EMPLOYMENT LAW

Lay-offs

A lay-off occurs when an employer temporarily reduces or stops an employee's work (and pay), without explicitly terminating the employment.

Without written contractual authorization or agreement by the employee, employers generally cannot temporarily lay employees off. If an employer temporarily lays off an employee without his or her express contractual authorization or consent the lay-off may be considered constructive dismissal because the temporary lay off fundamentally alters the conditions of employment.

The law is clear that the imposition of a lay-off in the absence of an express or implied term in the contract of employment permitting such, repudiates a fundamental term of the employment contract that the employee would be employed at an annual salary for an indefinite period and thereby constitutes constructive or wrongful dismissal.

Where there is a contractual right for an employer to temporarily lay-off an employee, the employer must comply with the minimum employment standards legislation. If the maximum amount of time is exceeded, then the employee is considered dismissed from employment and the employer is liable for statutory and reasonable notice under the common law.