Temporary Layoff Lawyer in Ontario

A temporary layoff is supposed to be just that: a pause, with a return to work. But many layoffs drag on with no recall date, and many employers don't have the right to lay you off in the first place. Depending on your contract and how long it lasts, a layoff can turn into a termination, with notice and severance owed.

What the ESA allows

Under Ontario's Employment Standards Act, 2000, a week counts as a week of layoff when you earn less than half of your usual weekly earnings. A temporary layoff can last:

• Up to 13 weeks in any 20 consecutive weeks. Always allowed, as far as the ESA is concerned.

• More than 13 but fewer than 35 weeks in any 52 consecutive weeks. Only if a condition is met, for example your employer keeps paying substantial amounts to you, or keeps up your benefits or pension contributions.

• 35 weeks or more, but fewer than 52 weeks in any 78 consecutive weeks. Only with your agreement and approval from the Director of Employment Standards (a rule in force since November 27, 2025).

If a layoff runs past the limit that applies, the ESA treats your employment as terminated, and termination pay is owed. A layoff of 35 weeks or more in a 52-week period can also trigger ESA severance pay if you otherwise qualify.

Your employer may not be allowed to lay you off at all

The ESA limits are only half the picture. At common law, an employer can only lay you off if your employment contract allows it, expressly or by clear implication. Without that right, a unilateral layoff can be a constructive dismissal from the first day.

The Court of Appeal for Ontario confirmed this in 2023. It held that an employer's past practice of laying people off did not, on its own, give it the right to do so. It also held that signing a layoff notice, or staying silent as a layoff was extended, did not mean the employee had accepted it.

If the layoff is a constructive dismissal, you may be owed full reasonable notice at common law, not just the ESA minimums. (More on constructive dismissal.)

What to do if you have been laid off

1. Read your contract for any clause about layoffs, and keep your layoff letter.

2. Don't sign anything agreeing to the layoff or to an extension without advice.

3. Apply for Employment Insurance right away.

4. Keep track of dates: your last day worked, any recall date, and any extension notices.

5. Answer a genuine recall. Refusing to return within a reasonable time after a real recall can cost you your ESA termination pay.

6. Get advice early. Whether to treat the layoff as a dismissal, and when, is a strategic decision.

How we help

1. A free 30-minute call to walk through your layoff and your contract.

2. An assessment, $350 plus HST. We review your contract, layoff notice and timeline against the ESA and current case law, and give you a written strategy.

3. Negotiation or a claim, on an hourly retainer or, for qualifying cases, a contingency fee.

Related: Constructive Dismissal · Wrongful Dismissal · Severance Package Review

Laid off with no return date?

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