Skip to Content

Temporary lay off timeline extended to 26 weeks from 13… temporarily

Twila Reid and John Samms

On Friday, June 12, 2020, the Government of Newfoundland and Labrador announced it has extended the time period under section 50 of the Labour Standards Act (“the Act”) that converts a temporary layoff into a permanent termination.

The Order doubles the amount of time a person may be considered to have been temporarily laid off to 26 weeks from 13 weeks, so long as that timeframe is captured within a period of 33 consecutive weeks between March 18 and September 18, 2020. If a worker receives pay during the 33 week period, the number of days for which the employee is paid does not count toward the 26 week lay-off period. The deadline to make a complaint is extended to 12 months from the date the employee’s contract is terminated (the previous deadline was 6 months).

This is a temporary change as the Act itself has not been amended. The Lieutenant-Governor in Council made the Order through the Temporary Variation of Statutory Deadlines Order, made under the power of section 6 of the Temporary Variation of Statutory Deadlines Act, a creature of the provincial government’s COVID-19 response that impacts a myriad of statutory deadlines.

This move may temporarily ease some of the pressure on employers as the normal operation of the Act would have employers facing decisions to permanently terminate employees even though many businesses cannot operate as a result of ongoing COVID-19 restrictions. This change allows employers to take more time to consider how best to bring employees back to work or adjust their business in accordance with the so-called “new normal”.

Employers should seek specific legal advice to understand how the above Order is applicable to their particular circumstances, including what further notice(s) if any they should provide to laid off employees.

The Order, as published in the Gazette, states as follows:

The Temporary Variation of Statutory Deadlines Order is amended by adding immediately after section 4 the following:

4.1(1) Notwithstanding section 50 of the Labour Standards Act, where an employer temporarily lays off an employee on or after March 18, 2020 and before September 18, 2020 and the lay-off exceeds 26 weeks in a period of 33 consecutive weeks, the employee shall, for the purposes of Part X of that Act be considered to have been terminated at the beginning of the 26 week period.

(2) For the purposes of subsection (1), a day during the period of 33 consecutive weeks for which an employee receives pay, including pay the employee receives for a public holiday occurring during that period, shall not be counted in the calculation of the 26 week lay-off period set out in subsection (1).

(3) Where the 6 month period referred to in subsection 62(3) of the Labour Standards Act falls on or after March 18, 2020 and before September 18, 2020, a person may, notwithstanding subsection 62(3) of that Act, file a complaint within 12 months of the date the employee’s contract is terminated.


This article is provided for general information only. If you have any questions about the above, please contact a member of our Labour and Employment group.

Click here to subscribe to Stewart McKelvey Thought Leadership articles and updates.

Archive

At a glance: Key changes coming to Prince Edward Island’s Employment Standards Act

Murray L. Murphy, K.C., CPHR and Jacob E. Zelman Prince Edward Island’s new Employment Standards Act (“ESA”) received Royal Assent on November 29, 2024, with an effective date to be to…

Read More

Making AI work for your business

Sarah Dever Letson and Lauren Agnew Interested in understanding the impacts of AI on your business? Looking to understand how these intersect with concerns around privacy and cybersecurity? Curious about…

Read More

Navigating the “Towns Act”: Key changes and transition considerations for towns in Newfoundland and Labrador

BY Stephen Penney & Danielle Harris

By Stephen Penney and Danielle Harris Introduction On January 1, 2025, the Towns and Local Service Districts Act (the “Towns Act”) came into effect, changing the legislative landscape for towns…

Read More

Dealing with Canadian “retaliatory” tariffs: A primer for importers

BY Michelle Chai & Graeme Hiebert

By Michelle Chai & Graeme Hiebert In response to the 25% tariffs levied on virtually all Canadian goods by the United States, Canada has announced United States Surtax Order (2025-1)…

Read More

Balancing inclusivity and workplace safety

BY Sheila Mecking & Lauren Sorel

By Sheila Mecking and Lauren Sorel Introduction Arbitrator Trisha Perry addressed the complex interests between inclusive education and workplace safety in a recent decision (New Brunswick Teachers’ Federation v New…

Read More

University governance in Nova Scotia: The impacts of Bill 12

BY Colleen Keyes,
K.C.
& Harper Metler

By Colleen Keyes, K.C. and Harper Metler On February 19, 2025, the Nova Scotia Government introduced Bill No. 12: An Act Respecting Advanced Education and Research (“Bill 12”), which is…

Read More

Privacy rights in the workplace: Supreme Court expands charter protections for public school teachers

BY Chad Sullivan & Chiara Nannucci

By Chad Sullivan and Chiara Nannucci Introduction A recent Supreme Court of Canada decision (York Region District School Board v. Elementary Teachers’ Federation of Ontario, 2024 SCC 22) has once…

Read More

New rules allowing Nova Scotia private sector employers to join Public Service Superannuation Plan take effect

BY Dante Manna & Noah Archibald

By Dante Manna and Noah Archibald The Provincial Government recently proclaimed the Private Sector Pension Plan Transfer Act (the “Transfer Act”) and newly released regulations on February 4, 2025. The…

Read More

Outlook for 2025 proxy season

By Andrew V. Burke, Colleen P. Keyes, Gavin Stuttard, David F. Slipp and Logan G. Walters With proxy season on the horizon, many public companies are once again preparing their…

Read More

Here we go again … how recent updates to Canada’s supply chain transparency reporting guidance may impact your 2025 reporting obligations

By Christine Pound, Colleen Keyes, K.C., and Daniel Roth As reporting entities and government institutions prepare their supply chain transparency reports, Public Safety Canada (“PSC“) has updated its guidance for…

Read More

Search Archive