For federally regulated employers in Canada, there are several key recent and incoming amendments to the Canada Labour Code to note. If you are uncertain regarding whether your business is "federally regulated", we recommend speaking to one of the members of our Employment & Labour Law team. Some examples of common types of federally regulated workplaces include the interprovincial/international transportation, maritime, and telecommunications sectors.
Among the amendments to the Code, there are some that have already come into force in July 2023, and some that are coming into force in 2024.
These are just some of the highlights of the new amendments to the Canada Labour Code that affect employers and employees in federally regulated sectors. We hope that this newsletter has given you some useful information and guidance on how to comply with these changes and what they mean for your business.
2023 Amendments
1. Reimbursement for work-related expenses: Employers are now required to reimburse employees for reasonable work-related expenses, similarly to the existing requirements for provincially regulated employers in BC.
- What this means for your business: if you ask your employees to use their own equipment, tools, or materials for work purposes, you have to pay them back for the costs incurred.
- Example: if you ask your employees to work from home and use their own internet connection, phone line, or computer, you have to cover these expenses. The amount of reimbursement should be based on the actual costs or a reasonable estimate agreed upon by both parties.
2. Providing information to employees: Under the new amendments, employers must provide employees with materials made available by the Ministry of Labour containing information regarding employer and employee rights (e.g. information on labour standards, occupational health and safety, human rights, and collective bargaining). This is similar to some existing provincial requirements.
- What this means:
- You have to provide these materials to your employees within 30 days of their hiring date or within 30 days of updated materials being made available by the Ministry.
- You also have to make these materials accessible and visible in your workplace at all times.
- Employers will also need to provide materials to terminated employees, no later than on their last day of employment, with materials made available by the Ministry relating to termination of employment.
3. Employment Statements: Employers are also required to provide employees with written statements regarding certain terms and conditions related to their employment such as wage rate, hours of work, job title, duties, overtime pay, vacation entitlements, benefits, and termination.
- What this means:
- You have to provide these statements to your employees within 30 days of their hiring date or when there is a change in their terms and conditions.
- You also have to keep these statements updated and accurate throughout the employment relationship.
- The information can be provided in one or more of the employee's employment agreement, offer letter, a policy manual, and/or collective agreement (if applicable).
- Example: Employment and Social Development Canada provides this template that can be used.
4. Penalties: The amendments also establish administrative monetary penalties for a failure to comply with these new requirements.
- What this means:
- The penalties range from $250 to $50,000 per violation, depending on the severity and frequency of the non-compliance.
- The penalties can be imposed on both employers and individuals who are responsible for the violation, and are in addition to any other remedies or sanctions that may apply under the Canada Labour Code or other laws.
5. Prohibition against replacement workers: The Code now prohibits the use of replacement workers during a strike or lockout.
- What this means: It means that unionized workplaces cannot hire or use any person to perform the work of an employee who is participating in a lawful strike or who is locked out by the employer. If an employer violates this prohibition, they may face a penalty of up to $50,000 per day or part of a day.
- Exception: the exception from this requirement is if the replacement worker is necessary to prevent an imminent danger to the life, health, or safety of any person.
6. Menstrual Products: Effective December 15, 2023, employers are required to provide menstrual products in washrooms as part of their occupational health and safety obligations.
2024 Amendments
1. Increased Notice Period for Without Cause Terminations: As of February 1, 2024, employers will be required to provide employees with a increasing notice of termination based on the employees' length of (continuous) service.
- What this means: The termination notice is the period of time that an employer has to give an employee before terminating their employment without cause. The statutory notice periods will vary from two weeks to eight weeks, depending on how long the employee has worked for the employer. These requirements essentially put the Canada Labour Code in line with existing requirements under the Employment Standards Act for provincially regulated employers in BC.
Length of service completed Notice Period
3 months 2 weeks
3 years 3 weeks
4 years 4 weeks
5 years 5 weeks
6 years 6 weeks
7 years 7 weeks
8 years and more 8 weeks
- Warning: it is critical to keep in mind that these will only be the minimum requirements under the Canada Labour Code and therefore in many cases employees may be entitled to more notice. As always, we recommend speaking with one of our experienced employment lawyers prior to terminating any employee as it will almost always be more cost-effective to consult with us prior to terminating an employee rather than after the fact.
- Impact on existing employment contracts: It is important to also keep in mind that these new amendments may negatively impact the enforceability of existing agreements if the agreements do not account for potential amendments to the requirements under the Canada Labour Code. To prevent this issue, we recommend speaking with one of our lawyers prior to February 1, 2024
2. Written Statement of Benefits: Employers will also be required to provide a statement of benefits to employees whose employment is terminated.
- What this means: The statement of benefits is a document that summarizes the benefits that an employee is entitled to receive upon termination, such as severance pay, vacation pay, pension contributions, and insurance coverage.
- Timing:
- If an employee is given written notice of termination, the written statement of benefits must be given at least two weeks prior to the termination date.
- If the employee is given pay in lieu of notice, the statement must be given to the employee no later than their termination date.
- If the employee is given a combination of written notice and pay in lieu of notice, the statement must be given on the termination date, unless the employee is provided with at least two weeks of written notice, in which case the statement must be given at least two weeks before the termination date.
Other 2024 Amendments
1. Modifications to Hours of Work Requirements: The amendments also provide additional exemptions from and modifications to the hours of work provisions of the Canada Labour Code in some sectors. The provisions regulate how many hours an employee can work in a day or a week, how much rest they are entitled to between shifts or days off, and how overtime pay is calculated.
- Note: the "coming into force" for
the changes to these provisions will vary by sector
- The amendments relating to the banking, telecommunications and broadcasting, and rail transportation sectors are set to come into force on January 4, 2024.
- The amendments relating to the airline sector come into force on June 4, 2024.
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.
