee rights?

Fiona Martyn, an employment lawyer and Associate at Samfiru Tumarkin LLP joins Global News Radio 640’s Kelly Cutrara to answer these questions and more.

Interview Notes

Will this recent court decision influence how employers regard layoffs?

The Infectious Disease Emergency Leave permitted employers to lay employees off and reduce hours however this decision confirms what employment lawyers have stated from the beginning of the pandemic; employee rights have not changed despite COVID-19. Employees can treat a layoff as a constructive dismissal and pursue their rights to severance pay.

Does the Infectious Disease Emergency Leave include provisions for bringing back employees?

Under the IDEL, currently, employers can place employees on a layoff until July 3rd, 2021. It is possible that this date will be extended as it has been previously. Many employees have been on a layoff for over a year but do not have to continue to accept the layoff.

Learn More
Temporary Layoffs
Alex Lucifero on COVID-19 Layoffs

Will this decision set a precedent for other constructive dismissal cases?

While the ruling does set a precedent, ultimately a judge can choose to decide differently in other constructive dismissal cases.

Should business owners who have laid off their employees due to IDEL be worried about employee severance entitlements?

Many employers believed they were doing the right thing and that they were legally permitted to lay off employees. Unfortunately, this ruling indicates that despite the pandemic employees do not have to accept a layoff. Employers moving forward should remember that this is still a unique situation and contact an employment lawyer to include protections in their contracts.

Will this ruling encourage more cases to be settled out of court?

It is typically rare for wrongful dismissal cases to lead to court. As a result of the recent judge’s decision regarding Coutinho vs. Ocular Health, employers seem to be more amiable in settling out of court.