Type of Intervention: Financial and Economic
Sectors Involved: Private Sector and Businesses
Intervention Categories: Legal and policy
Level of Jurisdiction: Ontario
Lead People/Agency: Monte McNaughton, Minister of Labour, Training and Skills Development
Overview: The Ontario government is extending protection to prevent temporary layoffs from becoming permanent by implementing a regulatory amendment to delay termination and severance liabilities. Existing legislation states that termination of an employee after 13 weeks of being temporarily laid off leads to costly payouts that may force some businesses to close. This extension will last until January 2, 2021 and intends to help support businesses in reopening and returning to full operations.
Full details here: https://news.ontario.ca/en/release/58240/ontario-extends-support-for-employers-and-employees-impacted-by-covid-19
Other links: 1
Type of Justification: Providing support
Evidence/Justification: The justification provided for this business protection initiative is to protect businesses and employees in Ontario impacted by COVID-19. The government statement explains that the cost of termination and severance pay can make it very difficult for businesses to survive and reopen, thus this support intends to mitigate this issue.