Can I Collect EI On Temporary Layoff?
A common question that many employees who are laid off ask is whether they can collect EI on temporary layoff. This article will explain what qualifies as a temporary layoff under the Ontario Employment Standards Act (ESA) and who would qualify for EI.
What is a temporary layoff under the ESA
Under the ESA, an employee is on temporary layoff when an employer cuts back or stops an employee’s work without ending their employment.
In order to qualify as a temporary layoff under the ESA, the layoff can last
- not more than 13 weeks in any period of 20 consecutive weeks, or
- more than 13 weeks in any period of 20 consecutive weeks, but less than 35 weeks of layoff in any period of 52 consecutive weeks where the employee continues to receive substantial payments from the employer. The employee in this situation must continue to receive substantial payments from the employer, or the employer continues to make payments for the employee’s benefits, or the employee receives supplementary unemployment benefits, or the employer recalls the employee within the timeframe set out in an agreement.
When is a temporary layoff a termination?
If an employee is laid off for a period longer than a temporary layoff as defined above, the employer would be considered to have terminated the employee’s employment. Moreover, if a non-union employee’s contract does not permit temporary layoffs, and the employee has not agreed to a temporary layoff, the layoff may result in constructive dismissal.
How can I collect employment insurance on temporary layoff?
You may qualify for employment insurance during a temporary layoff. It is crucial for you to apply for EI benefits once on temporary layoff as you may lose benefits if there is a delay in filing your claim more than 4 weeks after your last day of work. Employers must issue employees on temporary layoff with a Record of Employment.
To receive EI regular benefits in general, you must demonstrate that you were employed in insurable employment, that you lost their job through no fault of their own, had been without work and pay for at least 7 consecutive days in the last 52 weeks, had worked the required number of insurable employment hours in the last 52 weeks or since the start of the last EI claim, whichever is shorter, are ready and willing to work, and are actively looking for work.
For more information on whether you qualify for EI, please visit the Regular EI Benefits program page here.
How can Whitten and Lublin help?
It is important for employees to understand when they are considered to be on temporary layoff and if their employer has the right to place them on a layoff. Once laid off, the need to further understand whether you qualify for EI is important. If you are an employee who has been temporarily laid off and want to better understand your rights under your employment contract, contact us for further information regarding your entitlements online or by phone at (416) 640 2667.
Author – Abby Leung