Layoff Procedures

A layoff is considered a termination of employment when the employer has no intention of recalling the employee to work. In these cases, employers have responsibilities and obligations to the employees usually associated with the termination of employment, and employees benefit from such defined rights as protection from unjust dismissal.

A layoff is not considered a termination of employment when:

  • the layoff is the result of a strike or lockout;
  • the term of the layoff is three months or less;
  • the term of the layoff is for three to 12 months, where employees maintain recall rights under a collective agreement; or
  • the term of the layoff is for more than three months and subject to circumstances defined in Section 30 of the Canada Labour Standards Regulations. Labour Program offices can offer guidance in interpreting these regulations.

If an employer is unable to recall an employee to work after a layoff in the above situations, the layoff becomes an individual termination, and the employer must provide the employee with pay in lieu of notice and severance pay.

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Date Modified:
2012-02-15