If you’ve been temporarily laid off in Ontario, it’s important to understand your rights and options. Temporary layoffs can leave employees without work or pay for weeks, but they don’t always comply with the law. Employers must follow specific rules under Ontario’s Employment Standards Act (ESA) and common law. In many cases, you may be entitled to compensation.
Learn what a temporary layoff means, how long it can last, and what you can do if you’ve been laid off.
What is a temporary layoff in Ontario?
A temporary layoff occurs when an employer suspends your work and pay but does not officially end your employment. The employer may intend to recall you to work later, but this isn’t guaranteed.
Under the ESA, temporary layoffs can last:
- Up to 13 weeks in a 20-week period.
- Up to 35 weeks in a 52-week period if certain conditions are met, such as continuing benefits or paying a portion of your wages.
However, employers can’t impose temporary layoffs unless:
- Your employment contract allows it.
- You work in an industry where layoffs are standard practice (e.g., construction).
- You have previously accepted a layoff with the same employer.
Important Note: Even if you believe one of these conditions applies, it’s essential to get expert legal advice. These rules are often misunderstood or misused by both employers and employees. Contact Samfiru Tumarkin LLP to review your situation and ensure your rights are fully protected.
If none of these conditions apply, a temporary layoff may qualify as a constructive dismissal, entitling you to severance pay.
Temporary layoff vs. termination: What’s the difference?
Temporary layoffs differ from a termination of employment. While a termination ends the employment relationship, a temporary layoff suspends it.
Key differences:
- Temporary layoff: You are off work for a set period, without pay, but remain an employee.
- Termination: Your job ends permanently, and you may be entitled to severance pay.
If your employer lays you off temporarily without meeting the conditions identified above, you can treat it as a termination and pursue your severance.
Can I collect EI during a temporary layoff?
Yes, employees who are laid off temporarily in Ontario can typically get Employment Insurance (EI) benefits. To qualify:
- Your employer must provide a Record of Employment (ROE).
- You must meet EI eligibility requirements.
EI benefits can help replace some income during the layoff period.
How long can a temporary layoff last in Ontario?
Under Ontario law, a temporary layoff can last:
- 13 weeks in any 20-week period, or
- 35 weeks in a 52-week period if certain conditions are met, such as continued benefits or partial pay.
If a layoff lasts longer than these periods, it may be treated as a termination, requiring your employer to provide severance pay.
What happens if my layoff becomes permanent?
If a temporary layoff exceeds the ESA limits, your employment is automatically considered terminated. At this point, you would be entitled to an Ontario severance package, which could include up to 24 months’ pay, depending on your age, position, years of service, and other factors.
Can my employer change my job when calling me back to work?
No. When you’re recalled from a temporary layoff, your employer must return you to the same job under the same conditions as before. Any significant changes to your pay, duties, or schedule may qualify as a constructive dismissal.
If your employer changes your role after a layoff, you can pursue severance.
What should I do if I’ve been temporarily laid off?
If you’re temporarily laid off in Ontario, you have two options:
- Accept the layoff: Wait to be recalled to work.
- Treat it as a termination: Claim severance pay and leave the job.
It’s crucial to get legal advice before deciding. A temporary layoff often constitutes a constructive dismissal, allowing you to seek compensation. Contact an employment lawyer at Samfiru Tumarkin LLP to review your situation and determine the best course of action.
How much severance am I entitled to?
If you treat your temporary layoff as a termination, you may be entitled to full severance under Ontario’s common law. Factors affecting severance include:
- Your age,
- Your position,
- Your length of service, and
- Your ability to find similar work.
Severance packages can be as much as 24 months’ pay.
Crunch The Numbers: Use the free Ontario Severance Pay Calculator to find out how much compensation you may be owed.
Contact an Employment Lawyer
Temporary layoffs can be confusing and stressful, but you don’t have to navigate them alone. At Samfiru Tumarkin LLP, we’ve helped thousands of non-unionized employees in Ontario secure fair severance pay and resolve their workplace disputes.
Our experienced employment lawyers in Ontario, Alberta, and B.C. are ready to stand by your side, protect your rights, and secure the severance and compensation you’re owed. Beyond employment law, Samfiru Tumarkin LLP also offers expert guidance in disability claims and personal injury cases, ensuring comprehensive support for all your legal needs.
Contact us today or call 1-855-821-5900 for a consultation and take the first step toward the compensation you deserve.