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Canada Employment Litigation Layoffs

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Ontario, Canada Court Confirms a Clearly Drafted Temporary Layoff Clause Can Protect Employers From Constructive Dismissal Claims

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In Taylor v. Salytics Inc., 2025 ONSC 3461, the Ontario Superior Court of Justice considered whether a temporary layoff provision in an employment contract constituted a termination provision, and was therefore subject to the...more

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Ontario Court Confirms Temporary Lay-Off Clause Is Distinct From Termination Clause

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In Taylor v Salytics Inc., 2025 ONSC 3461 (Taylor), the Ontario Superior Court of Justice emphasized the importance of a substance-over-form analysis in the interpretation of employment agreements, concluding that a temporary...more

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British Columbia, Canada Appeal Court Rejects Employer’s Frustration Defence in Circumstances Connected to COVID-19

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In Aldergrove Duty Free Shop Ltd. v. MacCallum, 2024 BCCA 28, the Court of Appeal for British Columbia (BCCA) dismissed an employer’s appeal when it agreed with the lower court that the employer could not use the frustration...more

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Ontario, Canada Court of Appeal Addresses How Employers Can Preserve Right to Unilaterally Lay Off Employees Without Being Found...

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In Pham v. Qualified Metal Fabricators Ltd., 2023 ONCA 255, the Ontario Court of Appeal (OCA) found that unless an employee’s employment contract provides otherwise via an express or implied term, an employer’s unilateral lay...more

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Ontario, Canada: Availability of Deemed IDEL Ended on July 30, 2022 But Unpaid and Paid IDEL Still Available to Eligible Employees

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Deemed IDEL No Longer Available - In May of 2020, Ontario filed O. Reg. 228/20, which provided that a non-unionized employee who did not perform their job duties during the “COVID-19 period” because their work hours were...more

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Ontario Appellate Court Ruling Leaves Employers Waiting for Determination on Interpretation of COVID-19 Leave Provisions

Employers in Ontario have been waiting for clarification on the interpretation of COVID-19 leave provisions throughout much of the pandemic. Employers had hoped that the Court of Appeal’s decision in Taylor v Hanley...more

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Alberta, Canada: Arbitrator Decides COVID-19 Pandemic is Cataclysmic Event that Did Not Trigger Entitlement to Severance Under...

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In United Utility Workers’ Association of Canada v Dataco Utility Services Ltd., 2022 CanLII 13414 (AB GAA), Arbitrator John Moreau, Q.C., dismissed 11 grievances filed on behalf of 11 service technicians (Grievors) of Dataco...more

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Ontario, Canada Court Decides Employees Laid Off During COVID-19 May Not Claim Constructive Dismissal at Common Law

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Just six weeks after holding in Coutinho v. Ocular Health Centre Ltd. that Ontario Regulation 228/20 (IDEL Regulation) under the Employment Standards Act, 2000 (ESA) did not remove an employee’s common law right to claim...more

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British Columbia, Canada Court Deducts CERB From Employee’s Damages for Wrongful Dismissal

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To date, few decisions in Canada have considered whether the amount of the Canadian Emergency Response Benefit (CERB) employees receive after their job termination should be deducted from their damages in lieu of common law...more

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Ontario, Canada Court Decides Employee Laid Off During COVID-19 May Claim Constructive Dismissal at Common Law

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Last May, the government of Ontario filed Ontario Regulation 228/20 (IDEL Regulation) under the Employment Standards Act, 2000 (ESA).  The Regulation provides that an employee in a non-unionized workplace who, any time during...more

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