I think most can agree that COVID-19 has turned our worlds upside down, in almost every way. It’s early days here in Ontario, already with significant impact to businesses and individuals. I’ve been following the updates and attending various webinars – from Rotman, ICD and HRPA, HR firms and employment lawyers – as we learn collectively and navigate this extraordinary time together.
Due to self-imposed or government restrictions to try to stop the spread of the virus, employers and self-employed have been quickly forced to find ways to adapt their businesses, and/or face significant financial setback. Some businesses – like home entertainment or grocery – are able to expand during this crisis in response to heightened demand. Those without similar options are scrambling to find new ways to hold the fort while waiting for restrictions to lift, or to try to create new demand for their products or services.
Those businesses who cannot find a way to continue to afford to pay their bills or employees for an indefinite period face extremely difficult decisions regarding their staff, including pay cuts and layoffs.
The federal and provincial governments have also scrambled to offer a variety of financial supports to businesses to try to keep people businesses afloat and staff employed during the pandemic (see my March 24th blog for charts summarizing the main measures).
Before making any decisions on steps like pay cuts, layoffs, leaves or terminations, it is highly advisable to speak to an employment lawyer or experienced HR professional, to determine risks and explore various approaches, as well as to assist with customized staff communications or documentation that may be needed. Such measures still involve risk, even in the context of a pandemic.
It is unclear how employee challenges to such decisions may fare, because we are in uncharted territory, and these circumstances have not yet been tested. As always, claims will be evaluated case by case. However, the government support offered to businesses may imply a higher degree of obligation to employers to exhaust all options before making certain choices that fundamentally change the terms of someone’s employment, or eliminates it.
Please contact me if you wish to discuss what options may be best in your circumstances. I can refer you to an employment lawyer if needed. I also have clients willing to share their strategies and experiences with other business owners if they can help.