Employers who want to keep an employment relationship may temporarily lay off an employee.
The legislation on this page comes is now in effect
For information on Employment Standards legislation that was in force until December 31, 2017, go to https://work.alberta.ca/employment-standards/termination-and-termination-pay-2017.html
The employer must give the employee notice of temporary layoff. To be valid, the notice must:
- be in writing
- state that it’s a temporary layoff notice and its effective date
- include sections 62-64 of the Code
The following notice must be provided unless there is a collective agreement that states otherwise, or there are unforeseeable circumstances:
- at least one week prior to the date layoff begins if the employee has been employed by the employer for less than 2 years
- at least 2 weeks prior to the date layoff begins if the employee has been employed by the employer for 2 or more years
All employees who are temporarily laid off are entitled to proper notice.
Lack of proper notice
If proper notice of temporary layoff is not given, the employee may have been unjustly or constructively dismissed. Some courts have also held that while the Code permits an employer to temporarily lay off an employee in the absence of a collective agreement or contract allowing layoff, the employee maintains the right to sue for constructive or wrongful dismissal if laid off in those circumstances.
Length of temporary layoff
In Alberta, the maximum duration of a temporary layoff is 60 total days within a 120-day period.
On the 61st day of a temporary layoff, the employee’s employment is considered to be ended, and the employer must pay termination pay.
The period of temporary layoff can be extended beyond 60 days if the employer makes regular payment to or on behalf of the employee, such as continuing to pay wages, employee pensions or benefits and the employee agrees to these payments in lieu of a firm limit of the length of the layoff. Termination pay is payable when payments in lieu cease.
Recall of employee during temporary layoff
If a collective agreement contains recall rights following layoff, the employment ends and termination pay is owed when recall rights expire.
School employees and school bus drivers
The 60-day rule does not apply to school employees and school bus drivers if they work until the end of one school year and continue to work, or have the opportunity to work for, the same employer at the beginning of the next school year.
How the law applies
Part 2, Division 8 of the Employment Standards Code (Code) provides the process required to terminate employment relationships, entitlements to termination notice and pay, temporary layoff and recall rights.
Division 8 also outlines circumstances in which an employer or an employee may not be required to provide termination notice under the Code.
Disclaimer: In the event of any discrepancy between this information and Alberta Employment Standards legislation, the legislation is considered correct.