Layoffs
For most BC workplaces, the BC Employment Standards Act permits employers to lay employees off on a temporary basis only where an employee agrees to the temporary layoff. For example, where:
Layoffs are normal or expected within the industry;
Where the employee’s employment contract specifically allows for it; or
If the employee expressly consents to being laid off on a temporary basis.
Where an employee consents, a layoff can last up to 13 weeks in any period of 20 consecutive weeks. It is important to know that a temporary layoff is broader than where an employee stops working completely. If an employee’s regular wage is decreased by more than 50%, this meets the definition of a layoff under the BC Employment Standards Act.
If an employee and an employer want to extend the temporary layoff beyond 13 weeks, they can jointly ask the Employment Standards Branch to grant a variance. This is not something an employer can ask for without the support of the affected employee(s).
For federally regulated employees, the Canada Labour Code permits employers to lay employees off on a temporary basis in these circumstances:
Where the layoff is less than 3 months;
For a layoff longer than 3 months, where the employer continues to pay or provide benefits to the employee; or
For a layoff of 3-6 months, where the employer specifies in writing at the start of the layoff the recall date.
If an employee doesn’t consent to a temporary layoff, or for non-unionized provincially regulated employees, if a temporary layoff lasts longer than 13 weeks in any period of 20 consecutive weeks, the temporary layoff may be deemed a permanent dismissal. This could trigger an obligation to pay severance pay, considering the termination provisions of the Employment Standards Act or the Canada Labour Code, the employee’s contract, and the common law (see here for more details on permanent dismissals).
