Temporary layoff letter
A jurisdiction-aware temporary layoff letter that meets ESA / labour-standards limits and explains the recall window, benefits continuation, and ROE.
Re: Temporary layoff
Dear ,
This letter confirms that your employment with in the role of is being temporarily laid off, effective . This is not a termination of your employment.
Reason
Under the Ontario Employment Standards Act, a temporary layoff is limited to 13 weeks of layoff in any consecutive 20-week period, or up to 35 weeks in any consecutive 52-week period if the employer continues benefits. A layoff that exceeds these limits is treated as a termination, with all related ESA notice and severance obligations.
Expected recall
We currently expect to recall you on or before . This date is an estimate based on current operating conditions and may move earlier or later. We will provide updates as the situation becomes clearer.
Benefits
Top-up to EI (if applicable)
We will issue your Record of Employment (ROE) electronically through Service Canada within five calendar days of the date your earnings are interrupted, with reason code A (shortage of work). You may file an EI claim using that ROE.
During the layoff, your obligations of confidentiality and intellectual property continue to apply. You may seek other temporary employment, but please confirm in writing if you accept a permanent role elsewhere so we can update our records.
We're sorry to be sending this letter. We'll do our best to bring you back as soon as conditions allow, and to keep you informed in the meantime.
Sincerely,
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Made with WalnutsHR Paper · Reviewed for Ontario · April 2026
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No compliance hints for this jurisdiction yet — your document looks good for the basics. Have a lawyer review before sending anything consequential.
About this template
A temporary layoff is not a termination — but if it runs longer than the statutory cap in your province, it converts into one automatically. This letter sets the recall date, benefits arrangement, and ROE plan to keep the layoff genuinely temporary.
When to use it
- Operating conditions require a temporary scaling-back you intend to reverse.
- You want a clear paper trail showing the layoff is temporary, not a constructive dismissal.
- You're issuing an ROE with reason code A (shortage of work) so the employee can claim EI.
What to include
- Effective date and a reason that's specific enough to be defensible.
- Statutory layoff limit for the relevant province.
- Estimated recall date — clearly framed as an estimate.
- Benefits continuation — required to access the longer Ontario layoff window.
- ROE issuance plan and reason code.
- Surviving confidentiality / IP obligations.
Frequently asked questions
Does a layoff require the employee's consent?
Generally no, provided the contract or applicable legislation reserves the right to lay off. But unilateral layoffs without that right can be treated as constructive dismissal — meaning the employer effectively terminates and owes notice. Always confirm contractual / statutory grounding before laying off.
What's the difference between layoff reason codes A and N on the ROE?
Code A is shortage of work / end of contract / season — used for genuine temporary layoffs. Code N is leave of absence — used when the employee initiated the time off. Using the wrong code can affect the employee's EI claim; payroll software handles this if the inputs are right.
What if the layoff has to extend beyond the statutory cap?
Then it converts to a termination, and you owe notice / pay-in-lieu / severance under the relevant employment-standards statute, plus potentially common-law notice. Don't drift past the cap — address it explicitly with the employee and counsel.
Legal disclaimer. Temporary layoffs are heavily province-specific and a common source of constructive-dismissal claims. The right to lay off must be in the employment contract or the employer must rely on the right under employment standards — and even then, an indefinite or excessively long layoff can be challenged. Get an employment lawyer to confirm the layoff is permissible before issuing this letter.
Related templates
Termination letter — without cause
A jurisdiction-aware without-cause termination letter that meets ESA / labour-standards minimums and preserves the employee's common-law rights.
OpenSeverance agreement & release
A severance agreement with a release of claims, jurisdiction-aware compliance with ESA / OWBPA timing, and clear consideration above statutory minimums.
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