Temporary Layoff – Navigating the Employment Law Waters: Be Very Careful
Temporary Layoff
When business softens, employers look at different ways to reduce labour costs.
One option is to temporarily lay off workers until business picks up. Selecting this option can be a big mistake.
We get calls from employers who have temporarily laid off employees only to receive a letter from a lawyer claiming the laid off employee has been wrongfully dismissed. After reviewing the situation, we often advise the employer that the employee has likely been wrongfully dismissed.
”What do you mean I owe the guy termination pay?”
“The Ministry of Labour told me I could temporarily lay him off without providing him with any notice of termination.”
This is one of those times when employers are exasperated by the employment laws in Ontario.
It is true that an employer can often avoid providing notice of termination of a “temporary” layoff under the Employment Standards Act. An employer cannot generally, however, avoid providing reasonable notice of termination in connection with a temporary layoff at common law.
The good news is that by reserving the right to temporarily layoff an employee in an employment contract, an employer can avoid the common law obligation to provide reasonable notice. As long as the contractual provision complies with the Employment Standards Act, it is generally enforceable.
Lessons to be learned: Make sure you obtain employment law advice before laying off an employee. Always require employees to sign an employment contract.
To download a copy of our publication, 20 Areas to Consider When Conducting Your Own Workplace Audit, please visit wwww.macleodlawfirm.ca/employers.
If you have questions about employment contracts or employee layoffs, please contact us at inquiry@macleodlawfirm.ca or call us at 1-888-640-1728 anytime
Constructive Dismissal, Employee Terminations, Employment Contract, Employment Standards, Reasonable Notice, Wrongful Dismissal
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employment lawyer Barrie, employment lawyer Toronto, notice of temporary layoff, temporary layoff
Themocracy
I would have to consult with you here. Which is not something I usually do! I enjoy reading a post that will make people think.Also thanks to my comment.
hi i have signed new contract as a full time emplyee as a restaurant mgr .the owner requested me to regined from my hotel job from 15/7/12 and to join his restaurant on 17/7/12 but the restaurant is not ready yet and he paying me lum sum instaed of paying full salary .he is harrassing me of changing his commitment as per contract what shall i do please advice where can i get legal advice .i am also tence for not having any choice what happens if he dismiss. he alredy threatened me about job . need help
Our legal practice is limited to Ontario, Canada and laws here will differ from those in Queensland, Australia. You need to speak with a solicitor within your state for advice.
Good luck in your situation.
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Our practice is based solely in Ontario and I would need translation for your request. Bonne journée.
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