Summary: Layoffs and the Alberta Employment Standards Code
In Alberta, a layoff occurs when an employer stops providing work and pay to an employee, usually due to a lack of work or financial issues. While many believe a layoff is just a “pause,” the law treats different types of layoffs with very different rules.
The most critical thing to know is that employers do not have an automatic right to temporarily lay you off. Unless your employment contract specifically allows for it, a layoff may be considered a constructive dismissal, entitling you to a full severance package immediately.
Recall vs. Termination
If you are not recalled within the time limits set by the Alberta Employment Standards Code, your layoff automatically becomes a termination. However, under Common Law, you may be able to treat the layoff as a termination from Day 1.
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Temporary vs. Permanent Layoffs in Alberta
Understanding which category your layoff falls into is the first step in protecting your income.
- Permanent Layoff: This is a permanent end to your employment. It is legally no different from being fired without cause. You are owed notice or severance pay immediately.
- Temporary Layoff: The employer intends to bring you back (recall you) within a specific timeframe (usually 60 days within a 120-day period). If they don’t, it becomes permanent.
Common Layoff Scenarios
The rules for layoffs change depending on why and how the workforce is being reduced. Explore our detailed guides for each situation:
| Layoff Type | Key Rule |
|---|---|
| Permanent Layoff | Treated as a termination; severance is owed. |
| Temporary Layoff | Strict 60-day limits; may be constructive dismissal. |
| Medical Layoff | Being laid off while sick is often a Human Rights violation. |
| Mass Layoffs | Special notice rules for 50+ employees. |
| Seasonal Layoffs | Common in construction/landscaping; contract specifics matter. |
Your Right to Severance After a Layoff
If you are permanently laid off, you are entitled to severance pay in Alberta. This isn’t just one or two weeks of pay. Depending on your age, length of service, and position, you could be entitled to up to 24 months of pay.
Mass Layoffs and Group Terminations
When an employer terminates 50 or more employees at a single location within a 4-week period, they must follow additional layoff rules Alberta. This includes providing specific notice to the Minister of Labour and potentially longer notice periods for the affected employees.
Get Legal Help Today
If you have been laid off and are unsure of your rights, or if your employer is refusing to pay the severance you deserve, our Alberta team is ready to help: