If you intend to perform a temporary layoff, note that currently, employers do not have the unequivocal right to enact a layoff unless it has been previously stated/outlined in employment agreements and/or company policies that have been acknowledged by employees. Enforcing a temporary layoff without a previously stated right may result in wrongful/constructive dismissal claims against the employer. You may still be able to enact the layoff if you have a (documented) agreement with your employees in question to do so. Once you have the necessary agreements in place the temporary layoff will have to be operated in accordance with ESA guidelines.
In an effort to alleviate lay-off situations employers can consider the Federal Govt. Work-Sharing (WS) program. This is an Employment Insurance (EI) program that helps employers and employees avoid layoffs when there is a temporary decrease in business activity beyond the control of the employer. The program provides EI benefits to eligible employees who agree to reduce their normal working hours and share the available work while their employer recovers. The goal of the program is for all participating employees to return to normal working hours by the end of the agreement. The employer and the employees (and the union, if applicable) must agree to participate in a WS agreement and must apply together. It is important to understand the WS program eligibility before applying. Please read all the information provided in this document and discuss it with your employees by providing them with the Employee Guide.
If this program is not feasible or if employees just want to stay home as a precaution they may be eligible to apply for the newly announced Emergency Response Benefit outlined below.
Effective March 25, 2020, the Federal Government enacted the COVID-19 Emergency Response Act as part of its Economic Action Plan to address the ongoing COVID-19 situation. Workers who suffer a loss of income for reasons related to COVID-19 may now be eligible to receive a taxable benefit of up-to $2,000 per month for up to four months (i.e. 16 weeks), including where the loss of income is the result of being sick, quarantined, taking care of someone who is sick with COVID-19, as well as parents are required to be absent from work to care for children who are sick or at home because of school and daycare closures. This benefit combines and replaces the previously announced Emergency Care Benefit and Emergency Support Benefit. Under the Act, charities and certain small businesses may also be eligible to receive temporary wage subsidies for a period of up to three months. Read here.
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