June 2024 brings many changes to federal labor law

June 2024 brings a number of changes to federally regulated employment laws. Some are effective immediately, while others will take effect in the future. This update briefly summarizes the most noteworthy changes.

Equal pay laws

In June, the federal government published three amendments to the law Equal pay laws: :

Provisions amending the equal pay provisions (administrative fines and technical changes): SOR/2024-101
Regulation on the grouping of ministers’ offices for the purpose of developing an equal pay plan: SOR/2024-116
Application of the Equal Pay Act to ministers’ offices Regulations: SOR/2024-117

The first, SOR/2024-101, has the broadest impact on private sector employers. Among other things, SOR/2024-101 clarifies the information required in equal pay reports and the appropriate composition of comparative job classes where there are no male-dominated job classes in the workplace. It also provides a framework for imposing administrative fines (AMPs) for non-compliance with reporting requirements.

These fixes for Equal pay laws act immediately.

For more information on upcoming federal equal pay compliance deadlines, please see our legal update.

Prohibition on replacing employees

On June 20, Bill C-58, an Act to amend the Canada Labor Code and the Canada Council on Industrial Relations Regulations, 2012, received Royal Assent.

Bill C-58 Amendments to Part I of the Act Canadian Labor Code (this Code) turn on:

Prohibition on employing substitute workers: Employers will be prohibited from using substitute workers or bargaining unit workers who attempt to “cross the picket line” to perform the work of union workers in a bargaining unit that is on strike or closed, subject to narrow exceptions. The illegal use of substitute workers will constitute a criminal offense that may result in a fine not exceeding $100,000 per day if the employer is found guilty.
Mandatory business maintenance agreements: Under Codeemployers, unions, and bargaining unit employees engaged in a strike or lockout must maintain services, facility operations, or the production of goods to the extent necessary to prevent an immediate and serious threat to public safety or health. Currently, an employer or trade union has the option of initiating the “Business Maintenance” agreement process. Bill C-58 will make these agreements mandatory and provide a fixed timetable for concluding an agreement and resolving any related disputes.

Bill C-58 amendments to Code will come into effect on June 20, 2025. Once the changes come into effect, the replacement worker ban will apply to any ongoing strikes or lockouts, meaning the continued use of replacement workers must cease.

More information on changes to employment relations laws can be found in our legal bulletin.

Extended holidays

On June 20, 2024, federal Bill C-59, the Fall Economic Statement Implementation Act, 2023, received royal assent. Bill C-59 facilitates the following amendments to Code (partly by updating earlier amending regulations that have not yet entered into force):

Leave due to miscarriage: Employees will have access to a new pregnancy loss leave of eight weeks in the case of stillbirth or three days in the case of any other form of pregnancy loss. The leave will be available in the event of a pregnancy loss by the employee, their spouse or a pregnant person, if the employee intended to be the legal parent of the child, if the pregnancy ended in a live birth. If the employee has worked for three consecutive months of uninterrupted employment, the first three days of this leave are paid.
Bereavement leave: Bereavement leave will be expanded to entitle employees to eight weeks of unpaid leave in the event of the death of a child. Bereavement leave will also be changed to be more consistent with others Code leave, including requiring the employee to provide written notice stating the reasons for the leave and written notice of a change in the length of the leave.

These changes are scheduled to enter into force on or before December 17, 2025, and this date will be set by regulation.

Child placement leave: Currently, parents who adopt a child through adoption or surrogacy have access to the same parental leave as biological parents (up to 63 weeks of parental leave). A new 16-week leave, similar to maternity leave, will be available to employees who take on the responsibilities of placing a child in their care, whether through adoption or surrogacy.
Appropriate changes will be made in paragraph Unemployment Insurance Act introducing a new 15-week benefit for claimants who take responsibility for a newborn child, either through adoption or surrogacy.

These changes enter into force on the date specified in the ordinance.

Budget 2024 Bill C-69

On June 20, federal Bill C-69, Budget Implementation Act 2024, No. 1, received Royal Assent. Bill C-69 includes the following amendments to the Canada Labour Code.

Presumption of employment status: Parts I, II and III Code have been amended to add a new presumption of employee status for “a person to whom the employer pays remuneration”. Code proceedings other than criminal proceedings, employers will have to prove they are not employees. Currently, it is usually the other way around – the person claiming to be an employee must prove it. This reverse presumption is intended to make it more difficult for employers to characterize employees as “independent contractors” and thus make it easier for employees to claim employee status and receive Code benefits and security unless employers prove otherwise.
Additionally, employers are prohibited from treating employees as if they were not employees. This may result in an injunction, wage requirement, unfair labor practice or complaint and related investigation.

These changes will come into force on the date of Royal Assent, 20 June 2024.
Rules for disconnecting from work: Employers will be required to establish a disconnection policy. The policy must include:
- a general rule regarding business communication outside established working hours, taking into account the employer’s expectations and the possibility of employees disconnecting from means of communication;
- any exceptions to the rule and their justification;
- policy effective date; AND
- any other elements that may be specified in the regulation.

Employers will be required to consult with affected employees or trade unions and provide non-unionized employees with a 90-day feedback period. Employers are also obliged to keep a register of consultations.

The separation provisions will go into effect on a date yet to be specified in the order. From that date, employers will have one year to develop a policy.

The author would like to thank Ammar Thaver, law student, for his contribution to the preparation of this legal update.