HR glossary · Ending employment and discipline

Temporary layoff

A temporary layoff is a pause in work with the plan to recall the employee. If it runs past your province's limit, it becomes a termination.

Also called: layoff, lay-off, seasonal layoff

What temporary layoff means

A temporary layoff is when you stop giving an employee work, or cut their hours sharply, for a limited time, intending to bring them back. The employment continues during the layoff. It is not the same as ending the job.

Employment standards laws put a time limit on it. If the layoff goes longer than the limit allows, the law treats the employment as terminated, and you owe termination notice or pay, plus severance where it applies. That can catch employers who meant well but waited too long for business to pick up.

How it works

Check two things before laying anyone off. First, can you? An employee without a contract term, policy or industry practice that allows layoffs may see an unpaid layoff as a breach of their contract, which can amount to constructive dismissal at common law. Alberta's guidance says that without proper written notice, a layoff may be treated as a termination or constructive dismissal.

Second, how long? Count weeks of layoff against your province's limit. In British Columbia, any week the employee earns less than half their regular weekly wages counts as a layoff week, so a deep cut in hours can count even if the person still works a little. Check how your province counts.

Put the layoff in writing, with the start date and the expected recall date or period if you know it. Issue a Record of Employment with code A (shortage of work) once the employee has, or will have, 7 consecutive days with no work and no insurable earnings.

Keep track of the calendar. When recall becomes unlikely, it is usually better to end the employment properly with notice than to let the layoff run out and become a termination by default.

Temporary layoff by province

The maximum length of a temporary layoff, and how it can be extended, differ. These are the rules we confirmed.

Where the work is done	The rule
Federal	A layoff of 3 months or less is not a termination. A layoff of more than 3 months and up to 12 months is not a termination when the employee keeps recall rights under a collective agreement. Layoff time counts toward continuity of employment.
British Columbia	Up to 13 weeks in any 20 consecutive weeks. Any week the employee earns less than 50% of regular wages counts as a layoff week. A longer layoff needs an approved variance, which requires the support of at least 51% of affected employees.
Alberta	Up to 90 days within a 120-day period, with written notice that says it is a temporary layoff, gives the effective date and includes sections 62 to 64 of the Employment Standards Code. On the 91st day, employment is considered ended and termination pay is owed. Recall requires 1 week's written notice.
Ontario	Up to 13 weeks in any 20 consecutive weeks. Up to 35 weeks in any 52 in listed cases, such as continued substantial payments or benefit contributions, or an agreed recall date. Since 27 November 2025, an extended layoff of 35 or more weeks in 52 (less than 52 in 78) is possible with Director approval and recall within the agreed time.

For other provinces and territories, check the layoff limit with your employment standards office before laying anyone off.

Example: A slow winter at a Banff tour company

Tom runs a 12-person tour company in Banff. Bookings stop in early November, so he lays off two guides. Each gets a written temporary layoff notice that says so, states the effective date and attaches sections 62 to 64 of Alberta's Employment Standards Code. Tom issues their ROEs with code A.

By mid-January, Tom marks his calendar: day 90 falls in early February. He recalls one guide with a week's written notice before then. For the other, he decides not to wait for day 91 and ends the employment properly with termination pay based on her service.

Hollis tracks the dates

Hollis tracks dates such as leave returns and last days, so you can see when a layoff is getting close to your province's limit and decide in time.

Try Hollis live

Free tools and guides for this

Questions about temporary layoff

How long can a temporary layoff last in Ontario?

Generally 13 weeks in any 20 consecutive weeks, or up to 35 weeks in any 52 in listed cases such as continued benefits or an agreed recall date. Longer extended layoffs need Director approval.

What happens if a layoff goes past the limit?

The employment is treated as terminated, and you owe termination notice or pay and any severance pay owed.

Can I lay off an employee without pay?

Employment standards laws allow temporary layoffs within limits, but at common law an unpaid layoff without a contract right to do it can be treated as constructive dismissal. Check your contracts first.

Official sources

General information for Canadian employers, not legal advice. Rules differ by province and territory and change over time, so check with your provincial employment standards office (or the federal Labour Program if you are federally regulated) before you rely on it. See employment standards by province.

Checked against official sources on 4 November 2026.