When the economy gets shaky—whether from new tariffs or other global disruptions—it is often employees who feel the first impact. We all saw it happen during the pandemic: companies get nervous, and suddenly, layoff notices start flying. It is a scary, uncertain time. And if you live in Alberta or British Columbia, you are not immune to these pressures.
If you have been put on temporary layoff, you are probably wondering what comes next and what your rights are. Knowing the answer is your best defense. At TZ Law, we help people just like you understand their options and fight for what they are owed.
The Biggest Myth About Layoffs
Here is something many people do not realize: in Alberta and BC, your boss cannot just decide to lay you off. They do not have an automatic right to do so.
The only way a layoff is legal from the start is if you agreed to it ahead of time, right there in your employment contract. If there is no layoff clause in your contract, then your employer putting you on a “temporary layoff” is not really a layoff at all. It is a major change to your job—so major, in fact, that the law calls it constructive dismissal. This means you could be owed the same compensation as if you were fired without cause.
Getting it in Writing: Rules Your Employer Must Follow
In Alberta Even when a layoff is allowed by a contract, your employer has to follow the rules to the letter. They cannot just tell you to go home. Alberta’s Employment Standards Code is very clear: they must give you a formal written notice. This paper must state:
- That it is officially a “temporary layoff.”
- The exact date the layoff begins.
- It must also include a copy of sections 62-64 of the Code.
If they miss any of these steps, the layoff is not valid. Period. The law treats it as a full termination.
In British Columbia The rules in BC are just as specific. A layoff only becomes a “legal” temporary layoff if:
- Layoffs are a standard, accepted practice in your industry (like in seasonal construction).
- Your employment contract explicitly gives the company the right to lay you off.
- You personally agree to be laid off.
If your situation does not tick one of those boxes, you can treat the layoff as a constructive dismissal.
The Clock is Ticking: How Long Can a Layoff Last?
Your employer cannot leave you in limbo forever. Both provinces have strict deadlines.
- Alberta: The limit is 90 days within a 120-day window. Once that clock runs out, your employment has been legally terminated, and you are owed termination pay.
- British Columbia: The limit is 13 weeks within a 20-week period. Just like in Alberta, once this time is up, it is an automatic termination, and your employer owes you.
In both cases, you might be entitled to much more compensation under common law than the minimums required by the employment standards legislations.
The Recall: Do You Have to Go Back?
So, you get a call. Your boss wants you back. What now? You have a choice to make.
You do have a legal “duty to mitigate,” which means you should try to limit your financial losses by accepting reasonable work. But that is the key word: reasonable. You do not have to go back to a worse job. If your employer tries to recall you but changes the fundamentals—by cutting your pay, demoting you, or changing your core responsibilities—that is not a true recall. It may be a new case of constructive dismissal.
You should never feel pressured to accept a diminished role without getting advice first.
Do Not Wait: The Two-Year Deadline
If you believe you have been constructively dismissed, you must act. In both Alberta and BC, you have two years from the day the layoff started to file a claim. If you wait too long, the law may assume that you accepted the new situation, and you could lose your right to compensation.
Your Action Plan
If you are facing a layoff, here is what to do:
- Find Your Contract: Dig up your employment agreement and see if it says anything about layoffs.
- Save Everything: Keep every email, letter, and text message from your employer about the layoff.
- Talk to a Professional: You do not have to figure this out alone. Contact an employment lawyer in Alberta or British Columbia to get a clear picture of your rights and what you are truly owed.
How TZ Law Can Help
At TZ Law, we understand the complexities of employment law and the challenges posed by economic disruptions like tariffs. Our experienced employment lawyers in Alberta and BC are here to help you:
- Assess whether your layoff is legal under Alberta or BC law.
- Negotiate fair severance packages.
- Pursue constructive dismissal claims if applicable.
- Provide guidance on recall offers and mitigation duties.
Don’t let tariffs jeopardize your livelihood. If you’ve been laid off or fear job loss, contact TZ Law today to protect your rights and secure the compensation you deserve.
Contact TZ Law for a Consultation
By staying informed and seeking expert legal advice, you can navigate the challenges of layoffs and terminations with confidence. Let TZ Law be your trusted partner in safeguarding your employment rights.
