- A temporary layoff means your employer has stopped providing work and pay without treating your employment as over.
- " At that point, the graduated ESA notice schedule applies: as of mid-2026, it runs one week for under a year of service, two weeks from one year to under three years, then one week per…
- Here's a point many employees miss: the ESA allowing a layoff without it counting as an ESA termination doesn't automatically mean your employer had the right to lay you off in the first…
Business slows down, and your employer says you're being "temporarily laid off" — no work, no pay, and a vague promise of a recall date. Many employees assume this is simply how things work and don't ask any further questions.
Ontario employment law puts real limits on how long a layoff can stay "temporary." Once it runs past the point the law allows, it can be treated as something else entirely: a termination, with the notice or pay that comes with it. Knowing the temporary layoff rules in Ontario — and your options while you're on one — puts you in a much stronger position.
This guide walks through what a temporary layoff actually is, when it turns into a termination, and what you can do at each stage.
What a Temporary Layoff Is Under the ESA
A temporary layoff means your employer has stopped providing work and pay without treating your employment as over. Ontario's Employment Standards Act, 2000 permits an employer to lay an employee off on a temporary basis without it automatically counting as a termination — but only up to a limited length, and only in certain circumstances.
These permitted time limits, and the conditions attached to them (such as whether the employer keeps contributing to certain benefits), change from time to time and depend on the details of your situation. Don't assume a length you've read elsewhere still applies — confirm the current rules before relying on them.
When a "Temporary" Layoff Becomes a Termination
Once a layoff runs longer than what the ESA permits, the law generally deems the employee to have been terminated as of the first day of the layoff — even though no one ever said the word "terminated." At that point, the graduated ESA notice schedule applies: as of mid-2026, it runs one week for under a year of service, two weeks from one year to under three years, then one week per year of service from three years up to a cap of eight weeks at eight or more years (figures change — verify the current schedule before relying on it). Depending on length of service and the employer's size, statutory severance pay may also apply on top of that.
Your Contract May Matter Before the ESA Deeming Rule Does
Here's a point many employees miss: the ESA allowing a layoff without it counting as an ESA termination doesn't automatically mean your employer had the right to lay you off in the first place. If your employment contract or offer letter doesn't give the employer the right to lay you off, imposing one anyway can be treated as a unilateral, fundamental change to your employment — potentially amounting to a constructive dismissal at common law, regardless of how long the layoff has lasted.
Two Different Clocks Running at Once
| ESA Deeming Rule | Common-Law Claim | |
|---|---|---|
| What triggers it | Layoff exceeds the permitted statutory length | Layoff imposed without contractual authority to do so |
| When it can arise | Only once the permitted period is exceeded | Potentially from the first day of the layoff |
| What it's based on | The Employment Standards Act, 2000 | Judge-made common law (constructive dismissal) |
Your Options While on Layoff
- Wait and monitor. If you want to keep the job and the layoff is short, you can simply track the timeline and stay in touch with your employer about recall.
- Negotiate. Ask about a recall date, continued benefits, or a modified arrangement, and get it in writing.
- Treat it as a dismissal. If there's no contractual right to lay you off, or the permitted ESA period has passed, you may be able to assert that your employment has ended and pursue notice, pay in lieu, or severance.
- Look into Employment Insurance. Employees on a genuine temporary layoff are often eligible for federal EI benefits — a separate program from your employer-side entitlements.
- Keep mitigating. If you accept other work during the layoff, or later pursue a dismissal claim, courts expect a dismissed employee to make reasonable efforts to find comparable work.
Steps to Protect Your Position
- [ ] Get the layoff notice in writing, with the date it started
- [ ] Check your employment contract or offer letter for a layoff clause
- [ ] Track how long the layoff has lasted against the current permitted period
- [ ] Avoid signing new terms or a release without legal advice
- [ ] Speak with an employment litigation lawyer if the layoff drags on, or if your contract is silent on layoffs
Frequently asked questions
Can my employer lay me off without any advance warning?
Generally, yes — Ontario law doesn't require advance notice before starting a temporary layoff itself, though your specific contract might. The bigger question is usually whether the employer had the right to lay you off at all, and how long the layoff has gone on.
Does accepting a temporary layoff mean I've given up my rights?
Simply going along with a layoff while you wait to see what happens generally doesn't waive your rights on its own, but conduct over time — such as accepting new terms in writing — can affect a later claim. Get advice before agreeing to anything in writing.
What if I find another job while I'm laid off?
Finding other work during a layoff isn't unusual and generally doesn't hurt you. If your layoff is later found to be a dismissal, having looked for or accepted other work actually supports your side, since dismissed employees are expected to mitigate their losses.
Does a temporary layoff affect severance pay eligibility?
If a layoff is deemed a termination, your length of service and your employer's size and payroll are what determine severance eligibility under the ESA — not the fact that the termination arrived by way of a layoff rather than an outright dismissal.
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