e2r Alert

Federally Regulated Employers Catch a Break

The Federal Government has extended the layoff period temporarily to accommodate employees who have been laid off during the current pandemic.

Previously, employers could temporarily lay-off their employees for up to three months if no recall date was provided, or for a period of up to six months if they provided an expected recall date at the time of layoff, before the lay-off became a termination. Unfortunately for many employers/employees, this meant that those employees laid off in March or April without a recall date, would soon be deemed to be terminated.

As of June 22, 2020, amendments to the Canada Labour Code (“CLC”) have been made to extend the three-month layoff period to six months, regardless of notice of recall date.

For employees laid off prior to March 31, 2020, the time period is extended by six months or to December 30, 2020, whichever happens first. Employees laid off between March 31, 2020, and September 30, 2020, the time period is extended until December 30, 2020, unless a later recall date was provided in a written notice at the time of the layoff.

It’s important to note that this only applies to Federally regulated employers.

If you have any questions about layoffs, please do not hesitate to reach out to speak with an e2r® Advisor.

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