Hey Aleesha!

So here is a breakdown of the layoff and termination rules in both provinces:

British Columbia

Layoff Duration & Termination Trigger
-Under the BC Employment Standards Act (ESA), a temporary layoff can last up to 13 weeks in any 20-week period (or longer if certain conditions are met, such as benefits continuation and agreement with the employee).
-If the layoff exceeds the allowable limit, it’s deemed a termination on the date the layoff started.

Pay in Lieu of Notice (Termination Pay)
-If the layoff becomes a termination, the employee is entitled to notice or pay in lieu, based on length of service:
<3 months: No notice required
3 months to <1 year: 1 week’s pay
1 year to <3 years: 2 weeks’ pay
3+ years: 1 additional week per completed year of service, to a maximum of 8 weeks

Severance Pay
-BC’s ESA does not have a separate “severance pay” requirement like Ontario; only termination pay applies unless an employment contract or policy provides more.

Ontario

Layoff Duration & Termination Trigger
-Under the Ontario Employment Standards Act, 2000, a temporary layoff can last:
Up to 13 weeks in any period of 20 consecutive weeks, OR
Up to 35 weeks in any period of 52 consecutive weeks if certain conditions (like benefits continuation) are met.
If the layoff exceeds the permitted limit, the employment is deemed terminated as of the first day of the layoff.

Notice of Termination / Termination Pay
-Based on continuous service:
<1 year: 1 week’s pay
1 year to <3 years: 2 weeks’ pay
3 years to <4 years: 3 weeks’ pay
Up to 8 weeks maximum (same as BC)

Severance Pay (in addition to termination pay)
-Owed if the employee has 5+ years of service AND the employer’s payroll is $2.5M+, OR if 50+ employees are terminated within a 6-month period due to a business closure.
How to calculate: 1 week’s pay per completed year of service (plus partial year pro-rated), up to 26 weeks.

So basically, here are the key differences between Ontario and BC:

In British Columbia, a temporary layoff can last up to 13 weeks in any 20-week period unless certain exceptions apply, and if it goes longer, the termination date is deemed to be the first day of the layoff. Termination pay is based on length of service, capped at eight weeks, and there is no separate statutory severance pay requirement. In Ontario, a temporary layoff can also last up to 13 weeks in any 20-week period, but it can be extended to up to 35 weeks in a 52-week period if specific conditions are met, such as continuing benefits. Termination pay is also capped at eight weeks, but Ontario has a separate severance pay entitlement for employees with at least five years of service if the employer’s payroll is $2.5 million or more, or if 50 or more employees are terminated within a six-month period due to a business closure, with severance pay calculated at one week per completed year of service to a maximum of 26 weeks.

I hope this helps!
-HRInsider Staff