The pandemic with its resulting economic fallout continues and many employers in Canada have implemented temporary layoffs. As a result, employers and employees face the risk of deemed terminations. These are triggered when a temporary layoff exceeds the maximum period of time permissible under employment standards legislation, resulting in the permanent end of employment. Terminations can be costly for employers as they create obligations related to statutory notice, common law notice and, in some cases, severance payments. In many jurisdictions, and most recently in Ontario, the government has stepped in to ease the financial burden faced by employers who have implemented temporary layoffs for reasons related to COVID-19.
