On June 20, 2024, Bill C-69 Budget Implementation Act, 2024, No. 1 received royal assent and is now law. Below is a summary of key payroll and employment and labour law measures from Budget 2024.
Volunteer Firefighters and Search and Rescue Volunteers Tax Credits
- The tax credits for volunteer firefighters and search and rescue volunteers are doubled from $3,000 to $6,000, effective for the 2024 taxation year.
Employee Ownership Trusts
- The government is introducing a new tax incentive to encourage more business owners to sell to an Employee Ownership Trust (EOT), a type of employee share ownership plan.
- Under this incentive, eligible sellers of shares of a Canadian-controlled private corporation (CCPC) to an EOT will be able to defer the capital gains tax on the sale, provided that at least 10 percent of the shares of the CCPC are held by the EOT.
- This measure will help workers benefit from the success of their work and promote business succession and continuity.
Protection of Gig Workers
- The government is strengthening the Canada Labour Code to prevent the misclassification of employees as independent contractors in federally regulated industries.
- This measure will ensure that gig workers have access to the same rights and protections as employees, such as minimum wage, overtime pay, vacation pay, and the right to unionize.
- This measure will also protect employers from unfair competition from those who avoid their obligations by misclassifying workers.
Right to Disconnect
- The government is establishing a right to disconnect for workers in federally regulated industries, such as banking, telecommunications, and transportation.
- This measure will require employers to develop policies and practices to limit the use of work-related electronic communications outside of work hours unless it is necessary for the performance of their duties.
Employment Insurance for Seasonal Workers
- The government is extending the additional weeks of Employment Insurance (EI) regular benefits for seasonal workers in 13 targeted regions until October 2026.
- This measure will provide up to five additional weeks of EI regular benefits to eligible seasonal workers who face recurring periods of unemployment due to the seasonal nature of their work.
Home Buyers' Plan
- The government is enhancing the Home Buyers' Plan (HBP) to help first-time home buyers save for a down payment.
- The HBP allows eligible first-time home buyers to withdraw up to a certain amount from their Registered Retirement Savings Plan (RRSP) to purchase or build a home, without having to pay tax on the withdrawal.
- The government is increasing the withdrawal limit from $35,000 to $60,000, effective for withdrawals made after June 20, 2024.
- The government is also temporarily extending the grace period for starting repayments to an RRSP from two years to five years, for withdrawals made in 2024 and 2025.
These measures come into force at various dates.