Reminder: Application Deadline for Temporary Layoff Variance

July 23, 2020

New Streamlined Process

A new initiative launched by the provincial government will help keep workers and employers connected as British Columbia continues on the path towards economic recovery. Starting July 20, 2020, employers and workers can jointly apply to the Employment Standards Branch to extend a temporary layoff period through a streamlined variance application process that includes an online form and additional resources.

In June, the BC government amended the Employment Standards Regulation to allow workers and employers to agree to an extended “COVID-19 emergency layoff” of up to 24 weeks in any consecutive 28-week period. The “COVID-19 emergency layoff” period expires on August 30, 2020.

Employers with reasonable plans to recall employees by a specific date after Aug. 30, 2020 can work with their employees to jointly apply to extend a temporary layoff through a variance to the Employment Standards Act.

While there are signs of increased economic activity in many sectors, some businesses, particularly in the tourism, cultural and hospitality sectors, are not yet able to recall their workers.  For those workers and employers who wish to extend a “COVID-19 emergency layoff” beyond August 30, the provincial Employment Standards Act provides a tool unique in Canada, allowing for employers and workers to apply jointly to the Employment Standards Branch for a temporary layoff variance.

Under the new streamlined variance process, applications can be made using an online form available at: https://services.labour.gov.bc.ca/variance/s.  The Employment Standards Branch has also assigned additional resources to ensure that applications are processed efficiently. The Branch will have new supports and information on its website.

Government is recommending that employers submit their variance applications early to avoid the potential of permanent layoffs and compensation for length of service to eligible workers upon the expiry of the “COVID-19 emergency layoff” period on August 30.

To apply for a variance, employers must follow a simple, two step process:

Step 1: Survey your workforce using a template and tool from the Employment Standards Branch to ensure more than 50% of employees who will be affected by the variance support the application.

Step 2: Complete the application form on the online portal and upload your employees’ responses from the tool.  

The Employment Standards Branch will review the application, and employers will be notified once the variance is decided. Employers are encouraged to apply as soon as they have received employee support. The application deadline is Aug. 25, 2020 to ensure that all applications will be processed by the Aug. 30 expiry date.

For more information on what to expect during the temporary layoff variance application process, please go to: https://www2.gov.bc.ca/gov/content/employment-business/employment-standards-advice/employment-standards/hours/variances

Notes

  • Under the Employment Standards Act, a variance only applies to non-unionized and non-excluded employees.

  • Since many tourism businesses are seasonal, some of their employees may be employed for a definite term so may not need a variance. If your temporary layoff ends before August 30, 2020, you do not need to apply.

  • While all applications are considered on a case-by-case basis, the Director of Employment Standards will only exercise discretion to grant an extension of the temporary layoff period past December 31, 2020 in exceptional circumstances”

Benefits

Both employers and employees can benefit from an extension to a temporary layoff.

Employer Benefit

  • Employer does not have to terminate employees and does not have to provide termination pay. Ability to retain existing and stable employees.

Employee Benefit

  • Employee remains continuously employed, with no interruption to:

    • Rate of pay

    • Vacation accrual

    • Years of service

    • Benefits

    • Leaves of absence

Employers are also encouraged to make use of the federal wage subsidy to assist them in bringing their workers back.