Temporary Layoffs
A temporary layoff may result in the termination of your employment
A temporary layoff is generally not something your employer has the right to impose on you. Here is what you need to know about temporary layoffs, your rights, and when your employer may have the right to place you on temporary layoff.
A temporary layoff occurs when an employer instructs an employee to stay off work for a set period without pay. The employer may assert that the employee has not been terminated but that their position is temporarily suspended or “on hold.” These layoffs are often seen during periods of economic slowdown, restructuring, or operational difficulties. While employers may claim that a temporary layoff is within their rights, the reality under Ontario employment law is more nuanced.
You may be entitled to claim damages if your employer has placed you on a temporary layoff. In some instances, this layoff could be considered a constructive dismissal, meaning your employment relationship has been fundamentally altered without your consent. In most cases, employees who have been constructively dismissed are entitled to severance pay or compensation for lost wages during the layoff period.
If you are not part of a union and you are placed on a temporary layoff, there are several potential outcomes under Canadian law. Depending on the facts, you may be able to claim a severance package or lost wages during the period of your layoff.
If you are not unionized and have been placed on a temporary layoff, it is recommended to consult with an experienced employment lawyer to understand your legal rights, as there are several potential outcomes under Canadian law. A job layoffs lawyer can advise on your potential entitlement to a severance package or lost wages during the period of your layoff.
Having Whitten & Lublin employment lawyers on your side helps safeguard your interests. We can guide you through negotiations with your employer and, if necessary, pursue legal proceedings to recover what you are owed, so that you receive the appropriate severance pay and any other entitlements.
If you're facing termination of employment, our team is here to protect your rights.We go beyond basic legal advice by utilizing our Severance Solution®—a powerful tool developed to help assess the financial compensation of your case–to craft a tailored action plan. This step-by-step strategy is designed to maximize your severance package. Whether through negotiation or more assertive legal action, we will stand by you to ensure your compensation is what you rightfully deserve.
Occasionally. There are a few limited situations where your employer may have the right to place you on a temporary layoff:
Scenario 1
You agreed you could be placed on a layoff in your employment contract
One situation where your employer may have the legal right to place you on a temporary layoff is if you have agreed to it in your employment contract. This express term means that, as part of your agreement with your employer, you acknowledged and accepted the possibility of being laid off without pay for a set period.
In such cases, your employer may argue that the layoff is lawful because it was part of the terms you agreed to at the start of your employment.
When employment contracts permit a temporary layoff, whether through an express or implied term, then this may give your employer the right to lay you off without pay. Even then, not all contracts comply with provincial or federal labour employment legislation and the contract may be drafted or signed under circumstances where it would not be valid.
Scenario 2
You consent to the temporary layoff
Another scenario where an employer may lay you off legally is if you consent to it. In some cases, workers may choose to accept a temporary layoff even if their employment contract does not specifically mention it. This may happen during times of economic uncertainty or if the employer assures the worker that the layoff is only temporary and they will be recalled soon. However, agreeing to a layoff is a significant decision, and it’s important to be fully informed before making it. You should only consent to a temporary layoff after you fully understand your potential rights and entitlements.
Sometimes, you can choose not to fight the layoff at the time it occurs and to wait and then see how things unfold later. In this situation, it is still important to communicate your stance to your employer.
Scenario 3
Temporary layoffs are common in your industry, or you have previously been laid off temporarily
In some industries, temporary layoffs are so common that workers are expected to endure them as part of the normal course of business. If you work in one of these industries and you have previously condoned layoffs then you may not have the right to challenge a temporary layoff if and when it occurs to you.
Even in industries where layoffs are routine, the employer must still comply with employment standards and treat employees fairly. If you believe your employer is using the layoff as a tactic to avoid conducting proper terminations with severance packages, an employment lawyer can help you determine if you have a case for constructive dismissal or other legal claims.
Our lawyers will be able to determine whether your employer even has the right to place you on a layoff and if not, we will help you to get clarity and control of your matter by explaining the options you should consider ensuring that your legal rights are protected. Oftentimes in this scenario you will need an employment lawyer to advocate on your behalf or to pursue a claim for damages.
If you find yourself in this situation, you can count on the layoff lawyers at Whitten & Lublin to be in your corner. We regularly assist workers who are faced with temporary layoff scenarios.
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