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.