In Newfoundland and Labrador, an employer can legally place you on a temporary layoff for up to 13 weeks within a consecutive 20-week period. If the layoff lasts even one day longer than this strict limit, it automatically becomes a permanent termination under the Labour Standards Act, meaning you may be legally entitled to termination pay or severance.
Economic downturns, seasonal changes, or unexpected supply chain issues can force businesses in Newfoundland and Labrador to reduce their workforce temporarily. Whether you work in the commercial fisheries in Bonavista, the offshore oil industry in St. John’s, or a retail store in Corner Brook, being placed on a temporary layoff is a stressful experience. You might wonder how long you have to wait in limbo before your employer is forced to either bring you back or officially let you go.
It is a common misconception that an employer can simply keep you on a “temporary” layoff indefinitely to avoid paying you severance. Provincial employment laws strictly limit how long you can be kept out of work. This guide will walk you through the precise legal limits of a temporary layoff, what steps you must take to protect your income, and when you can officially claim termination pay from your employer.
Understanding Temporary Layoff Limits in NL
Under the Newfoundland and Labrador Labour Standards Act, a layoff is only considered “temporary” if it does not exceed 13 weeks in any period of 20 consecutive weeks. The law is designed to give employers a short window to recall workers when business improves, while protecting employees from being strung along forever without income.
📄 If your employer exceeds the 13-week limit, the law treats the situation exactly as if you were permanently fired on the very first day of the layoff. This means your employer suddenly owes you pay in lieu of notice (often called termination pay), depending on exactly how many years you have worked for the company.
Step-by-Step Process if You Are Laid Off
Navigating a layoff requires you to act quickly to secure your financial safety net. You cannot simply sit at home and wait; you must actively protect your rights and apply for government assistance.
Step 1: Review Your Employment Contract
First, check your original employment contract. Generally, an employer only has the legal right to place you on a temporary layoff if it is explicitly written into your contract, or if it is a well-known standard practice in your specific industry (like seasonal construction or fishing). If your contract does not allow for layoffs, being sent home without pay might actually be considered “constructive dismissal,” allowing you to pursue a claim with an employment lawyer immediately.
Step 2: Get the Notice in Writing
You should always ask your employer to provide the temporary layoff notice in writing. This document should clearly state the start date of the layoff and, ideally, an expected recall date. Having the exact date in writing is absolutely crucial for counting the 13 weeks accurately and proving your case if a dispute arises later.
Step 3: Apply for Service Canada EI Benefits
Do not wait for your employer to call you back. The very week you are laid off and experience an interruption of earnings, you must apply for Employment Insurance (EI) regular benefits through Service Canada. Your employer is legally required to issue a Record of Employment (ROE) within five calendar days of the end of your last pay period. You can start your EI application even if you are still waiting for the ROE to be uploaded.
Step 4: File a Claim After 13 Weeks
You must carefully track the weeks. If 13 weeks pass within a 20-week window and you have not been officially recalled to your regular duties, your employment is legally terminated. At this point, you should write to your employer demanding your statutory notice pay. If they refuse to pay, you can file a formal complaint with the Labour Standards Division of Newfoundland and Labrador to force compliance.
How Much Does it Cost in Newfoundland and Labrador?
Fighting for your employment rights does not have to be expensive. The provincial government provides free avenues for recovering lost wages, though private legal action has its own costs.
| Action Taken | Estimated Cost (CAD) | Description |
|---|---|---|
| Filing a Labour Standards Complaint | $0 | Submitting a formal claim to the provincial government to recover your unpaid termination pay is completely free. |
| Employment Lawyer Consultation | $150 – $350 | Cost to meet with a local law firm to determine if you have a strong civil case for constructive dismissal. |
| Service Canada EI Application | $0 | Applying for federal unemployment benefits is a free public service. |
How Long Does the Process Take?
The timeline is strictly governed by the 13-week rule. Once you hit the end of the 13th week of layoff within a 20-week period, the termination is triggered automatically. If you then need to file a complaint with the Labour Standards Division to collect your severance, the investigation process can unfortunately take 3 to 6 months, depending on the current backlog of cases in the province. Filing a civil lawsuit with a lawyer can take 1 to 2 years to fully resolve.
Frequently Asked Questions (FAQ)
Can I refuse a temporary layoff?
If your employment contract does not specifically allow for temporary layoffs, and you do not work in a seasonal industry, you may be able to refuse it. Treating the layoff as a fundamental breach of contract is called “constructive dismissal,” and you may be entitled to claim full severance immediately through a lawyer.
Do I still receive my health benefits during a layoff?
This depends entirely on your employer’s specific group insurance policy. The Labour Standards Act does not legally force employers to maintain health and dental benefits during a temporary layoff. You must ask your HR department for the policy details.
What happens if I find a new job during the layoff?
If you secure permanent employment elsewhere while waiting to be recalled, you are generally considered to have resigned from your original position. By resigning, you forfeit your right to claim statutory termination pay from your previous employer.
How much termination pay am I entitled to after 13 weeks?
Under the provincial Act, it depends on your length of service. For example, if you worked there for 2 years, you get 2 weeks of pay. If you worked there for 15 years, the maximum statutory limit is 6 weeks of pay. However, a private employment lawyer might be able to secure much more under common law.
Are the rules different if I am in a labour union?
Yes, absolutely. If you are part of a unionized workplace, your Collective Agreement overrides many standard provisions of the Labour Standards Act. You must immediately speak to your union representative regarding the specific recall rights and layoff limits in your contract.
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