Employees may face difficulties finding alternative employment, and if their Record of Employment indicates they resigned, it is unlikely they will be able to access Employment Insurance or the Canada Emergency Response Benefit.
These are unprecedented times and we are not yet sure how the courts will treat temporary wage and hour reductions. In Ontario, the new Employment Standards Act Regulation 228/20 may operate to preclude certain claims for constructive dismissal arising out of the pandemic.
Finally, employees who claim constructive dismissal have a duty to take reasonable steps to find alternative work. This duty often includes an obligation to accept an offer to return to work under changed conditions. While the employee can still bring a constructive dismissal claim, returning to work can significantly reduce the damages recoverable against their employer.
A new regulation passed by the province on May 29 disallows constructive dismissal claims under the Employment Standards Act for all COVID-19 related layoffs and reductions of hours of work or wages. This regulation would limit your ability to seek termination entitlements under the ESA. However, it would not prohibit a claim for EI/CERB or a common law constructive dismissal claim before the courts.
only if your constructive dismissal didn't include putting your manager in a swimming pool with alligators ;)
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