The temporary changes made to the Employment Standards Act back in May will formally end on September 4, 2020. The temporary changes to the Employment Standards Act included converting layoffs to unpaid temporary leaves of absence, deeming cuts to hours or pay to not be constructive dismissals, and suspending some payments of termination and severance pay (among other changes). The duration of those changes can last up to 6 weeks after the end of the provincial declaration of emergency in Ontario.
On July 24, 2020, the provincial declaration of emergency in response to the COVID-19 pandemic made by the Ontario government was ended, and the new Reopening Ontario (A Flexible Response to COVID-19) Act, came into force. As a result, the temporary changes will cease on September 4, 2020.
While the provincial declaration of emergency has ended, the new act provides the Ontario government with future flexibility to address COVID-19 issues. Some emergency orders that were previously in will continue under the new act, affecting long-term care homes, stages of reopening, compliance with public health advice, and gatherings.
Suspension of Limitation Periods Coming to an End: At the beginning of the pandemic, Ontario took the extraordinary step of suspending procedural deadlines and limitation periods. As such, many lawsuits halted to a standstill and employers/employees were not inclined to move their matters forward. Ontario confirmed it would extend the suspension of these limitation periods and deadlines until September 11, 2020 (which is the maximum renewal period allowable under emergency law). This means that procedural deadlines and limitation periods will soon be enforced.
Changes to Wage Subsidy Program: The Federal Government confirmed significant changes to the Wage Subsidy Program (CEWS) on Monday. The new updates will extend CEWS to at least November 21, 2020 (and potentially until December 31, 2020) and extend eligibility for employers who experience any decline in revenue. Currently, a Canadian employer whose business has been affected by COVID-19 may be eligible for a subsidy of 75% of employee wages for up to 24 weeks, retroactive from March 15, 2020 to August 29, 2020, so long as the employer meets certain eligibility criteria, including a 30% reduction in revenue in a particular period.
With the proposed changes, the subsidy will be available to all eligible employers who experience a reduction in revenue, with the amount of the subsidy directly correlated with the amount of the reduction in revenue. From July to November, businesses with any revenue decline will be eligible to participate. The new law increases the maximum weekly subsidy available for businesses with higher revenue declines from $847 to $960 per employee. The government will gradually decrease the maximum subsidy amount available in September. A top-up subsidy will also be made available to employers who experience a 3-month average revenue drop of more than 50 percent.
The precise amount of the subsidy will now be determined by new calculations which take into account the amount of the revenue drop over the claim period, the employee’s remuneration and, in the case of employers eligible for a “top-up”, a 3-month reference period. The new law also confirms that employer contributions to CPP and EI would continue to be refunded, and includes other changes intended to make the program more accessible.
Feel free to reach out to us if you have any questions about the above and how it impacts your business.
On July 24, 2020, the provincial declaration of emergency in response to the COVID-19 pandemic made by the Ontario government was ended, and the new Reopening Ontario (A Flexible Response to COVID-19) Act, came into force. As a result, the temporary changes will cease on September 4, 2020.
While the provincial declaration of emergency has ended, the new act provides the Ontario government with future flexibility to address COVID-19 issues. Some emergency orders that were previously in will continue under the new act, affecting long-term care homes, stages of reopening, compliance with public health advice, and gatherings.
Suspension of Limitation Periods Coming to an End: At the beginning of the pandemic, Ontario took the extraordinary step of suspending procedural deadlines and limitation periods. As such, many lawsuits halted to a standstill and employers/employees were not inclined to move their matters forward. Ontario confirmed it would extend the suspension of these limitation periods and deadlines until September 11, 2020 (which is the maximum renewal period allowable under emergency law). This means that procedural deadlines and limitation periods will soon be enforced.
Changes to Wage Subsidy Program: The Federal Government confirmed significant changes to the Wage Subsidy Program (CEWS) on Monday. The new updates will extend CEWS to at least November 21, 2020 (and potentially until December 31, 2020) and extend eligibility for employers who experience any decline in revenue. Currently, a Canadian employer whose business has been affected by COVID-19 may be eligible for a subsidy of 75% of employee wages for up to 24 weeks, retroactive from March 15, 2020 to August 29, 2020, so long as the employer meets certain eligibility criteria, including a 30% reduction in revenue in a particular period.
With the proposed changes, the subsidy will be available to all eligible employers who experience a reduction in revenue, with the amount of the subsidy directly correlated with the amount of the reduction in revenue. From July to November, businesses with any revenue decline will be eligible to participate. The new law increases the maximum weekly subsidy available for businesses with higher revenue declines from $847 to $960 per employee. The government will gradually decrease the maximum subsidy amount available in September. A top-up subsidy will also be made available to employers who experience a 3-month average revenue drop of more than 50 percent.
The precise amount of the subsidy will now be determined by new calculations which take into account the amount of the revenue drop over the claim period, the employee’s remuneration and, in the case of employers eligible for a “top-up”, a 3-month reference period. The new law also confirms that employer contributions to CPP and EI would continue to be refunded, and includes other changes intended to make the program more accessible.
Feel free to reach out to us if you have any questions about the above and how it impacts your business.
This article is provided for general information purposes and should not be considered a legal opinion. Clients are advised to obtain legal advice based on their specific situations.
