Canada Employment Laws 2023 Updates
Leaning towards an employee-friendly environment, 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 and make the assumption that employment regulation is uniform across North America.
In this blog, we will cover updates on upcoming employment laws in Canada and the implication they will have on businesses. Looking for guidance on updated US employment laws? You can check those out here.
Federal Updates
Paid Sick Leave
The Canada Labour Code has been amended, effective December 1, 2022, to provide 10 days of paid sick leave to employees in the federally regulated private sector, which is limited to specific industries, outlined here. There is a 30-day qualifying period for covered employees; therefore, on December 31, employees who have been continuously employed for at least 30 days will have access to their first three days of paid sick leave. As of February 1, 2023, employees will acquire a fourth day, and will continue to accumulate one day a month up to a maximum of 10 days per year.
Employment Insurance Sickness Benefits
Effective December 18, 2022, Canada’s Employment Insurance sickness benefits will be extended from 15 weeks to 26 weeks. As such, qualified individuals who establish a new claim on or after December 18, 2022 will receive up to 26 weeks of Employment Insurance sickness benefits, paid at 55% of their average weekly insurance earnings, for up to a maximum of $638 per week in 2022 and $650 per week in 2023. This benefit is accessible through the Canadian government and is not billed to clients, however, it is important to remember that the worker’s role is protected while on this leave.
As a reminder, individuals may be eligible for Employment Insurance sickness benefits if they demonstrate that:
They are unable to work for medical reasons, along with a medical certificate signed by a medical practitioner.
Their regular weekly earnings from work have decreased by more than 40% for at least one week.
They accumulated 600 insured hours of work in the 52 weeks before the start of their claim or since the start of their last claim, whichever is shorter.
Province-Specific Updates
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Minimum Wage
What does it mean for employers?
Manitoba’s minimum wage increased to $13.50 CAD per hour on October 1, 2022. The Government intends to raise minimum wage to $14.15 CAD on April 1, 2023.
When does it take effect?
Effective from October 1, 2022, with the increase to take effect on April 1, 2023.
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Minimum Wage
What does it mean for employers?
On April 1, 2023, the minimum wage will increase to from $13.70 to $14.50. On October 1, 2023, the minimum wage will increase to $15.00.
When does it take effect?
April 1, 2023, with the increase to take effect on October 1, 2023.
Minimum Overtime Wage Rate
What does it mean for employers?
Currently, the minimum overtime wage rate is $20.55 per hour. On April 1, 2023, the minimum overtime wage rate will increase to $21.75 per hour. On October 1, 2023, the minimum overtime wage rate will increase to $22.50 per hour.
When does it take effect?
April 1, 2023, with the increase to take effect on October 1, 2023.
Pay Transparency
What does it mean for employers?
Bill 3, An Act Respecting Pay Equity for the Public Sector and Pay Transparency for the Public and Private Sectors has received Royal Assent, effective 2023.
Under the Act, both public and private sector employers will be required to include information regarding pay in publicly advertised job postings – specifically, employers will be required to provide the expected pay for the position or the range of expected pay for the position. The pay transparency requirements for public and private sector employers will take effect on a date proclaimed by the Lieutenant-Governor in Council. PGC will be on hand to inform our effected clients of this date when announced.
When does it take effect?
Date TBD, 2023.
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Protected Leave for End of Pregnancy
What does it mean for employers?
Bill No. 203, known as Ruby’s Law, has received Royal Assent. The bill creates a new protected leave for employees who experience a pregnancy that does not result in a live birth. Eligible employees include pregnant employees, employees whose spouses were pregnant, biological parents, intended adoptive parents, and those using surrogacy. Eligible employees will have access to an unpaid leave of up to five consecutive working days. Employees that experience end of pregnancy after 19 weeks may be entitled to an additional unpaid leave of up to 16 weeks. It is important to note that the worker’s role is protected while on this leave.
When does it take effect?
January 1, 2023.
Minimum wage
What does it mean for employers?
On April 1, 2023, the minimum wage will increase from $13.60 to $14.30. On October 1, 2023, the minimum wage will increase to $14.65.
When does it take effect?
April 1, 2023, with the increase to take effect on October 1, 2023.
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Infectious Disease Emergency Leave
What does it mean for employers?
Ontario’s Employment Standards Act was amended on April 29, 20212021, to require employers to provide eligible employees with up to three days of paid infectious disease emergency leave for certain reasons related to Covid-19.
Reasons include:
to get tested, to await the results of a Covid-19 test, while sick with Covid-19, to get individual medical treatment for mental health reasons relating to Covid-19, to get vaccinated, while experiencing side effects from a vaccination, to self-isolate, or to provide care or support to certain relatives for Covid-19-related reasons.
Though paid infectious disease emergency leave was set to end on July 31, 2022, it has been extended until March 31, 2023.
When does it take effect?
Extended until March 31, 2023
Exemption for Certain Business and Information Technology Consultants
What does it mean for employers?
On April 11, 2022, Bill 88, the Working for Workers Act, 2022, received Royal Assent. Among other changes, the Act modifies Ontario’s Employment Standards Act (ESA), effective January 1, 2023, to exempt certain business and information technology consultants from the ESA, including regulations on overtime hours of work, and various leave-related rules.
To fall under this new exemption, the employee must satisfy the definition of a business consultant or information technology consultant.
“Business Consultant” is defined as “an individual who provides advice or services to a business or organization in respect of its performance, including advice or services in respect of the operations, profitability, management, structure, processes, finances, accounting, procurements, human resources, environmental impacts, marketing, risk management, compliance, or strategy of the business or organization.
“Information Technology Consultant” is defined as “an individual who provides advice or services to a business or organization in respect of its information technology systems, including advice about or services in respect of planning, designing, analyzing, documenting, configuring, developing, analyzing, documenting, configuring, developing, testing, and installing the business or organization’s information technology systems.
The following additional requirements must be met:
They provide services through a corporation in which they are a director or a shareholder that is subject to a unanimous shareholder agreement, or through a sole proprietorship in which they are the sole proprietor and the services are provided under a business name of the sole proprietorship that is registered under the Business Names Act.
There is an agreement for their services which sets out when they will be paid and the hourly amount that they will be paid (which must be at least $60 per hour or such other prescribed amount, excluding bonuses, commissions, expenses, travelling allowances and benefits).
The consultant is paid the amount set out above.
Any other prescribed requirements are met.
When does it take effect?
January 1, 2023
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Minimum Wage
What does it mean for employers?
On January 1, 2023, minimum wage will increase from $13.70 to $14.50. On October 1, 2023,
When does it take effect?
January 1, 2023, with the increase to take effect on October 1, 2023.
Any Questions On Employment Law in Canada?
Trying to get to grips with employment compliance in North America can be a real 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.
We ensure full regulatory compliance and manage onboarding, payroll, expenses, insurance, and benefits, so you don’t have to. Speak to one of our specialist expansion consultants to see how we can help your business.
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.