ROSSI: Critical change required to protect employers and employees during pandemic
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The COVID-19 pandemic forced many employers to reduce or close operations due to a lack of business, while others shut down due to emergency government orders.
Although the mandatory closure of workplaces has had a significant impact on Ontario business, this was a short-term measure to protect all Ontarians.
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To prevent a short-term measure from having permanent consequences for businesses and jobs, it has become urgent that the Ontario government temporarily amend the Employment Standards Act, 2000 (ESA) to support employers and employees during this unprecedented period of disruption.
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Currently, the ESA requires an employer to comply with notice and severance obligations when a layoff exceeds 13 weeks.
Under some circumstances that period can be extended, but many employers — particularly small- and medium-sized enterprises — are unable to meet those conditions.
These businesses will have to pay expensive severance obligations to their employees, a cost which could result in their permanent closure and more people losing their jobs. In addition to the lost livelihoods of business owners and workers, the closures and job losses would have a devastating impact on Ontario’s economy.
On March 26, the government of Manitoba issued an order designed to avoid this scenario by excluding the period of a declared state of emergency from their expiry calculations. Given the timing and circumstances, the Ontario Chamber of Commerce recommends that the government of Ontario issue a similar order to help protect both businesses and their employees during this difficult time.
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Time is of the essence, so we call on the province to act now to make this important change to the ESA. The government has already made temporary amendments to the ESA to protect employees during this crisis, including allowing job-protected emergency leave and preventing employers from requiring doctor’s notes from their workers.
Now, to preserve jobs and keep businesses alive, it needs to act once more.
It may feel like a lifetime ago that Ontario declared a state of emergency, but it has been only two months. There is still much to do to adjust legislation to support both employers and employees during this unprecedented time and prevent unintended consequences from imperiling businesses, jobs and livelihoods.
We hope the government amends the ESA as swiftly as possible.
— Rocco Rossi is president and CEO, Ontario Chamber of Commerce
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