Temporary Layoffs in Alberta: A Handy Guide

Temporary layoffs in Alberta are legal and permit a suspension of employee services without termination. Regulated by the Alberta Employment Standards Code, this practice is often adopted during economic downturns or operational challenges. A temporary layoff can last a maximum of 90-days in a 120-day period. Employers need a contract provision or explicit agreement to lay off employees temporarily. They must provide written notice before the layoff and recall notice within 7 days. Failing to recall within the given time results in termination pay obligation. Further exploration of this topic will provide deeper insights into procedures and implications.

Key Takeaways

• Temporary layoffs in Alberta are legally permitted, allowing employers to suspend services without terminating employment during economic or operational challenges.
• The Alberta Employment Standards Code regulates layoffs, requiring written notice from employers and limiting the layoff period to a maximum of 90 days.
• Employers must follow specific notice and recall procedures, including providing written notice before layoff and recall notice within 7 days, to avoid legal consequences.
• If layoffs exceed the 90-day limit, it results in termination, affecting the employee’s job security, income, benefits, and future prospects.
• Employees are entitled to termination pay if not recalled, and they have recall rights to be returned to their position, protecting them from unfair treatment.

Understanding Temporary Layoffs

To fully comprehend temporary layoffs, it is crucial to understand that this concept refers to a legally permitted practice in Alberta where employers can temporarily suspend their employees’ services without ending the employment relationship. This practice, established under the Alberta Employment Standards Code, allows employers to pause the delivery of work to an employee without formally terminating their employment contract.

Temporary layoffs are often implemented during periods of economic downturn or operational challenges when an organization’s financial stability is at risk. However, it should be emphasized that employers must have explicit or implied contractual authority to initiate a temporary layoff. This authority can be found in an agreement, contract provision, or industry norm permitting such action. Without this, laying off an employee temporarily could potentially lead to legal implications such as claims of constructive dismissal.

The process of implementing a temporary layoff necessitates the provision of a written notice by the employer. The notice should be delivered personally or via registered mail, outlining the rationale for the layoff and its expected duration. In Alberta, the maximum period for a temporary layoff is 90 days within a 120-day period. If the employee is not recalled within this timeframe, they are automatically considered terminated and entitled to termination pay.

Notice and Recall Procedures

Understanding the protocols for notice and recall procedures during temporary layoffs in Alberta is a key aspect of adhering to the Employment Standards Code. The Code stipulates that employers should give written notice to the employee before the commencement of a temporary layoff. This notice should clearly state that the layoff is temporary and also specify the effective date.

The recall procedure is equally crucial and follows a structured process. The employer is required to serve a written recall notice to the employee, informing them to return to work within seven days. This notice can be delivered in person or via mail, fax, or email.

1. Notice Procedure: Employers must provide written notice of temporary layoff before it begins, specifying its temporary nature and the effective date.
2. Recall Procedure: Employers must serve a recall notice in writing, asking the employee to return to work within seven days.
3. Delivery Methods: Recall notices can be delivered in person, by mail, fax, or email, ensuring the employee receives it promptly.

Failure to adhere to these provisions may lead to legal ramifications, including potential claims for unfair or constructive dismissal.

Duration of Temporary Layoffs

The duration of a temporary layoff in Alberta is regulated under the Employment Standards Code, which stipulates a maximum limit of 90 days within 120 days. This rule is designed to balance the needs of employers to adjust their workforce in response to business fluctuations with the rights of employees to maintain their job security.

During this period, the employment relationship between the employer and the employee is not terminated but merely suspended. The expectation is that the employee will be recalled to their position once the reason for the layoff has been resolved.

If an employee is not recalled to work by the end of the 90-day period, their employment is considered to be terminated as of the 91st day. This triggers the employer’s obligations under the Employment Standards Code to provide termination notice or pay in lieu thereof.

It’s notable that this 90-day rule does not apply in all situations. For instance, school employees and school bus drivers are exempt from this rule if they continue to work for the same employer. Similarly, different rules apply in the case of group terminations.

Consequences of Overstaying Layoffs

Exceeding the prescribed 90-day limit for temporary layoffs in Alberta carries significant legal implications for both employers and employees. If a temporary layoff extends beyond the specified period, it is no longer considered ‘temporary’ and can have far-reaching consequences.

1. Employment Termination: On the 91st day of layoff, the employee’s service is considered terminated, and they are consequently entitled to termination pay as per the Alberta Employment Standards Code.
2. Legal Repercussions for Employers: Employers may face legal consequences if they fail to recall their employees within the stipulated time frame. This could include potential claims for unjust dismissal and related legal penalties.
3. Impact on Employees: For employees, overstaying the layoff period can disrupt their livelihood due to the uncertainty of job security and loss of regular income. It might also affect their employment benefits and future work prospects.

Recalling Employees After Layoff

While employers must proceed carefully to avoid the pitfalls of overstaying a layoff period, another essential aspect to take into account is the process of recalling employees after a temporary layoff. In Alberta, the process of recalling employees is governed by specific rules and regulations.

After the layoff period, the employer is obliged to provide the employee with a written recall notice. This notice should indicate a return to work within seven days from the receipt of the notice. The recall notice can be delivered in person, sent to the employee’s last known address via registered mail, or transmitted by email or fax.

If an employee fails to return to work within the specified seven days, the employer can legally terminate their employment without providing termination notice or pay. However, it’s important to remember that these rules only apply if there’s no collective agreement in place that dictates recall rights and procedures.

It’s always advisable for employers to consult with a legal professional when maneuvering through these processes to ensure all steps are legally compliant.

Frequently Asked Questions

Can an Employer Change the Terms of Employment Post-Layoff?

In Alberta, an employer cannot alter the terms of employment post-layoff in a substantial manner without the employee’s agreement. Changes such as pay cuts or reduced hours may entitle the employee to claim constructive dismissal and seek severance pay.

How Does a Temporary Layoff Impact Employee Benefits?

During a temporary layoff in Alberta, employee benefits may be affected. The impact varies based on the employer’s policies and agreements with the employee. Some may continue benefits, while others may suspend them during the layoff.

What Are the Rights of a Part-Time Employee During a Temporary Layoff?

Part-time employees in Alberta have rights during a temporary layoff. They retain their employment status and may be entitled to recall rights. However, specific conditions may depend on their employment contract or collective agreement.

Can an Employee Refuse a Recall After a Temporary Layoff?

In Alberta, an employee can refuse a recall after a temporary layoff. However, this refusal may be considered a resignation, resulting in the termination of employment without any obligation for notice or severance pay from the employer.

Are There Any Financial Assistance Programs for Employees During a Temporary Layoff?

Yes, there are several financial assistance programs available for employees during a temporary layoff in Alberta. These include Employment Insurance (EI), the Canada Emergency Response Benefit (CERB), and other provincial support programs.

Conclusion

In summary, understanding the nuances of temporary layoffs in Alberta is essential for both employers and employees. Adhering to the Employment Standards Code guarantees legal compliance and protects all parties involved.

Properly managed, temporary layoffs can serve as a valuable tool for businesses adapting to financial challenges. However, failure to follow the required procedures could result in legal repercussions.

Therefore, it is important to understand the notice and recall procedures, layoff durations, and employee rights during this process.

References

Employment Standards Code, RSA 2000, c E-9
https://www.canlii.org/en/ab/laws/stat/rsa-2000-c-e-9/212967/rsa-2000-c-e-9.html

The Legal Review Process by Taylor Janis Workplace Law

• Taylor Janis strives for high-quality, legally verified content.
• Content is meticulously researched and reviewed by our legal writers/proofers.
• Details are sourced from trusted legal sources like the Employment Standards Code.
• Each article is edited for accuracy, clarity, and relevance.
• If you find any incorrect information or discrepancies in legal facts, we kindly ask that you contact us with a correction to ensure accuracy.