Temporary layoffs are a challenging experience for employees, often leaving them uncertain about their job security and financial stability. In Ontario, there are specific rules under the Employment Standards Act, 2000 (ESA) and common law that govern when temporary layoffs are legal and what rights employees have. Understanding these rules can help you navigate the process and protect your interests.

‍

What Is a Temporary Layoff?

A temporary layoff occurs when an employer suspends an employee’s work for a specific period, with the intention of recalling them later. While temporary layoffs are more common in industries like manufacturing and construction, they can occur in any sector.

Under the ESA, a temporary layoff can last:

• 13 weeks in any 20-week period; or

• 35 weeks in any 52-week period, provided the employer continues certain benefits or fulfills other criteria outlined in the ESA.

‍

If these time limits are exceeded, the layoff may be considered a termination, entitling the employee to severance pay and other termination entitlements.

‍

Are Temporary Layoffs Legal?

In Ontario, temporary layoffs are not automatically permitted unless:

1. The Employment Contract Allows It: Your employment contract explicitly states that temporary layoffs are allowed.

2. Industry Practice: Temporary layoffs are a standard and accepted practice in your industry.

3. Employee Consent: You agree to the layoff, either explicitly or implicitly, through past practices.

If none of these conditions apply, a temporary layoff could be considered a constructive dismissal under common law, allowing you to treat it as a termination and seek severance.

‍

What to Do If You’re Temporarily Laid Off

‍

If you’ve been placed on a temporary layoff, here’s how to respond:

1. Review Your Employment Contract Check if your contract includes a clause that allows for temporary layoffs. If it doesn’t, the layoff may not be legally enforceable.

2. Consult an Employment Lawyer An employment lawyer can help you determine whether the layoff complies with the ESA and whether you have grounds for a constructive dismissal claim.

3. Understand Your Options Depending on the circumstances, you may:

• Accept the layoff and wait to be recalled.

• Treat the layoff as a termination and pursue severance.

• Negotiate with your employer for better terms, such as extended benefits or financial support during the layoff period.

4. File for Employment Insurance (EI) If you’re temporarily laid off, you may qualify for EI benefits to help cover your expenses during the layoff period. Ensure you apply as soon as possible to avoid delays.

‍

What If Your Layoff Turns Into a Termination?

If the layoff exceeds the ESA’s time limits or your employer informs you that you will not be recalled, the layoff becomes a termination. In such cases, you may be entitled to:

• Notice Pay: Compensation for the notice period you should have been given.

• Severance Pay: If you meet the eligibility criteria under the ESA.

• Common Law Entitlements: Additional compensation based on factors like your length of service, age, and position.

‍

Protecting Your Rights

To safeguard your rights during a temporary layoff:

• Document Everything: Keep records of communications with your employer regarding the layoff.

• Act Promptly: If you suspect the layoff is unlawful, seek legal advice quickly.

• Be Proactive: If possible, discuss alternatives to a layoff with your employer, such as reduced hours or temporary pay adjustments.

‍

Free Consultation with Ottawa Employment Lawyers

Temporary layoffs can create significant uncertainty, but understanding your rights under Ontario law is key to making informed decisions. If you’ve been laid off and are unsure of your legal position, consulting an employment lawyer can help you navigate the situation and ensure your rights are protected.

Whether you choose to wait for recall, negotiate terms, or pursue a constructive dismissal claim, knowing your options empowers you to take control of your career. Please do not hesitate to contact our experienced Ottawa employment lawyers for a free legal consultation. Randy Ai Law Office can be contacted at (343) 321-0800 or fill out the contact form.

‍