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  • Karoline Verdi
    Participant
    Post count: 18
    Forum: Private

    Hi,

    We are considering temporary layoffs of hourly employees in BC, ON and QC due to a lack of work
    There isn’t a mention of that in their contract
    Can I still go ahead with that plan?
    Confirming that we do not need to pay severance if less than 13 weeks/6months for QC but just maintain benefits, is that correct?
    Thank you

    Abhijit Pai
    Keymaster
    Post count: 3

    When you’re facing a downturn in work-volume and want to “park” employees rather than terminate them outright, each province has its own rules about when a temporary lay-off is lawful, how long it can last, and what happens if you stretch it beyond the statutory maximum. Here’s a quick guide for BC, Ontario and Québec:

    British Columbia
    Statutory lay-off period
    – You may temporarily lay an employee off up to 13 weeks in any 20-week period without it being deemed a termination www2.gov.bc.ca

    Contract or consent requirement
    – If you don’t have a written lay-off clause in the employment contract, and it’s not an industry-customary practice, you must obtain the employee’s express consent in writing. Otherwise the lay-off can be treated as a constructive dismissal and you’ll owe termination pay

    Benefits
    – During a lawful temporary lay-off the employment relationship remains “alive,” so you should continue any group-benefit contributions you would otherwise make (and employees continue to accrue statutory entitlements).

    Beyond 13 weeks
    – If you exceed 13 weeks in a 20-week window (without an approved variance), the Employment Standards Branch treats the lay-off as a termination and you’ll owe statutory termination pay (and, depending on length of service, severance pay)

    Ontario
    Statutory lay-off periods
    – ESA allows up to 13 weeks in any 20-week period, or in very limited circumstances (e.g. you continue substantial payments or benefits, the employee remains EI-eligible, or recall rights persist) up to 35 weeks in a 52-week period

    Contract or consent requirement
    – Ontario courts have held that, even where the ESA permits a lay-off, you cannot unilaterally impose one unless the employment contract expressly allows it, or the employee consents, or it’s an established industry practice. If no contractual right or consent, employees can claim constructive dismissal and treat your lay-off as a termination

    If the ESA limit is exceeded
    – The lay-off is automatically deemed a termination, and you must pay ESA termination pay. In many cases employees will also pursue common-law severance (especially if they have lengthy service and the employer meets the size threshold).

    Benefits
    – To qualify for the extended 35-week period you must continue to pay benefits. Otherwise your lay-off still ends at 13 weeks.

    Québec
    Statutory lay-off period
    – Under the Act respecting labour standards, a lay-off can last up to 6 consecutive months without becoming a dismissal

    Notice and severance on over-6-month lay-off
    – If you keep someone out longer than six months, the lay-off becomes a termination and you must give them the prescribed written notice or pay indemnities in lieu (i.e. “severance”) cnesst.gouv.qc.ca

    Benefits
    – Because the employment relationship remains in force during a lawful lay-off, you should maintain any group-insurance or pension contributions just as you would if they were working.

    Under-6-month lay-off
    – There is no severance or indemnity owing if you recall the employee within six months

    Bottom line for your hourly workforce in BC, ON & QC
    Check your contracts (or get written consent) before you impose any lay-off.

    Stay within the province’s maximum (13/20 in BC; 13/20 or 35/52 in ON; 6 months in QC).

    Maintain benefits during the suspension to preserve the employment relationship.

    If you exceed those limits, the lay-off automatically “converts” to a termination, triggering ESA/CNESST notice and severance obligations.

    So, yes—you can implement temporary lay-offs even if your contracts are silent, but only if you secure employee consent (or add a lay-off clause) and strictly observe each province’s time-limits. In Québec, you will not owe severance for any lay-off under six months, but you must maintain benefits and recall them by month six to avoid notice/indemnity requirements.

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