Anaya Nolan
Canada's employment laws are designed to maintain a business-friendly and equitable work environment. These laws cover a range of areas, including hiring, compensation, benefits, and termination. Most employees in Canada are governed by either federal laws or provincial laws, depending on the industry they work in. Each province or territory regulates its own minimum employment standards, and approximately 90% of Canadian employees fall under provincial jurisdiction. Federally regulated industries include banking, telecommunications, and inter-provincial transportation. Employment contracts in Canada may be written, oral, or implied in actions or common law, and they outline the explicit terms and conditions of the employment relationship. Human rights legislation in Canada prohibits discrimination based on protected grounds such as race, gender, disability, and sexual orientation. Employers must ensure compliance with these laws and maintain a safe work environment free from harassment and violence.
| Characteristics | Values |
|---|---|
| Standard workweek | 8 hours per day, 40 hours per week |
| Working hours | Daily or weekly maximums for the duration of work permitted |
| Breaks | Mandatory minimum break periods during shifts |
| Overtime | Employers must compensate employees at an increased rate for any work conducted beyond the standard hours per day or week; most jurisdictions set the overtime rate at a minimum of 1.5 times the employee's regular hourly rate |
| Leaves of absence | Maternity leave, parental leave, compassionate care leave, family leave, etc. |
| Termination | Employers must provide a minimum termination notice period, which differs depending on the jurisdiction and the duration of employment; employers must also provide compensation in lieu of notice |
| Severance pay | In Ontario, an employee qualifies for severance pay if their employment is severed and they have worked for the employer for at least five years and their employer has a global payroll of at least $2.5 million or severed the employment of 50 or more employees in a six-month period |
| Workplace protections | Employees across Canada are protected against workplace violence, harassment, and discrimination on the basis of race, gender, age, religion, and sexual orientation |
| Unions | Workers have a right to freedom of association, which allows them to form trade unions without fearing reprisal from an employer; employees have a right to strike during negotiations |
| Minimum wage | Varies by province, typically ranging from CAD 14.00 to CAD 16.75 |
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What You'll Learn
Federal and provincial laws
Canada has a two-tier system of federal and provincial employment laws. The federal laws apply to federal government workers and private sector jobs that span provincial borders, such as banking, telecommunications, and transportation. This accounts for around 10% of the Canadian workforce. The remaining 90% of the Canadian workforce is covered by provincial employment laws and other national legislation. Each province and territory in Canada sets the minimum legal requirements that employers must follow. These include minimum wages, overtime pay, health insurance, and non-discrimination/equal employment opportunity regulations.
The Canada Labour Code (CLC) sets out the employment conditions for hours of work, payment of wages, leaves, vacation, holidays, and more. These standards apply to employees working in federally regulated businesses. The CLC also strengthens protection for contractors and gig workers, placing the burden of proof on businesses to demonstrate that workers are properly classified. This is to ensure that employers do not misclassify workers as independent contractors to avoid providing benefits such as vacation pay and employment insurance.
Provincial employment laws encompass a range of areas, including working hours, overtime rules, types of leave available, and minimum wage rates. Each Canadian jurisdiction has unique overtime rules, with most jurisdictions setting the overtime rate at a minimum of 1.5 times the employee's regular hourly rate. While the standard workweek in Canada is eight hours per day, 40 hours per week, minimum standards legislation in each jurisdiction imposes restrictions on employees' working hours.
In terms of leaves of absence, each Canadian jurisdiction offers different types of leave, including maternity leave, parental leave, compassionate care leave, and family leave. Most minimum standard leaves are unpaid, and employees typically need to meet a certain service requirement to be eligible.
Both federal and provincial laws protect Canadians from discriminatory hiring practices based on characteristics such as race, gender, age, religion, and sexual orientation.
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Employment termination
In general, employers must provide a minimum of two weeks' written notice or pay in lieu of notice when terminating an employee. The length of notice is determined by provincial employment law and is influenced by the employee's term of service, age, and job-specific factors. For employees with three or more years of service, the minimum notice requirement increases to one week per completed year of employment, up to a maximum of eight weeks. Group terminations, defined as the termination of 50 or more employees, require additional steps, including notifying the Labour Program's Head of Compliance and Enforcement in writing at least 16 weeks in advance.
Employees who have completed 12 consecutive months of continuous employment are entitled to severance pay upon termination. The amount of severance pay varies by province, with Ontario requiring one week's wages per year of employment, plus additional pay for any uncompleted years.
To lawfully terminate employment in Canada, just cause or a valid reason is typically required. During the probationary period, no valid reason is necessary. Gross misconduct, such as unlawful acts, constant insubordination, or wilful misconduct, may also result in termination without notice or severance pay. In the case of a fixed-term contract ending, employees must be provided with notice or pay in lieu of notice.
It is important to note that Canadian laws encourage employers to work with underperforming employees and apply progressive discipline before considering termination. Employers must also provide a statement of benefits to terminated employees, detailing any outstanding wages, overtime pay, and general holiday pay owed.
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Working hours
In Canada, the standard workweek is eight hours per day and 40 hours per week. However, this can vary depending on the jurisdiction and the nature of the work. For example, in Ontario, the maximum number of hours most employees can be required to work in a day is eight hours, or the number of hours in an established regular workday if it is longer than eight hours. Similarly, the maximum number of hours most employees can be required to work in a week in Ontario is 48 hours, which is also the maximum allowable hours of work in a week in most cases across Canada. This weekly maximum can be exceeded in exceptional circumstances or if there is an agreement between the employee and employer.
In Canada, employees are entitled to a break, rest period, notice of work schedule, and notice of a shift change. This includes 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. Employers must also provide at least 24 hours' notice before a shift change or addition, and when adding or changing a period during which an employee is scheduled to be on standby or on-call.
Additionally, certain industries and job categories are exempt from the hours of work rules, and there are specific regulations for employees under the age of 18. For employees whose hours of work are irregularly distributed, the hours may be calculated as an average over an averaging period of two or more consecutive weeks.
In terms of overtime, each Canadian jurisdiction has its own rules, with most setting the overtime rate at a minimum of 1.5 times the employee's regular hourly rate. Employers must compensate employees for any work conducted beyond the standard hours per day or week.
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Leaves of absence
In Canada, there are a variety of circumstances under which an employee can take a leave of absence, with certain types being paid and others unpaid.
Pregnancy and Parental Leave
Pregnant employees are entitled to an unpaid maternity leave of absence from the beginning of their pregnancy until the end of the 24th week following the birth of their child. They can also request a maternity-related reassignment. This can include a leave of absence to care for their newborn, which can be extended until the end of the 52nd week following the birth.
Reserve Force Leave
Employees who are reservists for the Canadian Forces are entitled to unpaid leave for the duration of their deployment, whether inside or outside Canada, as well as for pre-deployment and post-deployment activities.
Jury Duty Leave
Employees summoned for jury duty are entitled to take unpaid leave to fulfil their civic duty.
Personal Emergency Leave
Employees are entitled to a certain number of days of paid and unpaid leave if they are experiencing personal emergencies, such as illness, injury, or family emergencies. This includes the Infectious Disease Emergency Leave (IDEL) during the COVID-19 pandemic, which provided paid leave for employees affected by the disease.
Domestic or Sexual Violence Leave
Employees who have experienced or been threatened with domestic or sexual violence are entitled to two separate allotments of 10 days and 15 weeks of leave within each calendar year. The first five days of this leave are paid, while the rest is unpaid.
COVID-19-Related Leave
During the COVID-19 pandemic, employees were entitled to take job-protected leave if they were unable to work due to reasons such as illness, exposure concerns, or travel restrictions. This leave was retroactive to January 27, 2020, and employees could take as much time as needed without putting their jobs at risk.
Canadian Employment Laws
It is important to note that employment laws in Canada can vary by province and industry. For example, the Employment Standards Act, 2000, in Ontario, defines the terms "same-sex partner" and "spouse" in the context of leaves of absence. Additionally, the laws governing leaves of absence for reservists in the Canadian Forces apply specifically to the Province of British Columbia.
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Workplace discrimination
Canada has a diverse range of employment laws that aim to protect the rights of all workers in the country, including foreign workers. While the majority of employers are governed by labour laws specific to their province, federal labour standards are set out in Part III of the Canada Labour Code (CLC). These standards apply to employees working in federally regulated businesses, which make up less than 10% of the Canadian workforce.
The CLC outlines employment conditions for hours of work, payment of wages, leaves, vacation, holidays, and more. For example, the standard workweek in Canada is eight hours per day, 40 hours per week, and each jurisdiction has unique overtime rules. Employers must also provide full labour standards protections to interns and certain protections to student interns.
In terms of workplace discrimination, Canadian laws provide protection for workers. The Canadian Human Rights Act (CHRA) outlaws hiring on the basis of race, age, sexual orientation, and gender in federal jurisdictions. The Employment Equity Act is a federal law that requires federally regulated organisations and businesses to provide equal employment opportunities to four designated groups: women, Aboriginal peoples, people with disabilities, and members of visible minorities. The Federal Contractors Program (FCP) is designed to provide equal employment opportunities to these same four designated groups. The Legislated Employment Equity Program (LEEP) requires these federally regulated employers to report annually on the representation of these groups in their workplaces and the steps taken to achieve full representation.
Examples of workplace discrimination based on the grounds of discrimination outlined in the CHRA include:
- An employer assigns employees to shifts without recognising that some employees observe the Sabbath and cannot work on weekends (religious discrimination).
- An employer's physical fitness requirements are based on the capabilities of an average 25-year-old instead of the actual requirements of the job (age discrimination).
- A female employee with an excellent performance record announces her pregnancy and her employer begins to identify performance issues that lead to her dismissal (sex discrimination).
- A policy provides benefits to some married couples but not to others (discrimination based on sexual orientation and marital status).
- After having a child, a woman cannot find childcare to continue working night shifts, and her employer does not allow flexibility by scheduling her on day shifts (discrimination based on family status).
- An employer requires all employees to have a valid driver's licence, without providing an alternative for people with disabilities (disability discrimination).
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Frequently asked questions
Federally regulated industries in Canada include banking, telecommunications, and inter-provincial transportation, among others.
The standard workweek in Canada is eight hours per day and 40 hours per week. However, there are restrictions on employees' working hours, including daily or weekly maximums and mandatory minimum break periods.
The federal minimum wage in Canada is $16.65 per hour. However, if the minimum wage in the province or territory where the employee works is higher than the federal minimum wage, the employer must pay the higher amount.
Employers can terminate an employee with or without just cause. Termination with cause does not require notice or severance pay, whereas termination without cause requires employers to provide notice or severance pay as per the applicable employment standards legislation.
Human rights legislation in Canada prohibits discrimination based on race, gender, disability, and sexual orientation. The Canadian Human Rights Act outlaws hiring or firing on these bases in federal jurisdictions.
