Temporary layoffs are a sensitive topic in British Columbia. Employers often rely on them to manage downturns, but if handled incorrectly, they can turn into costly terminations. Employees, on the other hand, may worry about job security and income loss during a layoff.
This article explains how temporary layoffs work under the Employment Standards Act (ESA), the “13 weeks in 20” rule, and what both employers and employees need to know about callbacks, notices, and termination.
On a temporary layoff and unsure what comes next?
Your Layoff May Be Treated as a Termination
In British Columbia, layoffs are limited by strict timelines. If those limits are exceeded, or handled improperly, you may have the same rights as someone who was terminated.
Call 1-800-771-7882
What is a Temporary Layoff in BC?
A temporary layoff occurs when an employer stops scheduling an employee for work but does not permanently end the employment relationship.
Under the BC Employment Standards Act, employers can only place employees on temporary layoff for up to 13 weeks in a 20-week period. If the layoff goes longer, the law treats it as a termination, and termination pay becomes owing.
Importantly, a layoff cannot happen without the employee’s agreement unless it is specifically permitted under an employment contract or a collective agreement.
The “13 Weeks in 20” Rule
The ESA sets a clear limit:
- If an employee is laid off for more than 13 weeks in any 20-week period, the layoff automatically becomes a termination.
- Employers must then provide termination pay as required by the ESA or common law reasonable notice, whichever is greater.
For example, if an employee is laid off for 8 weeks, recalled for 3 weeks, and then laid off for another 6 weeks, the total layoff time exceeds 13 weeks within 20 weeks. That means the employee has been terminated under the law.
Notice and Callback Obligations
During a temporary layoff, employers are not required to provide advance notice of the layoff itself. However, they must:
- Recall employees to work before the 13-week limit expires.
- Ensure employees retain their seniority and length of service.
- Pay out any vacation pay that becomes due during the layoff period.
If an employer recalls an employee and they do not return to work, this could be treated as a resignation.
When a Layoff Becomes a Termination
If the layoff exceeds the ESA limit, the employment relationship is deemed terminated. Employers must then provide:
- Termination pay under the ESA is based on years of service.
- Common law notice or pay in lieu, which may be more generous depending on factors like age, length of service, and position.
For more details on employer obligations, see Termination of Employment, BC Government.
Record-Keeping Requirements
Employers must keep accurate records of layoffs, including start and end dates, recall notices, and any communication with employees. These records are vital if a dispute arises, as the Employment Standards Branch may request them during an investigation.
At the same time, employers should balance record-keeping with confidentiality obligations. Sensitive information, such as the reasons behind layoffs or employee health issues, must be safeguarded to protect privacy rights.
What Employees Should Know
If you are placed on temporary layoff:
- Confirm how long your employer expects the layoff to last.
- Track your weeks off to ensure they do not exceed 13 weeks in 20.
- Know your rights to termination pay if the layoff goes beyond the ESA limit.
- Consider speaking with an employment lawyer if you are unsure whether the layoff was valid in the first place.
As Christopher Achkar, employment lawyer and founder of Achkar Law, explains:
“Temporary layoffs can be a necessary business tool or a serious legal risk, depending on how they’re handled. Understanding your rights and obligations early can prevent costly disputes later.”
How Achkar Law Can Help
Temporary layoffs can quickly lead to legal disputes if either side misunderstands its rights. At Achkar Law, we help:
- Employees determine whether their layoff was legal, and pursue termination pay or damages if it was not.
- Employers structure layoffs properly, manage callbacks, and reduce the risk of costly wrongful dismissal claims.
In Summary
Temporary layoffs in BC are allowed, but only within strict limits. The ESA caps them at 13 weeks in 20 weeks, after which they become terminations. Both employers and employees should carefully track timelines, maintain records, and understand their rights.
If you are facing a temporary layoff issue, it is important to get legal advice early.
Your “Temporary” Layoff May Not Be Temporary
Your Layoff May Be Treated as a Termination
If your layoff goes beyond legal limits or changes your employment conditions, you may be owed notice or pay in lieu.
Speak with an employment lawyer to understand your options.
Call toll-free: 1-800-771-7882
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The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©
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