Most people use “termination” and “layoff” interchangeably. They are not the same thing — and the difference affects your rights and what you are owed.
Termination
Termination means your employment has ended — permanently. Your employer has decided your position is no longer needed, or that the working relationship is over.
There are two types:
Without cause — You did nothing wrong. The employer simply no longer needs your role. This is the most common type. You are entitled to proper notice or severance pay.
With cause — Your employer believes your conduct or performance justifies ending your employment immediately and without pay. Just cause is a very high legal bar — employers frequently claim it and fail to prove it.
Layoff
A layoff is a temporary interruption of work — your employment is not ended, just paused. Your employer expects to call you back when business conditions improve.
Under Ontario’s Employment Standards Act, a layoff is only temporary if:
- It lasts 35 weeks or less in any 52-week period, or
- Your employer has a recall date and maintains your benefits
If a layoff exceeds these limits — or if no recall happens — it automatically becomes a termination, and your full severance entitlements are triggered.
The Critical Point Most Employees Miss
In Ontario, your employer cannot lay you off without your consent unless your employment contract specifically permits it. If your contract is silent on layoffs and your employer reduces or eliminates your hours without agreement, that may constitute constructive dismissal — triggering your right to full severance immediately.
The bottom line: A layoff is not a safe zone for employers — and it is not a dead end for employees. If your employer called it a layoff but has no intention of bringing you back, or never had the right to lay you off in the first place, you may be entitled to full termination pay right now.
