Temporary layoffs can be a necessary element of operating a business in Canada. Employers faced with a shortage in available work may need to reduce staffing in the short term to control costs, with the goal of preserving jobs in the long term.
Temporary layoffs are common in some industries and rare in others. They may be driven by cyclical changes in business demand or extraordinary events like the COVID-19 pandemic. Whatever the reason, employers should be aware of applicable laws before taking this step. This legal update reviews the laws applicable to temporary layoffs, with particular attention to rules in Alberta, British Columbia, Ontario and the federal sector.
What is a “temporary layoff”?
Employment standards statutes across Canada provide for “temporary layoffs.” These enable an employer to serve an employee off work for a limited period of time, typically without terminating the employment relationship. The employee generally is not