Employment Law for Federally Regulated Employees in Canada |
For employees who work for employers that are federally regulated, employment law standards are set out in the Canada Labour Code. This is equivalent to the Employment Standards Act, 2000, which applies only to non-unionized employees in Ontario whose employer is regulated by provincial law (which is the vast majority).
The Canada Labour Code is a federal law passed by the Parliament of Canada that defines the rights and responsibilities of workers and employers in federally-regulated industries and workplaces. In other words, the Canada Labour Code establishes the minimum standard rights that all employees in federally-regulated workplaces have, and their employers’ obligations (see below).
Who is Covered by the Canada Labour Code?
The Canada Labour Code only applies to employers (and employees) where the industry and workplace falls under federal jurisdiction, including:
- federal government
- federally-owned corporations (e.g., Canada Post, Via Rail)
- Parliament
- banks
- transportation companies that cross provincial and international borders
- radio and television broadcasters
- air transportation (airlines, airports)
- railway companies that cross provincial and international borders
- telecommunications companies (Rogers, Telus, Bell, etc.)
For more information and an overview of when the Canada Labour Code applies, visit this site.
Minimum Federal Employment Rights
Part 2 of the Canada Labour Code sets out the occupational health and safety rules to prevent workplace injuries and accidents.
Part 3 of the Canada Labour Code sets out the minimum protections, labour standards and conditions of employment for workers regarding hours of work, wages, vacation and holidays.
It is important to note that the Canada Labour Code only talks about the minimum rights/protections employees have – if they have signed a valid employment contract limiting their entitlements. If not, they are protected by much greater common law, including upon termination of employment, where their severance package will be determined based on their age, years of service, position and availability of similar employment.
Part 2 – Occupational Health and Safety
The Canada Labour Code provides an employee with 3 basic rights:
1. The Right to Know
Employees have the right to be know about all workplace hazards/dangers, and to be provided with the information, instruction, training and supervision necessary to protect their health and safety.
2. The Right to Participate
All employees have the right to become a workplace health and safety representative, including participating in efforts to identify and correct job-related health and safety concerns.
3. The Right to Refuse Dangerous Work
Employees have the right to refuse dangerous work if he or she has reasonable cause to believe that:
(i) a condition exists at work that presents a danger to himself or herself;
(ii) using or operating a machine or thing creates a danger to the employee or a co-worker; and
(iii) performing an activity creates a danger to the employee or to another employee.
However, in order for an employee to be protected by the Canada Labour Code when exercising the right to refuse, the employee must follow the proper procedure.
Part 3 – Minimum Federal Employment Standards of Work
To benefit from the minimum employment rights under the Canada Labour Code, workers must be employees – not Independent Contractors (to learn more information about the difference between an employee vs. independent contract, read this blog).
Once a worker establishes they are an employee, it does not matter whether they are employed full-time, part-time or casually, and all employees are covered by the Canada Labour Code labour standards for:
Hours of Work and Overtime Pay Rules
- 8 hours per day/40 hours per week (employees must be paid 1.5 X regular wage rate for each hour worked beyond 40/week)
Minimum Wage
- the same as the provincial minimum wage set by the Employment Standards Act
Vacation
- minimum of: 2 weeks of vacation time off/year and 4% vacation pay (employees less than 5 years on the job), and 4 weeks of vacation time off/year and 6% vacation pay (employees 5 years or more on the job)
Holidays
- 9 standard holidays off, and employees must be paid 1.5X regular wage rate for holidays worked)
Leaves of Absence
- maternity leaves, parental leaves, compassionate care leave, personal leave, work-related injury
Payment of Wages
- must be paid by no later than 30 days from when owed (or earlier if agreed)
Rights on Termination of Employment for Federally-Regulated Employees
- Termination of Employment: minimum of 2 weeks written notice of termination, or 2 weeks pay in lieu of notice (except if employee is terminated for “just cause” or did not complete 3 months of probation)
- Severance Pay: 2 days of pay for each year of service (if complete 1 full year with employer)
These basic standards are intended to create a fair balance between employees’ basic protections and employers’ ability to operate their workplace as they see fit. Further, these are minimum standards that must apply no matter what – even if both an employee and employer agree to do so in an employment contract, they cannot operate below these conditions. If they attempt to do so, such as by providing less than the required notice of termination and severance pay, it would be deemed a wrongful dismissal claim resulting in the employee awarded greater severance compensation (severance package).
If employees believe their employer has not provided their basic workplace rights under the Canada Labour Code, they may be able to bring a timely federal labour standards complaint:
- Unjust Dismissal Complaint – must be filed within 90 days of their dismissal from employment
- Monetary (unpaid wages) Complaint – must be filed within 6 months when it became owing
- Reprisal Complaint – must be filed with the Canada Industrial Relations Board within 90 days of the date of the reprisal
- Other Complaints – must be filed within 6 months of when the employee was aware of the issue
Unjust Dismissal
If an employed is dismissed from their employment after working continuously with the same federally regulated employer for 12 or more, they can challenge their dismissal by filing a written unjust dismissal complaint (outside of court), as long as they are (i) not a manager and (ii) not unionized. If successful, the usual remedy for unjust dismissal is reinstatement to the role. However, the complaint must be filed no later than 90 days from the date of the dismissal.
Exceptions under the Canada Labour Code
The Canada Labour Code excludes some employees from certain types of benefits/protections, including:
- managers who are not covered by the unjust dismissal protections
- managers, superintendents, architects, dentists, doctors, lawyers and engineers, who are not covered by the hours of work/overtime rules
Contact Bune Law for Help
At Bune Law in Toronto, you will be provided with experienced legal advice on a wide variety of employment matters, including what steps to take if your employment was terminated for cause. Our employment lawyer takes pride in a reputation for excellence in client service. Contact us online or at 647-822-5492 for a consultation.
If you are an employer, you should speak with an employment lawyer to discuss your options before making the decision to terminate employment and obtain the proper termination documentation for your employee.
If you are an employee who has been terminated with or without cause, you should seek legal advice even if you have a written employment agreement that appears to restrict your notice/severance entitlements. You may be entitled to more generous severance compensation under common law.
No matter which side you are on, our employment lawyer is constantly up-to-date with the law and ready to assist you. Don’t hesitate to reach out to Bune Law at 647-822-5492.
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