Changes to Canada Labour Code

Change to Individual Notice of Termination 

The Budget Implementation Act, 2018, No. 2 amended Part III (Labour Standards) of the Canada Labour Code, regarding individual termination notices. 

Effective February 1, 2024, federally regulated private sector employees will have greater termination entitlements when terminated without cause.

The individual notice of termination to be given to an employee in federally regulated workplaces is set to increase as follows: 

In addition, as of February 1, 2024, employers will be required to provide a written statement to terminated employees listing their vacation benefits, wages, severance pay, and any other benefits and pay arising from their employment as of the date of the statement. The statement must be given to: 

• Employees receiving notice - as soon as possible but not later than two weeks before the termination date. 
• Employees receiving wages in lieu of notice - not later than the termination date. 
• Employees receiving a combination of notice and wages in lieu of notice - as soon as possible but not later than two weeks before the date of termination, unless the notice period is shorter, in which case, not later than the date of termination. 

Clarification on Paid Medical Leave Calculation 

Employees with 30 days of continuous employment earn the first three days of medical leave with pay. The National Payroll Institute has requested, from the Canada Labour Code, clarifications on how employers should perform the calculation for employees whose wages differ from day to day. Below are the responses to the Institute’s questions: 

1. What is meant by ‘hours of work differ from day to day’ when referring to the payment of medical leave for employees?   
   • This section has the same meaning and operation for Paid Medical Leave (PML) as for all other leaves affected by Canada Labour Standards Regulation (CLSR) s. 17 (Personal Leave, Leave for Victims of Family Violence, and Bereavement Leave). 
   • "Hours differ from day to day" applies to all employees whose hours are not consistent day to day. 
   • It would not apply to any employees who work the same number of hours every workday, e.g., eight hours every workday, or 10 hours every workday. 
2. What is the calculation for medical leave with pay for employees whose hours of work differ from day to day or who are paid on a basis other than time?  
   • An amount calculated by a method agreed on under or pursuant to a collective agreement that is binding on the employer and the employee
     OR
   • Paid as per section 17 of the Canada Labour Standards Regulations; 
   • Calculate the employee’s  average daily earnings (not including overtime pay) of the last 20 days worked (not calendar days) immediately before the first day of the period of paid leave;    
   • It may be necessary to go back further in time to obtain priors days worked, until a total of twenty days is obtained 
   • If employers have concerns regarding this calculation method as it may negatively impact the employee if they have since received wage increases;
   • The employer could pay the employee at the regular rate of current pay. As long as they meet the minimum the Code requires.
3. Examples of when to apply / not apply Regulation 17:   
   
   Example A – Regulation 17 does NOT apply  
    

   	SUN	MON	TUE	WED	THU	FRI	SAT
   Week 1	10	10	10	10	10	10	10
   Week 2	10	off	off	off	off	off	off

    

   In example A, the employee's hours of work do not differ from day to day and is paid on the basis of time.  The employee is working a modified work schedule and works 10 hours every workday. 

   1. Therefore regulation 17 would not apply to the employee. This employee would be paid "at their regular rate of wages for their normal hours of work." If the employee was paid $20 per hour, they would be paid $200 for any day of PML. 

    

   In example B, the employee’s hours of work are part of a modified work schedule on a two-week cycle, but the difference is that the hours or work do differ from day to day: some days the employee works eight hours, some days they work 10 hours, and some days they work 12 hours. 

   1. As a result, this employee would have their regular rate of wages for the purposes of PML set by regulation 17, and would not simply be paid, "at their regular rate of wages for their normal hours of work." 

    

   Example C – Regulation 17 applies 

   	SUN	MON	TUE	WED	THU	FRI	SAT
   Week 1	OFF	10	6	10	3	off	off
   Week 2	off	off	8	off	off	off	off

    

    

   In example C, the employee’s hours differ daily, some days the employee works eight hours, some days they work 3 hours, and some days they work 12 hours. 

   1. As a result, this employee would have their regular rate of wages for the purposes of PML set by regulation 17, and would not simply be paid, "at their regular rate of wages for their normal hours of work.”