Temporary layoff

Ontario’s guide says an employee is on temporary lay-off when an employer cuts back or stops the work without ending the employment, for example when there is not enough work to do. The guide adds that the ESA does not require written notice of a temporary lay-off or a reason for it. A seller who pauses operations before closing may be creating one. The effect of timing is covered in how layoff timing around closing affects a sale.

When it becomes a termination

Under ESA s.56(1)(c), an employer terminates employment if it lays the employee off for longer than the period of a temporary lay-off. Section 56(2) sets out those periods, and the guide describes an extended temporary lay-off, which needs a written agreement between employer and employee and the approval of the Director of Employment Standards (ESA s.66.1). Alberta’s Employment Standards Code has its own Temporary layoff section (s.62), and other provinces differ.

• Ask which employees are laid off on the signing date and since when
• Ask for any written recall dates, agreements or approvals
• Compare the layoff periods with the statute for the province where each person works

A layoff that turns into a termination can also count toward a group termination.