Canada HR Information

Updated on: 2025/08/04 14:03 (UTC)

Overview

Provinces in Canada have exclusive jurisdiction over all aspects of employment relations in most fields of economic activity. This “exclusive jurisdiction” is just that: unlike many other federal systems, the central government has no power under the Canadian Constitution to legislate or regulate concerning an industry that comes under provincial jurisdiction. Federal labor and employment legislation simply does not apply to employers who come under provincial jurisdiction. Equally, provincial labor or employment legislation does not apply to employers in federally regulated industries. Federal jurisdiction over labor and employment relations in an industry is the exception, not the rule, under the Canadian Constitution.

There are two exceptions to this rule for provincially regulated employers. The first is unemployment insurance, which comes within federal legislative jurisdiction under the federal Employment Insurance Act. Second, public pension benefits are provided to residents of all provinces except Quebec under the Canada Pension Plan. This plan is funded by contributions from employers and employees in all industries. Quebec has a substantially similar public pension plan which applies to all residents of that province and is funded in substantially the same manner. Benefits are fully portable between the two plans.

Hiring

Employment Contracts

There is no requirement to enter into a written employment contract with nonunionized employees. In practice, senior members of an organization typically receive written employment contracts that define the employer’s obligations to that particular employee.

Such contracts will be not be enforceable if the terms are inferior to statutory minimum employment standards or the employee signed the contract under duress. In cases where no written employment contract exists or where the contract does not fully address the terms and conditions of employment, the employment relationship is governed by standards established under the common law or, in the case of Quebec, set out in the Civil Code.

Employers in industries under federal jurisdiction are usually hired for an indeterminate term.

Because there is no comprehensive federal legislation covering individual employment relationships, provincial or territorial common law (or for employees in federally regulated industries in Quebec, the Civil Code) is applied to most aspects of the formation and termination of individual employment contracts at federally regulated employers.

Effective June 23, 2023, employers cannot enter into agreements with other employers to fix, maintain, decrease, or control wages or other terms of employment, or to refrain from soliciting or hiring each other’s employees. Employers may be penalized for violations.

Restrictions on Hiring

Effective June 12, 2023, the minimum age for employment increases to the age of 18 from 17. Workers who are age 17 on the effective date are considered to be age 18 if they remain in the same position with the same employer on that day. Federally regulated employers may employ persons under age 18 subject to certain restrictions, including a prohibition on employment during hours when provincial laws require them to attend school. Employees under age 18 may not be employed in hazardous work or in specified industries, including mines, nuclear energy, and age-restricted work with explosives or shipping. Employees under age 18 are not permitted to work between 11:00 p.m. and 6:00 a.m.

Effective Jan. 1, 2024, employers that are covered under the Fighting Against Forced Labour and Child Labour in Supply Chains Act must annually report on or before May 31 to the government the steps they have taken to mitigate the risks of using forced labor, prison labor, and child labor in their supply chains.

Recordkeeping

Employers generally must retain the following information about each employee for three years after the work was performed:

• name, age, sex, and last known residential address;
• rates of wages, hours of work, vacation periods, leaves of absence, pay, and vacation pay;
• date each employee began and ended employment;
• dates of all layoffs or discharges of every employee; and
• dates of any notice of layoffs or discharges.

A labour standards officer may inspect all registers, books, payrolls, and other records of any employer or recruiter that in any way relate to the employment or recruitment of individuals.

See additional recordkeeping requirements in Canada Labour Standards Regulations, C.R.C., c 986, § 24.

Background Checks

Each province imposes limits on the extent to which an employer may use information obtained through a background check. Some statutes curb employers’ ability to collect, use, and disclose personal information during a pre-employment background check.

In general, employers can only take into account information that relates to a prohibited ground of discrimination during a pre-employment background check if they can show that the personal characteristic was a bona fide occupational requirement for the job.

Employers in British Columbia, Ontario, Prince Edward Island, Quebec, and the federal jurisdiction also face various restrictions with respect to criminal background checks.

Noncompetition Agreements

Noncompetition and nonsolicitation agreements in federally regulated industries are governed by the law of a province or territory, most frequently that of the province or territory where the contract is concluded, although parties may choose to have the contract governed by the law of some other jurisdiction.

All provinces and territories permit noncompetition and nonsolicitation agreements in an employment contract. Noncompetition agreements will be void as contrary to public policy unless they are reasonable as between the parties and reasonable in light of the public policy interest in allowing everyone to freely engage in the occupation of choice. Nonsolicitation agreements, which impose less onerous limitations on employees, are enforceable if they are reasonable as between the parties.

Employment litigation concerning employees in industries under federal jurisdiction is resolved in the courts of the provinces or territories. The federal courts do not have jurisdiction over such disputes.

Reference Citations

Employment Contracts: Competition Act, R.S.C. 1985, c C-34, § 45

Restrictions on Hiring: Canada Labour Code, R.S.C. 1985, c L-2, § 179; Canada Labour Standards Regulations, C.R.C., c 986, § 10 (Regulations Amending the Canada Labour Standards Regulations (Employees Under 18 Years of Age), SOR/2023-40), (Order Fixing June 12, 2023 as the Day on Which Sections 447 to 449 and 517 of the Budget Implementation Act, 2018, No. 2 Come into Force, SI/2023-4); Fighting Against Forced Labour and Child Labour in Supply Chains Act, S.C. 2023, c 9, § 11

Recordkeeping: Canada Labour Code, R.S.C. 1985, c L-2, § 252; Canada Labour Standards Regulations, C.R.C., c 986, § 24

Immigration and Work Permits

In General

Employers may hire foreign nationals as permanent or temporary foreign workers through various Canadian foreign worker programs.

Permanent Foreign Workers: Employers may consider options for hiring foreign workers permanently, including the Express Entry program and the Atlantic Immigration Program (where applicable). Employers should review specific requirements when hiring such workers.

Temporary Foreign Workers: Employers can hire foreign nationals to work temporarily through programs such as the Temporary Foreign Worker Program (TFWP) or the International Mobility Program. Employers may need to complete a Labour Market Impact Assessment (LMIA) before hiring temporary foreign workers. Employers may be penalized if they violate the provisions on temporary foreign workers under the TFWP.

Reference Citations

In General: Immigration and Refugee Protection Act, S.C. 2001, c 27; Immigration and Refugee Protection Regulations, SOR/2002-227

Immigration, Refugees and Citizenship Canada

Nondiscrimination

In General

Employers under federal jurisdiction may not refuse to hire or to continue to employ or differentiate adversely against a person in the course of employment on grounds prohibited in the Canadian Human Rights Act, including: race, national or ethnic origin, color, religion, age, sex, sexual orientation, gender identity or expression, marital status, family status, disability, or criminal offences for which a pardon or record suspension has been granted.

A party may bring a complaint of a violation of the Canadian Human Rights Act to the Canadian Human Rights Commission. The commission may investigate the complaint and attempt to settle it. If the complaint is not settled, the commission may refer the complaint to the Canadian Human Rights Tribunal.

Publicly traded companies regulated by the Canada Business Corporations Act must provide shareholders with details regarding diversity.

Pay Discrimination

Gender Pay Reporting: Federally regulated employers with 10 or more employees must establish and implement a proactive pay equity plan as legally required. Under the Pay Equity Act, employers must review their pay equity plans at least once every five years to ensure they are providing equal pay to men and women doing work of equal value.

In developing their pay equity plans, employers must:

• identify job classes within their workplace,
• determine the gender predominance of the identified job classes,
• determine the value of work performed by each job class,
• calculate the compensation of each predominantly female or male job class, and
• compare the compensation between predominantly female and male job classes doing work of equal or comparable value.

Employers must post the pay equity plan so that it is accessible to all employees.

Once employers establish their programs, they will have to increase the compensation of any predominantly female job classes that are receiving less pay than their male counterparts. Some employers may be eligible to phase-in those increases over 3 to 5 years.

Covered employees also must submit employment equity reports, which include salary ranges and wage gaps information, to the government every year by June 1.

Disability Discrimination

Certain employers must modify their workplaces to make them accessible to persons with disabilities. Covered employers must:

• publish accessibility plans showing how they identify, remove, and prevent barriers;
• update their accessibility plan every three years;
• consult persons with disabilities in preparing and updating their accessibility plans; and
• provide alternate formats of their accessibility plan to people who request it.

Large businesses with 100 or more employees must publish their first accessibility plans by June 1, 2023. Small businesses with 10 to 99 employees must prepare and publish their first accessibility plans by June 1, 2024. The law does not apply to businesses with fewer than 10 employees.

Reference Citations

In General: Canadian Human Rights Act, R.S.C. 1985, c H-6; Canadian Human Rights Tribunal Rules of Procedure, 2021, SOR/2021-137; Employment Equity Act, S.C. 1995, c 44; Employment Equity Regulations, SOR/96-470; Canada Business Corporations Act, R.S.C. 1985, c C-44, § 172.1; Canada Business Corporations Regulations, 2001, SOR/2001-512, Part 8.2, § 72.2

Pay Discrimination: Pay Equity Act, S.C. 2018, c 27, s 416; Pay Equity Regulations, SOR/2021-161

Disability Discrimination: Accessible Canada Act, S.C. 2019, c 10; Accessible Canada Regulations, SOR/2021-241

Employee Privacy

Employee Data

Employers may collect, use, or disclose personal information only for purposes that a reasonable person would consider are appropriate in the circumstances.

An employer may collect personal information for several reasons, without the knowledge or consent of the individual, when, for example:

• the information is being collected in the course of an investigation into a breach of an agreement or a contravention of the law; or
• the disclosure is required by law.

On May 29, 2023, the Office of the Privacy Commissioner of Canada (OPC) published guidance on workplace privacy for employers subject to federal privacy legislation.

Reference Citations

Employee Data: Personal Information Protection and Electronic Documents Act, S.C. 2000, c 5, §§ 2, 4 to 5; Office of the Privacy Commissioner of Canada

Compensation

Hours of Work

Eight hours per day and 40 hours per week are the standard working hours for most employees under federal jurisdiction. A maximum of 48 hours may be worked in any week, and employees must have one day of rest every week.

Excess hours may also be authorized by a permit issued by the federal Ministry of Labour.

Employees generally are entitled to a 30 minute unpaid break after five consecutive hours of work. If employees are required to be made available during the break, they must be paid. They also must receive unpaid breaks that are necessary for medical reasons or nursing breaks.

Employees must be given a rest period of at least eight consecutive hours between work periods or shifts. Employers must provide employees with their work schedule, in writing, at least 96 hours before the employee’s first work period or shift in that schedule. Employees generally may refuse, without reprisal, to work any work period or shift in their schedule that starts within 96 hours from the time that the schedule is provided to them.

An employer must give 24 hours’ written notice when it changes or extends a shift during which an employee is required to work. The notice generally is not required if there is a situation that could not be generally foreseen and is a threat to the safety of a person, risk of damage to property, or potential for serious interference with the ordinary working of the employer’s establishment.

Employees who have worked at least six consecutive months of continuous employment with employers have the right to make a written request a flexible work arrangement relating to:

• the number of hours they are required to work,
• their work schedule,
• their work location, or
• any other regulatory terms and conditions that apply to them.

Employers may refuse the request according to law.

Minimum Wage

From April 1, 2024, the federal minimum wage is C$17.30 per hour. From April 1, 2023, to Mar. 30, 2024, the minimum wage was C$16.65 per hour. The minimum wage for employees coming under federal jurisdiction is established as the minimum wage applicable to provincially or territorially regulated employees in the province or territory in which the federally regulated employees work.

Overtime

Employees must be paid overtime at the rate of time and a half for all hours worked in excess of 40 in a week. The maximum number of overtime hours that can be worked in a week is eight.

Alternatively, employees can request to be granted time off with pay at one and a half hours for each overtime hour worked, as long as:

• the employer and employee have entered into a written agreement for the time off with pay, and
• the time off is taken within three months of the pay period during which the overtime was worked.

Employees generally can refuse to work overtime if it interferes with any responsibilities related to the health or care of any of their family members or the education of any family members under the age of 18.

Managerial employees and members of certain professions specified in the Canada Labour Code are exempt from these hours-of-work and overtime provisions.

Wage Payment

The Canada Labour Code requires that wages be paid within 30 days of the date on which they are earned.

Employers subject to federal jurisdiction may only make the following deductions from an employee’s wages:

• payments required by a federal or provincial statute or regulation,
• payments ordered by a court,
• payments authorized under a collective agreement,
• payments authorized in writing by the employee,
• overpayments of wages by employers, and
• other amounts prescribed by regulation.

Employees may not be dismissed, suspended, laid off, demoted, or disciplined because their wages are subject to a garnishment order.

Mandatory Bonuses

There are no provisions governing bonuses in Canada’s Labour code.

Reference Citations

Hours of Work: Canada Labour Code, R.S.C. 1985, c L-2, §§ 169 to 172, 177.1; Canada Labour Standards Regulations, C.R.C., c 986 §§ 4 to 8

Minimum Wage: Canada Labour Code, R.S.C. 1985, c L-2, § 178; Canada Labour Standards Regulations, C.R.C., c 986

Overtime: Canada Labour Code, R.S.C. 1985, c L-2, §§ 169, 171, 174 Canada Labour Standards Regulations, C.R.C., c 986

Wage Payments: Canada Labour Code, R.S.C. 1985, c L-2, §§ 238, 247, 254

Benefits

Vacation

Employees in federally regulated industries are entitled to a minimum of two weeks’ paid vacation after each of their first year of employment with an employer, three weeks after completing five consecutive years with an employer, and four weeks after completing 10 consecutive years with an employer. An employee’s contract of employment may provide for additional vacation.

For purposes of calculating vacation entitlement, a year of employment may run from the anniversary of the employee’s hiring or be a calendar or other year determined by the employer. However, it must begin not later than 10 months after completion of the year of employment for which the employee became entitled to vacation. In cases where the employer has chosen the timing of the vacation, the employer must give at least two weeks notice of when the employee’s annual vacation is to begin.

Employees entitled to two weeks’ vacation must receive 4 percent of their earnings as vacation pay for the year in which the vacation is due, employees entitled to three weeks’ vacation 6 percent, and employees entitled to four weeks’ 8 percent. Upon termination of employment, an employee is entitled to any vacation pay owed for the prior year’s work and prorated vacation pay for the current vacation year.

Generally, employees cannot carry over unused vacation from one year to the next, although with the written agreement of the employer a given year’s leave entitlement can be waived or postponed.

Holidays

Federally regulated employees are entitled to ten paid public holidays:

• New Year’s Day
• Good Friday
• Victoria Day
• Canada Day
• Labour Day
• National Day for Truth and Reconciliation
• Thanksgiving Day
• Remembrance Day
• Christmas Day
• Boxing Day

When a public holiday falls on a day that is a non-working day for employees, they are entitled to a holiday with pay at some other time, which may be in addition to their annual vacation or granted as a holiday with pay.

Maternity Leave

Federally regulated pregnant employees are entitled to 17 weeks’ maternity leave, which can be taken any time beginning 13 weeks before the expected delivery date and ending 17 weeks after.

Employees must provide their employer with a certificate from a health care practitioner confirming they are pregnant. The employer must be given written notice at least 4 weeks before starting maternity leave. The notice must advise the employer of the length of the leave. If the employee’s child is not born during the 17 weeks of maternity leave, the maternity leave is extended until the date of the birth.

In addition to maternity leave, either parent may take up to 63 weeks of parental leave.

Employers do not have to pay wages to someone who is on pregnancy leave. The Employment Insurance Act provides eligible employees with maternity and/or parental benefits that may be payable to the employee during the period they are off on pregnancy or parental leave.

Employees who are pregnant or nursing may also ask their employer to modify their job or reassign them to another job if continuing in their current role poses a risk to their health, the health of their unborn child, or the health of their child.

Paternity Leave

There is no legal entitlement to paternity leave, although a father may be eligible for up to 63 weeks of parental leave.

Sick Leave

Employees generally are entitled to up to 27 weeks of medical leave, and they may be entitled to up to ten days of paid medical leave.

Employees generally are entitled to up 27 weeks of medical leave because of a personal illness or injury; organ or tissue donation; medical appointments during working hours; or quarantine. They may be entitled to up to 10 paid days of medical leave in a calendar year.

Other Leave

Parental leave. Federally regulated employees are entitled to up to 63 weeks of leave to care for their newborn or adopted child. Parental leave may be taken by either the father or the mother up to a combined total of 63 weeks.

Parental leave may only be taken during the 78-week period beginning:

• in the case of a newborn child of the employee, on the day the child is born or comes into the actual care of the employee; and
• in the case of an adoption, on the day the child comes into the actual care of the employee.

If the child is hospitalized, the parental leave period can be extended up to a total of 104 weeks.

Employers are not required to pay employees during parental leave. The employee may, however, be eligible for benefits under the federal Employment Insurance program.

Bereavement leave. Employees are entitled to bereavement leave of ten days immediately following a death in the employee’s family. The leave may begin on the day the death occurs and up to six weeks after the latest of the days on which any funeral, burial, or memorial service of the family member occurs.

Compassionate care leave. Employees are entitled to take leave to up to 28 weeks to care for a gravely ill family member certified by a medical practitioner to have a significant risk of death.

Critical illness leave. An employee who is a family member of a critically ill child or adult is eligible to take:

• up to 37 weeks of leave per year to provide care or support to the child under 18 years of age, and
• up to 17 weeks of leave per year to provide care or support to the adult.

Leave for victims of family violence. An employee who is the victim of family violence or the parent of a child who is the victim of family violence is entitled to up to 10 days of leave per year in order to:

• seek medical attention for the employee or the child,
• obtain services from an organization servicing victims of family violence,
• obtain psychological or other professional counselling,
• relocate temporarily or permanently,
• seek legal or law enforcement assistance,
• prepare for or participate in a legal proceeding, or
• take measures prescribed by regulation.

The employer can require that the employee provide documentation to support the reasons for the leave within 15 days of returning to work following the leave.

Personal leave. Employees are entitled to up to 5 days of personal leave per year to:

• take care of health obligations for any family member or care for them;
• take care of obligations related to the education of any family member under age 18;
• manage any urgent situation that concerns the employee or their family member;
• attend their citizenship ceremony under the Citizenship Act; or
• manage any other situation prescribed by regulation.

Employee may take this leave over more than one period; however, the employer may require that each period be at least one day. The employer may request that the employee provide supporting documents concerning the reasons for the leave.

Murdered and missing children. Employees are entitled to up to 156 weeks of leave to cope with the death or disappearance of their child that may be due to a crime.

Reservist leave. Employers under federal jurisdiction are required to give unpaid leaves of absence to employees with at least three months’ service who are reservists in the Canadian Armed Forces for purposes of annual training or to take part in activities in Canada or abroad.

Leave for traditional Aboriginal practices. Employees who are an Aboriginal person are entitled to take five days per calendar year to engage in traditional Aboriginal practices including hunting, fishing, and harvesting. Employers can require employees to provide documentation that shows the employee is an Aboriginal person within 15 days of the employee returning to work following the leave.

Court or jury duty leave. Employees are entitled to unpaid leave to fulfill required jury duty or court duty. There is no limitation on the length or frequency of jury or court leaves.

Pensions and Social Security

Employees under federal jurisdiction are covered by either the federal Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP). The CPP covers employees in all provinces and territories other than Quebec, while the QPP applies to residents of that province.

The standard age for beginning to receive Canada Pension Plan benefits is 65, although individuals may choose to begin receiving reduced benefits at age 60 or delay receiving benefits until 70, in which case benefits are proportionally increased.

Workers’ Compensation

There is no general federal scheme of no-fault workers’ compensation legislation such as is found in all the provinces and territories. The Canada Labour Code, however, requires federally regulated employers to subscribe to a plan that provides their employees with wage-replacement payments equivalent to those found in the workers’ compensation legislation of the province or territory in which the employee resides.

The Canada Labour Code provides for an employee’s return to the position held at the time the absence due to the work-related injury or sickness began—or to an equivalent position if the employee is no longer able to perform the duties of that position—and safeguarding benefit, pension, and seniority rights during the period of absence.

Reference Citations

Vacation: Canada Labour Code, R.S.C. 1985, c L-2, §§ 183 to 190 Canada Labour Standards Regulations, C.R.C., c 986, §§ 12 to 14

Holidays: Canada Labour Code, R.S.C. 1985, c L-2, §§ 191 to 201; Canada Labour Standards Regulations, C.R.C., c 986, §§ 15 to 16; Canada Federal Labour Standards

Maternity Leave: Canada Labour Code, R.S.C. 1985, c L-2, §§ 204 to 206.2, 207, 207.1, 208 to 209.4; Canada Labour Standards Regulations, C.R.C., c 986, § 17

Paternity Leave: Canada Labour Code, R.S.C. 1985, c L-2, §§ 206.1, 207, 209 to 209.4

Sick Leave: Canada Labour Code, R.S.C. 1985, ch L-2, § 239 Canada Labour Standards Regulations, C.R.C., c 986, § 33.1

Other Leave: Canada Labour Code, R.S.C. 1985, c L-2, §§ 206.1, 206.3 to 207.3, 209 to 209.4, 210, 239, 247.5 to 247.97; Canada Labour Standards Regulations, C.R.C., c 986, §§ 17, 33

Pensions and Social Security: Canada Pension Plan

Workers’ Compensation: Canada Labour Code, R.S.C. 1985, c L-2, § 239.1; Canada Labour Standards Regulations, C.R.C., c 986, § 34

Labor Relations

In General

Under the constitution and various labour laws, Canadian employees have the right to form and join unions, to bargain collectively, and to strike.

Right to Organize

The labor relations system in all Canadian jurisdictions is one in which collective bargaining takes place between a single employer and the union recognized or certified as the exclusive bargaining agent for a group of the employer’s employees who form a bargaining unit. Unions are certified as exclusive bargaining agents by the labor relations boards created by each jurisdiction’s labor relations statute if they show they have the support of a majority of the employees in the proposed bargaining unit. Majority support may be determined following a vote by the employees or on the basis of membership cards, depending on the jurisdiction.

When a union is certified or recognized as the exclusive bargaining agent, the union, and the employer are required to negotiate in good faith with a view to entering into a collective agreement. Collective agreements are required to have a term of at least one year in all Canadian jurisdictions. Labor relations statutes in all Canadian jurisdictions prohibit strikes or lockouts during the term of a collective agreement and require that all disputes concerning the interpretation or application of the collective agreement be resolved by binding arbitration.

These statutes also prohibit certain actions by employers or unions as “unfair labor practices.”

Provinces have exclusive legislative power over labor relations in industries coming under provincial jurisdiction. Federal labor relations legislation applies only to industries coming under federal jurisdiction.

Works Councils

The Canada Labour Code does not address works councils.

Dispute Resolution

The Canada Industrial Relations Board has the power to issue binding decisions on the certification of unions as exclusive bargaining agents, unfair labor practice complaints, bargaining in bad faith complaints, successor rights in case of dispositions of all or part of a business and complaints of illegal strikes or lockouts.

The Federal Mediation and Conciliation Service provides mediation services at the request of either the union or the employer to assist the parties in reaching a collective agreement. The Federal Minister of Labour also has discretion to name a mediator. Mediation is one of a number of steps, including good faith collective beginning, required before parties are in a position to engage in a legal strike or lockout.

Strikes and Lockouts

Strikes and lockouts are only permitted in limited circumstances in industries coming under federal jurisdiction.

Federal employers and trade unions must negotiate essential service agreements before a strike or lockout may occur if any of the employees in the bargaining unit perform such services. If the parties are unable to agree on which positions come within the scope of essential services, the Canada Industrial Relations Board may resolve the issue.

Successorship Clauses

If an employer sells a business, the trade union that is the bargaining agent for the employees employed in the business continues to be their bargaining agent. Also, the entity to whom the business is sold is bound by any collective agreement that is, on the date on which the business is sold, applicable to the employees employed in the business.

Reference Citations

Right to Organize: Canada Labour Code, R.S.C. 1985, c. L-2, part I, preamble, § 8

Dispute Resolution: Canada Labour Code, R.S.C. 1985, c L-2, §§ 9 to 23.1, 44 to 47.3, 71 to 87, 91 to 93, 97 to 99.1

Strikes and Lockouts: Canada Labour Code, R.S.C. 1985, c L-2, §§ 87.1 to 93

Successorship Clauses: Canada Labour Code, R.S.C. 1985, c L-2, §§ 44 to 47.3

Safety, Health and Security

In General

Federally regulated employers must establish a health and safety committee for each of their workplaces with 20 or more employees to participate in the development of an occupational health and safety program for the workplace.

Effective Oct. 1, 2022, travelers entering Canada no longer need to provide proof of vaccination, undergo testing, quarantine or isolation, or submit public health information to the government’s app or website.

On Oct. 6, 2021, the government announced that employees in the federally regulated air, rail and marine transportation sectors will be required to be fully vaccinated against Covid-19. In addition, effective October 30, 2021, all travellers using these modes of transportation are required to be fully vaccinated against the virus.

Workplace Safety and Health

The occupational health and safety provisions of the Canada Labour Code and related regulations set out a comprehensive set of standards aimed at ensuring workplace safety in industries under federal jurisdiction. These include industry-specific technical standards and safe-working procedures. Prevention of workplace violence and harassment is considered a facet of occupational health and safety.

Federally regulated employers must establish a health and safety committee for each of their workplaces with 20 or more employees. The committee must be composed of equal numbers of managerial and nonmanagerial employees. When the latter are unionized, the union names the nonmanagerial employee representatives. The committee is empowered under the code to participate in the development of an occupational health and safety program for the workplace, monitor occupational health and safety matters, and deal with occupational health and safety complaints. The committee may also participate in investigating incidents related to health and safety.

Federally regulated employers with 300 or more employees must establish a policy health and safety committee as well as a health and safety committee; employers with 21 to 299 employees may do so. The membership of the policy health and safety committee is determined in the same manner as that of the health and safety committee. The duties of such committees resemble those of health and safety committees but place greater emphasis on participation in developing workplace occupational health and safety policies.

The Canada Labour Code provides for fines for employers or individuals guilty of violations of its safety provisions.

Harassment and Violence

Employers must establish workplace harassment and violence prevention policies. The policies must be based on a risk assessment and can vary from employer to employer.

Depending on the size of the organization, the risk assessment and policy must be developed with the health and safety representative, workplace committee, or policy committee.

Employers can be fined up to C$250,000 for violating the harassment provisions in the Labour Code.

Drug and Alcohol Use

Employers under federal jurisdiction have obligations under the Criminal Code and the occupational health and safety provisions of the Canada Labour Code to maintain safe work places. Particularly where a workplace is inherently dangerous, employers may establish rules prohibiting impairment by drugs or alcohol.

Under the Canadian Human Rights Commission’s Policy on Alcohol and Drug Testing, testing may take place where an employer has reasonable grounds to believe that a particular employee may be impaired or as part of a general policy of testing all employees involved in a safety-related incident.

In general, random alcohol and drug testing is not permitted in most workplaces. However, random testing may be permissible for employees in inherently dangerous workplaces if the employer demonstrates the existence of a widespread problem of drug or alcohol impairment among those employees. Testing of a particular employee on a random basis may also be permissible as part of a return-to-work program for an employee following treatment for drug or alcohol dependency.

Employers may impose disciplinary sanctions, including termination in some cases, on employees who are impaired by drugs or alcohol at work. If an employee is addicted to alcohol or drugs, the addiction is considered a disability under federal human rights legislation. Such a disability imposes a duty on the employer to accommodate the employee up to the point of undue hardship for the employer.

Reference Citations

Workplace Safety and Health: Canada Labour Code, R.S.C. 1985, ch. L-2, §§ 124 to 125.2, 126 to 137, 138 to 162

Harassment and Violence: Work Place Harassment and Violence Prevention Regulations

Drug and Alcohol Use: Canadian Human Rights Act; Canadian Human Rights Commission’s Policy on Alcohol and Drug Testing

Termination

Termination by Employer

The Canada Labour Code requires employers to give employees with at least three months’ service two weeks’ notice in advance of termination or two weeks’ pay in lieu of notice. In addition to this termination pay, employees with at least 12 months’ service are entitled to two days’ pay per year of service but no less than five days’. These requirements do not apply if the termination is for cause.

Notice periods in federally regulated industries are minimums. Under the common law in provinces and territories and the Civil Code in Quebec, employees will frequently be entitled to much longer periods of notice or equivalent pay in lieu of notice.

Litigation of employment law claims in federally regulated industries takes place in the provincial courts.

Non-unionized employees in federally regulated industries who do not exercise powers of a senior managerial nature and have at least 12 months’ service with the employer may also file a complaint of unjust dismissal with a Labour Canada inspector. “Unjust dismissal” does not include a layoff for lack of work.

The inspector must file a report with the federal Minister of Labour on the complaint and may require the employer to state the reasons for the dismissal. The minister may name an adjudicator to hear the wrongful dismissal complaint. The adjudicator can order the employee reinstated if the employee is found to have been wrongfully dismissed and may order compensation for lost wages and other expenses incurred by the employee.

Under the common law in all provinces except Quebec and under the Quebec Civil Code in that province, either an employer or an employee may terminate an employment contract that has no fixed term on giving reasonable notice in advance to the other party. Employers may and frequently do give pay in lieu of notice. An employer may also terminate employment for cause without notice. Economic reasons will not permit termination of an indefinite term contract without reasonable notice or pay in lieu of notice.

Employees may also be hired for a fixed term. In such cases, an employer putting an end to the contract before it expires will normally have to pay the employee the wage owed for the balance of the term unless cause exists for a summary dismissal of the employee. Economic reasons do not constitute cause for ending a fixed-term contract before its expiration.

Whistleblowing. Employers cannot dismiss, demote, discipline, harass, or deny employment to individuals who provide information to the Competition Bureau about possible violations of the Competition Act. Whistleblowers also are protected by other laws, including the Criminal Code, that make it an offense for an employer to take disciplinary measures, or to threaten to do so, because the employee has provided or will provide information to someone who enforces federal law.

Plant Closings and Mass Layoffs

Where an employer under federal jurisdiction terminates the employment of 50 or more employees within a period of four weeks, it must give 16 weeks’ advance notice of the layoffs to the Ministry of Labour, the Canada Employment Insurance Commission and any union representing employees to be laid off, as well as post a notice in the workplace.

The notice must specify the date on which the employer intends to terminate the employment of the workers and the estimated number of employees in each occupational classification whose employment will be terminated.

A joint employer/employee planning committee must be established when a mass termination occurs. Half the members are representatives of the affected employees, each union representing affected employees naming one member of the committee. The committee’s object is the development of an adjustment program to either make the layoffs unnecessary or reduce their impact on the affected employees. The Canada Labour Code has provisions for the Minister of Labour to name an arbitrator to settle any matters on which the committee is unable to agree.

Payment on Termination

An employee under federal jurisdiction qualifies for severance pay after completing at least 12 consecutive months of continuous employment with an employer. Layoffs that are not a termination of employment and absences permitted by the employer do not interrupt the continuity of employment. Under the Labour Code, severance pay is calculated as two regular working days’ pay for each completed year of employment with a minimum payment of five days’ pay. Employees dismissed for just cause are not eligible for severance pay.

Unemployment Insurance

Unemployment insurance is a federal responsibility and the federal Employment Insurance Act applies to all employees in Canada. The unemployment insurance fund set up under the act provides benefits to temporarily unemployed workers and to employees taking maternity, paternity, or parental leave.

Employees who are resident in Quebec are covered by the Quebec Parental Insurance Plan for maternity, paternity, and parental leave, which covers employees in both federally and provincially regulated industries in that province.

Both employers and employees make contributions at a rate set at an amount per C$100 of insurable earnings, which is reviewed annually. Insurable earnings, on which unemployment insurance premiums and payments are based, are also revised annually.

Employees must generally have worked from 420 to 700 hours in the year preceding the claim to be eligible for unemployment insurance benefits.

Reference Citations

Termination by Employer: Canada Labour Code, R.S.C. 1985, c L-2, §§ 230 to 234

Plant Closings and Mass Layoffs: Canada Labour Code, R.S.C. 1985, c L-2, §§ 211 to 229; Canada Labour Standards Regulations, C.R.C., c 986, §§ 26 to 28

Payment on Termination (Severance Pay): Canada Labour Code, R.S.C. 1985, c L-2, §§ 235 to 237; Canada Labour Standards Regulations, C.R.C., c 986, §§ 30 to 31

Unemployment Insurance: Employment Insurance Act, S.C. 1996, c 23 § 7; Employment Insurance Regulations, SOR/96-332

Personal Taxes

Residency Requirements

An individual is considered a resident for tax purposes if he or she has residential ties in Canada. Residential ties include a home or personal property, a spouse or common-law partner, and dependents and social or economic ties.

An individual without residential ties to Canada may also be deemed a resident if they were temporarily present in Canada for 183 days or more in a tax year.

Taxable Income

Individuals resident in Canada during a tax year are subject to Canadian income tax on their worldwide income from all sources. A nonresident is generally only subject to Canadian tax on income from Canadian sources.

Tax Rates

Canada’s federal income tax rates are levied on a progressive scale, with rates ranging from 15 percent to 33 percent. In the country’s progressive income tax system, portions of an individual’s income are allocated to the country’s personal income tax brackets, and each portion of income allocated to a tax bracket is taxed at the tax rate applicable to that tax bracket.

The federal rates and bands differ from those of the provinces and territories and the provincial and territorial rates and bands likewise differ amongst themselves.

Employers must withhold two types of social insurance contributions from wages, as well as adding their own contributions to the insurance fund. With very few exceptions, employers must deduct Canada Pension Plan (CPP) contributions from employee earnings if the employee is over the age of 18 but younger than 70.

Employers must deduct Employment Insurance (EI) premiums from all employees, regardless of age or pension status.

Reference Citations

Residency Requirements:

Income Tax Act, R.S.C. 1985, c 1, § 250; Income Tax Regulations, C.R.C., c 945

Taxable Income:

Income Tax Act, R.S.C. 1985, c 1; Income Tax Regulations, C.R.C., c 945

Tax Rates:

Canadian Income Tax Rates for Individuals

Web References

Laws and Regulations

Canada Labour Code

CanLII (federal and provincial statutes)

Canadian Human Rights Act

Canadian Human Rights Commission’s Policy on Alcohol and Drug Testing

Employment Insurance Act

Income Tax Act

Personal Information Protection and Electronic Documents Act

Government Websites

Canada Pension Plan

Canada Industrial Relations Board (union certification, collective bargaining, unfair labor practice complaints)

Canadian Human Rights Commission (human rights, complaints, information on federal human rights legislation)

Federal Labour Standards (information on labour standards applicable to federally regulated employers)

Federal Mediation and Conciliation Service (mediation and conciliation services for federal employers)

The Quebec Pension Plan (Quebec pension plan information)

Service Canada (employment insurance, CPP)