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COVID-19 Updates: Taking steps to return to normal.
Employers who want to keep an employment relationship may temporarily lay off an employee.
The employer must give the employee notice of temporary layoff. Temporary layoff notice must be provided to the employee before the layoff starts. To be valid, the notice must:
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.
In Alberta, the maximum duration of a temporary layoff depends on the reason for layoff, and when the layoff occurred. Several changes were introduced in 2020 to help with temporary layoffs related to COVID-19.
Reason for layoff | Initial layoff date | Maximum length of layoff | Termination occurs on the: |
---|---|---|---|
Unrelated to COVID-19 | Prior to March 17, 2020 | 60 days total in a 120-day period | 61st day |
March 17, 2020 – June 17, 2020 | 120 consecutive days from the initial layoff date | 121st consecutive day | |
On or after June 18, 2020 | 90 days total in a 120-day period | 91st day | |
Related to COVID-19 | Any date | 180 consecutive days from the initial layoff date | 181st consecutive day |
If the thresholds are met in the last column above, the employee’s employment is considered to be ended, and the employer must pay termination pay if the employee is entitled.
The period of temporary layoff can be extended beyond the maximum 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.
To request that an employee return to work after a layoff, an employer must serve a recall notice to the employee. To be valid, the notice must:
There are several ways to serve a recall notice to an employee. An employer can:
If the employee doesn’t return to work within 7 days of being served the recall notice:
If there is a collective agreement in place, and it contains recall rights following layoff, the employment ends and termination pay is owed when recall rights expire.
The maximum days 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.
Employers should be aware of the rules regarding group terminations when laying off large numbers of employees. These rules do not affect temporary layoffs, but do come into effect when employees are terminated.
Learn more about group terminations.
Part 2, Division 8 of the Employment Standards 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.
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