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Last updated on: September 12th, 2023
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Labor Requirements
The Federal Labour law in Canada is regulated mainly by Canada Labour Code, 1985 (last amended in 2023). The Code governs the terms and conditions of employment such as working hours, holidays, rest periods, wages, overtime, leave and termination of employment etc. The other acts that govern labour relationships are The Employment Insurance Act, Labour Relations Act etc.
Applicability
The Canada Labor Code covers employees working in federally regulated workplaces and most federal crown corporations (for example, Canada Mortgage and Housing Corporation and the Canada Post Corporation). Federally regulated workplaces generally include:
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- inter-provincial and international services such as:
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- railways
- road transport
- telephone, telegraph, and cable systems
- pipeline
- canals
- ferries, tunnels, and bridges
- shipping and shipping services
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- radio and television broadcasting, including Cablevision
- air transport, aircraft operations, and aerodromes
- banks
- undertakings for the protection and preservation of fisheries as a natural resource
- some First Nations communities and activities
- undertakings declared by Parliament to be for the general advantage of Canada, such as most grain elevators, flour, and seed mills, feed warehouses, and grain-seed cleaning plants, uranium mining and processing, and atomic energy.
- inter-provincial and international services such as:
Hours & Pay Regulations
Normal Working Hours
The standard hours of work of an employee shall not exceed 8 hours in a day and 40 hours in a week (exclusive overtime). The maximum number of hours that an employee can work is 48 hours a week (inclusive of overtime). This can be exceeded in exceptional circumstances such as in cases of emergencies.
Averaging Hours of Work – In cases of industrial establishments where the working hours of an employee are distributed unevenly, the daily and weekly working hours of an employee can be calculated on an average of two or more weeks.
The duration for averaging work hours must be agreed through a written agreement between the employer and employee. If the duration is not in written agreement, the arrangement of averaging hours shall not exceed more than 3 years.
Flexible Work Arrangements
An employee who has been employed with the same employer for 6 consecutive months may request the employer for a change in their employment condition in writing as follows:
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- the number of hours that the employee is required to work;
- the employee’s work schedule;
- the employee’s location of work; and
- any terms and conditions that apply to the employee and that are prescribed by regulation.
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The employer is required to make a decision to either grant fully/partially or refuse the request within 30 days of receiving the request notice.
Modified Work Schedule – An employer can modify a work schedule for employees under which the hours exceed the standard hours of work, such that the average hours of work for a period of two or more weeks do not exceed 40 hours a week and such modification has been agreed in writing.
If the work schedule is changed, the employer must display the new work schedule at least 30 days in advance before the change is effective. The employer shall provide an employee with their work schedule in writing at least 96 hours before the start of the employee’s first work period or shift under the schedule.
A work schedule duration remains in effect for 3 years or for such a shorter period as is agreed to by the employer or employee or their trade unions.
Shift Change – If an employer changes a period or shift during which an employee is due to work or adds another work period or shift to the employee’s schedule, the employer shall give the employee written notice of the change or additional work at least 24 hours before in the case of a change, the employee’s original work period or shift is to begin or, if the work period or shift that results from the change is to begin earlier than the original work period or shift, before the period or shift that results from the change is to begin; and in the case of an addition, the work period or shift that was added is to begin.
Exception: A notice of 24 hours is not required to deal with a situation that the employer could not have reasonably foreseen and that presents or could reasonably be expected to present an imminent or serious such as a threat to the life, health, or safety of any person; damage to or loss of property; or serious interference with the ordinary working of the employer’s industrial establishment. Canada Labour Code RSC 1985, § 169, 170,173.1, and 177.1
Recording Requirements – An employer shall ensure to maintain records of an employee with respect to wages, overtime hours worked, general holidays, and other particulars as may be required by the Labor authority. The employer must maintain this record for at least 36 months (i.e. 3 years) and must be available for inspection at the request of the Labor Authority. Canada Labour Code RSC 1985, § 252 and 264.
Overtime
Any work performed beyond the standard working hours (i.e. 8 hours per day or 40 hours per week) is considered Overtime work. An employee may refuse to do overtime work in order to carry out the employee’s family responsibilities.
In certain circumstances, an employee shall not refuse to work overtime if it is necessary for them to work overtime to deal with a situation that the employer could not have reasonably foreseen and that presents or could reasonably be expected to present an imminent or serious such as a threat to the life, health or safety of any person; damage to or loss of property; or serious interference with the ordinary working of the employer’s industrial establishment.
Overtime Pay: An employee is entitled to receive either:
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- a premium pay at 1.5 times the employee’s regular rate of wage, or
- a compensatory time off equivalent to 1.5 hours paid time off for each hour of overtime work.
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Conditions: An employee is entitled to compensatory off instead of premium pay only when the employee and employer are mutually agreed by an agreement in writing. An employee shall receive their paid compensatory time off within 3 months of overtime work performed unless the mutually agreed agreement specifies a longer term. If an employee is not subject to any collective agreements the term shall not exceed more than 12 months.
Time Off Not Taken within a Specified Period – If an employee does not take all or part of the time off within the applicable period, the employer shall within 30 days after the day on which the applicable period ends, pay the employee’s wages for the overtime work performed at a rate of wages not less than 1.5 times the employee’s regular rate of wages on the day on which they worked the overtime.
Termination of Employment – If the employment of an employee is terminated before the employee takes all or part of the time off, the employer shall in such cases, pay the employee for the overtime work within 30 days after the day on which the employment is terminated, at a rate of not less than 1.5 times the employee’s regular rate of wages. Canada Labour Code RSC 1985, § 174.
Breaks
An employee is entitled to at least a 30-minute unpaid break during every period of 5 consecutive hours of work. In cases, where the employee remains at the disposal of the employers during the break period, the employee shall be paid for the break.
Exception: An employee may postpone or cancel their break if it is necessary for them to work overtime to deal with a situation that the employer could not have reasonably foreseen and that presents or could reasonably be expected to present an imminent or serious such as a threat to the life, health or safety of any person; damage to or loss of property; or serious interference with the ordinary working of the employer’s industrial establishment.
Daily Rest Period – An employee is entitled to a rest period of at least 8 consecutive hours between work periods or shifts unless an emergency exists.
An employer may require that an employee work additional hours to their scheduled work periods or shifts which would result in them having a rest period of fewer than 8 consecutive hours between their work periods or shifts if it is necessary for the employee to work in order to deal with a situation that the employer could not have reasonably foreseen and that presents or could reasonably be expected to present an imminent or serious threat to the life, health or safety of any person, damage to or loss of property; or threat of serious interference with the ordinary working of the employer’s industrial establishment. Canada Labour Code RSC 1985, § 169.2.
Weekly Rest Day – The employees shall be entitled to at least one full day paid rest in a week and wherever practicable, Sunday shall be the normal day of rest in the week. No work shall be performed on Sunday that is prohibited by Law. Canada Labour Code RSC 1985, § 173, § 168(2).
Sunday Work
No work shall be performed on Sunday that is prohibited by Law. Canada Labour Code RSC 1985, § 168(2).
Public Holidays
Employees are entitled to following 10 general holidays in Canada:
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- Jan. 1: New Year’s Day
- Good Friday
- Easter Monday
- Victoria Day (3rd Monday in May)
- July 1: Canada Day
- Labour Day (1st Monday in September)
- Thanksgiving Day (2nd Monday in October)
- November 11: Remembrance Day
- December 25: Christmas Day
- December 26: Boxing Day
- National Day for Truth and Reconciliation (“NDTR”)
- any day substituted for any such holiday
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General Holiday falling on Day off
When a general holiday falls on a day that is a non-working day for an employee, the employee shall be entitled to receive an additional paid day off at a mutually agreed-upon time. This extra day off could also be included in the employee’s annual leave duration. This is not applicable to employees covered under a collective agreement, who are entitled to at least 9 holidays with pay exclusive of any annual leave.
Alternative day for Holiday falling on non-working Saturday or Sunday
In case, New Year’s Day, Canada Day, Remembrance Day, Christmas Day, Boxing Day or National Day for Truth and Reconciliation (“NDTR”) falls on a Sunday or Saturday that is non-working, the employee is entitled to another holiday with pay on the working day immediately preceding or following the general holiday. This is not applicable to employees covered under a collective agreement, who are entitled to at least 9 holidays with pay exclusive of any annual leave.
Substitution of General Holidays
An employer may substitute any other day for a general holiday for employees covered under a collective agreement or not, and such substitution shall be deemed to be a general holiday for such employees. The notice regarding such substitution shall be posted by the employer inaccessible places at least 30 days before the substitution takes effect.
Holiday Pay
An employee shall be paid for each general holiday, an amount equal to at least 1/20th of the wages excluding overtime pay that the employee earned in the 4-week period immediately preceding the week in which the general holiday occurs.
Payment for working on a General Holiday
Employees who work on a general holiday are entitled in addition to holiday pay, wages at a rate equal to at least 1.5 times their regular rate of wages for the time that they work on that day.
Employment in continuous operation – An employee employed in a continuous operation who is required to work on a day on which they are entitled to holiday pay shall –
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- be paid in the amount mentioned above (1/20th of wages)
- be given a holiday with pay at some other time, either by adding it to their annual leave or by granting it at a time convenient to both the employee and the employer; or
- be paid holiday pay for the first day on which they do not work after that day if a collective agreement that is binding on the employer and the employee so provides.
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Canada Labour Code RSC 1985, § 199 – 200.
Annual Leave
Duration of Annual Leave – An employee working for a federally regulated employer shall be entitled to at least:
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- 2 weeks of leave annually after the employee has completed 1 year of employment with the same employer
- 3 weeks of leave annually after the employee has completed 5 consecutive years of employment with the same employer, and
- 4 weeks of leave annually after the employee has completed 10 consecutive years of employment with the same employer
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The employer may pay the employee pay for annual leave within 14 days before the annual leave is set to begin.
A year of employment means continuous employment for the same employer for a period of 12 consecutive months beginning with the date that the employer hired the employee.
Timing of Annual Leave – Generally, employees may take annual leave at a time that is mutually agreed upon with the employer, or employer scheduled with at least two weeks notice.
However, the annual leave must begin no later than 10 months after the employee has completed each year of employment. When the employer schedules the employee’s annual leave period, they must give the employee at least 2 weeks’ notice of when the annual leave will begin.
Calculation of Annual Leave Pay – An employee is entitled to annual leave with pay in an amount equal to:
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- 4% of their wages during the year of employment in respect of which they are entitled to annual leave;
- 6% of their wages during the year of employment in respect of which they are entitled to annual leave, in case of completion of at least 5 consecutive years of employment with the same employer;
- 8% of their wages during the year of employment in respect of which they are entitled to annual leave, in case of completion of at least 10 consecutive years of employment with the same employer.
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Entitlement to Annual Leave in one or more periods – Employees shall take annual leave in one period unless otherwise agreed with the employer to be taken in more than one period.
Annual leave coinciding with Other Holidays – Employee may postpone or interrupt the annual leave in order to take any of the following leaves: maternity-related reassignment; maternity; parental; compassionate care; critical illness; death or disappearance of a child; personal; victims of family violence; traditional aboriginal practices; court or jury duty; bereavement; medical; work-related illness or injury, and leave of absence for members of the reserve force.
Termination of Employment – In case of termination, the employer shall pay the employee within 30 days after the day on which termination took place:
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- any annual leave pay owed to the employee with respect to any prior completed year of employment.
- the applicable percentage of the wages of the employee during any part of the completed portion of their year of employment in respect of which annual leave pay has not been paid to them.
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Canada Labour Code RSC 1985, § 183 – 190.
Special Leave
Every employee is entitled to any unpaid breaks that are necessary for medical reasons. The employer can request the employee to provide a certificate issued by a health care practitioner by providing the length and frequency of the breaks needed for medical reasons and any additional information that may be prescribed by regulation. Canada Labour Code RSC 1985, § 181.1, 181.2 and 181.3.
Employees shall be entitled to 3 days of paid medical leave after 30 days of continuous employment. Thereafter, employees shall be entitled to accrue 1 day of paid medical leave per month, up to a maximum of 10 paid leave days per calendar year. Each paid day must be paid at the employee’s regular rate of wages for each day of medical leave. The paid leave may be taken in one or more periods, and the employer may require that each period of leave is a minimum of one day’s duration.
The new paid medical leave requirement will only apply initially to employers with 100 or more employees. However, this provision is to be repealed at some future date, such that the requirement will have broad application. If employees already have contractual entitlements to paid sick leave (for example under an employment agreement or collective bargaining agreement), taking a day of contractual paid sick leave will also count as paid medical leave under the Canada Labour Code(where the contractual entitlement meets certain requirements).
All employees, including part-time, casual and fixed-term employees are eligible for paid medical leave. Employees may use the paid medical leave if the employee needs to take time off work due to the employee’s own personal illness or injury, organ or tissue donation, a medical appointment during working hours or quarantine.
Employers may only ask for a medical certificate if the employee is absent on a paid medical leave for 5 days or more in a row. Employers must make such a request in writing, no more than 15 days after the employee’s return to work.
Carry Over – The accrued but unused paid leave days can be carried over to January 1 of the following year. But the maximum number of leave days that the employee can earn during the subsequent calendar year will be reduced in equal measure, such that in no year does the employee’s paid medical leave entitlement exceed 10 days.
Pay – When an employee takes a paid medical leave day, the employee should receive their regular rate of wages for normal hours worked. An employer has the right to request in writing that an employee furnish a medical certificate for any period of paid or unpaid medical leave that lasts at least 5 consecutive days within 15 days of the employee’s return to work.
Employers may only ask for a medical certificate if the employee is absent on a paid medical leave for 5 days or more in a row. Employers must make such a request in writing, no more than 15 days after the employee’s return to work.
Recording Requirements – Employers must keep the following records related to each period of medical leave with pay:
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- the dates of commencement and termination of the leave;
- the year of employment in respect of which the leave was earned;
- the number of days of leave carried over from the previous year;
- a copy of any written request for a medical certificate made by an employer; and
- a copy of any medical certificate submitted by an employee.
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A woman employee is entitled to an unpaid leave of up to 17 weeks, which begins 13 weeks before the expected date of delivery and ends 17 weeks after the actual delivery date. If the delivery has not occurred during the 17-week period, the leave is extended until the day of the birth of the child.
If the child born is hospitalized during the period of 17 weeks following the date of delivery the period of leave is extended by the number of weeks during which the child is hospitalized. Such extension shall not exceed a period of 52 weeks.
Flexibility In Working Time – An employee who is pregnant or nursing can request their employer from the beginning of the pregnancy up to 24 weeks following the birth to modify their working hours or reassign them to another work if by reason of the pregnancy or nursing, continuing any of their current work functions may pose a risk to her health or to that of the foetus or child.
An employee must furnish a certificate for jus flexible arrangement of work from a health care practitioner of the employee’s choice indicating the expected duration of the potential risk and the activities or conditions to avoid in order to eliminate the risk.
Nursing Break – Every employee who is nursing is entitled to any unpaid breaks necessary for them to nurse or to express breast milk. Canada Labour Code RSC 1985, § 204 – 206.
An employee is entitled to an unpaid leave of up to 63 weeks of unpaid leave to care for a newborn child of the employee or a child who is in the care of the employee for the purpose of adoption.
Parents may share parental leave in order to access an additional 8 weeks of leave. Parents who share parental leave have access to 71 weeks of parental leave. They can take this leave any time during:
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- the 78-week period starting the day the child is born, or
- the day the child comes into their care.
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Female employees who have given birth can take both maternity and parental leave. However, they are only eligible for 1 period of time for each type of leave. If they choose to take parental leave, they must do so in 1 continuous period of time without interruption from periods of work.
The combined maternity and parental leaves for one parent cannot exceed 78 weeks. Parents who share parental leave have access to a combined 86 weeks of maternity and parental leave. Employees can only share parental leave.
Extension of Period – If the child is hospitalized during the 78-week period, the leave is extended by the number of weeks during which the child is hospitalized.
Regardless of the duration of the hospitalization:
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- maternity leave must end no more than 52 weeks after the date of delivery, and
- parental leave must end no later than 104 weeks after the day on which the child is born or comes into the employee’s actual care.
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Canada Labour Code, § 206.1 – 206.2.
An employee is entitled to unpaid leave of up to 28 weeks to provide care or support to a family member if a medical certificate states that the family member has a serious medical condition with a significant risk of death within 26 weeks from the day the certificate is issued, or the day leave was commenced in case of non-issuance of the medical certificate.
Period When Leave May be Taken
The leave shall only be taken during the period:
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- that starts with the first day of the week in which the certificate is issued, or in case of non-issuance of the medical certificate, the first day of the week in which the leave was commenced; and
- ends with the last day of the week in which either of the following occurs the family member dies, the period of 52 weeks following the first day of the week from the day leave began.
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Aggregate Leave
The aggregate amount of leave that may be taken by two or more employees in respect of the care or support of the same family member shall not exceed 28 weeks.
The employer can request to provide the employee with the medical certificate from the health care practitioner, the employee must provide it within 15 days after they return to work. Canada Labour Code RSC 1985, § 206.3.
An employee who is a family member of a critically ill child is entitled to unpaid leave for up to 37 weeks to provide care and support to the child. An employee who is a family member of a critically ill adult is entitled to unpaid leave for up to 17 weeks to provide care and support to the child.
Period when leave may be Taken
The period during which the employee may take leave:
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- begins on the first day of the week in which either of the following falls:
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- the day on which the first certificate is issued in respect of the child or adult, as the case may be;
- if the leave begins before the day on which the certificate is issued, the day from which the medical certificate indicates that the child or adult, as applicable, is critically ill; and
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- ends on the last day of the week in which either of the following occurs:
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- the child or adult dies, or
- the expiry of 52 weeks following the first day of the week from the day leave began.
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- begins on the first day of the week in which either of the following falls:
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Aggregate Leave
The aggregate amount of leave that may be taken by employees shall not exceed:
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- in respect of the same critically ill child, 37 weeks; or
- in respect of the same critically ill adult, 17 weeks.
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Canada Labour Code RSC 1985, § 206.4.
An employee is entitled to unpaid leave up to 156 weeks if the employee is the parent of a child who has died as a result of crime. An employee is entitled to unpaid leave up to 156 weeks if the employee is the parent of a child who has disappeared as a result of the crime. An employee is not eligible for this leave if the employee is charged with a crime.
The period when leave may be taken
In case of death of a child: This leave starts on the day the child is found deceased and ends 156 weeks after that day (assuming that the death was the result of a probable crime). If a child is found to have died as a result of a probable crime more than 156 weeks after the child’s disappearance (after the employee’s entitlement to the leave, related to the disappearance, has ended), in this case, the employee is entitled to the 156 weeks leave relating to the death of a child.
However, if the child’s body is found after they have already established the death and the employee has taken a leave related to the death of a child, in such a case, the employee will not be entitled to a new leave.
In case of the disappearance of a child: If a child who disappeared is found, then the leave of absence ends 14 days after the day on which the child is found. However, if the child is found during the 156-week period, the leave must end no later than the end of the 156-week period.
The aggregate amount of leave that may be taken by employees in respect of the same death or disappearance of a child or the same children who die or disappear as a result of the same event must not exceed 156 weeks. Canada Labour Code, § 206.5.
An employee is entitled to leave up to 5 days of leave in every calendar year for:
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- treating their illness or injury;
- carrying out responsibilities related to health or care of any of their family members;
- carrying out responsibilities related to the education of any of their family members who are under 18 years of age;
- addressing any urgent matter concerning themselves or their family members;
- attending their citizenship ceremony;
- any other reason prescribed by regulation.
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Leave with Pay
An employee who has been in continuous employment for 3 consecutive months with the employer is entitled to 3 days of leave with pay at the rate of wages for their normal hours of work.
Division of Leave – Such leave may be taken in one or more periods. The employer may require that each period of leave shall not be less than one day’s duration. Canada Labour Code RSC 1985, § 206.6.
An employee is entitled to leave up to 10 days in the event of the death of a member of their immediate family. Such leave begins on the day on which the death occurs and ends 6 weeks after the latest of the days on which any funeral, burial or memorial service of that immediate family member occurs.
Employees who have been in continuous employment for a period of consecutive 3 months with the employer are entitled to the first 3 days of the leave with pay at their regular rate of wages for their normal hours of work. Canada Labour Code RSC 1985, § 210.
An employee who is a victim of family violence or who is a parent of a child who is a victim of family violence is entitled to unpaid leave for up to 10 days in every calendar year in respect of such violence.
An employee who has been in continuous employment for 3 months is entitled to the first 5 days of the leave with pay at their regular wages for their normal work hours. The leave may be taken in one or more periods. The employer may require each period of leave to be not of less than one day’s duration. Canada Labour Code RSC 1985, § 206.7.
Employers under federal jurisdiction are required to give unpaid leaves of absence to employees with at least three months’ service who are reservists in the Canadian Armed Forces for purposes of annual training or to take part in activities in Canada or abroad. Leave must also be granted to allow such employees to recover from any physical or mental health problem resulting from the training or deployment. Canada Labor Code, § 247.5.
An employee who is an Aboriginal person and who has completed 3 consecutive months of continuous employment with an employer is entitled to unpaid leave for up to 5 days in every calendar year. The leave may be taken in one or more periods. The employer may require each period of leave to be not of less than one day’s duration.
The employer may, in writing and no later than 15 days after an employee’s return to work, request the employee to provide documentation that shows the employee as an Aboriginal person. The employee shall provide that documentation only if it is reasonably practicable for him or her to obtain and provide it. Canada Labour Code RSC 1985, § 206.8.
An employee who has been in continuous employment with an employer for 3 consecutive months or a shorter period as may have been prescribed for any particular class of employees and is a member of the reserve force shall be granted unpaid leave to take part in any Canadian Armed Forces or activities set out in the regulations etc.
Amount of Leave
An employee who has taken leave for the purpose of an operation in Canada or abroad designated by the Minister of National Defence, an activity set out in the regulations, Canadian Armed Forces military skills training and training that employee is ordered to take under the National Defence Act shall not be more than an aggregate of 24 months in any 60 month period. Canada Labour Code RSC 1985, § 247.5.
An employee is entitled to unpaid leave to attend court to act as a witness, juror or participate in a jury selection process. Canada Labour Code RSC 1985, § 206.9.
