Workforce planning has always been a balancing act. Employers move between hiring, restructuring, and supporting employees through personal and medical challenges. The latest ESA updates covering layoffs, illness leave, and job seeking time during mass terminations give employees stronger stability while asking employers to be more structured during mass terminations
Ontario’s new extended temporary layoff rules give employers more time, but only with the right paperwork. A layoff can now stretch beyond the old 35-week limit as long as it stays under 52 weeks in a 78-week period. However, the employee must agree in writing, must be given a firm recall date, and must understand the agreement cannot be withdrawn. The Director of Employment Standards must also approve it. And employers must keep documentation for three years.
For small employers, this is not administrative noise; missing a step can turn a layoff into a termination, triggering notice, severance and other obligations that can surprise a lean team.
Another major update is the new three days of job seeking leave during mass terminations, which apply when 50 or more employees are let go within four weeks. Employees can use this time for interviews, appointments, or preparing applications, and employers can ask for reasonable evidence.
Meanwhile, the long-term illness leave enhancement brings a meaningful change for workers facing serious health conditions. Employees who have passed 13 weeks of service now have access to up to 27 weeks of unpaid protected leave. This amendment aligns Ontario closer to federal sickness benefit timelines, and it creates ripple effects for staffing, coverage planning, and return-to-work conversations.
These updates echo the values behind SpringLaw’s work: transparency, humane processes, and collaborative problem solving, even during difficult workforce transitions.
The new rules may extend your processes, but they also reduce risks when handled thoughtfully. With clear documentation and early planning, employers can navigate these changes while maintaining empathy and compliance.
If your team is preparing for restructurings or needs help updating leave and layoff workflows, our SpringLaw lawyers can help you build a smooth, defensible process. Contact us to support your compliance and workplace planning needs.
Shauna Fabrizi
Shauna Fabrizi is an employment and labour lawyer at SpringLaw who advises employers on workplace restructurings, compliance, and complex people issues. She provides practical, business-focused guidance on leaves, terminations, and policy updates, helping organizations navigate change with clarity, empathy, and strong risk management.
