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Canada: Labor Code Reforms

Canada: Labor Code Reforms

In keeping with the changes taking place worldwide due to the pandemic, it becomes imperative that labour regulations require amendments to keep workplaces safe and healthy during such challenging times.

The Canadian government is taking steps towards setting labour standards that can help protect employers recruit and retain employees by ensuring that it improves work-life balance, allows employees to become eligible for entitlements, provide fair compensation for employees and enhance the administration of labour standards.

The amendments are as follows;

Leaves

Provisions related to leaves have come into effect since 1st September 2019. This provision allows employees to take personal leaves for five days with the first three days paid, provided that the employee has served for three months.

With regards to traditional practices, an employee is entitled up to 5 days; victims of family violence are entitled to claim up to 10 days with the first five days paid, provided they have served for three months. Employees are also entitled to leave in case of jury duty, bereavement and in case of medical reasons. It is imperative to note that, to claim medical leave, maternity or paternity leave, leaves in case of death or disappearance of a child or critical illness, an employee is no longer required to have completed a minimum employment period.

Provisions related to annual vacations and holidays have been made more flexible. Now, an employee can claim annual vacations in more than one period, subject to the approval of their employer; the amendment also allows for substitution of a public holiday for another day. Before the amendment, employees were eligible to 3 weeks of paid annual leave upon completing six years of service; this period has now been reduced to 5 years. Further, in the case of 10 years of service, an employee is entitled to 4 weeks of paid annual leave.

Wages

The amendments call for equal treatment with regards to wages.

  1. Employers are prohibited from making any discrimination concerning wages because of their employee status;
  2. When it comes to opportunities related to promotion, all employees are required to be informed about the same, regardless of their status;
  3. The employee is entitled to demand a review of wages from the employer, which the employer has to honour;
  4. Employees are entitled to make a complaint regarding wage recovery; and
  5. In the case of work-related expenses, employees have the right to reimbursement.

Termination

The new amendments support employees by providing them with a sense of financial security until they can transition to a new role.

In the case of group termination, employers must provide the employee with 16 weeks’ notice OR pay, while earlier it was a combination of the two.

In case of termination of 50 or fewer employees, the employer shall provide a two weeks’ notice OR pay while earlier it was eight-week notice OR pay.

Age of work

The minimum age of work in hazardous occupations has been increased from 17 to 18 years of age.

Pay Equity

Pay equity entails equal pay for equal work. Therefore, the amendment provides for measures that can ensure the same. These measures apply to; federal, private and public sectors, prime minister’s and minister’s office, and parliamentary workplaces. Regulations to this regard have been introduced for assent, being pre-published in the Canada gazette.

The regulations amending pay equity also call for transparency measures that address gaps in wages between women, indigenous people, persons with disabilities and minorities. This amendment is a significant step in acknowledging the wage gap issues worldwide. 

 

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