A Federal Court of Appeal decision, Bank of Montreal v. Li, is a cautionary tale for federally regulated employers about the limits of settlement agreements in resolving unjust dismissal complaints.
On October 9, 2020, the Government of Ontario announced additional restrictions on and closures of public gatherings, specific businesses, and indoor food and drink service, in an effort to limit the spread of COVID-19. These restrictions are currently applicable within the “hotspots” of the “Ottawa, Peel, and Toronto public health unit regions.”
Employers operating in Ontario, Canada should be aware that Ontario’s minimum wage rate is set to increase on October 1, 2020. This increase affects not only the general minimum wage rate, but also the alternative minimum wage rates that apply in Ontario.
According to Statistics Canada, two in five employers in Canada have reduced hours or laid off one or more employees since the beginning of the COVID-19 crisis. One of the risks associated with those difficult decisions is a constructive dismissal claim that would trigger statutory notice and severance requirements under provincial employment standard legislation and under the common law. Ontario’s government has now taken a major step to prevent claims under its Employment Standards Act, 2000 (ESA) resulting from COVID-19.