The Richmond Chamber of Commerce is calling the extension of temporary layoffs to 24 weeks – previously 16 weeks - “ a real win” during the COVIC-19 pandemic.
Under the Employment Standards Act, anyone laid off temporarily because of COVID-19 would have been paid severance after 16 weeks, but this adds eight more weeks, expiring on Aug. 30.
This “breathing room” was welcome news for Matt Pitcairn, president and CEO of the Richmond Chamber of Commerce, which has been advocating for this extension along with the provincial chamber body.
“In the vast majority of cases, we know employers want to bring back their teams – but they just need more time,” said Pitcairn. “By extending this timeframe to align with CERB benefits, the provincial government is giving business more time to get back on their feet and open their business’ doors again.”
The B.C. Employment Standards Act allows employers and workers to extend temporary layoffs by making a joint application to the Employment Standards Branch. The employee has to agree to the layoff. If not, he or she is then entitled to severance pay.
“We heard loud and clear from employers that they need this extension,” said Harry Bains, Minister of Labour. “We also know it is important to ensure that workers know that they have to be involved in the agreement with the employer to extend the temporary layoff and have a right to decline the layoff and accept the compensation for length of service which they are entitled to.”
The Business Council of British Columbia has estimated 10 to 15 per cent of the 200,000 businesses with paid employees in the province could fail by 2021 because of the pandemic.
“The ability for businesses and employees to maintain their connection will help our province drive greater prosperity in the long run and accelerate us along the path to recovery,” Pitcairn added.
