Temporary Layoff Ontario: What You Need To Know

What is a temporary layoff?

A temporary layoff is when the employer cuts back or stops an employee’s work without ending his or her employment. Despite this interruption of work and compensation, the parties treat the employment relationship as ongoing, with the understanding that work and compensation may resume in the future. A temporary layoff, unlike “termination” and “dismissal”, does not refer to the end of the employment relationship. However, if the temporary layoff is not allowed in the employment contract, it may result in constructive dismissal.

What if you don’t want to go back to work after the temporary layoff? If the employee does not come back to work after a legal temporary layoff, this may amount to job abandonment.

Can I collect EI on a temporary layoff?

Employees may be eligible to collect EI during a temporary layoff. A Record of Employment (ROE) must be issued for each employee that is on a temporary layoff. Employees may qualify to receive Regular EI benefits to cover the layoff period. For more information for employees, visit the Regular EI Benefit program.

Do employers have to provide notice of a temporary layoff?

No, unlike a termination, employers in Ontario do not have to provide notice, a temporary layoff is effective immediately.

How long is a temporary layoff in Ontario?

Under normal circumstances, temporary layoffs could last up to 13 weeks in a consecutive 20-week period. If this amount of time is exceeded, it would be considered a constructive dismissal, unless the employer provides substantial payments to the employee. However, even with substantial payments, the layoff cannot exceed 35 weeks in a consecutive 52-week period.

Do you lose your benefits if you are on a temporary layoff?

If a temporary layoff is shorter than 13 weeks, employers do not need to continue benefits or pension plans throughout the temporary layoff period. For layoffs up to 35 weeks, employers should generally receive substantial payments or benefits under their benefit plan.

What are my options if I am on a temporary layoff in Ontario?

To recap, if you are on a temporary layoff in Ontario, you should consider applying for EI and contact Service Canada. Check with an employment lawyer to confirm whether your employment contract allows for a temporary layoff and whether the layoff period is in accordance with the law.

Monkhouse Law specializes in employment law. If you have been temporarily laid off, contact us to ensure that your rights are protected.

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