Having your hours cut — especially without warning — can hit your income almost as hard as a layoff, but your rights aren’t always as obvious. Here’s what the law says and what you can do.
The short answer
A significant, permanent reduction in your hours without your consent may be constructive dismissal. You may also qualify for EI even if you are still employed. Object in writing immediately and assess your options.
Is this constructive dismissal?
Courts examine whether the reduction was:
| Question | What Courts Look At |
|---|---|
| How large was the cut? | Reductions of 20–30%+ are more likely to qualify |
| Is it permanent or temporary? | Permanent is more likely constructive dismissal |
| Did you agree to it? | Written or verbal acceptance can waive your rights |
| Was it in your contract? | Some contracts allow scheduling flexibility |
| How long have you worked there? | Longer tenure = courts expect more stability |
A reduction from full-time (40 hours/week) to 20 hours/week has consistently been found to be constructive dismissal in Canadian courts when done without agreement.
Your two main options
Option 1: Object and continue working
Write to your employer stating that you do not accept the reduction and are reserving your legal rights. Continue working the reduced hours while you decide on next steps. This keeps your job and income while you consult a lawyer.
Option 2: Resign and pursue constructive dismissal
If the reduction is severe and permanent, you can resign and claim that you were constructively dismissed. You would be entitled to reasonable notice damages as though you had been terminated.
Important: Option 2 carries risk — you must prove the change was fundamental. Consult a lawyer before resigning.
Applying for EI with reduced hours
You do not have to be completely unemployed to receive EI. The rules for partial EI:
- Your earnings must be reduced by more than 40% compared to your usual schedule
- You continue working but earn less — report your actual earnings each week
- EI pays a top-up on the difference, up to your weekly maximum
Example: You normally work 40 hours at $25/hour ($1,000/week). Your hours are cut to 20 hours ($500/week). A 50% reduction qualifies you for partial EI.
Apply through My Service Canada Account or canada.ca/ei.
Work Sharing program (if multiple employees affected)
If your employer reduced hours for a group of employees, they may be eligible for the Work Sharing program. This allows employees to receive EI benefits while working reduced hours as an alternative to layoffs. The employer and employees both must apply. More info at canada.ca/work-sharing.
What your employer cannot legally do
- Reduce hours as retaliation for filing a complaint or taking protected leave
- Reduce hours to force you to quit and avoid paying severance
- Change your hours in violation of a written employment contract specifying full-time status
Provincial variations
| Province | Relevant Notes |
|---|---|
| Ontario | ESA does not have a minimum hours guarantee, but constructive dismissal applies through common law |
| British Columbia | Employment Standards Act defines “layoff” broadly — a major hour cut may trigger layoff provisions |
| Quebec | Civil law tradition — courts examine good faith obligations; significant cuts are actionable |
| Alberta | No minimum hours in legislation, but common law constructive dismissal fully applies |
Key takeaway
A significant cut to your hours is a change to your employment terms. Object in writing, check if you qualify for partial EI, and consult an employment lawyer if the reduction is substantial and appears permanent.
EI when your hours are reduced
If your employer reduces your weekly hours significantly, you may qualify for Employment Insurance (EI) regular benefits — you don’’t need to be fully unemployed:
- Work sharing: If your employer and your workforce agree to temporarily reduce hours, Service Canada’’s Work-Sharing program allows affected employees to claim EI for the lost hours while keeping their jobs.
- Partial EI: If you go from full-time to part-time without a Work-Sharing agreement, you may qualify for EI regular benefits once your earnings drop enough to meet the qualifying threshold (420–700 insurable hours depending on regional unemployment rate).
Apply for EI through Service Canada at canada.ca/employment-insurance. Don’’t delay — there is a two-week waiting period before benefits begin, and you must apply as soon as the reduction occurs.
Frequently asked questions
Can my employer reduce my hours instead of laying me off? Yes. An employer can reduce hours as an operational decision, but if the reduction is significant and permanent, it may constitute a constructive dismissal — giving you the right to treat yourself as having been terminated and claim severance. The threshold is fact-specific; courts look at the percentage reduction, whether it is temporary or permanent, and whether your employment contract specified full-time work.
Do I keep my benefits if my hours are cut? It depends on your employment contract and benefit plan terms. Some group benefit plans have a “minimum hours” threshold (e.g., 20 hours/week) for continued eligibility. Ask your HR department — if benefits are cut alongside hours, you may have compounded grounds for a constructive dismissal claim.
What if my hours were reduced and then restored? If hours were temporarily reduced during a difficult period for the business and then restored within a reasonable time, courts generally do not treat it as constructive dismissal. The key factors are how long the reduction lasted and whether you objected at the time.
Related Reading
- My Employer Is Not Paying Overtime in Canada: What To Do
- My Employer Owes Me Vacation Pay in Canada: What To Do
- My Employer Won’’t Give Me a ROE: What To Do in Canada
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