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When is a temporary layoff – not a temporary layoff

Employers will often seek to respond to downturns in their business by temporarily reducing head count, with the hope of having those employees return to work when the business improves. This is often referred to as a temporary lay off. Many employers inquire as to their right to temporarily lay off employees, generally in response to financial constraints of the business.

 

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Desperate times do not justify desperate measures

In Trites v. Renin Corp, the court considered “the novel and perplexing legal issue” of whether an employer that is experiencing significant financial difficulties can unilaterally impose a temporary layoff on an employee in the absence of an express or implied term in the contract of employment to support the employer’s action.

 

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