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Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Canada | Publication | September 9, 2020
The Government of Ontario announced on September 3 that the COVID-19 period is extended to January 2, 2021.1 Under Bill 195, the COVID-19 period was previously set to expire on September 4, 2020. Notably, the extension of the COVID-19 period affects the infectious disease emergency leave, temporary layoffs and constructive dismissal claims made under the Ontario Employment Standards Act, 2000 (ESA).
In response to the COVID-19 pandemic, Ontario issued Ontario Regulation 228/20 Infectious Disease Emergency Leave (Regulation) on May 29, 2020, which designated COVID-19 an infectious disease under the ESA and amended certain rules under the ESA during the “COVID-19 period,” as highlighted in our June 5 legal update. The Regulation has been amended (although not yet publicly released), extending the COVID-19 period to January 2, 2021.
In sum, during the COVID-19 period (March 1, 2020, to January 2, 2021):
Ontario announced that the extension of the COVID-19 period to January 2, 2021, is intended to protect jobs by helping businesses avoid costly payouts and closures. Notably, during this extended COVID-19 period, an employer is prohibited from terminating the employment of or engaging in reprisal against an employee who takes or plans to take infectious disease emergency leave under the ESA (although an employee’s employment may still be terminated for reasons unrelated to the leave).
Furthermore, during the extended COVID-19 period, a temporary reduction or elimination in hours or wages of a non-unionized employee will not constitute a layoff or a constructive dismissal under the ESA. Complaints filed with the Ministry of Labour during the extended COVID-19 period alleging that an employer’s temporary reduction or elimination of an employee’s hours of work, or an employer’s temporary reduction of an employee’s wages, constitutes termination or severance of employment would be deemed not to have been filed if certain conditions are met. Note the Regulation may not necessarily affect how courts apply the doctrine of constructive dismissal at common law, which is distinct from constructive dismissal under the ESA.
Ontario’s announcement extending the COVID-19 period is welcome news for employers that need more time to re-open and return to full operations. For employers that have already issued layoff notices to employees based on the former September 4, 2020, COVID-19 period expiry date may want to carefully consider their communications to employees in light of this recent development.
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Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
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On February 2, 2024, the Belgian Presidency of the Council of the European Union confirmed that the Committee of Permanent Representatives had signed the Artificial Intelligence (AI) Regulation, referred to as the AI Act. Approval by the EU Parliament followed on 13 March 2024, and the AI Act is likely to appear in the EU’s Official Journal around May 2024. The AI Act aims to establish a stringent legal framework governing the development, marketing, and utilisation of artificial intelligence within the region, thereby marking a significant advancement in the regulation of this burgeoning domain.
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The EU’s Artificial Intelligence Regulation, commonly referred to as the AI Act, is expected to come into force during the summer of 2024 (the AI Act). The AI Act will be the first comprehensive legal framework for the use and development of artificial intelligence (AI), and is intended to ensure that AI systems developed and used in the EU are safe, transparent, traceable, non-discriminatory and environmentally friendly.
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