The applicant union sought judicial review of an arbitration award concerning the interpretation of 'temporary lay-off' under s. 56(2) of the Employment Standards Act, 2000.
The union argued that the employer's lay-off of over 200 employees became a termination after 13 weeks, triggering mass termination notice requirements.
The arbitrator, applying the Court of Appeal's decision in London Machinery, held that s. 56(2)(c) applied as a stand-alone provision because the collective agreement provided recall rights, meaning the lay-off could extend up to 35 weeks without becoming a termination.
The Divisional Court applied the reasonableness standard of review and dismissed the application, finding the arbitrator's interpretation was defensible and supported by binding precedent.