Temporary Layoffs
What is a Temporary Layoff?
A temporary layoff occurs when an employer reduces or eliminates an employee's hours for a limited period. Despite this interruption, the parties treat the employment relationship as ongoing with the understanding that the work and compensation will start again in the future.
A permanent layoff is synonymous with a termination. Click here to learn more about wrongful dismissals.
Can My Employer Temporarily Lay Me Off?
Typically, the answer is no. Employers cannot temporarily lay-off employees unless an employment contract allows them to do so, and most employment contracts do not. In limited circumstances, a court may infer a right to temporarily lay-off an employee even where an employment contract is silent on an employer’s right to do so.
How long Can a Temporary Layoff Last?
The Ontario Employment Standards Act establishes that a temporary layoff may last no longer than:
- 13 weeks total in any period of 20 consecutive weeks; or,
- 35 weeks in any period of 52 consecutive weeks if the one or more of the following conditions are met:
a. the employee continues to receive substantial payments from the employer;
b. the employer continues the employee's benefits;
c. the employee receives or is entitled to receive supplementary unemployment benefits; or,
d. the employer recalls the employee within the timeframe approved by the Director of Employment Standards or within the timeframe agreed upon between the employee and the employer.
Different rules apply for unionized employees. If you have been temporarily laid off and you belong to a union, contact your union for more information.
Why You Should Contact Us
Our employment lawyers have helped many employees who were improperly laid off. Most often, we have persuaded employers to reverse their lay-off decisions, or we have successfully negotiated favourable severance packages to end the employment relationship on fair terms. If you think that you have been improperly laid off, or you simply want to have a confidential discussion about your employment law rights, our team is here to help. Contact us for more information or to book an appointment.