HR Home Forums Answer for Is there a maximum limit that you can continue to send employees home due to slow production before it would be considered a lay off?

Conner Lantz
Keymaster
Post count: 4836

Here’s Alan’s reply. He raises some good points. But I’d also remind you to refer to ESA Sec. 56(3.1) that we discussed yesterday and which I’ve pasted in after Alan’s reply:
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A lay-off in Ontario  means earning less than 50% of the regular wages that would otherwise have been worked. Becomes a termination after more than 13 weeks of lay-off in any 20.
The bigger issue is whether the employment contract permits lay-offs. If not explicitly provided for then the circumstances below amount to a termination, for which wages in lieu of notice would have to be provided.
They might also want to look into the EI programs around job sharing, which is meant to help out in these situations.
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Definition
(3) In subsections (3.1) to (3.6),
“excluded week” means a week during which, for one or more days, the employee is not able to work, is not available for work, is subject to a disciplinary suspension or is not provided with work because of a strike or lock-out occurring at his or her place of employment or elsewhere.  2002, c. 18, Sched. J, s. 3 (23).

Lay-off, regular work week
Sec. 56(3.1) For the purpose of subsection (2), an employee who has a regular work week is laid off for a week if,
(a) in that week, the employee earns less than one-half the amount he or she would earn at his or her regular rate in a regular work week; and
(b) the week is not an excluded week.  2002, c. 18, Sched. J, s. 3 (23).