Does an employee who is laid off without a recall have greater rights than an ordinary dismissal?
Ontario, Canada
The following excerpt is from Coutou v Trailmobile Canada Limited, 2008 CanLII 90127 (ON SCSM):
It would appear that an employee who is laid off, without recall may have greater rights than in the circumstances of an ordinary dismissal. In the decision of Cagigal v. Mill Dining Lounge Ltd. [1991] O.J. No. 706, a Manager of a restaurant with 3 years of service sued for wrongful dismissal. He had been laid off in March, but only told by the employer in August, that there was no longer a job for him. Justice Doyle found that the employer did not act reasonably in failing to inform the employee that he would be dismissed during the period of layoff. Accordingly, the 5 months of layoff were added to the 3 months of normal severance for a total of 8 months. The court, in effect, said that it is unfair to lead someone along when there is little or no possibility of recall. Economic Realties Causing Layoffs
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