Letter to Employee (Temporary Layoff)

Summary

This precedent is a letter that can be provided by an employer to an employee in the case of a temporary layoff. This precedent contains practical guidance and drafting notes. Employers should proceed with caution in instituting temporary layoffs where the underlying agreement does not expressly provide for this, as a unilaterally imposed temporary layoff is a substantial change in an employee's employment and constitutes a constructive dismissal at common law. Employers should also be sure to review the applicable employment standards legislation to determine what length of time employees may be laid off for without it being deemed a termination. This letter assumes that the employer is continuing the employee’s benefits coverage for a period of time following the layoff. For more information on the statutory framework for layoffs across Canada, see the practice note Layoffs and the flowchart Temporary Layoffs by Jurisdiction. For further information about constructive dismissal ...