Temporary Layoffs
In Ontario, employers do not have an automatic right to temporarily lay off employees unless the employment contract expressly allows it. A temporary layoff—when improperly implemented—can amount to a constructive dismissal, giving rise to a claim for full termination and severance entitlements.
Whether you are an employee facing a layoff or an employer considering one, Singh Lamarche LLP can guide you through the legal risks and options.
For Employees:
If you’ve been placed on a temporary layoff, it’s important to understand your rights. We can help you:
- Determine whether the layoff is legally valid, including whether your contract permits it;
- Assess whether you have a claim for constructive dismissal;
- Pursue severance pay or a settlement, where appropriate;
- Respond to return-to-work offers, especially if the terms of employment have changed.
Many employees do not realize that a layoff—even if described as temporary—may entitle them to claim damages for termination.
For Employers:
If you are considering implementing a temporary layoff, we can help you:
- Review employment contracts to determine if layoffs are permitted;
- Implement a legally compliant temporary layoff, including proper notice and recall timelines under the Employment Standards Act, 2000;
- Mitigate the risk of constructive dismissal claims;
- Communicate effectively with employees to preserve working relationships and reduce legal exposure.
We also provide guidance on the implications of repeated or extended layoffs, and on how pandemic-related exceptions (such as Infectious Disease Emergency Leave) may impact your obligations or rights.
Whether you’re navigating a layoff or responding to one, Singh Lamarche LLP can help you make informed decisions and protect your legal interests.
Request a Consultation
There are two ways to request a consultation:
You may call us at 647-799-0499 or you can click here to request a consultation online.