Your Guide to Canada Employment Laws 2024
Thinking of recruiting in Canada? You need to know and follow Canada employment laws first. The Canadian employment landscape can be difficult for new businesses entering the market to grasp, particularly if they are more familiar with the neighbouring US market.
As an Employer of Record in Canada, we simplify the process of employing workers across Canada via our payroll and compliance services, which is why we put this blog together, to guide you through the Canada employment laws for 2024.
Canada Federal Employment Law Updates 2024
If you’re placing workers in Canada, here are important Canada federal employment laws you must follow in 2024.
Exemptions from Hours of Work Requirements for Certain Federally Regulated Employees
In 2019, the Canadian federal government enacted amendments to the hours of work provisions in the Canada Labour Code “to support work-life balance by providing employees with more predictability in relation to their hours of work.”
These amendments apply to work schedules, shift changes or addition, breaks, and rest periods, and specifically require employers to provide federally regulated employees:
At least 96 hours’ written notice of their work schedules;
At least 24 hours’ written notice of shift changes or additions;
An unpaid break of at least 30 minutes during every period of five consecutive hours of work; and
A rest period of at least eight consecutive hours between work periods or shifts.
Exemptions to these requirements
In September 2021, the federal government published exemptions to these requirements, exempting certain federally regulated industries – the road transportation, postal/courier, marine, and grain sectors – from these requirements.
The federal government has now exempted additional industries from these requirements.
Effective January 1, 2024, the banking, telecommunications and broadcasting, and rail sectors will be exempt from these requirements.
Effective June 4, 2024, the air sector will be exempt from these requirements.
Canada Province-Specific Employment Laws for 2024
Only engaging workers in certain provinces in Canada? Check out the updated employment laws for certain provinces in Canada.
1) British Columbia Employment Law Updates 2024
Workers Compensation Amendment Act
British Columbia has enacted a Workers Compensation Amendment Act (No. 2) creating additional obligations, effective January 1, 2024, under the province’s Workers Compensation Act for workers and employers, including a duty to cooperate and maintain employment.
Duty to Cooperate: The Act creates obligations for workers and employers to cooperate with each other, and with WorkSafeBC, to identify and make suitable work available to workers in a timely and safe manner following an injury.
Employer Obligations: The employer must, among other responsibilities, contact the worker as soon as practicable after the injury, maintain communication with the worker, and identify suitable work for the worker that, if possible, restores the full wages the worker earned at the pre-injury work.
Employee Obligations: The worker must maintain contact with the employer and work with the employer to identify suitable modified job duties. If the worker can no longer perform their pre-injury job, but is otherwise fit to work in another capacity, they must not unreasonably refuse suitable work when it has been made available by any employer.
Duty to Maintain: If, and only if, the employer employs 20 or more workers in British Columbia and has employed the injured worker for at least one year before their injury, the employer has an obligation to maintain that worker’s employment.
If the worker is fit to work but not fit to carry out the essential duties of their pre-injury work, the employer must offer the worker the first suitable work that becomes available.
If the worker is fit to carry out the essential duties of their pre-injury work, the employer must offer the pre-injury work to the worker, or, offer alternative work of a kind and at wages that are comparable to the worker’s pre-injury work and wages.
The employer must, to the point of undue hardship, make any change to the role or the workplace that is necessary to accommodate the worker.
2) Nova Scotia Employment Law Updates 2024
The Workers’ Compensation Act (Amended)
Nova Scotia’s Workers’ Compensation Act has been amended, effective September 1, 2024, to allow gradual onset or traumatic stress to be considered an injury eligible for compensation, if the stress arises out of and in the course of the worker’s employment and is wholly or predominantly caused by one or more significant work-related stressors, or a cumulative series of significant work-related stressors.
3) Nunavut Employment Law Updates 2024
Minimum Wage to Increase in Nunavut
Effective January 1, 2024, Nunavut’s minimum wage will increase from $16 to $19 per hour.
4) Ontario Employment Law Updates 2024
Licensing Requirement for Temporary Help Agencies and Recruiters
Beginning July 1, 2024, temporary help agencies will be required to hold a license to operate in Ontario, and recruiters will be required to hold act as a recruiter in Ontario. This licensing requirement was originally set to take effect on January 1, 2024, however, the province recently delayed the law’s effective date. For information on how to apply for a license, please refer to the province’s guidance.
Temporary Help Agencies: Clients will be prohibited from knowingly engaging or using the services of a temporary help agency unless the agency holds a license.
Temporary help agency is defined as an employer that employs persons for the purpose of assigning them to perform work on a temporary basis for clients of the employer. If a temporary help agency is located outside of Ontario, but assigns employees to work in Ontario, the licensing requirements apply.
Recruiters: Employers, prospective employers, and other recruiters are prohibited from knowingly engaging or using the services of any recruiter that does not hold a license.
A recruiter is any person who, for a fee, finds or attempts to find employment in Ontario for prospective employees, or finds, or attempts to find, employees for prospective employers in Ontario, with exceptions. A recruiter does not have to be located in Ontario for the licensing requirements to apply.
Working for Workers Four Act - Ontario
On November 23, 2023, Ontario introduced Bill 149, Working for Workers Four Act, 2023 for Second Reading. If passed, Bill 149 would, among other things, amend the Employment Standards Act, the Workplace Safety and Insurance Act, and the Digital Platform Workers’ Rights Act. The Bill would come into force on the day it receives Royal Assent, except for certain Employment Standards Act amendments that would come into force three months after Royal Asset, or whenever proclaimed.
Employment Standards Act (ESA) Amendments: Specifically, the Bill would amend the ESA as follows.
Definition of Employee: Currently, the definition of “employee” includes a person who receives training from an employer, if the skill in which they are being trained for is a skill used by the employer’s employees. The Bill would amend the definition of “employee” to clarify that work performed during a trial period would be included within the meaning of “training.”
Job Posting Regulations: Several provisions would be added to the ESA relating to publicly advertised job postings:
Expected compensation for the position or the range of expected compensation would be required to be included in publicly advertised job postings, with limited exceptions.
Canadian experience may not be included in publicly advertised job postings or associated application forms, with limited exceptions. This can be seen as a barrier or discriminatory to those who lack Canadian experience.
A statement disclosing the use of artificial intelligence to screen, assess, or select applicants for the position would be required in publicly advertised job postings, with limited exceptions.
Payment of Wages: The Bill would amend the requirements regarding the payment of wages by direct deposit to provide that accounts for direct deposit would need to be selected by the employee.
Vacation Pay Alternate Pay Arrangements: Currently, the ESA requires employers to pay employees their vacation pay in a lump sun before the employee begins their vacation, though employers and employees are permitted to agree to an alternate pay arrangement. Bill 149 would clarify that alternate pay arrangements must be “set out in an agreement” made by the employee and employer.
5) Prince Edward Island Employment Law Updates 2024
Minimum Wage Increase in Prince Edward Island
The minimum wage will increase twice in 2024, from $15 to $15.40 on April 1st, and then to $16 on October 1st.
6) Saskatchewan Employment Law Updates 2024
Minimum Wage Increase in Saskatchewan
The minimum wage will increase from $14 to $15 per hour on October 1, 2024.
Need Help Navigating Canada Employment Laws?
Trying to get to grips with Canada employment laws can be a headache. We get it. As the longest-serving employer of record exclusive to the North American market, we’ve been a trusted partner for businesses from all around the globe; removing the barriers and complexity of engaging workers across the US and Canada.
Leave navigating the backoffice employment tasks when employing workers in Canada to us. We manage onboarding, payroll, expenses, insurance, Canada employment law updates, and benefits, so you don’t have to. Find out more about our Canada Employer of Record services to see how we can help your business navigate employment in Canada.
Disclaimer: The information provided here does not, and is not intended to, constitute legal advice. Instead, the information and content available are for general informational purposes only.