Canada Labour Code Amendments

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You may be aware that just a couple of months ago, specifically on June 22, 2017, Bill C-44, the Budget Implementation Act, 2017, No.1 received Royal Assent.

This Act makes a number of changes to the Canada Labour Code (the “Code”) that will impact federally regulated employers, both unionized and non-unionized.

Please note that a date has not yet been set for when these changes will become law.

A ‘GENERAL GUIDELINE’ TO THE PROPOSED KEY AMENDMENTS:

Administrative Monetary Penalties (Added to the Code)

  • Employers can now be penalized for up to and including $250,000 under this section, and any officer, director, agent, or any other person with managerial or supervisory roles can be held liable for the penalty.
  • The specific Code provisions to which these penalties apply, and therefore the specific penalties will be identified in future Regulations.
  • The deadline for issuing a Notice of Violation is 2 years from the day on which the subject-matter of the violation arose.

Complaints Relating to Reprisals (Added to the Code)

  • Employees will be able to file a complaint with the Canada Industrial Relations Board (the “CIRB”) if they believe that the employer has taken reprisals against them for making a complaint pursuant to Part III of the Code, providing information to the Minister, the CIRB, or an inspector in exercising their duties under Part III of the Code, OR testifying in a proceeding or inquiry pursuant to Part III of the Code.
  • Such reprisals include, among other things: dismissing, suspending, laying off or demoting the employee, or imposing a monetary burden or penalty on the employee.
  • The time period for filing a complaint of retaliation is 90 days.

Inspector Orders

  • The authority of inspectors has been expanded. Inspectors will now issue compliance orders if they find an employer has not complied with Code provisions on standard hours, wages, vacations, and holidays.

Internal Audit

  • The Minister of Labour could order an employer to conduct an internal audit of its books, payrolls, and other records to determine whether the employer is in compliance with the Code provisions on standard hours, wages, vacations, and holidays.
  • The Minister may order the audit report to contain any data that the Minister deems appropriate.
  • Once the audit is complete, employers must submit the audit report to the Minister.

Unjust Dismissal

  • Unjust dismissal complaints that are not settled will now be referred to the CIRB, instead of an adjudicator for determination.

Unpaid Leaves of Absence:

Employees with a Newborn or Adopted Child

  • Female employees will be permitted to begin their maternity leave up to 13 weeks before their due date, a 2week increase from the current 11 weeks.
  • Employees will be entitled to take an unpaid leave of absence of up to 63 weeks to care for newborn or adopted children, a big jump from the current 37 weeks.
  • The combined total of maternity and parental leave that one or two employees can take for the same birth or adoption will increase to 78 weeks, a considerable increase from the current 52 weeks.
  • The combined total of parental leave that two employees can take for the same birth or adoption will increase to 63 weeks from the current 37 weeks.

Employees with a Critically Ill Child or Family Member

  • The definition of those eligible to take a leave of absence to care for a critically ill child will be expanded beyond a parent to a family member of a critically ill child. The eligibility period (6 months of continuous employment) and length of absence (37 weeks) will remain the same.
  • Employees who have completed 6 months of continuous employment will be eligible for an unpaid leave of absence of up to 17 weeks to care for or support a critically ill adult family member.

Unpaid Wages Recovery

  • The period for recovering unpaid wages will be extended from 12 to 24 months.

Again, please keep in mind that a date has not yet been set for when these changes will become law.

Supporting Article Research Sources: Mondaq.com, Lawson Lundell LLP

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