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Lay-offs – A lay off or Constructive Dismissal?

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


Absent written contractual authorization or agreement by the employee, employers generally cannot temporarily lay off an employee. If an employer temporarily lays off an employee without employee consent the lay-off may amount to constructive 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 may be considered dismissed from employment and the employer may be liable for damages.


If you have received a temporary lay-off or are contemplating the layoff of an employee, advice from an employment lawyer will provide insight on potential entitlement and liabilities.


Jagtoo & Jagtoo, Professional Corporation, has experience and in depth knowledge with respect to temporary lay- offs and constructive dismissal.

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