Since the beginning of the COVID-19 pandemic, there has been significant amounts of economic insecurity for many employees. Due to the ever-changing situation, a large number of workers are facing temporary layoffs from their jobs. Many employees have no previous experience with temporary layoffs and have many questions about what they are entitled to in Ontario. Below we will try to address some of the most common questions employees have when they are temporarily laid off from their employment.

What is a temporary layoff?

A temporary layoff occurs when the employer stops providing work to an employee but does not seek to end the employment relationship. An employee who has been laid off temporarily will likely not receive any compensation for the period of the layoff. Employers will sometimes provide a specific recall date when laying off the employee. But often, the employer will not provide a specific recall date. This leaves the employee in a situation of great uncertainty. 

Does an employer have a right to temporarily lay off employees?

In Ontario, whether or not an employer can temporarily lay off an employee is often determined by the employment contract or employment agreement governing the employment relationship. In the absence of a provision explicitly providing for temporary layoffs, any imposition of a temporary layoff could amount to a constructive dismissal. Be sure to carefully review your employment contract or employment agreement to see if it contains a layoff provision. 

How long can a temporary layoff last?

The length of time that a temporary layoff can last varies depending on the jurisdiction. If an employee works at a provincially regulated business in Ontario, the length of a temporary layoff is determined by the Ontario Employment Standards Act (“ESA”). The ESA provides for a temporary layoff period of a maximum of 13 weeks over a period of 20 consecutive weeks, or more than 13 weeks but less than 35 weeks in 52 consecutive weeks if the employer meets certain additional conditions. If a temporary layoff exceeds the allowed period under the ESA the employer is considered to have terminated the employee.

However, due to the ongoing COVID-19 pandemic, the Government of Ontario introduced new regulations to the ESA which allow for temporary layoffs to exceed the 13 weeks over a consecutive 20-week period. These regulations remain in effect until January 1, 2022, unless they are renewed.

Federally regulated employees are subject to the layoff provisions in the Canada Labour Code. The Canada Labour Code provides for a maximum layoff period of up to 3 months without a recall date, or up to 6 months if the employer provides the recall date in writing at the time of layoff.

Free Consultation with Ottawa Employment Lawyers

If you have been temporarily laid off and have questions about your entitlements under the law,  please reach out to our team of experienced Ottawa employment lawyers for a free legal consultation. Randy Ai Law Office can be reached at (343) 321-0800 or fill out our contact form today.