Temporary Layoff in Ontario: What You Need to Know as an Employee
- Mar 24
- 3 min read
Being told you are on a temporary layoff can feel overwhelming. You might worry about your income, job security, and what comes next. In Ontario, temporary layoffs have specific rules that protect employees. Knowing these rules helps you understand your rights and what to expect during this uncertain time.
What Is a Temporary Layoff in Ontario?
A temporary layoff means your employer asks you to stop working for a set period, expecting to call you back later. During this time:
You usually do not receive your regular pay.
Your employment technically remains active.
You are expected to return to work if recalled.
However, just calling it a "temporary layoff" does not make it legal. The law sets clear limits and conditions for when and how layoffs can happen.
When Can Your Employer Use a Temporary Layoff?
Employers cannot place you on a temporary layoff whenever they want. In Ontario, a temporary layoff is allowed only if:
Your employment contract specifically permits layoffs.
You have agreed to the layoff.
There is a clear past practice of layoffs in your role or industry.
If none of these apply, the layoff might be treated as a termination. That means your employer would owe you compensation for ending your employment.
How Long Can a Temporary Layoff Last?
Ontario law limits the length of temporary layoffs to protect employees from losing their jobs without proper notice. The general rules are:
Layoffs cannot exceed 13 weeks in any 20-week period.
Under certain conditions, such as continued benefits, layoffs can last up to 35 weeks in a 52-week period.
If a layoff goes beyond these limits, the law may consider it a termination. This means you could be entitled to severance pay or notice.
What Happens If the Layoff Is Not Done Properly?
If your employer places you on a temporary layoff without following the rules, it may count as constructive dismissal. This means:
You do not have to wait to be recalled.
You can treat the layoff as a termination.
You may claim notice pay or severance.
For example, if your contract does not allow layoffs and your employer still lays you off, you could have grounds to seek compensation.
Do You Have to Accept a Temporary Layoff?
You do not always have to accept a temporary layoff. If your contract does not allow it and you have not agreed, the layoff may be illegal. You can:
Discuss alternatives with your employer.
Seek legal advice to understand your options.
Consider filing a claim for wrongful dismissal if the layoff is treated as a termination.
What Should You Do If You Are Temporarily Laid Off?
If you face a temporary layoff, take these steps:
Review your employment contract to check if layoffs are allowed.
Ask your employer for written details about the layoff, including expected duration and benefits.
Keep records of all communications.
Apply for Employment Insurance (EI) benefits through Service Canada to help with lost income.
Consult a legal professional if you believe the layoff is not lawful.
Understanding Your Employment Insurance Benefits
During a temporary layoff, you may qualify for EI benefits. These benefits provide financial support while you are not working. To apply:
Submit your claim as soon as possible after the layoff.
Provide your Record of Employment (ROE) from your employer.
Keep track of your job search activities, as EI requires you to be actively seeking work.
EI benefits can help ease financial stress during a layoff but do not replace your full salary.
What Are Your Rights When You Return to Work?
If your employer recalls you after a temporary layoff, your rights include:
Returning to your previous position or a comparable one.
Keeping your seniority and benefits as before the layoff.
Receiving any owed wages or benefits missed during the layoff period.
If your employer does not recall you within the allowed time, the layoff may become a termination, and you could be entitled to compensation.
When to Seek Legal Advice
Temporary layoffs can be complex. You should consider legal advice if:
Your employer places you on a layoff without contract or agreement.
The layoff exceeds legal time limits.
You are unsure about your rights or benefits.
You want to claim severance or notice pay.
A lawyer or employment standards expert can help you understand your situation and protect your rights.
Important Note
This article provides general information and does not replace legal advice. Each situation depends on its specific facts.
Need Help? DevLaws Can Assist
If you have been placed on a temporary layoff, you may still have the right to compensation.
At DevLaws, we help employees:
Assess whether the layoff is legally valid
Determine if it amounts to constructive dismissal
Claim compensation where appropriate
Do not assume you have to accept the situation.
Contact DevLaws today to understand your rights and take the next step.
