Littler Global Guide - Canada - Q1 2020

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q1 2020 Global Guide Quarterly

COVID-19: Federal Bill C-13 Amends Leave of Absence Provisions

New Legislation Enacted

Authors: Rhonda B. Levy, Knowledge Management Counsel and Monty Verlint, Partner – Littler Canada

On March 25, 2020, federal “Bill C-13, An Act respecting certain measures in response to COVID-19” amended the leave of absence provisions in the Canada Labour Code (CLC). Amendments to the CLC include, among other things: waiver of the medical certificate requirement for compassionate care, critical illness and medical leaves of absence until September 30, 2020; the addition of a 16-week leave of absence for quarantine to the existing medical leave provision effective October 1, 2020; and the addition of a new 16-week leave of absence if the employee is unable or unavailable to work for reasons related to COVID-19.

COVID-19: Ontario’s New Emergency Leave

New Legislation Enacted

Authors: Rhonda B. Levy, Knowledge Management Counsel and Monty Verlint, Partner – Littler Canada

In response to the COVID-19 crisis, on March 17, 2020, the Government of Ontario declared an emergency under the Emergency Management and Civil Protection Act. On March 19, 2020, Ontario’s Legislature enacted the Employment Standards Amendment Act (Infectious Disease Emergencies), 2020 (Bill 186), amending Ontario’s Employment Standards Act, 2000 to create the new Emergency Leave: Declared Emergencies and Infectious Disease Emergencies. This new leave covers two separate emergency situations in which an employee may be on unpaid, job-protected leave from work: Declared Emergencies and Infectious Disease Emergencies. On March 19, 2020, pursuant to Ontario Regulation 66/20, COVID-19 was designated an infectious disease for purposes of the new leave, retroactive to January 25, 2020, the date on which the first presumptive COVID-19 case was confirmed in Ontario. Employment standards legislation has been amended in other provinces to include variations of this COVID-19 emergency leave, including in Newfoundland, British Columbia, Alberta, and Saskatchewan.

Federally Regulated Employees Can Make Unjust Dismissal Complaints After Signing Releases

Precedential Decision by Judiciary or Regulatory Agency

Authors: Rhonda B. Levy, Knowledge Management Counsel and Monty Verlint, Partner – Littler Canada

In Bank of Montreal v. Li, 2020 FCA 22, the Federal Court of Appeal (FCA) dismissed the company’s appeal of the Federal Court’s decision in Bank of Montreal v. Li, 2018 FC 1298. The court refused to depart from its earlier decision in National Bank of Canada v. Canada (Minister of Labour), [1997] 3 FCR 727 (FC), aff’d, 1998 CanLII 8077 (FCA). Accordingly, eligible employees of federally regulated employers may make claims for unjust dismissal under s. 240 of the Canada Labour Code during the permissible 90-day period, even after signing releases and settlement agreements.

Federal Government to Provide 75% Canada Emergency Wage Subsidy to Employers

Proposed Bill or Initiative

Authors: Rhonda B. Levy, Knowledge Management Counsel and Monty Verlint, Partner – Littler Canada

To motivate employers to keep their employees during the COVID-19 crisis, the federal government is providing the Canada Emergency Wage Subsidy, a 75% wage subsidy to employers that have had a reduction in revenue of 30%. In addition to being available to taxable corporations and nonprofits, the subsidy will also be available to individuals who are employers and to partnerships, however it will not be available to public sector entities. There will be no overall limit on the subsidy amount that an eligible employer may claim. The subsidy will apply to 75% of the first $58,700 earned, which could amount to payments of up to $847 per week. The subsidy will be available for up to a 12-week period from March 15, 2020 to June 6, 2020, and it will be retroactive to March 15, 2020. Employers will be expected to make their best efforts to top up salaries to 100% of the maximum wages covered. Penalties may apply in cases of fraudulent claims.

COVID-19: Federal Bill C-13 Creates Canada Emergency Response Benefit

Trend

Authors: Rhonda B. Levy, Knowledge Management Counsel and Monty Verlint, Partner – Littler Canada

On March 25, 2020, federal “Bill C-13, An Act respecting certain measures in response to COVID-19,” received Royal Assent. Among other things, Bill 13 created the Canada Emergency Response Benefit Act, which authorizes the Canada Emergency Response Benefit (CERB). CERB provides income support payments of $2,000 per month to workers suffering a loss of income related to COVID-19 for up to 16 weeks. To be eligible, workers must fall in to the following criteria: not be earning any income for at least 14 consecutive days; be at least 15 years of age and resident in Canada; and have a total income of at least $5,000 in 2019 or the preceding 12-month period from employment, self-employment, benefits paid under the Employment Insurance Act, and pregnancy/parental leave benefits.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.