A common question that many employees who are laid off ask is whether they can collect employment insurance (EI) benefits on temporary layoff. This article will explain what qualifies as a temporary layoff under the Ontario Employment Standards Act (ESA) and who can receive employment insurance benefits during that period.
What is a temporary layoff under the ESA?
Under the ESA, an employee is on temporary layoff when an employer cuts back or stops an employee’s work without ending their employment relationship.
In order to qualify under the ESA, the temporary layoff period can last:
- not more than 13 weeks in any period of 20 consecutive weeks, or
- more than 13 weeks in any period of 20 consecutive weeks, but less than 35 weeks of layoff in any 52 week period where the employee continues to receive substantial payments from the employer. The employee in this situation must continue to receive substantial payments from the employer, or the employer continues to make payments for the employee’s benefits, or the employee receives supplementary unemployment benefits, or the employer recalls the employee within the timeframe set out in an agreement.
When is a temporary layoff a termination?
If an employee is laid off for a period longer than a temporary layoff as defined above, the employer would be considered to have terminated the employee’s employment.
For non-unionized employees, the presence or absence of a layoff clause in the employment contract is also a determining factor. If the contract does not permit temporary layoffs, the law may view the layoff as a constructive dismissal. An employment lawyer can assess whether your layoff meets legal requirements and advise on your rights to receive termination entitlements if it does not.
How can I collect employment insurance on temporary layoff?
You may qualify for employment insurance during a temporary layoff. It is crucial for you to apply for EI benefits once on temporary layoff as you may lose benefits if there is a delay in filing your claim more than 4 weeks after your last day of work. Employers must issue employees on temporary layoff with a Record of Employment.
To receive EI regular benefits in general, you must demonstrate that you were employed in insurable employment, that you lost their job through no fault of their own, had been without work and pay for at least 7 consecutive days in the last 52 weeks, had worked the required number of insurable employment hours in the last 52 weeks or since the start of the last EI claim, whichever is shorter, are ready and willing to work, and are actively looking for work.
For more information on whether you qualify for EI, please visit the Regular EI Benefits program page here.
“How much money do I get if I get laid off?”
The total amount you may receive after being laid off depends on more than just EI. If eligible, EI regular benefits may provide up to 55% of an employee’s average insurable weekly earnings, up to a maximum amount. As of January 1, 2025, the maximum yearly insurable earnings amount is $65,700. This means that you can receive a maximum amount of $695 per week.per week, depending on your earnings history, however, these benefits are only one aspect of what you may be owed.
Employees may also be entitled to severance pay if the layoff qualifies as a termination. Common law entitlements can extend well beyond ESA minimums, especially for employees with longer service or more senior positions. An employment lawyer can help evaluate your entitlements and determine whether your employer’s actions meet the legal standards for a valid layoff or constitute a constructive dismissal.
Can you get EI if you take voluntary layoff?
In most cases, employees who voluntarily leave their job are not eligible for EI.
If you are being encouraged to take a voluntary layoff or separation package, it is important to understand how this choice could affect your eligibility for EI. Legal advice can help you assess whether your reasons for leaving may be considered just cause. An employment lawyer can also explain how voluntary exit agreements might impact your eligibility for termination pay or severance, ensuring you make decisions that protect your financial rights.
Are temporary employees eligible for EI?
Temporary or contract employees may be eligible for employment insurance, provided their work meets the definition of insurable employment under the Employment Insurance Act, and they have accumulated enough insurable hours within the qualifying period. Eligibility depends on the structure and consistency of the role, not the job title. Even part-time and seasonal jobs can qualify, so long as EI premiums were paid and sufficient hours were worked.
However, employees in temporary roles may face challenges, particularly if they worked through staffing agencies, on irregular schedules, or without clear documentation. If you have been laid off and are unsure whether your job qualifies, a lawyer can review your work history, agreements, and issued ROEs. Legal guidance can help you determine whether your EI claim is valid and identify any additional entitlements you might not have considered.
How can Whitten and Lublin help?
If you’ve been temporarily laid off or are facing uncertainty about your job status, it’s important to understand how the law applies to your specific circumstances.
At Whitten & Lublin, we help employees make sense of complex employment law situations and determine whether their rights have been violated. Whether you need clarity on your employment contract, support with a severance package, or guidance about a potential layoff, our team is here to help. Contact us online or call (416) 640-2667 to speak with an experienced employment lawyer.
