Book a free consultation so we can learn more about your needs and provide the right guidance.
Book your free consultation today
A layoff refers to the temporary or permanent suspension of employment initiated by the employer, typically due to economic downturns, restructuring, or lack of work. In Ontario, a temporary layoff is permitted under the ESA but must follow strict time limits and conditions; otherwise, it may be considered a constructive dismissal.
Layoffs commonly occur due to seasonal business fluctuations, budget cuts, technological automation, or corporate mergers. However, employers must adhere to statutory limitations—such as duration caps of 13 or 35 weeks in a 20-week period—beyond which the layoff is deemed permanent unless an agreement states otherwise.
Layoffs become unjust when used as a pretext to eliminate positions without proper severance or when conducted discriminatorily or without following due process.
Employees affected by unlawful layoffs may pursue damages for constructive dismissal or severance pay. They may also file ESA complaints, especially if proper notice, benefit continuation, or recall rights are denied.