Coping with a temporary layoff, often driven by economic uncertainties or unforeseen events like the COVID-19 pandemic, presents substantial challenges for affected employers and employees. It’s essential to differentiate between a temporary layoff and a termination. In Ontario, understanding your rights and available options pertaining to a temporary layoff is vital for informed decisions. This article aims to clarify what constitutes a temporary layoff and provides insights into options for professional and financial well-being.
As a preliminary matter, it is important to note that not all employment agreements are subject to temporary layoff. An employer only has the right to lay off temporarily if this is specified in an employment agreement or is an open and notorious practice in the industry at issue.
Temporary Layoffs under the Employment Act:
According to the Employment Act in Ontario, where the employer has the right to lay off temporarily, employers have the authority to implement temporary layoffs without immediately triggering the obligation of giving notice of termination or providing severance pay. A temporary layoff is categorized as lasting:
- Less than 13 weeks in any 20-week period, or
- Longer than 13 weeks in a 20-week period but less than 35 weeks in a 52-week cycle, if certain qualifying conditions are met.
Termination Pay and Severance Pay:
If a layoff extends beyond the temporary period (i.e. the employee is not recalled within the timelines specified above), the layoff is deemed a termination, entitling the employee to notice or pay in lieu of notice and, if the conditions are satisfied, severance pay. The employee may also have additional entitlements at common law.
If the employee is recalled to work within the specified timelines, the employment relationship resumes.
Constructive Dismissal Risk:
In the absence of express provisions in the employment contract allowing temporary layoffs, courts may treat them as a constructive dismissal. Employers must be cautious as a unilateral decision to impose a temporary layoff may lead to a claim by the employee of wrongful dismissal.
Options to Consider:
If laid off, you must first ascertain whether your employer has the contractual right to lay off temporarily. If not, you can treat the lay off as a termination. If the right to lay off temporarily exists, then there is no recourse unless and until you are not recalled within the specified timeline. As this is a potentially complex area of law, legal advice should be sought.
Employment lawyers, exemplified by the seasoned professionals at Blackburn Lawyers, specialize in offering such crucial support and advice. They are adept at informing individuals about their rights, entitlements, and potential legal avenues, proving invaluable during challenging situations like a layoff. For inquiries about layoffs and available options, we encourage you to reach out to our knowledgeable legal team today.
Disclaimer: This blog provides educational information on legal matters and is not tailored legal advice for individual situations. The author, Adriana Totera, emphasizes that the content is not intended as a source of legal advice. For personalized guidance, it is recommended to consult with a qualified lawyer.
Written by: Adriana Totera
* Please note that the information in this article is not intended as legal advice, but rather as a general overview on the subject. If you are seeking legal advice, please consult with a lawyer.
