Many of our clients are considering the use of temporary layoffs
to deal with the impact of the coronavirus on their businesses. For
ease of reference, we have outlined the rules under the provincial
employment standards legislation across Canada and, for
federally-regulated employers, the federal Canada Labour Code,
below.
Please note that there is some risk that a temporary layoff
could trigger a constructive dismissal where there is no term in an
employee's contract allowing for such, a company policy
providing for such, or a past practice at the company of temporary
layoffs.
Rules Regarding Temporary Layoffs
Federal
Section 230(3) of the Canada Labour
Code: An employer will be deemed to have terminated an
employee's employment when it lays off that employee.
