In uncertain times, many employers look for creative ways to
manage payroll, retain talent and minimize risk. These are
not easy challenges to face.
Some industries, such as the construction industry go through
periodic "cycles" where business slows down. Other
businesses face slow periods between orders, deliveries or
contracts. The question that these employers often ask is:
how do I reduce costs during the slow periods?
One way for employers to reduce employment costs is to make use
of the temporary layoff provisions of the Employment Standards
Act, 2000 (the "Act"). Section 56(2)
of the Act permits an employer to lay an employee off for
a period of "not more than 13 weeks in any period of 20
consecutive weeks" or "more than 13 weeks in any period
of 20 consecutive weeks if the lay-off is less than 35 weeks in any
period of 52 consecutive weeks". However, if the layoff
falls under the second part (less than 35 weeks in any period of 52
consecutive weeks),
