What You Need To Know About Temporary Layoffs April 01 2015
During times of economic hardship, it is common practice for employers to lay off employees; however, some employers are unsure of their legislative requirements during the temporary layoff process. Below we will go through what is required of employers in each jurisdiction.
In general, a temporary layoff is when an employer cuts back or stops the employee’s work, but does not end their employment. During a temporary layoff, an employee is still employed with your organization. The employee is only considered to be terminated if and when the layoff exceeds the maximum temporary layoff timeframes, as set out in the legislation. This is important because in the event of a temporary layoff, termination notice is not required until the temporary layoff becomes a permanent layoff.
The length of time that a temporary layoff can last differs by province. There are two main ways in which layoff duration is measured. The rolling period is the amount of time (days or weeks) within a rolling or consecutive period. The other way to measure is the number of days, regardless of the timeframe in which it occurs.
Severance and termination payments will not be owed if you recall an employee before the stated maximum timeframe for a temporary layoff, in any jurisdiction. Should an employee refuse to return to work upon being recalled, they will be considered to have quit and would not be entitled to notice payments; however, they may still be entitled to vacation or other accrued benefits. If you fail to recall an employee before the maximum deadline, they are considered to be permanently laid off and will be eligible for notice payments (termination and, if applicable, severance pay). In order to effectively calculate payments, you must determine the effective layoff date (varies by jurisdiction).
Visit the Resource Centre of our website to find sample letters relating to layoffs by provincial jurisdiction. As with all sample letters you will find in this section, you will want to revise it in order to suit your specific circumstances.
Alberta
In Alberta, a temporary layoff can last up to 60 days. The layoff can exceed the 60 day maximum if the employer agrees to continue to pay the employee, or make pension or group benefit contributions on their behalf. Alberta also allows for extensions to be made to layoffs up to 12 months if the collective agreement allows the employee to retain recall rights during the layoff.
Employers are not required to give notice of the layoff to their employee(s) as long as they are recalled by the recall date. If the layoff is to last longer than the maximum timeframe, the employee is considered to be permanently laid off and termination notice or termination pay is required. The effective date of termination would be the day after the temporary layoff period ends (i.e. 60 days).
British Columbia
In British Columbia, temporary layoffs can last up to 13 weeks in any 20-consecutive week period. A layoff can be considered any week where the employee earns less than 50% of their weekly wages, at their regular wage, (as a result of reduced hours worked in that week), averaged over the previous 8 weeks.
Employers are not required to give notification of a lay off as long as employees are recalled by the specified date. If the temporary layoff exceeds the maximum deadline, the employee will be considered to be permanently laid off and termination pay or notice is required. When determining termination pay, the effective date of termination would be the first day that the layoff began.
Manitoba
In Manitoba, a temporary layoff can last up to 8 weeks within a 16-week period, and employers are not required to provide notice of the temporary layoff. The layoff can exceed the 8 weeks if the employer agrees to continue payments to the employee, or make pension or group benefit contributions on their behalf. If layoffs are regular and recurring in the business, employers can extend past the 8-week duration, as long as employees are notified that it is the nature of the business upon hire (i.e. seasonal construction work). If the layoff exceeds the maximum deadline, employees are considered to be permanently laid off. When determining termination pay, the termination date is the first day layoff began.
New Brunswick
A temporary layoff can last up to 6 days and notice of the temporary layoff is not required. If the layoff is to exceed 6 days, or is due to a lack of work which the employer does not foresee, employers are required to give employees who have continuously worked for a period of 6 months or more at least two 2 weeks’ notice of the layoff. In New Brunswick, employees who are laid off for more than 6 days are not considered to be permanently laid off, as the employer must explicitly terminate the employment relationship. When calculating termination pay, the day of termination is considered to be the day the temporary layoff began.
Newfoundland
Temporary layoffs can last up to 13 weeks in a 20-consecutive week period; however employers must notify their employees of the layoff in writing. The notice period for the layoff ranges from 1 to 6 weeks, based on the employee’s length of service. If the employee becomes permanently laid off by exceeding the temporary layoff deadline, termination of the employee is effective the first day the temporary layoff began. Termination pay is then calculated based on length of employment.
Northwest Territories
Temporary layoffs can last no longer than 45 days in a 60-day period. The temporary layoff can be extended by an Employment Standards Officer under special circumstances, if the employee is recalled within the time determined by the Officer.
Employers are required to give notification to their employees of a temporary layoff, as well as specify an expected recall date. If an employer fails to give notification or if the layoff exceeds the timeframe permitted for the temporary layoff, the layoff is considered to be a termination. When determining termination pay, the effective date of termination is the last day of the temporary layoff.
Nova Scotia
Temporary layoffs can last up to 6 consecutive days before the layoff becomes a termination of employment. Employers are not required to notify their employees prior to a layoff as long they are recalled by the specified date. When determining termination pay, upon exceeding the temporary layoff deadline, the termination date is considered the first day of the temporary layoff.
Nunavut
Temporary layoffs can last no longer than 45 days in a 60-day period. The temporary layoff can be extended by a Labour Standards Officer under special circumstances, if the employee is recalled within the time set out by the Officer. Notice of the layoff is required by employers prior to temporary layoffs and an expected recall date must be specified. If a temporary layoff exceeds the permitted time frame then termination pay would be owed. When determining termination pay, the effective date of termination is the last day of the temporary layoff.
Ontario
In Ontario, temporary layoffs can last up to 13 weeks in a consecutive 20-week period. A layoff can be time not worked, or if an employee is earning significantly less than their regular earning. In Ontario, “significantly less” would be if the employee were earning 50% or less than they would ordinarily earn in a week, as a result of a reduction of hours.
A temporary Layoff can be extended under the following circumstances: the employee must continue to receive substantial payments from the employer, the employer must continue to make benefits payments on behalf of the employee, if the employee receives or is entitled to receive supplementary unemployment benefits or if the employee is recalled within the approved time frame. The extension cannot exceed 35 weeks in a 52-week period.
Employers are not required to give notice of the layoff prior to a temporary layoff as long as employees are recalled by the specified date. Should the layoff exceed the maximum deadline, the employee’s employment is considered to be terminated. When determining termination and severance pay, the termination date is considered to be the first day of the temporary layoff.
Prince Edward Island
In P.E.I., employers are required to provide notice to employees who have worked continuously for 6 months or more if they are terminating or laying them off. Notice of a temporary layoff of less than 6 days is not required. If the layoff exceeds the 6 days, then termination pay is required. When calculating termination pay, the effective termination date would be at the start of the layoff.
Quebec
In Quebec, a layoff temporarily suspends the contract of employment between the employer and the employee. In other words, a laid off employee may be called back to work. The employee retains his employment relationship for the duration of his layoff and the contractual relationship is maintained. An employee who is laid off for a period of 6 months or more must receive, within the time periods stipulated in the Act, a notice of termination of employment.
Saskatchewan
In Saskatchewan, layoffs can last up to 6 consecutive days and employers have a responsibility of providing written notice to their employees, who have worked more than 13 consecutive weeks for the employer, prior to a layoff. If the layoff is to exceed 6 days, termination notice or payment is required. Since layoffs and terminations are treated the same, the effective termination date would be at the start of the layoff.
Yukon
In the Yukon, temporary layoffs are permitted to last up to 13 weeks in a 20-week period. Notice of a temporary layoff is not required prior to the beginning of the layoff. The temporary layoff can be extended under special circumstances by order of the Director of Employment Standards, as long as the employee is recalled prior to the extended recall date. Should the layoff exceed the maximum deadline, the employee is considered permanently laid off and termination pay would apply. When determining termination pay, the termination date is the first day of the temporary layoff.
Federal
Under federal jurisdiction, layoffs can last up to 3 months, or 12 months if mandatory under the collective agreement. A layoff can exceed the 3 months maximum if the employee is notified in writing that he/she will be recalled and the recall date does not exceed 6 months after the date the layoff began. The employer must also agree to continue to pay the employee, or make pension or group insurance contributions on their behalf to extend a layoff beyond 3 months. Under Federal jurisdiction, extensions can also be made to layoffs, up to 12 months, if the collective agreement allows the employee to retain recall rights during the layoff.
Employers are not required to notify their employees of a layoff that lasts 3 months or less. If the layoff is to extend past 3 months, but not exceed 6 months, the employer must notify the employee(s) in writing and inform them of their recall date. Should a layoff exceed the maximum timeframe, they are considered to be permanently laid off. When determining termination pay an employee is deemed terminated on the date the layoff began.
In general, a temporary layoff is when an employer cuts back or stops the employee’s work, but does not end their employment. During a temporary layoff, an employee is still employed with your organization. The employee is only considered to be terminated if and when the layoff exceeds the maximum temporary layoff timeframes, as set out in the legislation. This is important because in the event of a temporary layoff, termination notice is not required until the temporary layoff becomes a permanent layoff.
The length of time that a temporary layoff can last differs by province. There are two main ways in which layoff duration is measured. The rolling period is the amount of time (days or weeks) within a rolling or consecutive period. The other way to measure is the number of days, regardless of the timeframe in which it occurs.
Severance and termination payments will not be owed if you recall an employee before the stated maximum timeframe for a temporary layoff, in any jurisdiction. Should an employee refuse to return to work upon being recalled, they will be considered to have quit and would not be entitled to notice payments; however, they may still be entitled to vacation or other accrued benefits. If you fail to recall an employee before the maximum deadline, they are considered to be permanently laid off and will be eligible for notice payments (termination and, if applicable, severance pay). In order to effectively calculate payments, you must determine the effective layoff date (varies by jurisdiction).
Visit the Resource Centre of our website to find sample letters relating to layoffs by provincial jurisdiction. As with all sample letters you will find in this section, you will want to revise it in order to suit your specific circumstances.
Alberta
In Alberta, a temporary layoff can last up to 60 days. The layoff can exceed the 60 day maximum if the employer agrees to continue to pay the employee, or make pension or group benefit contributions on their behalf. Alberta also allows for extensions to be made to layoffs up to 12 months if the collective agreement allows the employee to retain recall rights during the layoff.
Employers are not required to give notice of the layoff to their employee(s) as long as they are recalled by the recall date. If the layoff is to last longer than the maximum timeframe, the employee is considered to be permanently laid off and termination notice or termination pay is required. The effective date of termination would be the day after the temporary layoff period ends (i.e. 60 days).
British Columbia
In British Columbia, temporary layoffs can last up to 13 weeks in any 20-consecutive week period. A layoff can be considered any week where the employee earns less than 50% of their weekly wages, at their regular wage, (as a result of reduced hours worked in that week), averaged over the previous 8 weeks.
Employers are not required to give notification of a lay off as long as employees are recalled by the specified date. If the temporary layoff exceeds the maximum deadline, the employee will be considered to be permanently laid off and termination pay or notice is required. When determining termination pay, the effective date of termination would be the first day that the layoff began.
Manitoba
In Manitoba, a temporary layoff can last up to 8 weeks within a 16-week period, and employers are not required to provide notice of the temporary layoff. The layoff can exceed the 8 weeks if the employer agrees to continue payments to the employee, or make pension or group benefit contributions on their behalf. If layoffs are regular and recurring in the business, employers can extend past the 8-week duration, as long as employees are notified that it is the nature of the business upon hire (i.e. seasonal construction work). If the layoff exceeds the maximum deadline, employees are considered to be permanently laid off. When determining termination pay, the termination date is the first day layoff began.
New Brunswick
A temporary layoff can last up to 6 days and notice of the temporary layoff is not required. If the layoff is to exceed 6 days, or is due to a lack of work which the employer does not foresee, employers are required to give employees who have continuously worked for a period of 6 months or more at least two 2 weeks’ notice of the layoff. In New Brunswick, employees who are laid off for more than 6 days are not considered to be permanently laid off, as the employer must explicitly terminate the employment relationship. When calculating termination pay, the day of termination is considered to be the day the temporary layoff began.
Newfoundland
Temporary layoffs can last up to 13 weeks in a 20-consecutive week period; however employers must notify their employees of the layoff in writing. The notice period for the layoff ranges from 1 to 6 weeks, based on the employee’s length of service. If the employee becomes permanently laid off by exceeding the temporary layoff deadline, termination of the employee is effective the first day the temporary layoff began. Termination pay is then calculated based on length of employment.
Northwest Territories
Temporary layoffs can last no longer than 45 days in a 60-day period. The temporary layoff can be extended by an Employment Standards Officer under special circumstances, if the employee is recalled within the time determined by the Officer.
Employers are required to give notification to their employees of a temporary layoff, as well as specify an expected recall date. If an employer fails to give notification or if the layoff exceeds the timeframe permitted for the temporary layoff, the layoff is considered to be a termination. When determining termination pay, the effective date of termination is the last day of the temporary layoff.
Nova Scotia
Temporary layoffs can last up to 6 consecutive days before the layoff becomes a termination of employment. Employers are not required to notify their employees prior to a layoff as long they are recalled by the specified date. When determining termination pay, upon exceeding the temporary layoff deadline, the termination date is considered the first day of the temporary layoff.
Nunavut
Temporary layoffs can last no longer than 45 days in a 60-day period. The temporary layoff can be extended by a Labour Standards Officer under special circumstances, if the employee is recalled within the time set out by the Officer. Notice of the layoff is required by employers prior to temporary layoffs and an expected recall date must be specified. If a temporary layoff exceeds the permitted time frame then termination pay would be owed. When determining termination pay, the effective date of termination is the last day of the temporary layoff.
Ontario
In Ontario, temporary layoffs can last up to 13 weeks in a consecutive 20-week period. A layoff can be time not worked, or if an employee is earning significantly less than their regular earning. In Ontario, “significantly less” would be if the employee were earning 50% or less than they would ordinarily earn in a week, as a result of a reduction of hours.
A temporary Layoff can be extended under the following circumstances: the employee must continue to receive substantial payments from the employer, the employer must continue to make benefits payments on behalf of the employee, if the employee receives or is entitled to receive supplementary unemployment benefits or if the employee is recalled within the approved time frame. The extension cannot exceed 35 weeks in a 52-week period.
Employers are not required to give notice of the layoff prior to a temporary layoff as long as employees are recalled by the specified date. Should the layoff exceed the maximum deadline, the employee’s employment is considered to be terminated. When determining termination and severance pay, the termination date is considered to be the first day of the temporary layoff.
Prince Edward Island
In P.E.I., employers are required to provide notice to employees who have worked continuously for 6 months or more if they are terminating or laying them off. Notice of a temporary layoff of less than 6 days is not required. If the layoff exceeds the 6 days, then termination pay is required. When calculating termination pay, the effective termination date would be at the start of the layoff.
Quebec
In Quebec, a layoff temporarily suspends the contract of employment between the employer and the employee. In other words, a laid off employee may be called back to work. The employee retains his employment relationship for the duration of his layoff and the contractual relationship is maintained. An employee who is laid off for a period of 6 months or more must receive, within the time periods stipulated in the Act, a notice of termination of employment.
Saskatchewan
In Saskatchewan, layoffs can last up to 6 consecutive days and employers have a responsibility of providing written notice to their employees, who have worked more than 13 consecutive weeks for the employer, prior to a layoff. If the layoff is to exceed 6 days, termination notice or payment is required. Since layoffs and terminations are treated the same, the effective termination date would be at the start of the layoff.
Yukon
In the Yukon, temporary layoffs are permitted to last up to 13 weeks in a 20-week period. Notice of a temporary layoff is not required prior to the beginning of the layoff. The temporary layoff can be extended under special circumstances by order of the Director of Employment Standards, as long as the employee is recalled prior to the extended recall date. Should the layoff exceed the maximum deadline, the employee is considered permanently laid off and termination pay would apply. When determining termination pay, the termination date is the first day of the temporary layoff.
Federal
Under federal jurisdiction, layoffs can last up to 3 months, or 12 months if mandatory under the collective agreement. A layoff can exceed the 3 months maximum if the employee is notified in writing that he/she will be recalled and the recall date does not exceed 6 months after the date the layoff began. The employer must also agree to continue to pay the employee, or make pension or group insurance contributions on their behalf to extend a layoff beyond 3 months. Under Federal jurisdiction, extensions can also be made to layoffs, up to 12 months, if the collective agreement allows the employee to retain recall rights during the layoff.
Employers are not required to notify their employees of a layoff that lasts 3 months or less. If the layoff is to extend past 3 months, but not exceed 6 months, the employer must notify the employee(s) in writing and inform them of their recall date. Should a layoff exceed the maximum timeframe, they are considered to be permanently laid off. When determining termination pay an employee is deemed terminated on the date the layoff began.