Can My Employer Put Me on a Temporary Layoff?

In short: yes, your employer can put you on a temporary layoff in Ontario, but there are certain conditions that must be met. According to the Employment Standards Act, 2000 a temporary layoff occurs in situations where an employer cuts back or stops an employee’s work without officially ending their employment. Is this allowed? It depends on the employee’s own work situation, and you should always speak with an Ontario temporary layoff lawyer.

Under the Employment Standards Act, an employer may be allowed to put an employee on an unpaid temporary layoff Ontario employment law will not consider their job to have been terminated until and unless the employer fails to recall them back to work if the temporary layoff exceeds the timelines allowed under the employment legislation.

Generally speaking, the Employment Standards Act permits a temporary layoff to last up to 13 weeks within a 20-week period or up to 35 weeks within a 52-week period only in certain circumstances, particularly if the employee continues to receive substantial payments or benefits. However, if the layoff exceeds these specific time limits, it is considered a termination of employment. In that case, the employer is required to provide the employee with the following basic employment standards:

written notice of termination (termination pay)
benefits continuation
severance pay (if employer’s annual payroll exceeds $2.5 million and the employee has worked for the employer for at least 5 years)

However, it is important to note that an employer can only place an employee on an unpaid temporary layoff if they have the employee’s consent in an employment contract. If not, an employee’s unpaid temporary layoff results in a constructive dismissal under common law.

In particular, under Ontario common law, a temporary layoff is generally unlawful as it amounts to a constructive dismissal – that is, an unofficial termination of employment by the employer. This will generally entitle the constructively dismissed to reasonable notice of termination, or pay in lieu of notice (that is, a financial compensation in the form of a severance package).

To calculate your severance package under common law in Ontario, the courts require considering several factors. Specifically, the amount of severance pay you are entitled to may vary depending on your specific situation. In general, the amount of severance pay you are entitled to under common law is calculated based on the following factors:

Length of employment: The longer you have worked for your employer, the greater financial amounts your severance package will include
Age: If you are older, you may be entitled to a higher amount of severance pay.
Position: If you held a senior position in your company, you may be entitled to a higher amount of severance pay.
Salary: If you earned a higher salary, you may be entitled to a higher amount of severance pay.

To calculate your severance package under common law in a wrongful dismissal or constructive dismissal claim, you should always consult with an experienced Ontario employment lawyer who can provide you with an accurate estimate based on your specific situation.

Are You Looking for Employment Lawyer in Toronto? Call Now

If you are an employee who was put on a temporary layoff by your employer, it is important to speak with an experienced Toronto temporary layoff lawyer or wrongful dismissal lawyer, please call Bune Law, Toronto employment law firm for assistance. Depending on your specific situation, you should speak with an experienced wrongful dismissal lawyer in Toronto regarding your options, including to negotiate a severance package to obtain the severance compensation you deserve, as well as constructive dismissal claim.

Contact us by phone 647-822-5492 or fill out the contact form to the side. Our employment lawyer in Toronto would be happy to assist in your employment law matter as quickly as possible.

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