Temporary Layoffs: Understanding Your Rights and Employer Obligations

A temporary layoff occurs when an employer suspends an employee’s work for a limited period without terminating employment. While common in certain industries, layoffs must comply with Ontario’s Employment Standards Act and applicable employment contracts.

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Key Aspects of Temporary Layoffs

• Duration limits defined by law or contract
• Employer obligations to notify and recall employees
• Impact on benefits, seniority, and seniority rights
• Possibility of constructive dismissal if layoff exceeds legal limits

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Common Issues Related to Temporary Layoffs

• Layoffs exceeding the permitted duration leading to constructive dismissal
• Lack of clear communication or recall procedures
• Impact on employee entitlements and benefits
• Disputes over whether a layoff is temporary or permanent

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Why Legal Advice Matters

Temporary layoffs can affect your job security and income. Employees may have rights to severance or termination pay if the layoff becomes permanent. Employers must ensure compliance to avoid wrongful dismissal claims and penalties.

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How Legal Support Can Help

Hamilton Employment Lawyers advise both employees and employers on temporary layoffs, assess legal rights and obligations, negotiate recalls or severance, and represent clients in disputes or Ministry of Labour proceedings.

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