A temporary layoff is when your employer reduces your work hours to zero or suspends your employment for a specific period, with the intention of bringing you back to work. Unlike permanent termination, you retain your job and employment relationship during the layoff period.
Think of it as hitting “pause” on your job rather than ending it completely
Temporary Layoff Ontario Rules
Ontario’s Employment Standards Act sets clear rules for temporary layoffs:
Basic Rule
Temporary layoffs can last up to 13 consecutive weeks in any 20-week period.
Extended Rule
Layoffs can extend to 35 weeks if your employer:
- Continues paying your benefits
- Makes substantial equivalent payments
- Provides supplementary unemployment benefits
- Has a collective agreement allowing longer layoffs
When Layoffs Become Permanent
Your layoff becomes a termination if it exceeds these time limits. At that point, you’re entitled to full severance pay and termination notice.
How Long Can a Temporary Layoff Last in Ontario?
The duration depends on your specific situation:
Standard Temporary Layoff:
- Maximum 13 weeks in any 20-week period
- Clock resets after the 20-week period ends
Extended Temporary Layoff:
- Up to 35 weeks with continued benefits
- Requires employer to maintain substantial support
Important: These are maximum periods. Your employer can recall you at any time during the layoff.
Can I Collect EI on a Temporary Layoff?
Yes, you can collect Employment Insurance during a temporary layoff. EI treats temporary layoffs the same as permanent job loss for benefit purposes.
EI Eligibility Requirements
- You must be available and actively seeking work
- You need sufficient insurable hours (420-700 hours depending on your region’s unemployment rate)
- Your earnings must be below the weekly benefit threshold
Key Point
Even though your employer plans to recall you, EI considers you unemployed during the layoff period.
Here you can learn about Layoffs in Canada and know about recent layoffs at popular companies such as Stericycle, RBC, Hudson’s Bay and Bell layoffs.
How to Apply for EI During Temporary Layoff
Applying for EI during a temporary layoff follows the standard process:
Step 1: Get Your Record of Employment (ROE)
Your employer must provide an ROE within 5 days of your last day of work. The ROE should indicate “shortage of work” as the reason for separation.
Step 2: Apply Online
- Visit the Service Canada website
- Complete your EI application within 4 weeks of your last day of work
- Select “temporary layoff” or “shortage of work” when asked about your job separation
Step 3: Provide Required Information
- Social Insurance Number
- Personal and contact information
- Employment history for the past 52 weeks
- Banking information for direct deposit
Step 4: Complete Bi-weekly Reports
Continue filing reports even during your temporary layoff to maintain your benefits.
What is a Temporary Layoff with Recall?
A temporary layoff with recall means your employer has the right to call you back to work during the layoff period. This arrangement:
Protects Your Job
- Your position remains yours during the layoff
- You maintain seniority and benefits (if continued by employer)
- You can’t be permanently replaced
Creates Obligations
For You:
- Must remain available for recall
- Should maintain contact with your employer
- May need to accept recall to keep EI benefits
For Your Employer:
- Must recall you within the temporary layoff period
- Cannot hire permanent replacements for your position
- Must provide reasonable notice of recall
Your Rights During Temporary Layoff
What You Keep
- Your job security and recall rights
- Seniority and years of service
- Pension contributions (if employer continues them)
- Some benefits (if employer continues them)
What You Can Do
- Collect Employment Insurance
- Seek temporary work elsewhere
- Refuse unreasonable recall offers
- Treat excessive layoffs as termination
What Your Employer Must Do
- Provide proper notice or pay if layoff exceeds limits
- Issue correct Record of Employment
- Maintain recall rights within time limits
- Continue certain benefits if claiming extended layoff
When Temporary Layoffs Go Wrong
Constructive Dismissal
A temporary layoff may become wrongful dismissal if:
- Your employment contract doesn’t allow layoffs
- The layoff exceeds legal time limits
- Your employer doesn’t have economic justification
- The layoff is used to avoid paying severance
Download 10 Points that Strongly Indicate Wrongful Dismissal
Protecting Yourself
- Keep detailed records of all communications
- Understand your employment contract terms
- Don’t assume all temporary layoffs are legal
- Seek legal advice if the situation seems improper
Common Temporary Layoff Scenarios
Seasonal Industries
- Construction during winter months
- Tourism businesses in off-seasons
- Agricultural operations between growing seasons
Economic Downturns
- Manufacturing slowdowns
- Retail reductions after peak seasons
- Service industry adjustments
Restructuring
- Company reorganizations
- Equipment upgrades or maintenance
- Training and development periods
Making the Most of Your Temporary Layoff
Financial Planning
- Apply for EI immediately
- Budget based on EI benefits (typically 55% of earnings)
- Consider temporary work that won’t affect recall rights
Skill Development
- Use the time for training or education
- Update your resume and LinkedIn profile
- Network within your industry
Staying Ready
- Maintain contact with your employer
- Keep your skills sharp
- Be prepared for recall with short notice
When to Seek Legal Help
Contact an employment lawyer if:
- Your layoff seems to violate your employment contract
- The temporary layoff exceeds legal time limits
- You suspect the layoff is actually a permanent termination
- Your employer is pressuring you to resign during layoff
Key Takeaways
Temporary layoffs in Ontario are governed by strict rules designed to balance employer flexibility with employee protection. Understanding these rules helps you:
- Know when a layoff is legal
- Access your EI benefits properly
- Protect your recall rights
- Recognize when temporary becomes permanent
Remember, temporary layoffs should truly be temporary. If your situation doesn’t feel right, don’t hesitate to seek professional advice to protect your employment rights.
