The COVID-19 pandemic has had a devastating impact on our economy over the past year. Many of us have experienced firsthand the struggles of small businesses and hard-hit industries such as the food services sector and tourism. The strains on businesses are unavoidably accompanied by employee layoffs and terminations. Near the beginning of the pandemic, one question on many employment lawyers’ minds was, what impact will the COVID-19 pandemic have on calculating an employee's severance pay?
Employers looking to amend and update employment contracts with current employees should be mindful of the elements that must be satisfied for the agreement to be found valid and enforceable.
Ontario employers take note: in a surprise announcement on September 3, 2020, the provincial government announced that it had extended its freeze of temporary layoff limitations. Regular layoff rules had been set to resume on September 4, 2020. Pursuant to O. Reg. 492/20, this date has now been pushed back to January 2, 2021.