Is a drop in economic activity caused by a sudden crisis, like COVID-19, a valid excuse for employers to breach employment contracts?
Reaching the headlines of nearly every news channel, it is no surprise that the pandemic has stalled economic growth not just in Canada, but internationally. For safety measures, the government ordered a lockdown which compelled employees to temporarily work from home. However, this was not the reality for a significant number of workers. In order to preserve cash flow, many corporations decided to lay off some workers and reduce the salaries or hours of others. Undoubtedly, from an objective standpoint, this can be regarded as a breach of employment contracts. However, given the current economic situation, can the corporations argue that their decisions were unavoidable and justified? In other words, is a drop in economic activity caused by a sudden crisis, like COVID-19, a valid excuse for employers to breach employment contracts?
Sample Solution
