Important update for all federal employers! Amendments to the Canada Labour Code are now in force as of February 1, 2024. Do you fall into this category? And if so, what does this mean for you?
Federal Employers
As we’ve discussed in a previous blog, the Canada Labour Code is a federal law which sets out minimum employment standards for sectors that fall under federal power.
These are generally sectors that go between the provinces, for example, air travel, railways and road transportation. It also applies to the telecommunications sector, banks, and federal Crown corporations. Generally, operations that do not span cross-provincially are governed by local provincial employment standards.
Background
In 2018, in an attempt to modernize Canada’s federal employment standards, the government introduced various amendments to the Canada Labour Code. Last summer, some of these amendments came into effect including, a requirement to reimburse employees for reasonable work-related expenses and the requirement to provide employees with certain employment information (including, government information and statements of an employee’s employment).
Now, as of February 1, 2024, further changes have come into effect.
Longer Termination Notice Entitlements
Before February 1, 2024, federal employers were only required to provide employees with two weeks’ notice of termination, no matter an employee’s length of service. Now, federal employers will follow a graduated notice entitlement structure based on years of service, similar to what we see in provincial legislation. Termination notice owed will now increase based on an employee’s continuous length of service with their employer. See below for reference:
| Length of Employment | Notice Entitlement |
| At least 3 months, up to 3 years | 2 weeks |
| At least 3 years, up to 4 years | 3 weeks |
| At least 4 years, up to 5 years | 4 weeks |
| At least 5 years, up to 6 years | 5 weeks |
| At least 6 years, up to years | 6 weeks |
| At least 7 years, up to 8 years | 7 weeks |
| 8 years or more | 8 weeks |
Statement of Benefits
Federal Employers are also now required to provide terminated employees with a statement of benefits. These statements must include an employee’s right to vacation benefits, wages, severance pay, and any other benefits and pay arising from their employment.
Takeaways
With these amendments already in effect, employers should take extra care to ensure compliance with the Canada Labour Code when terminating employees. Employers should also ensure their employment contracts are up to date – especially the termination provisions!
Do you have questions about recent legislative changes? Get in touch for a consultation.
