Being told you’re “temporarily laid off” can leave you in limbo. You’re not working, you’re not being paid, and you don’t know if or when you’ll be called back. If you work in Oakville or anywhere in Halton Region, the rules that govern layoffs come from Ontario’s Employment Standards Act (ESA) and from the courts. Understanding both can make a real difference to what you’re owed.
What a temporary layoff actually is
A temporary layoff happens when an employer stops giving you work, or sharply reduces your hours, but doesn’t end your employment. The expectation is that you’ll be recalled. Under the ESA, a week of layoff generally means a week in which you earn less than half of what you’d normally earn.
How long a layoff can last
The ESA puts limits on how long a temporary layoff can continue. In general, a layoff can last up to 13 weeks in any period of 20 consecutive weeks. It can last longer, up to 35 weeks in a 52-week period, in certain situations, such as when your employer keeps paying substantial amounts to you or continues your benefits.
Since late 2025, Ontario also allows layoffs to be extended beyond 35 weeks in some cases, but only with a written agreement from the employee and approval from the Director of Employment Standards. Even then, there’s an overall limit.
If your employer goes past the permitted length, the law treats your employment as having been terminated. That can trigger your right to termination pay and, if you qualify, severance pay.
The part many employers miss
Here’s the twist. The ESA’s layoff rules describe how long a layoff can last, but they don’t automatically give employers the right to lay you off in the first place. Ontario courts have generally found that unless your employment contract allows temporary layoffs, or layoffs are a well-established practice in your industry, putting you on an unpaid layoff can amount to constructive dismissal.
In plain terms, if your contract says nothing about layoffs, you may be able to treat the layoff as a termination and claim reasonable notice, which can be far more than the ESA minimums.
What to do if you’ve been laid off
Start by asking for the layoff in writing, including the expected recall date if there is one. Check your employment contract and any handbook for a layoff clause. Apply for Employment Insurance promptly, since you don’t need to wait to see how things turn out.
Then think carefully before you act. Accepting a recall, refusing one, or starting a new job can all affect your legal position. A short conversation with a lawyer can help you decide whether to wait, negotiate or pursue a claim. Our guide on what to do when you’re facing an employment dispute covers the first steps.
For employers in Oakville
If you’re planning layoffs, it’s worth checking your contracts first. A clear, enforceable layoff clause can be the difference between a manageable slowdown and a wave of wrongful dismissal claims. Our article on how a labour and employment lawyer can protect your business explains how to plan ahead.
Get advice from an Oakville employment lawyer
Whether you’re an employee or an employer, our Oakville employment lawyers can explain your options and the deadlines that apply. Learn more about our employment law services.
