New rules for extended temporary layoffsThere are new temporary layoff rules in the Employment Standards Act (ESA). They came into force on November 27, 2025. The new rules let employers put non-unionized workers on extended temporary layoff for 51 weeks or less out of 78 weeks in a row. This applies in certain situations that we explain below. Who do the rules apply toThe rules apply to non-unionized jobs that are covered by the Employment Standards Act. What is a temporary layoff?
A temporary layoff happens when: - an employer cuts back or stops an employee’s work, but does not end their employment,
- the employee earns less than half of what they normally earn in a work week, and
- the employer plans to bring the employee back to work.
For example, employers might put their workers on temporary layoff if there’s not enough work during a slow period. New rules for extended temporary layoffsEmployers can now put non-unionized workers on an extended temporary layoff that lasts 35 weeks or more out of 52 weeks in a row. But it must be less than 52 weeks out of 78 weeks in a row.
The employer and worker must agree in writing to the extended layoff. Before they agree, the employer must tell the worker in writing:
- the latest date that they plan to call the worker back to work, and
- that the worker cannot change their mind once they agree.
The employer does not need to: An employer must ask the Director of Employment Standards to approve the extended layoff. The Director of Employment Standards works at the Ministry of Labour. Get Employment Insurance (EI) benefits Workers may be able to get EI regular benefits if they: - go at least 7 days in a row without doing any work or getting any pay from their employer, and
- worked a certain number of hours in the 52 weeks before their EI claim. Or, if they got EI in the last 52 weeks, they may need to work a certain number of hours since the start of their last EI claim.
Usually, a person needs to work between 420 and 700 hours to get EI regular benefits. The exact amount depends on the unemployment rate in their area. They can use this Government of Canada tool to see how many hours they need.
Workers can apply for EI online or at a Service Canada office. What if a worker is not called back to work in time? The worker’s employment is treated as if the employer ended it on the first day of the extended layoff. The employer usually has to pay termination pay and, in some cases, severance pay.
Workers can sometimes get more than the minimum termination pay and severance pay that’s in the ESA. They should get legal help to figure out what their employers owe them. What if the employer goes bankrupt?
Employers may put workers on extended layoff because their business is not doing well. Sometimes, the employer does not call workers back from extended layoff because they:
- go bankrupt
- are insolvent, or
- are in receivership.
Wage Earner Protection Program (WEPP)
In these cases, an employer may not pay money that they owe for ending the employment. Workers can apply to the Wage Earner Protection Program (WEPP) to get unpaid:
- wages
- vacation pay
- termination pay
- severance pay
Workers can get unpaid wages and vacation pay that they earned in the 6 months before the employer’s bankruptcy.
They can get unpaid termination pay and severance pay if they lose their job: - in the 6 months before the employer’s bankruptcy, or
- after the employer’s bankruptcy.
Limits on WEPP
There’s a limit to what a worker can get from the WEPP. The limit usually changes every year. For 2026, the limit is $9,275 before deductions like income tax.
When to apply
Workers need to apply to the WEPP within 56 days of whichever is later: - the date the employer goes bankrupt, or
- the date the worker loses their job.
Get legal helpThe law about temporary layoffs and losing your job is complicated. It’s a good idea for workers to get legal advice any time they:
- are temporarily laid off
- lose their job
Community legal clinics can sometimes help workers who have low incomes. And Steps to Justice lists more legal services for workers. CLEO
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