LABOR LAWS IN CANADA

1. Vacation and General Holiday,
Pay Administration, Genetic
Testing, Sexual Harassment,
Compliance Approach and Wage
Recovery

2. • Canada Labour Code – Part III
• The primary objective of Part III of the Canada Labour Code is to establish and protect workers’ rights to fair and equitable conditions of employment.
• Only applies when an employee/employer relationship exists.
• Makes no distinction between part-time, full-time, seasonal, permanent or casual employment, and protects temporary foreign workers.
• Applies notwithstanding any other law, custom, contract or arrangement.
• Conditions of Employment
• The Code sets the minimum standards of employment. Employers are permitted to offer terms and conditions of employment that exceed what the
Code requires.
• Employer – Employee Relationship
• In order to be covered by the Code, an employer-employee relationship must exist. Independent contractors may not be considered employees. An
investigation by a Labour Program inspector may be required to establish if an employer-employee relationship exists to determine if the provisions of
the Code apply.
• Full-time, Part-time, and Casual Employees
• The Code makes no distinction between full-time, part-time or casual employees. All are covered by the Code’s labour standards if the employees
meet the qualifying requirements.
• Temporary Foreign Workers
• Temporary Foreign Workers employed by federally regulated employers are protected by and have full entitlements provided under the provisions of
Part III of the Canada Labour Code.

3. • Minimum Age - Employment under 17
Employers can employ persons under the age of 17 as
to endanger safety or health.Work is not underground, in
otherwise prohibited by law.Employee is not required by
attend school.Employee does not work between 11:00

4. • Hours of Work – Excluded Professions
ArchitecturalDentalEngineeringLegalMedicalManagers, superintendents or
those who exercise management functions

5. • Hours of Work – General Standard Hours: 8 in a day and 40 in a week
Overtime Pay: not less than one and one-half times the regular rate of
weekMaximum hours may be exceeded with Ministerial permit or due to an
modified schedules provide for weekly flexibility.Time-off in lieu of paid overtime
Program’s position is that time off in lieu of pay for overtime hours is allowed as
is provided at time plus half (1.5)Where an averaging plan or modified work
maximum hours of work continue to be 48 hours per week. Where an averaging
schedule is in place, the maximum hours may exceed 48 hours per week, but
48 hours over the period of the schedule (i.e. two or more weeks).Additional
and modified schedules is explained on slide 11Commissioned employees in
Banking Industries1) Employees working as commission-paid salespeople who
industry are exempt from the application of sections :169 – standard hours of
work; and174 – overtime pay.2) Employees working as commission-paid
the radio and television broadcasting industry are exempt from the application of
hours of work;173 – scheduling of hours of work; and

6. • Hours of Work – Modified Schedules
Where no collective agreement:Subject to approval by at least 70% of
(Schedule III) must be posted for at least 30 days before modification
compressed work weeks and flexible hours of workTwo types of modified
gives employers flexibility over standard hours of work (e.g. 8 hours/day,
modified schedule, the employer may schedule more than 8 hours / day
overtime rates.If the modified schedule is spread over two or more weeks,
must average 40 or less or overtime rates will apply.Section 172: gives
over standard hours, but also provides flexibility over maximum hours of
modified schedules, the average hours scheduled over the duration of the
hours or less.Modified Schedule:Notice – Schedule IIIAny changes to
same requirements.70% approval rate is required where employees are
agreementIf covered by a collective agreement do not need to post
approval

7. • Minimum Wage – General Entitlement
The Code adopts the provincial minimum hourly wage -
ageSpecial provisions for Apprentices and
room and board are providedApprenticeship program must be
provisions under the Canada Labour Standards Regulations
who are being trained as apprentices in accordance with the
acts.Those enrolled in an apprenticeship program will be paid
the schedule of rates established under the applicable
Program Internet site lists all minimum wage rates (Minimum

8. • Minimum Wage – Reporting Pay
Employee reports to work at the call of employerUnscheduledEmployee must be paid
equivalent of three hours’ wagesApplies whether or not employee is asked to do any work
048 – Reporting PayThe purpose of reporting pay is to ensure that all employees who are
are no regularly scheduled hours or outside their regularly scheduled working hours,
the out-of-pocket expenses and other costs incurred by having to report to
called back to work after the employee has left the workplace following the completion of
called in outside regularly scheduled hours (i.e., days off, vacations, public holidays),
there are no regularly scheduled working hours.The fact that an employee is "on call" or
working hours is not enough to trigger the reporting pay provision.However, when
be aware of the principle that an employee must have been away from the work place and
place in order to receive reporting pay.An employee reporting to work shall be paid for a
regardless of whether or not the employee performs any work after reporting to the work
performs no work, or works for less than three hours, he must still receive three hours pay
however, if the employee works for more than three hours, then he will be paid for each

9. • Annual Vacation – General Entitlement
Two entitlements – vacation leave and vacation payAfter
service:Two weeks vacation leave with 4% of wages as
years of service:Three weeks vacation leave with 6% of
pay.Section 183 of the Code defines the year of
12 consecutive months beginning with the date the
unless the employer sets a different year of
Standards Regulations provide how the employer may set
employment.Provisions exist also for employers who use
employment (fiscal year).

10. • Vacation Leave – General Provisions
Vacation must be granted not later than 10 months after
year entitling the employee to the
waive or postpone right to vacation time, in writing;Still
vacation pay

11. • Vacation Pay Vacation pay is payable on wages.
Must be paid within 30 days of termination of employment.Wages-
Overtime pay;-General holiday pay;- Bereavement leave pay;- Some
pay.Exclusions- Pay in lieu of notice (termination pay);- Severance
dismissal settlements.Vacation pay is normally paid to the
the commencement of a vacation. However, vacation pay may be
immediately following vacation, if that is the established practice in
workplace.Bonuses: If an employee is entitled to a bonus/allowance
employment contract (e.g. commission on sales, northern
production bonuses), these are considered wages for the purpose
pay.For more information on the calculation of vacation pay, please
Vacation Pay.

12. • General Holidays The Code provides for nine general
holidays:
New Year’s DayGood FridayVictoria DayCanada DayLabour
DayRemembrance DayChristmas DayBoxing Day

13. • General Holiday with Pay - Eligibility
30 Days of EmploymentOther than the 30-day
employees do not need to work a specific number of
the holiday in order to qualify for holiday pay.Part-time
same entitlement to a paid holiday as full-time
proportional to the number of hours they work.

14. • Required to Work on a General Holiday
Majority of Employeesholiday pay for that day, andpaid at
least one and one-half times their regular rate of wages
that dayManagers and Professionalsnormal rate of pay,
with pay at another time

15. • Holiday Pay – Not Required to Work
Equal to at least one twentieth (1/20th) of the wages, excluding overtime pay that they
immediately before the week in which the general holiday occurs.Common FormulaApplies
commission (in whole or in part)12 weeks continuous employment: will be paid holiday
(1/60th) of the wages, excluding overtime pay, that they earned in the 12-week period
which the general holiday occurs.Less than 12 weeks continuous employment: use the
based FormulaLongshoring IndustryIt is common for employees working in the
different employers (an employer’s association or multi-employer unit) during a pay
employees is equal to at least one twentieth (1/20th) of the total number of hours worked,
during the four-week period before the week in which the holiday occurs multiplied by the
wages.In the longshoring industry, there is an exception for situations where an employee
association and also performs work for another employer who is not a member of the
holidays, that other employer must pay the employee, on each pay day, an amount equal
wages times the number of hours worked for that pay period.

16. • Payment of WagesEmployers must establish pay days at least once every 30 days
and pay employees on these pay days.Employees are entitled to receive any other
amounts to which they are entitled within 30 days from the time when the
entitlement arose.On termination of employment, employees are entitled to be
paid:any vacation pay then owing by the employer to the employee under this
Division in respect of any prior completed year of employment; and(b) four per cent
or, if the employee has completed six consecutive years of employment by one
employer, six per cent of the wages of the employee during any part of the
completed portion of their year of employment in respect of which vacation pay has
not been paid to the employee.

17. • Administration and General – Deductions from Pay
An employer cannot make deductions, except as permitted under the Code.Permitted
by federal or provincial law (i.e. taxes, CPP and EI),deductions authorized by a court order
garnishment or by a collective agreement such as union dues,specific amounts authorized
employee,overpayments of wages.The department’s position is that employers may not
they are owed without the employee’s written authorization, signed at the time the
Deductions from wages or other amounts due to an employeeParagraph 254.1(2)(c),
the employee", requires a written authorization by the employee agreeing to the deduction
deduction made, the authorization must be in writing, specify a particular sum, and be
consensual.Discuss: Blanket Authorities254.1 (1) No employer shall make deductions from
to an employee, except as permitted by or under this section.Permitted deductions(2) The
are(a) those required by a federal or provincial Act or regulations made
or a collective agreement or other document signed by a trade union on behalf of the
writing by the employee;(d) overpayments of wages by the employer; and(e) other

18. • Administration and General – Deductions from Pay (cont’d)
No employer shall make a deduction in respect of damage to
property, if any person other than the employee had access to the
question.GarnishmentAn employee cannot be dismissed,
or demoted because garnishment proceedings may be or have been
them.Damage or loss(3) Notwithstanding paragraph (2)(c), no
that paragraph, make a deduction in respect of damage to
property, if any person other than the employee had access to the
question.It should be noted that the Canada Labour Code only
an employer may make a deduction from wages or other amounts;
seek to regulate the items or costs for which an employee may be

19. • Pay StatementEmployer is required to furnish the employee with a statement in
writing setting out:the period for which a payment is made;the number of hours for
which the payment is made;the rate of wages;details of the deductions made from
the wagesactual sum being received by the employee.Electronic pay statementsIn
order to satisfy the requirement that a pay statement shall be in writing, an
electronic document must satisfy the following conditions:(a) the document must be
provided to the employee by making it available only to the employee through an
electronic source, such as a web site, that is accessibleto the employee and whose
location is made known to the employee;(b) for a period of at least three years from
the day on which the document is first provided to the employee, the document must
be readable and printable ona computer and printer to which the employer shall
provide.

20. • Record KeepingEmployers are required to keep a record of the employee’s dates of employment (i.e. start
and end dates) for at least 36 months after the date of termination of employment.Other payroll records,
including rates and frequency of remuneration of wages (e.g. hourly, weekly, etc.), must be kept for at least
three years after the employee performs the work.An outline of the Code requirements must be posted in the
work place. (Schedule II).Review Regulation 24(2)Other employee information that must be kept for at least
three years after the work is performed include:The employee’s nameAddressSocial Insurance
NumberOccupational classificationSexAge (if employee is under the age of 17 years)If the employee is paid
on a basis other than time or a combination of methods, the employer must also keep records on the hours
worked each day (exclusions exist e.g. management employees, professionals, etc.)Actual earnings –
amounts paid each pay day, including breakdown of amounts paid for overtime, vacation pay, general holiday
pay, bereavement leave pay, termination pay and severance pay.Payments made each pay day after
deductions, including details of deductions made.Details of other record keeping requirements can be found
in Regulation 24 and in the labour standards pamphlet #14 – Keeping of Records.Furnishing of
Records:Employers must furnish records related to employees’:WagesHours of workGeneral holidaysAnnual
vacationsConditions of work

21. • Compliance Approach Promote, counsel and educate
Investigation of complaints – monetary and non-
standards’ enforcement activities follow a compliance
education and raising awareness to prosecutions and
(proactive and reactive), performed by Labour Program
compliance with the Code. The proactive activities (e.g.,
inspections) aim to educate all workplaces and to protect
reactive activities (e.g., investigations) are complaint driven.
complaints for wages, vacation pay and general holiday as well
complaints for hours of work, pay statements and potential

22. • Complaints HandlingComplaint must be made, in writing, within 6 months of the day the employee
should have normally been paid (Monetary) or the day that the subject matter of the complaint
arose (Non-Monetary)Inspectors’ powers expanded to include the ability to reject a complaint under
specific circumstances.There are eight grounds by which an inspector can reject a complaint, in
whole or in part, pursuant to s :The complaint was not within their jurisdiction.The complaint is
frivolous, vexatious or not made in good faith.The complaint was settled.There are other means
available to resolve the subject matter of the compliant that should be pursued.The subject matter
of the complaint has been dealt with through other legal recourse.In a non-monetary complaint,
there is insufficient evidence to substantiate the complaint.The subject matter of the complaint is
covered by a collective agreement and there is recourse available to the complainant.Following the
suspension of the complaint, it is determined that required actions were not taken by the
complainant within the specified time period.

23. • Investigating a Complaint
An employer may be requested to provide the inspector with certain types
assist in the investigation of the complaint.Inspector will make a
entitlements are owing.Parties will be informed and will be afforded an
additional information.If entitlements are determined as owing, the
opportunity to voluntarily comply. If voluntary compliance cannot be
escalate the investigation to achieve compliance through enforcement, up
prosecution.Certain types of documents include documents related to the
of workGeneral holidaysAnnual vacationsConditions of workAssurance of
(AVC) is an employer's voluntary written commitment to a labour
monetary or non-monetary violation of the Code will be corrected within