Summary: Temporary Layoffs in Alberta
A temporary layoff in Alberta is a period where an employer stops an employee’s work and pay with the intention of recalling them later.
While the Employment Standards Code provides rules for how long these layoffs can last, most temporary layoffs are illegal under common law unless your contract specifically allows for them. If you have been laid off without your consent, you may be able to treat it as a constructive dismissal and claim full severance pay.
Don’t Be Left in Limbo.
In Alberta, many employers use a temporary layoff as a way to avoid paying severance during economic downturns. However, you are not required to wait months for a recall notice that may never come. Our team helps Albertans understand the “Severance Gap” — the difference between what the government minimums allow and what you are actually entitled to under common law.
On This Page:
What is a Temporary Layoff in Alberta?
The definition of a temporary layoff is a “pause” in the employment relationship. Unlike a permanent layoff, where the relationship ends immediately, a temporary layoff involves a promise of future work.
Employers often cite “shortage of work” or “economic conditions” as the reason. However, simply having a reason does not give an employer the legal right to take away your income without notice.
The Legal Reality: Is a Layoff Actually Illegal?
This is where most Albertans are misled. While Alberta employment standards temporary layoff rules exist, they only cover the minimum provincial requirements.
Under common law, a temporary layoff is illegal unless:
- Your employment contract explicitly grants the employer the right to lay you off; or
- You have previously accepted a layoff from the same employer (establishing a precedent); or
- You work in an industry where layoffs are the standard and expected norm (such as seasonal construction).
If none of these apply, a layoff is a constructive dismissal. This means the employer has fundamentally changed your job terms, and you can quit and sue for full severance pay immediately.
How Long is a Temporary Layoff in Alberta?
If you choose to accept the layoff, there is a strict maximum temporary layoff period. Under the Employment Standards Code (ESC), a layoff can last for a maximum of 90 days total within a 120-day period.
- The 91st Day: On this day, the layoff automatically becomes a termination. Your employer owes you statutory severance pay immediately.
- Extending the Layoff: You can only extend a temporary layoff beyond 90 days if the employer continues to pay into your benefits or pension and you agree to the extension.
- The 180-Day Rule: During the pandemic, the temporary layoff extended to 180 days. This was a temporary change that has since expired.
Notice and Recall Requirements
To implement an temporary layoff notice properly, the employer must provide it in writing. It must include the effective date and a copy of the relevant sections of the ESC.
When work is available again, the company must issue a recall notice. You generally have 7 days to return to work. If you refuse a valid recall without a legal reason, your employer may argue that you have resigned, which could forfeit your right to severance pay.
EI, Benefits, and Vacation Pay
While on a temporary layoff, you have rights to financial support:
- Employment Insurance (EI): You should apply for EI immediately. Your employer must provide a Record of Employment (ROE) to facilitate this.
- Benefits: Maintaining benefits during temporary layoff is common, but unless your contract requires it, employers often cut them off. If they do, this further strengthens a claim for constructive dismissal.
- Vacation: You can ask for your vacation pay to be paid out, but be careful — doing so may be viewed by a court as you “accepting” the layoff.
Calculating Severance Pay After a Layoff
Do not confuse “Termination Pay” (the minimum weeks required by the government) with “Severance Pay” (the months of pay you are likely owed under common law). Severance pay in Alberta is calculated based on your age, position, and years of service. A one-year employee might only get 1 week of pay through the ESC, but 3-6 months of pay through a legal claim.
Consult an Alberta Employment Lawyer
If you have been placed on a temporary layoff in Alberta, time is of the essence. Waiting too long to object can be seen as “acquiescence” (legal agreement) to the layoff. The Alberta employment lawyers at Samfiru Tumarkin LLP will review your situation and determine if you can turn your layoff into a full severance payout.