Laid off 'temporarily'? It may be more than that.
In Ontario, your employer can't just lay you off whenever they want. If your contract never allowed it, or the layoff drags on, it can count as a firing you can claim for. Here's what's true.
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In 30 seconds, here's what's true
- Your employer does NOT automatically get to lay you off. Unless your contract allows it, or you agree, a layoff can count as a 'constructive dismissal' — the law treats it like a firing.
- Under the Employment Standards Act, a temporary layoff is usually up to 13 weeks in any 20 weeks. It can run up to 35 weeks in 52 if the employer keeps up things like your benefits.
- If a layoff goes past those limits, it becomes a firing as of the FIRST day. That means you're owed termination pay, and maybe severance too.
- Since November 27, 2025, a longer layoff needs two things: your written agreement, and sign-off from the Director of Employment Standards. This covers a layoff of 35 weeks or more, but under 52 weeks in a 78-week span.
- Even a short layoff can count as a firing in court if your contract never allowed it. And a court claim can be worth far more than the ESA minimum.
How the process works
Check your contract first
Look for a clear written term that lets the employer lay you off. If there isn't one, and you never agreed to it, you may be able to treat the layoff as a firing.
Track the layoff clock
Count the weeks. A temporary layoff is usually up to 13 weeks in any 20 weeks. It can reach 35 weeks in 52 if the employer keeps up certain benefits or payments. Past those limits, it becomes a firing from day one.
Watch for the extended-layoff rules
Since November 27, 2025, an employer can only stretch a layoff past 35 weeks if you agree in writing and the Director of Employment Standards signs off. This still can't reach 52 weeks in a 78-week span. No sign-off means the normal limits apply.
Decide: wait for recall, or treat it as a firing
You can wait and hope to be recalled. Or you can treat a layoff your contract never allowed, or one that runs too long, as a firing and claim what you're owed. Waiting doesn't mean you agreed to it — but don't sit on it too long. Get advice.
Claim what you're owed and get help
You can file an Employment Standards claim for termination pay — usually within 2 years. Or you can go to court for larger notice. For tricky cases, talk to an employment lawyer. For ESA questions, call 1-800-531-5551. You can usually claim EI while laid off.
What to do next
- Read your contract for any written right to lay you off.
- Write down the date the layoff started and count the weeks.
- Note whether the employer is keeping up benefits or payments.
- Check whether an extended layoff has Director approval (since Nov 2025).
- Apply for EI benefits while you're laid off.
- Decide whether to wait for recall or treat it as a termination — get advice.
- File an ESA claim or see an employment lawyer about what you're owed.
- Start a free PLAIN session to check your rights and plan next steps.
Common myths
| Myth | Reality |
|---|---|
| My employer can lay me off any time, for as long as they want. | No. They need a contractual right or your agreement, and the ESA caps how long a temporary layoff can last. |
| A temporary layoff is never a termination. | It becomes one if it goes past the ESA limits. And in court, it can count as a firing right away if your contract never allowed a layoff. |
| If I'm just laid off, I can't claim anything. | You may have a claim and be owed termination pay or court-set notice. Sometimes it's a large amount. |
| If I'm recalled, I have no claim for the time I was off. | You may still have a claim, depending on the facts. Being recalled doesn't automatically erase a wrongful layoff. |
| Waiting to see if I'm recalled means I've accepted the layoff. | Not by itself — but limitation periods apply, so don't wait indefinitely without getting advice. |
| The ESA minimum is all I can ever get. | In court you may be owed far more than the ESA minimum. Reasonable notice can run up to about 24 months. |
| An employer can extend a layoff as long as they like if business is bad. | Since November 27, 2025, an extended layoff needs your written agreement and approval from the Director of Employment Standards. |
| I can't collect EI during a layoff. | You usually can — a layoff is one of the situations EI regular benefits are designed for. |
Last reviewed June 2026
Written and reviewed by the founder of PLAIN, checked against primary government and legal sources. How we research these guides
Sources
PLAIN gives legal information, not legal advice. It is not a substitute for a lawyer or paralegal — and we'll point you to free ones. Laws change; we review these pages regularly, but always confirm current rules with the Ministry of Labour or a licensed professional.
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