If you’ve been laid off from your job, it can be a stressful and uncertain time. Because of the changeable and sometimes temporary nature of layoffs, employees may be left wondering about their legal rights and steps they can take. Alberta’s Employment Standards Code sets out specific protections for employees facing layoffs to ensure they receive proper notice, potential termination pay, and options for legal action. By staying informed about your rights when you’re laid off, you can avoid additional challenges and ensure your employer complies with the law.
At Verhaeghe Law, our Edmonton labour and employment lawyers are here to help employees facing layoffs or terminations. Whether you are uncertain about the terms of your layoff or the rights you are entitled to, our team can help. Contact us today to schedule a consultation and learn more about your legal options.
Understanding Layoffs in Alberta
A layoff, unlike a termination or resignation, is a temporary suspension of employment. This means that when an employee is laid off, they have not been permanently dismissed until the layoff exceeds a certain time threshold. You should be cognizant of this difference, as it affects the way laid-off employees are treated under Alberta law.Â
Typically, layoffs take place during periods of economic uncertainty, seasonal work reductions, or operational changes as businesses attempt to save on expenses without permanently losing their workforce. In most cases, if you have been laid off your employer may intend to recall you at some point in the future. In cases of termination or resignation, the loss of employment (whether voluntary or not) is intended to be permanent from the outset.
Employees who have been laid off may experience:
- Financial Consequences: Losing a steady income during your period of unemployment can be financially distressing. Even if you have not been permanently terminated, you may qualify for Employment Insurance (EI) benefits.
- Effects on Benefits & Pensions: During the period you are laid off, your health insurance, dental plan, pension, or other benefits may pause or cease. To be prepared, you should always check in with your human resources department or review your company policies regarding benefits during layoffs.
- Consequences for Your Mental and Emotional Well-Being: Layoffs, or being temporarily unemployed, may cause stress, anxiety, and uncertainty about your future. If you experience these effects, speaking with a legal professional or financial planner can help you get back on track and explore your options.
Your Legal Rights as an Employee if You’ve Been Laid Off in Alberta
The Alberta Employment Standards Code sets out specific provisions for temporary layoffs to ensure employees are protected when they occur. Employers are expected to adhere to specific notice periods, recall obligations, and termination pay rules.Â
In Alberta, a layoff is legally allowed to last up to 90 days within a 120-day period. This means that if you are not recalled to work within this timeframe, the layoff will legally be considered a termination. When this happens, you will be entitled to receive termination pay. The amount of termination pay you are eligible for will depend on the length of time you worked for your former employer. This rule does not apply in every situation–for example, school employees and school bus drivers may be exempt.Â
When you are temporarily laid off in Alberta, there are several steps you can expect in the process. These steps are mandated by the Employment Standards Code and must be adhered to by employers to maintain legality. They include:
1. Written Notice: Employers must provide written notice of the impending layoff that states:
- The start date of the layoff
- That the layoff is temporary (and thereby not a termination)
- What the recall process will look like
If your employer does not provide written notice in advance of the layoff, you may have grounds for a constructive dismissal case.
2. Recall Procedure: When your employer recalls you, you are required to return to work within 7 days of receiving the notice. Your employer must serve a recall notice in writing through mail, e-mail, fax, or in person through the primary means of contact you have designated. This is to ensure you receive your recall notice promptly.
If an employer does not follow the steps in this process or adhere to the deadlines set by the Employment Standards Code, you may be eligible to launch a legal claim for unfair or constructive dismissal. It is also possible for employees to consider their layoff as a termination without waiting for an indication from their original employer. In such cases, employees may choose to seek:
- Severance pay (in certain cases)
- Legal action for wrongful dismissal if their rights have been violated in some way
- Employment insurance while looking for new work
- And more
What To Do if You’ve Been Laid Off in Alberta
If you’ve been laid off, it can be confusing. Navigating the line between a temporary layoff, a termination, and your legal rights in both situations is sometimes tricky.
If you’re dealing with a layoff in Edmonton or Alberta, you should consider:
- Reviewing Your Layoff Notice: Read your layoff notice and ensure it meets the legal requirements outlined above and in Alberta’s Employment Standards Code. If you realize that your employer did not provide you with proper written notice, you may have grounds for a legal claim.
- Checking Your Employee Rights and Benefits: Under your employee contract or company policy, confirm whether your benefits, pension, or EI eligibility will remain intact throughout the layoff period. If you do qualify for EI benefits, you should consider contacting Service Canada.
- Consider Your Legal Options: If your layoff exceeds the 90-day deadline or does not adhere to proper procedure, you should consult an experienced employment lawyer immediately. You may be entitled to termination pay or severance, depending on your situation.
Have You Been Laid Off? Speak With Our Labour & Employment Lawyers Today to Learn More About Your Legal Rights
Even when your employer tells you your layoff is temporary, it’s important that you know your rights. In Alberta, employers must follow strict protocols when it comes to notifying employees about layoffs and their duration. In cases where these rules are broken, you deserve to receive the pay, compensation, or benefits you are legally entitled to.
If you have questions about your layoff, contact our labour and employment lawyers at Verhaeghe Law today. We can help you identify whether any of your rights have been violated and prepare a legal claim, if necessary.