Experiencing a layoff in Ontario can be a stressful and uncertain time. At Monkhouse Law Employment Lawyers, we help employees across Ontario understand their rights and navigate this challenging process. If you’re facing a layoff in Ontario, knowing your legal rights can make a big difference in protecting what you’re entitled to.
What Is a Layoff in Ontario?
The term “layoff” is often used as a euphemism for being terminated, fired, or let go. This can lead to confusion, especially when distinguishing between a temporary layoff and a termination of employment.
There are two primary types of layoffs in Ontario:
- Temporary Layoff: A short-term pause in employment with the possibility of recall. However, under Ontario common law, unless your contract explicitly allows for it, a temporary layoff is typically considered a constructive dismissal.
- Permanent Layoff (Termination): A complete end to the employment relationship. This may qualify as a wrongful dismissal if proper notice or severance is not provided.
Are Temporary Layoffs Allowed in Ontario?
Under the Employment Standards Act, 2000 (ESA), temporary layoffs are allowed but subject to strict limitations:
- Layoffs can last up to 13 weeks in a 20-week period, or up to 35 weeks in a 52-week period with benefit continuation.
- If these conditions aren’t met, the layoff becomes a termination, triggering entitlement to termination pay and severance pay.
- Even if the ESA permits a layoff, common law may still consider it constructive dismissal unless the employment contract allows for layoffs.
Learn more: Temporary Layoff Ontario
How Long Can a Layoff Last in Ontario?
Under the ESA, a temporary layoff can last:
- Up to 13 weeks in any 20 consecutive weeks
- Up to 35 weeks in a 52-week period if certain conditions (such as benefits or recall rights) are maintained
Beyond these durations, the layoff is deemed a termination.
What Are Your Rights If You’re Laid Off in Ontario?
- Severance Pay or Common Law Notice: Based on age, length of service, role, and other factors. Use our tool to estimate your entitlements: Severance Pay Calculator Ontario
- Benefits Continuation: During a permitted temporary layoff, benefits may continue.
- Recall Rights: Failure to recall an employee in time may trigger termination rights under the ESA.
Learn more: Termination Pay vs Severance
Common Employer Mistakes During Layoffs
- Not providing written notice
- Failing to offer severance or ESA entitlements
- Assuming ESA compliance avoids common law liability
- Discriminatory or inconsistent treatment during layoffs
What to Do if You’ve Been Laid Off
- Review your employment contract
- Consult an employment lawyer
- Apply for EI through Service Canada
- Track all employer communications
Get Help From Ontario Layoff Lawyers
At Monkhouse Law Employment Lawyers, we have extensive experience helping Ontario employees who have been laid off. Whether you’re facing a wrongful dismissal, constructive dismissal, or temporary layoff, we can help you understand your legal options and fight for the compensation you’re owed.
See our Notable Case Results
Contact Monkhouse Law
If you have been laid off in Ontario or are facing a potential layoff, it’s crucial to understand your rights and options. Monkhouse Law specializes in employment law and can provide expert guidance and representation.