The PCU will it lead to collective redundancies?

La PCU va-t-elle engendrer des licenciements collectifs?

The PCU made to sweat for many entrepreneurs lack of manpower.

For some of them, this frustration turns little by little to the anxiety as we approach the fall. They are afraid of having to pay severance payments, because it will be six months that their employees had not returned to work because of the federal assistance. Is this fear based ?

Early “official” of the pandemic, in the month of march, companies have had to lay off part of their workforce, if not all.

In September

As long as these layoffs remain temporary, the employer does not have to pay compensation to the affected people. However, after six months, they are considered permanent. That brings us to September. What will happen to it ?

If more than 10 employees are concerned, it is a “collective dismissal” the eyes of the Law on labour standards, which entails obligations for the company. It must then pay the equivalent of eight weeks of pay to people who have lost their jobs.

What happens if, after you have been made redundant, employees are reluctant to return to work because of PKU ? At the end of six months, can they claim eight weeks of pay in the pretext of a collective dismissal ?

In mid-June, these questions came to the mind of many employers. Ottawa has extended the PCU of eight weeks. This brings to 24 weeks, the total duration of the aid measure, which is not far from six months.

Voluntary departure

According to the lawyer, labor law Ze├»neb Mellouli, employers will not have to pay compensation to the employees recalled who refuse to return to work. You can’t mention PKU as a reason to cling to the unemployment.

“The refusal of an employee to return to work can be interpreted as a voluntary departure by the employer,” continues the associated with the law firm Lavery, de Billy. In other words, this can be considered as a resignation.

The severance benefits

It is more likely to turn against the worker. Not only it will not be entitled to a severance pay, but his resignation will be cut off access to benefits under employment insurance.

Before issuing a statement signifying the end of the employment relationship for voluntary departure, the company needs to do its homework. After being reminded of its employees at work, it must communicate, through official channels, what to expose recalcitrant.

Unable to re-employ all the staff released because of the pandemic, many businesses will have to pay compensation to the current fall.


Less than 10 people were laid off :

  • A week’s salary for those whose seniority is less than one year.
  • Two weeks of salary for those who have accumulated between one and five years of seniority.
  • Four weeks of salary for those who have accumulated between five and ten years of seniority.
  • Eight weeks of salary for those who have accumulated more than ten years of seniority.

From 10 to 99 people who are made redundant :

  • Eight weeks of pay for each person laid off, regardless of seniority.

100 to 299 persons laid off :

  • Twelve weeks of salary for each person layoff, regardless of seniority.

300 people were laid off and more :

  • Sixteen weeks of pay for each person laid off, regardless of seniority.
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