Your manager says work is slow and you are being "laid off for now." There is no recall date, no termination letter, and no termination pay. Many workers in restaurants, warehouses, retail, and small offices across the GTA are told this every year, and many are not sure whether they still have a job, whether they should look for another one, or whether they are owed anything.
Ontario's Employment Standards Act, 2000 (ESA) answers most of these questions. A temporary layoff is allowed only within strict limits, and if those limits are passed, the law treats the layoff as a termination.
Under the ESA, you are on temporary layoff when your employer cuts back or stops your work without ending your employment, for example because there is not enough work to do. Your employer does not have to give you a recall date. The lack of a recall date does not, on its own, mean the layoff is not temporary.
The ESA itself does not require your employer to give you written notice of a temporary layoff or a reason for it. Your employment contract or a collective agreement may require more.
A "week of layoff" is a week in which you earned less than half of what you would normally earn (or earn on average) in a week. Weeks in which you were not able or available to work, were on a disciplinary suspension, or had no work because of a strike or lockout do not count. This means that reduced hours can also count as a layoff, not only a complete stop.
The ESA rules below are minimum standards. They do not give every employer an automatic right to lay people off. The Ontario government's guide to the ESA notes that a layoff, even if it is meant to be temporary, may result in constructive dismissal if it is not allowed by the employment contract.
Constructive dismissal can happen when an employer makes a significant change to a fundamental term of your job without your agreement. To rely on it, an employee generally has to resign in response within a reasonable time. That is a serious step with real risks, so get advice before you resign. Our article on constructive dismissal in Ontario explains the concept in more detail.
Under the ESA, a temporary layoff can last:
Unionized employees can have longer layoffs where the employer recalls them within the time set out in an agreement between the union and the employer.
As of November 27, 2025, a longer temporary layoff is possible: 35 or more weeks in any 52 consecutive weeks, but less than 52 weeks in any 78 consecutive weeks. Strict conditions apply:
The approval expires on the earlier of the latest intended recall date or the first day the layoff reaches 52 weeks in a 78-week period. At that point, the layoff is no longer temporary.
If your employer asks you to sign an extended layoff agreement, read it carefully. Once you sign, you cannot take it back.
If you are laid off for longer than the ESA allows, your employer is considered to have terminated your employment. Your employment is deemed to have ended on the first day of the layoff, and you will generally be entitled to termination pay, and possibly severance pay if you qualify. Our article on termination pay and severance pay under the ESA explains those entitlements.
Some employees are exempt from ESA notice and termination pay rules (for example, construction employees). Also, if your employer recalls you from a temporary layoff and you do not return within a reasonable time, you can lose your entitlement to termination pay. Take a recall notice seriously.
If you have a right to be recalled (common in collective agreements) and you become entitled to termination pay because of a layoff of 35 weeks or more, you can choose to keep your recall rights or give them up and receive termination pay (and severance pay, if you are entitled to it). If you are not unionized and choose to keep your recall rights, or make no choice, your employer must send the termination pay to the Director of Employment Standards, who holds it in trust.
My employer did not give me a recall date. Have I been fired? Not necessarily. Under the ESA, a layoff without a recall date can still be temporary. What matters is whether the layoff stays within the legal time limits and whether your contract allows it.
My hours were cut from full-time to one shift a week. Is that a layoff? It can be. A week in which you earn less than half of your normal or average weekly earnings counts as a week of layoff for the ESA termination rules.
Can my employer lay me off without any notice? The ESA does not require written notice of a temporary layoff. Your employment contract or collective agreement may require it, and a layoff not allowed by your contract may be constructive dismissal.
Do I have to sign an extended layoff agreement? The extended layoff requires your written agreement, and it cannot be withdrawn once made. Get advice before you sign.
This article is general information only and is not legal advice. Every case turns on its own facts.
A layoff can quietly turn into a termination, and the time limits matter. At WP Legal Professional, we help employees and employers across the Greater Toronto Area understand layoffs, termination pay, and their rights under the Employment Standards Act, in English, Cantonese, Mandarin, and Korean. Learn more about our employment standards services.
Act now. Contact us for a confidential consultation before signing any agreement or missing a deadline.
