As climate change intensifies, so does the frequency and severity of natural disasters across Canada. Ontario, once largely insulated from climate-related disruptions, is now experiencing the increasing impact of wildfires, floods, heat waves, and severe storms. These events pose risks to public safety and create complex legal challenges for employers and employees alike.
Ontario’s Employment Law Framework
Ontario’s employment law regime is shaped primarily by the Employment Standards Act (ESA), common law principles, human rights legislation, and occupational health and safety laws.
When a workplace is closed temporarily due to a natural disaster, these legal frameworks intersect in complex ways. Some issues are clearly addressed under the ESA, while others rely on interpretation, precedent, or the terms of individual employment contracts.
Importantly, no specific statute in Ontario deals exclusively with employment rights and obligations during natural disasters, which means that many questions must be answered by applying general legal principles to novel and urgent circumstances.
Payment Obligations During Climate-Related Closures
A key question for employers and employees is whether wages must continue when a business is forced to shut down because of a wildfire, flood, or similar event. The answer depends largely on the nature of the closure, the type of employment, and whether the employee is able to work.
Salaried Employees
Employers are typically required to pay wages to salaried employees who are ready and willing to work, even if no work is available. This obligation does not disappear simply because of a disruption on the employer’s side. If the employer unilaterally prevents the employee from working, the employee remains entitled to pay, unless the contract provides otherwise.
There may be exceptions in extreme cases where the employment contract contains a valid force majeure clause, or where frustration of contract is invoked, but these are narrow and highly fact-dependent doctrines.
Hourly or Casual Employees
For employees who are paid by the hour and only for time worked, the obligation to pay wages may not arise unless the employee was already scheduled to work. Even in those cases, the Employment Standards Act does not guarantee payment unless the employee reported to work or was given insufficient notice of the cancellation.
Under section 21.2 of the ESA (also known as the “three hour rule”), employees who regularly work more than three hours a shift and who report to work but are sent home early due to an unexpected closure may be entitled to a minimum of three hours’ pay.
However, the three hour rule may not apply if the closure was due to a situation beyond the employer’s control, such as a natural disaster that made the premises unsafe or inaccessible. Again, the application depends on the specific facts and whether the employer acted reasonably and in good faith.
Layoffs and Termination During Prolonged Closures
If a workplace remains closed for more than a few days or weeks, employers may need to consider more permanent solutions, such as temporary layoffs or terminations. Ontario’s employment law imposes several essential restrictions.
Temporary Layoffs
Under the Employment Standards Act, employers may temporarily lay off employees for up to 13 weeks in a consecutive 20-week period or up to 35 weeks in a 52-week period if certain benefits or wages are continued during the layoff.
However, a critical and often misunderstood issue is that the ESA allows but does not grant a general right to lay off employees. Unless an employment contract, collective agreement, or industry custom expressly allows for temporary layoffs, imposing one may be considered a constructive dismissal by the courts. This means an employee could treat the layoff as a termination and seek damages for wrongful dismissal.
Employers must carefully review employment contracts before proceeding with layoffs in a climate disaster scenario. If no contractual right exists, the risk of a constructive dismissal claim increases significantly, even if an unforeseeable natural event caused the shutdown.
Frustration of Contract
In rare and extreme cases, a climate disaster may permanently prevent employees from performing their jobs. If the employment contract becomes “frustrated” (i.e. impossible to perform due to no fault of either party), the employment relationship may be terminated without the usual obligations to provide notice or severance.
Frustration is a high threshold and applies only where the impossibility is permanent, not temporary. Courts are cautious in applying this doctrine, especially where the employer’s inability to provide work is not total or indefinite.
Employers considering frustration of contract should seek legal advice and document all evidence supporting the conclusion that the employment has become impossible to continue.
Employer Occupational Health and Safety Obligations
Another major consideration during a climate-related shutdown is the employer’s obligation under Ontario’s Occupational Health and Safety Act (OHSA). The OHSA requires employers to take every reasonable precaution to protect workers.
If a workplace is damaged by fire, water, or structural failure, or if air quality is compromised (for example, due to wildfire smoke), it may be unsafe for employees to return. Employers must not compel employees to enter or remain in hazardous conditions. Doing so may expose the company to regulatory penalties, liability for injuries, or orders from safety inspectors.
Employees in Ontario also have the right to refuse unsafe work under the OHSA, and employers must follow the statutory process when such a refusal is made. This includes investigating the concern and, if necessary, involving the Ministry of Labour, Immigration, Training and Skills Development.
Communication, assessment, and documentation are essential during a climate disaster. Employers should consult engineers, environmental experts, or public authorities to determine when a facility is safe to reopen, and they must share that information with affected staff.
Remote Work and Continuity Planning
For employers with the technological capacity to do so, transitioning to remote work can provide a way to maintain business continuity during a natural disaster. However, this option is not universally available, especially in industries such as manufacturing, retail, or construction.
Where remote work is feasible, employers must ensure that employment terms and working conditions remain compliant with the Employment Standards Act and other applicable laws. This includes respecting limits on hours of work, break periods, and privacy considerations when using monitoring tools.
Employers should also ensure remote work arrangements are formalized in writing, ideally through an addendum to the employment contract or a remote work policy. These documents should address:
- Expectations around hours, availability, and communication;
- Use of employer-provided equipment and IT security protocols; and
- Health and safety responsibilities in the home work environment.
For employers with remote-capable roles, building disaster response protocols that include seamless remote work deployment can mitigate business disruption and reduce the legal risks associated with shutdowns.
Human Rights Considerations
Natural disasters do not suspend human rights obligations. If a shutdown or operational change disproportionately affects employees based on protected grounds, such as disability, family status, or age, employers may have a duty to accommodate.
For example, if a flood forces a workplace to relocate temporarily to a new city, employees with caregiving responsibilities or medical needs may be unable to travel. Employers must consider accommodation requests on a case-by-case basis and determine whether adjustments can be made without undue hardship.
The Ontario Human Rights Code requires proactive engagement with employees requesting accommodation. Blanket policies or failure to consider individual circumstances may result in discrimination claims, even if a natural event caused the initial disruption.
Proactive Disaster Preparation for Employers
As climate events become more frequent and disruptive, employers can no longer rely on ad hoc responses. Ontario businesses must integrate climate resilience and emergency planning into their employment policies.
Key steps include:
- Reviewing and updating employment contracts to include temporary layoff and force majeure clauses;
- Creating a business continuity plan that addresses employee communication, safety, and compensation;
- Establishing protocols for remote work deployment and IT infrastructure in the event of physical closure;
- Conducting health and safety audits of facilities vulnerable to climate risks; and
- Ensuring compliance with ESA, OHSA, and human rights obligations during emergencies.
In many cases, proactive planning will reduce legal exposure and build trust and engagement among employees, who increasingly expect their employers to take climate risk seriously.
Contact Willis Business Law for Comprehensive Employment Law & Business Continuity Planning Advice in Windsor-Essex County
The legal implications of workplace shutdowns caused by wildfires, floods, and other climate disasters are complex and evolving. The employment lawyers at Willis Business Law know that robust preparation is the best defence against future business disruptions. We help employers in Windsor-Essex County and the surrounding areas understand their legal obligations and proactively create resilient systems.
Our team ensures Ontario businesses can better navigate the uncertainties of a changing climate while protecting their workforce and minimizing liability. To discuss your employment law matter with our firm, please contact us online or call 519-945-5470.