2020 Canadian Labor Law Updates

2019 was a busy year in Canada – we not only witnessed the modernization to Canada’s Federal Labor Code (the most significant reforms for 50 years), but also learned that there are provincial changes to be aware of as well. What were the major Canadian employment changes in 2019?

Federal Canadian Labor Code

You can see a full timeline of amendments to the Canadian labor Code and when these changes for 2020 will roll out here. The code changes will address:

• Equal treatment: increased protections to prevent unfair wage differences, and equal pay for part-time, casual, temporary and seasonal employees.

• Federal pay equity: will provide pay equity for all employees – “equal pay for equal work”. The Act has not yet been proclaimed into force, but it is expected to in 2020.

• Reimbursement of work-related expenses: reforms ensure employees are reimbursed for reasonable work-related expenses.

• Termination: amendments to support employee’s financial security and transition when their job is terminated and new mechanisms for unjust dismissal complaints.

• Administration and enforcement of labor standards: several amendments increase workers protections and enforceability of federal labor standards

• Occupational health and safety: new guidance for harassment and violence in the workplace

• Increased vacation entitlements: employees are now entitled to three weeks of vacation after five consecutive years of employment and four weeks of vacation after 10 years of successive employment. Additionally, all federally-regulated employees are now eligible for holiday pay.

Additionally, a labor force survey conducted in October 2019 found that Canada ended 2019 strongly in terms of its economy. Following two consecutive months of growth, Canadian employment held steady in October 2019, and the unemployment rate was unchanged at 5.5%. On a year-over-year basis, employment grew by 443,000 or 2.4%, driven by gains in full-time work in 2019. Over the same period, total hours worked were up 1.3%. The full labor statistics can be found here.

Canadian Provincial Compliance updates 2020

Below is a list of key Canadian Provincial Compliance updates implemented in 2020.

• Minimum wage changes:

  • Ontario: Proposed raise to $15 has been repealed – current $14 rate now remains

  • British Columbia: Raise to $14.60, followed by a later raise to $15.20, effective in June

• Domestic violence leave:

  • Ontario: 15 weeks

  • Manitoba: 10 days per 52-week period, or long-term leave of 17 weeks in one continuous period

  • Northwest Territories: 10 days, or long-term leave of 15 weeks

• Parental leave:

  • Newfoundland: Removed the limitation that leave must be taken by 35 weeks after birth, mandates that leave must end by 61 weeks after it starts, or 96 weeks after birth

  • Northwest Territories: Extends leave from 61 weeks to 78.

• Ontario Bill 47:

  • Repeals requirement to provide 2 paid sick days, but requires 8 unpaid days

  • 3 hours must be paid out if a worker’s shift is cancelled after they arrive at work

  • Workers with 5 years’ tenure must receive 3 weeks of paid vacation

If you have any questions on Canadian labor laws and 2020 employment updates, feel free to reach out with any questions and we will happily talk through this and how they impact doing business in Canada.

Disclaimer: All information written here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.