Since the Liberals were first elected in 2015, they have made many significant changes to the Canada Labour Code. In past posts, we have written about new requirements related to sick leave, employee reimbursements, employment information and menstrual products.
If you are a federally-regulated employer, you may be wondering if the pace of change will be slowing down soon. The answer, at least for now, is “no”. This post reviews 5 recent or upcoming changes that federal employers should be aware of.
Reminder: The Canada Labour Code only applies to federally-regulated employers, which tends to mean national enterprises such as banks, telecommunications, airlines, railways, shipping and interprovincial trucking.
#1 Who is an Employee under the Canada Labour Code
Typically, the question of whether a worker is an employee or an independent contractor is a legal determination that is based on certain factors. It can be quite complex, requiring legal advice.
In the spring, the federal government passed Bill C-69, which attempted to reduce the misclassification of employees as independent contractors by creating a presumption in favour of workers being considered employees. More specifically, amendments to the Code presume that a person who is paid remuneration by an employer is their employee unless the contrary is proved by the employer (i.e., the burden of proof is on the employer). It prohibits employers from treating a person presumed to be an employee as if they were not their employee. Employees can file complaints if employers contravene these requirements.
These changes are in force now.
#2 Disconnecting from Work
Bill C-69 also included new provisions requiring federal employers to implement a disconnect from work policy, which would outline their expectations regarding work-related communications outside of scheduled hours of work. These amendments are not yet in force, as we await further details in future regulations. In the meantime, the Canada Labour Code amendments include the following requirements:
- employers will be able to exempt certain employees (e.g., managers) from the policy;
- employers will be prohibited from taking or threatening to take reprisals against employees who ask about, exercise their rights or file a complaint under a policy;
- policies must be developed in consultation with employees.
While these amendments are not yet in force, federal employers should keep a placeholder for this upcoming mandatory HR policy.
#3 Leaves of Absence
Federal Bill C-59 includes another round of amendments to leaves of absence under the Canada Labour Code. First, it adds a new leave of absence in cases of pregnancy loss. This leave would entitle employees to 8 weeks off of work, if the pregnancy resulted in a stillbirth (i.e., after the 20th week of pregnancy), or 3 days, in any other case. After 3 months’ employment, employees are eligible to be paid for the first 3 days of this leave.
Bill C-59 also expands the rights of employees on bereavement leave to include the same entitlements they would have with other leaves of absence (e.g., requiring employers to provide notice of employment opportunities and to continue pension and benefit accumulations during a leave, and to reinstate an employee to the same (or comparable) position after a leave).
Per Bill C-59, these Canada Labour Code changes are scheduled to come into force on December 12, 2025, unless the government decides to bring them into force on an earlier date. So, it is a bit unclear as to when employers will be expected to provide these new entitlements, but it will be no later than the end of next year.
Federal employers should also know that there are still some amendments from 2021, creating a new 8-week child death leave, that have not yet come into force.
#4 Publication of Employer Non-compliance
Back in 2018, the federal government included an amendment to the enforcement provisions in the Canada Labour Code. Once in force, the Minister may publicize the name of an employer convicted of an offence under the Code, the nature of the offence, the punishment imposed and, potentially, additional information to be detailed in regulations.
Clearly, this change increases the potential repercussions of an employer’s non-compliance with the Canada Labour Code. In addition to any fines, federal employers will want to consider the possible impact that publication of an offence could have on their public image, brand, employee satisfaction and recruitment prospects.
We will let our subscribers know as soon as Ottawa proclaims this amendment into force.
#5 Unionized Workplaces
Effective June 20, 2025, Bill C-58 makes significant changes to the Code for employers of unionized workforces. Most notably, Bill C-58 includes a ban on using replacement workers to do the work of unionized employees who are on strike or locked out, subject to certain exceptions. In particular, employers would be banned from using:
- employees and managers hired after notice to bargain is given to do the work of striking or locked out workers;
- contractors (regardless of hire date) except where the contractors were continuing to do their own work (which was substantially similar to work done by striking or locked out employees) and they did it in the same manner, to the same extent and in the same circumstances as they did before the notice was given;
- any employee whose normal workplace is a workplace other than that at which the strike or lockout is taking place, or who was transferred to the striking/locked out workplace after the day on which notice to bargain is given;
- any volunteer, student or member of the public.
This prohibition is subject to exceptions, including situations where the employer gave employees on strike or locked out the opportunity to perform the necessary work before using the replacement worker or to prevent:
- threats to life, health or safety;
- destruction or serious damage to the employer’s property or premises; or
- serious environmental damage affecting the property or premises.
If a union believes an employer is illegally using replacement workers, they could file an unfair labour practice complaint with the Canada Industrial Relations Board. If prosecuted and convicted of breaching the prohibition on replacement workers, an employer could be subject to a fine of up to $100,000 per day. The government may also make regulations establishing administrative monetary penalties to promote compliance with this ban.
Other Federal HR Legislation
In addition to the changes to the Canada Labour Code, federally-regulated employers must comply with new accessibility and pay equity legislation, plus possible amendments to the Employment Equity Act. For a quick preview of what to expect regarding accessibility and employment equity, see our Fall Preview post.
Compliance Works Helps HR Teams Stay on Top of Coming Changes
Federally-regulated employers have been responding to many Canada Labour Code amendments over the last few years. And, there are still more changes to come (including unproclaimed changes from 3 or more years ago)! Staying on top of evolving employment laws can be challenging and time consuming. Compliance Works is always tracking HR legislations – so you don’t have to!
Contact us to Request a Demo or email us at info@complianceworks.ca to learn how a subscription to Compliance Works can help your HR team succeed.
