Update for Ontario Employers: Proposed Changes Related to Remote Workers
Update for Ontario Employers: Proposed Changes Related to Remote Workers
The Ontario Government recently announced proposed amendments to the province’s employment laws that would clarify remote employees’ entitlements in situations of mass termination.
The amendments are proposed in response to the large increase in remote work initiated by the COVID-19 pandemic. Although the immediate effects of the pandemic have subsided, many employees continue to work remotely. The Ontario Government reported that 2.2 million people worked remotely in the fourth quarter of 2022.[1]
Under the Employment Standards Act, 2000 (“ESA”), special rules apply regarding notice of termination or pay in lieu of notice when 50 or more employees are terminated at an employer’s establishment within a four-week period (a “mass termination”). While the notice period is normally calculated based on an employee’s length of employment, in mass terminations, employees are entitled to the enhanced notice period of eight, twelve, or sixteen weeks based on the number of employees’ terminated. Remote workers do not currently qualify for these enhanced notice periods as they work from remote workplaces and not their employer’s “establishment”.
If enacted, the proposed amendments will expand the definition of “establishment” under the ESA to include employees’ remote workplaces. This would result in remote employees receiving the same enhanced notice of termination or pay in lieu of notice as in-office or other employees, if they are terminated in a mass termination.
Additionally, in an effort to protect precarious workers, the proposed amendments would require employers to provide all new employees with information in writing about their job, such as the employee’s rate of pay, work location and hours of work, and would specify the date by which this information must be provided (e.g. before the employee’s first shift). Currently, employers are only required to provide new employees with the latest version of the Ontario Government’s employment standards poster, which outlines ESA workplace rights and responsibilities.
While the proposed amendments are not yet in force, Ontario employers should proactively consider how these changes may affect their current practices if they are passed into law. TRC-Sadovod’s Employment and Labour Relations Group will continue to monitor legislative developments affecting employers.
[1] Government of Ontario, Ontario Tightening Rules Around Mass Layoffs, March 13, 2023.
by Victor Kim and Ricki-Lee Williams
A Cautionary Note
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
© TRC-Sadovod LLP 2023
Insights (5 Posts)View More
Ontario Court of Appeal Upholds 30-Month Notice Period
Ontario’s Court of Appeal has upheld an astounding 30-month notice period awarded to a non-managerial employee with almost 40 years of service.
Corporate Counsel CPD Webinar | Essential Leadership Practices: Supporting the resilience, engagement, and impact of your team
Join professional coach and certified stress management educator, Marla Warner, for an engaging program that will help you focus on elevating performance outcomes, while supporting your team’s engagement and wellbeing. You will learn how to foster trust and respect in your team, the benefits of “coaching”, and why gratitude, empathy and compassion are the superpowers for leaders in 2023 and beyond.
TRC-Sadovod’s Employment and Labour Webinar 2023
Join us for TRC-Sadovod's annual Employment and Labour Webinar as we review and discuss current trends, emerging employment legal issues and provide practical solutions to help you manage your workforce.
Enforcing Arbitration Agreements: Ontario Superior Court Raises a ‘Clause’ for Concern
This bulletin discusses a recent decision that found that an arbitration clause that contracts out of applicable employment standards legislation is invalid.
Transparency for Talent: Proposed Legislation Would Mandate Salary Range and Artificial Intelligence Disclosure in Hiring Process
Ontario will propose legislation aimed at providing additional transparency to Ontario workers, including salary ranges and use of artificial intelligence.
Get updates delivered right to your inbox. You can unsubscribe at any time.