Temporary Layoffs in Alberta: Rules, Recall, and Policy Language

Under Alberta's employment standards guidance, lay-offs are a temporary pause in work and can end in either a recall to employment or a termination. Alberta employers should be careful when using temporary layoffs because if a layoff later results in termination, statutory termination notice or termination pay obligations may apply. Under the Alberta Employment Standards Code, a temporary layoff must not exceed 90 days in a 120-day period. If a layoff exceeds the maximum duration and no valid written extension agreement is in place, it may be deemed a termination, triggering the employer's statutory obligations for termination notice or pay. Employers should confirm the current extension rules directly against the Alberta Employment Standards Code. The distinction between a temporary layoff and a termination is one of the most consequential in Alberta employment law. A temporary layoff preserves the employment relationship — the employee remains "employed" even though no work is being performed and no wages are being paid. A termination, by contrast, permanently ends the relationship and triggers statutory obligations for Alberta termination pay and potentially Alberta severance . Key characteristics of a temporary layoff under the Code include: The employer intends to recall the employee to work. The layoff does not exceed the maximum statutory duration (discussed below). The employee has not been terminated in writing. The employee has not accepted other permanent employment that would end the relationship. If any of these conditions fail — most critically, if the layoff exceeds the maximum duration — the layoff is deemed a termination by operation of law, regardless of the employer's stated intention. Under the Alberta Employment Standards Code, a temporary layoff must not exceed 90 days within any 120-day period , measured from the first day of the layoff. If the employer intends to rely on any extension under the Code, the employer should confirm the current Alberta Employment Standards Code requirements and document the arrangement in writing before the 90-day limit expires. The 90-day limit is cumulative — meaning intermittent layoffs within the same 120-day window count toward the total. Once the total reaches 90 days without a recall, the layoff is deemed a termination by operation of law. At that point, the employer must provide termination notice or termination pay in accordance with the Code. Key points employers should track: Day 1 of the layoff: This is the anchor date from which the 120-day window is measured. Cumulative layoff days: Any days of layoff within the 120-day window count toward the 90-day limit, even if the employee was briefly recalled in between. Approaching the 90-day limit: If the employee has not been recalled before the cumulative layoff reaches 90 days, the layoff converts to a termination under the Code. Employers should act well before that point to either recall the employee or obtain a written extension agreement. When an employer is ready to bring a laid-off employee back to work, the recall should be handled carefully to protect both parties. While the Alberta Employment Standards Code does not prescribe a detailed statutory recall procedure, best practices for Alberta employers include: Written recall notice: Provide written notice of recall that specifies the date the employee is expected to return, the position, and the terms of employment upon return. Reasonable notice period: Give the employee reasonable time to arrange their return — typically reasonable advance notice, though more may be appropriate depending on the circumstances. Confirmation of terms: Confirm that the employee will return to the same or comparable position with the same rate of pay and benefits they had before the layoff. Document everything: Keep copies of all recall notices, delivery confirmations, and any employee responses. If an employee does not respond to a recall notice or refuses to return without reasonable justification, the employer should document the refusal and seek guidance before treating the employment as terminated. The Code notes that employees who are temporarily laid off, or laid off after refusing reasonable alternate work, are not required to give resignation notice (Alberta Employment Standards Code; alberta.ca ). Alberta’s employment standards guidance states that group terminations have additional rules. One of the most frequently asked questions about Alberta temporary layoff rules concerns employee benefits. The Employment Standards Code does not appear to impose a specific obligation on employers to maintain group benefits (health, dental, life insurance, disability) during a temporary layoff. However, several important considerations apply: Employment contract or collective agreement: If the employment contract, offer letter, or collective agreement specifies that benefits continue during a layoff, the employer is bound by those terms. Benefit plan terms: The e