Layoff date extension requires new notice: Board

Employees who agreed to work past layoff required new layoff notice: Board
|Canadian Employment Law Today|Last Updated: 10/20/2010

A British Columbia employer who asked a few employees to work past their layoff date was required to issue a new notice of layoff, the B.C. Arbitration Board has ruled.

Haakon Industries, a manufacturer of air conditioning equipment based in Richmond, B.C., decided in the spring of 2009 that it would close its two plants due to a drop in sales. It announced to its employees that they would be laid off for an unknown period of time. Provincial employment standards legislation required employers to provide a certain amount of written notice — or the equivalent in compensation — to employees being laid off based on their service time. The maximum notice required was eight weeks. The collective agreement deferred to the employment standards requirements.