Getting Laid Off: Difference between revisions

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{{REVIEWEDPLS | reviewer = [https://www2.gov.bc.ca/gov/content/employment-business/employment-standards-advice/employment-standards Jennifer Hagen], Employment Standards Branch|date= October 2017}} {{Dial-A-Law TOC|expanded = work}}
{{REVIEWEDPLS | reviewer = [https://www.ascentemploymentlaw.ca/about-us Trevor Thomas], Ascent Employment Law|date= March 2020}} {{Dial-A-Law TOC|expanded = work}}
Your employer says they have to lay you off or asks you to work fewer hours “until things pick up”. Learn your rights if you're temporarily laid off from work.
Your employer says they have to lay you off or asks you to work fewer hours “until things pick up.” Learn your rights if you're laid off from work.


==Understand your legal rights==
==What you should know==
===An employer can lay off workers===
Generally speaking, an employer can lay you off whenever they want as long as they give you '''notice of termination'''.


===Your legal rights depend on the type of worker you are===
There are two ways they can do this. They can warn you in advance. This is called the '''notice period'''. Or they can let you go right away. But then they have to pay you the money you would have earned during the notice period. This money is called '''severance pay'''.
Your rights if you are temporarily laid off from work depend in part on the type of worker you are seen to be under the law.  


A BC law, the ''[http://canlii.ca/t/8405 Employment Standards Act]'', sets minimum standards for employers in how they treat workers. This law applies to “employees” — which covers most but not all workers in the province.
There are rules around how much notice (or pay) an employer needs to give — and when they don't need to give any (such as if they had '''just cause''' to fire you). See our guidance on [https://dialalaw.peopleslawschool.ca/how-much-notice-employer-needs-to-give/ how much notice an employer needs to give] and [https://dialalaw.peopleslawschool.ca/if-you-are-fired/ if you are fired].


For example, it doesn’t apply to workers in '''industries regulated by the federal government''', such as banks and airlines. Federal laws apply to them.
===In limited circumstances, an employer can lay off workers temporarily===
A '''temporary layoff''' is when an employer tells a worker they must take an unpaid leave from work. The law in BC doesn’t give employers a general right to temporarily lay off workers.


Nor does it apply to '''union workers'''. If you belong to a union, the collective agreement between your union and the employer has rules about how workers can be laid off or let go.
Temporary layoffs are only legal if one of the following applies:


As well, this provincial law doesn’t apply to '''independent contractors'''. These are people who are self-employed, who run their own business. If you’re an independent contractor, your contracts with the people you work for control the situation.
You have a written employment contract that allows for a layoff.
* You work in an industry where layoffs are standard practice.
* You consent to the layoff.


===Your employer can only lay you off in limited circumstances===
Your employer must prove they had the right to lay you off for one of these reasons.
A '''layoff''' is when your employer tells you that you must take an unpaid leave from work. An employer might lay you off because there is no work for you to do or not enough money to pay you.


Under the ''[http://canlii.ca/t/8405 Employment Standards Act]'', employers do not have a general right to temporarily lay off employees. Temporary lay-offs are only legal if one of the following applies:
If you’re let go temporarily and none of the above apply, you have the same rights as someone who’s let go without cause. That means you’re entitled to notice (or pay). See our information on [https://dialalaw.peopleslawschool.ca/how-much-notice-employer-needs-to-give/ how much notice an employer needs to give].
*You have a written employment contract that allows for a layoff.
*You work in an industry where layoffs are standard practice (for example, the logging industry).
*You consent to the layoff.


Your employer must prove they had the right to lay you off for one of these reasons. Even then, the law limits the length of the layoff. We explain this shortly.
===The law limits the length of any temporary layoff===
If a temporary layoff is permitted in your situation, and if you’re covered by '''employment standards law''', there are limits on how long the layoff can last. Your employer can temporarily lay you off for up to '''13 weeks''' in a consecutive 20-week period.


Outside of the situations above, if your employer lets you go temporarily, you have the same rights as someone who gets fired without just cause. That means your employer must give you '''notice''' or '''severance pay'''. See our guidance on [[If You Are Fired: Wrongful Dismissal (No. 241)|if you are fired (no. 241)]].
Need help figuring out if employment standards law applies to you? [https://dialalaw.peopleslawschool.ca/who-is-covered-bc-employment-standards/ See our information on who’s covered].


===The law limits the length of any layoff===
If the layoff lasts more than 13 weeks in a consecutive 20-week period, it’s no longer “temporary.” It would be treated as if you were fired without cause on the first day of the layoff.
If a temporary layoff is permitted under the law, an employer may temporarily lay you off for '''up to 13 weeks''' in a consecutive 20-week period.  


If the layoff lasts more than 13 weeks in a 20-week period, it can no longer be called “temporary”. At that point, it’s as if you were fired without just cause on the first day of the layoff.  
===If your employer reduces your hours===
If you’re covered by employment standards law and your employer reduces your weekly hours so you’re earning less than half of your regular wage, this counts as a week’s layoff. That is, it counts as one week towards the 13-week “temporary layoff” period.


The 20-week period begins on the first day of the layoff. The 13-week period is exceeded on the first day of the 14th week of layoff. If your employer misses the deadline to recall you to work, you now have the same rights as someone who was fired without just cause. In particular, you have the right to notice, severance pay, or some combination of the two. See our guidance on [[If You Are Fired: Wrongful Dismissal (No. 241)|if you are fired]].
==Work out the problem==


(Your employer can apply to Employment Standards BC to extend the 13-week period.)
===Step 1. Tell your employer if you don't consent to the layof===


===If your employer reduces your hours===
If you don’t consent to the layoff, let your employer know right away. Do it in writing. Keep a copy.
Under the ''[http://canlii.ca/t/8405 Employment Standards Act]'', if your employer lowers your weekly hours so that you’re earning less than half of your regular wage, this counts as a week’s layoff. That is, it counts as one week towards the 13-week “temporary layoff” period.  


==Common questions==
===Step 2. Make an employment standards complaint===


===My employer laid me off. What should I do?===
You can challenge the layoff. If you’re covered by employment standards law, you can '''make a complaint''' to the government office that administers that law.
If your contract doesn’t provide for temporary layoffs — and you don’t work in an industry where they’re standard practice — your employer can’t temporarily lay you off. It’s against the law. Let your employer know right away (in writing) that you don’t consent to being laid off.


If your employer follows through with the layoff, your rights are affected. You’re now being fired without just cause. (See our guidance on [[If You Are Fired: Wrongful Dismissal (No. 241)|if you are fired]].) That means you can start a claim against your employer to collect '''severance pay'''.  
We explain the steps involved. See our information on [https://dialalaw.peopleslawschool.ca/making-employment-standards-complaint/ making an employment standards complaint].


Download the [https://www2.gov.bc.ca/assets/gov/employment-business-and-economic-development/employment-standards-workplace-safety/employment-standards/self-help/self_help_kit.pdf self-help kit] from the BC [https://www2.gov.bc.ca/gov/content/employment-business/employment-standards-advice/employment-standards Employment Standards Branch]. It contains a step-by-step guide on how to bring a claim against your employer. It includes a request for payment form together with a letter you submit to your employer.
===Go further===
For more steps to consider, see our information on [https://dialalaw.peopleslawschool.ca/if-you-are-fired/ if you've been fired].


If you aren’t able to solve the problem using the self-help kit, you can file a complaint with the Employment Standards Branch. You must file your complaint '''within six months''' of the day your employment ended. For more on the process, you can call the Branch toll-free at 1-800-663-3316, or visit [http://gov.bc.ca/employmentstandards  gov.bc.ca/employmentstandards].
==Who can help==
===Helpful agencies===
Consider reaching out to these agencies for help if you are laid off.


===What if my contract says I can be laid off?===
:'''Employment Standards Branch'''
In this case your employer '''is''' legally allowed to lay you off or reduce your hours of work. However, unless your contract says otherwise, [http://canlii.ca/t/8405 the law] sets a limit on how long your layoff can be, as explained above. 
:Deals with complaints against employers relating to layoffs.
:Call 1-800-663-3316
:[https://www2.gov.bc.ca/gov/content/employment-business/employment-standards-advice/employment-standards Visit website]


There may be other terms and conditions attached. For example, your contract may state that your employer has to pay you a certain percentage of your regular wage while you’re laid off. It may also say you’re allowed to look for other work in your down time. However, you should always be ready to return to work during the layoff period. If you refuse work, you weaken your claim. The employer may claim that you quit.
:Employment and Social Development Canada
:Deals with complaints against employers in federally-regulated industries.
:Call 1-800-641-4049
:[https://www.canada.ca/en/employment-social-development.html?utm_campaign=not-applicable&utm_medium=vanity-url&utm_source=canada-ca_esdc Visit website]


==Get help==
===Legal advice===
There are options for free legal advice.


===If you’re laid off===
:'''Lawyer Referral Service'''
The '''Employment Standards Branch''' deals with claims against an employer relating to temporary layoffs.  
:Helps you connect with a lawyer for a complimentary 15-minute consult to see if you want to hire them.
:Toll-free: 1-800-663-3316
:Call 1-800-663-1919
:Web: [http://gov.bc.ca/employmentstandards  gov.bc.ca/employmentstandards]
:[https://www.accessprobono.ca/our-programs/lawyer-referral-service Visit website]


'''Employment and Social Development Canada''' can help you bring a claim against your employer if you work in a federally-regulated industry.
:'''Access Pro Bono's Free Legal Advice'''
:Toll-free: 1-800-641-4049
:Volunteer lawyers provide 30 minutes of free legal advice to people with low or modest income.
:Web: [http://www.esdc.gc.ca/ esdc.gc.ca]  
:Call 1-877-762-6664
:[https://www.accessprobono.ca/get-legal-help Visit website]


:'''People’s Law School'''
:See more options for free or low-cost legal help.
:[https://www.peopleslawschool.ca/options-legal-help/ Visit website]


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Latest revision as of 00:10, 8 November 2023

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Trevor Thomas, Ascent Employment Law in March 2020.
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Your employer says they have to lay you off or asks you to work fewer hours “until things pick up.” Learn your rights if you're laid off from work.

What you should know

An employer can lay off workers

Generally speaking, an employer can lay you off whenever they want as long as they give you notice of termination.

There are two ways they can do this. They can warn you in advance. This is called the notice period. Or they can let you go right away. But then they have to pay you the money you would have earned during the notice period. This money is called severance pay.

There are rules around how much notice (or pay) an employer needs to give — and when they don't need to give any (such as if they had just cause to fire you). See our guidance on how much notice an employer needs to give and if you are fired.

In limited circumstances, an employer can lay off workers temporarily

A temporary layoff is when an employer tells a worker they must take an unpaid leave from work. The law in BC doesn’t give employers a general right to temporarily lay off workers.

Temporary layoffs are only legal if one of the following applies:

You have a written employment contract that allows for a layoff.

  • You work in an industry where layoffs are standard practice.
  • You consent to the layoff.

Your employer must prove they had the right to lay you off for one of these reasons.

If you’re let go temporarily and none of the above apply, you have the same rights as someone who’s let go without cause. That means you’re entitled to notice (or pay). See our information on how much notice an employer needs to give.

The law limits the length of any temporary layoff

If a temporary layoff is permitted in your situation, and if you’re covered by employment standards law, there are limits on how long the layoff can last. Your employer can temporarily lay you off for up to 13 weeks in a consecutive 20-week period.

Need help figuring out if employment standards law applies to you? See our information on who’s covered.

If the layoff lasts more than 13 weeks in a consecutive 20-week period, it’s no longer “temporary.” It would be treated as if you were fired without cause on the first day of the layoff.

If your employer reduces your hours

If you’re covered by employment standards law and your employer reduces your weekly hours so you’re earning less than half of your regular wage, this counts as a week’s layoff. That is, it counts as one week towards the 13-week “temporary layoff” period.

Work out the problem

Step 1. Tell your employer if you don't consent to the layof

If you don’t consent to the layoff, let your employer know right away. Do it in writing. Keep a copy.

Step 2. Make an employment standards complaint

You can challenge the layoff. If you’re covered by employment standards law, you can make a complaint to the government office that administers that law.

We explain the steps involved. See our information on making an employment standards complaint.

Go further

For more steps to consider, see our information on if you've been fired.

Who can help

Helpful agencies

Consider reaching out to these agencies for help if you are laid off.

Employment Standards Branch
Deals with complaints against employers relating to layoffs.
Call 1-800-663-3316
Visit website
Employment and Social Development Canada
Deals with complaints against employers in federally-regulated industries.
Call 1-800-641-4049
Visit website

Legal advice

There are options for free legal advice.

Lawyer Referral Service
Helps you connect with a lawyer for a complimentary 15-minute consult to see if you want to hire them.
Call 1-800-663-1919
Visit website
Access Pro Bono's Free Legal Advice
Volunteer lawyers provide 30 minutes of free legal advice to people with low or modest income.
Call 1-877-762-6664
Visit website
People’s Law School
See more options for free or low-cost legal help.
Visit website
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Work
Business
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