Being told you’re on a “temporary layoff” can be stressful and confusing. In Ontario, many employers use layoffs incorrectly — and in some cases, they’re actually terminations.
The truth: unless your employment contract explicitly allows it, most employers can’t legally lay you off. If they do, it may amount to constructive dismissal, which means you could be owed severance pay of up to 24 months’ salary.
✅ Next step: Contact Samfiru Tumarkin LLP or use our free Severance Pay Calculator Ontario to find out what you’re owed.
What is a Temporary Layoff in Ontario?
A temporary layoff happens when your employer suspends your work and pay without officially ending your employment.
Unlike a termination, your employment relationship is still considered active — but you’re not working or getting paid. Employers may say they’ll recall you later, but that’s never guaranteed.
Ontario Temporary Layoff Rules
Quick Answer: In Ontario, employers can only temporarily lay you off if your employment contract clearly allows it.
The Employment Standards Act (ESA) sets limits on how long a layoff can last:
- Up to 13 weeks in any 20-week period
- Up to 35 weeks in any 52-week period if benefits or partial wages continue)
⚠️ But here’s the key: the ESA does not give your employer the right to place you on a temporary layoff. Unless your contract specifically says otherwise, even a short layoff may amount to constructive dismissal, which means you can treat it as a termination and pursue severance pay.
How Long Can a Temporary Layoff Last in Ontario?
A temporary layoff can last:
- 13 weeks in a 20-week period, or
- 35 weeks in a 52-week period (if benefits or wages are maintained).
ℹ️ However, If your employer didn’t have the contractual right to lay you off in the first place, the length doesn’t matter — you may already be entitled to full severance.
Can You Refuse a Temporary Layoff in Ontario?
Yes. If your contract doesn’t allow temporary layoffs, you can treat the layoff as a termination without cause and claim severance.
This is often the best option for employees who don’t want to wait indefinitely for a recall.
- 🔗 Learn More: Constructive Dismissal in Ontario
- 🔗 See Also: 5 important tips on how to refuse a layoff
Temporary Layoff vs. Termination in Ontario
| Temporary Layoff | Termination |
|---|---|
| Job is suspended but not formally ended | Employment ends permanently |
| No work, no pay | Employer must provide termination notice and severance |
| Limited ESA duration (13 or 35 weeks) | Severance pay owed immediately |
| Possible recall | No recall rights |
Can I Collect EI on a Temporary Layoff?
Yes. Employees on temporary layoff can usually apply for Employment Insurance (EI) if they meet eligibility rules.
Requirements:
- Employer issues an Ontario Record of Employment (ROE)
- You meet EI eligibility criteria
📌 EI provides partial income replacement while you’re off work. Learn How EI and Severance Pay work in Ontario.
Do You Lose Benefits During a Temporary Layoff?
It depends on the length of the layoff.
- For layoffs under 13 weeks: employers don’t have to continue benefits.
- For layoffs up to 35 weeks: employers must maintain benefits or make substantial wage payments.
If your benefits are cut when they should continue, you may have grounds for a claim.
Temporary Layoff Severance Pay in Ontario
If your employer lays you off without legal authority, it can be treated as a constructive dismissal. This means you may be owed full severance pay in Ontario — as much as 24 months’ pay.
Severance depends on factors like:
- Your age
- Length of service
- Position
- Availability of similar jobs
💡 Use our FREE Ontario Severance Pay Calculator to estimate what you may be owed! If you aren’t offered the correct amount of severance, you can file a claim for wrongful dismissal.
What Should I Do if I’m Temporarily Laid Off?
Here are your options:
- Accept the layoff and wait for recall
- Treat it as termination and pursue severance
Steps to Take Immediately:
- Review your employment contract
- Track how many weeks you’ve been laid off
- Apply for EI if eligible
- Speak to an employment lawyer at Samfiru Tumarkin LLP before deciding
Sample Temporary Layoff Letter in Ontario
A proper layoff letter should include:
- Duration of the layoff
- Recall date (if known)
- Details on benefits continuation
Layoffs for Shortage of Work in Ontario
Some employers use “shortage of work” as a reason for layoffs. While this may sound legitimate, it doesn’t give them the right to sidestep severance obligations.
Even layoffs labeled as “shortage of work” can be constructive dismissal.
Contact an Ontario Employment Lawyer
If you’ve been placed on a temporary layoff, don’t assume your employer has the right to do it. In many cases, a layoff is considered a termination, which means you may be entitled to severance pay of up to 24 months’ salary. Before you accept a recall or wait at home without pay, speak with an experienced employment lawyer in Ontario at Samfiru Tumarkin LLP.
🛡️ We’re Employment Law Experts!
Our employment lawyers in Toronto and Ottawa have helped thousands of employees recover the full severance pay they’re owed after being put on an illegal layoff in Ontario.
At Samfiru Tumarkin LLP, we have:
- 👥 Represented 50,000+ Canadians
- 💰 Secured millions in severance payouts
- ⚖️ Settled over 99% of cases out of court
- 📱 Free Termination Consultations — in many, but not all, cases
- ⭐ Earned 3,000+ 5-star Google reviews
- 🏆 Named on of Canada’s Best Law Firms
Call us at 1-855-821-5900 or request a consultation online.
⚠️ Unionized?
You must go through your union. By law, employment lawyers can’t represent unionized employees — only your union can.