If employees were temporarily laid off during the pandemic, can the employer bring them back at reduced pay until revenues reach pre-pandemic levels?
Question: If employees were temporarily laid off during the pandemic, can the employer bring them back at reduced pay until revenues reach pre-pandemic levels?
Answer: It depends. Contrary to popular belief, employers do not automatically have the right to lay off employees temporarily, even due to an unexpected downturn in business. Doing so can constitute a constructive dismissal. In light of the COVID-19 pandemic, several provincial governments amended their employment standards legislation such that temporary layoffs would be deemed to be an Infectious Disease Emergency Leave (IDEL) for the purpose of the legislation until at least July 3, 2021. However, temporary layoffs can still constitute constructive dismissal under the common law.
