In a recent blog post, we discussed key considerations for employers in the face of new tariffs, including reviewing employment contracts, layoff requirements, changes to employment terms, and alternatives to dismissal.
In this blog post, we provide information specific to Saskatchewan employers who are considering downsizing their workforce.
What is considered a layoff in Saskatchewan?
In Saskatchewan, a layoff is defined as a temporary interruption of an employee's services for more than six consecutive workdays. If the layoff extends beyond six days without the employee being recalled, employers are required to provide notice of layoff or termination, or pay in lieu of notice, depending on the duration of employment and the number of employees affected.
What are the individual notice requirements in Saskatchewan?
The minimum amount of notice or pay in lieu of notice depends on the length of employment with the organization. The notice requirements are as follows:
Employees may be entitled to additional notice or pay in lieu of notice based on an employment contract, employer policy or collective bargaining agreement.
What are the group notice requirements in Saskatchewan?
In addition to individual notice periods, employers are required to provide greater notice or pay in lieu of notice when terminating the employment of 10 or more employees within any four-week period. The minimum notice for a group termination is as follows:
Individual notice of layoff and group notice periods can be provided concurrently.
Where a group termination occurs, employers are required to provide written notice to the Minister of Labour Relations and Workplace Safety that specifies the number of employees whose employment will be terminated, the date(s) of their terminations and the reason for the terminations. This notice must also be provided to each impacted employee and any applicable union.
There are potential exclusions that can apply to group termination requirements, including if the layoff is for 26 weeks or less or if the layoff results from unforeseeable circumstances preventing the performance of the contract. Each case will be assessed on its own facts.
As noted in our previous blog, Bill 5, The Saskatchewan Employment Amendment Act 2024 includes proposed amendments to increase the minimum number from 10 to 25 employees before an employer is required to comply with group termination provisions. The proposed changes are not yet law. MLT Aikins will continue to provide updates on the progress of the legislation and when it comes into force.
Are layoffs different for unionized workplaces?
Employers should consult their collective agreement to review obligations in the event of a layoff.
Employers may also have additional legislative obligations if it moves work between its locations. There may be successorship or organizational change provisions to address.
Employers may also have notification obligations to the union if a decision has been made to temporarily lay off employees in the future, especially if collective bargaining is ongoing.
Could employees claim their employment is terminated?
Employers should be aware the employees who are laid off may try to claim that the layoff is really a termination. These employees may seek to recover contractual or common law notice entitlements. Each potential claim will be dealt with on a case-by-case basis.
Are there additional considerations required for foreign workers?
When facing a group termination, these rules apply to Canadian citizens and permanent residents of Canada. When an employer has a group termination and there are temporary foreign workers involved, there may be additional regulatory and reporting items to consider.
If you're an employer with questions about terminations involving temporary foreign workers, please reach out to our immigration team.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
