Temporary Layoff Rules in Ontario: Employee Rights

A temporary layoff in Ontario may be lawful only in limited situations. Without a contractual layoff clause or industry norm, a layoff can be a constructive dismissal or termination triggering notice and severance.

This article is general information for Ontario employees. It is not legal advice about your situation.

Key Takeaways

• When layoffs are permitted
• Layoff length and deemed termination
• Layoff vs termination without cause

When layoffs are permitted

Written employment contracts, collective agreements, or established industry practice may allow temporary layoffs. Otherwise, an employer cannot usually lay you off unilaterally without risk.

Layoff length and deemed termination

ESA rules include maximum layoff periods before a layoff becomes termination. Track dates and recall notices carefully.

Layoff vs termination without cause

If a layoff is really a termination, you may claim notice and severance. Compare scenarios in our post on being laid off and wrongful dismissal.