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Part III of the Canada Labour Code (Labour
Standards)
1. Coverage
Part III of the Canada Labour Code (Labour Standards)
and accompanying Regulations apply to employees and employers in
works, undertakings, or businesses under the legislative authority
of the Parliament of Canada.
Broadly speaking, the activities that come within federal
jurisdiction include:
- interprovincial and international services such as:
- railways;
- highway transport;
- telephone, telegraph, and cable systems;
- pipelines;
- canals;
- ferries, tunnels, and bridges;
- shipping and shipping services;
- 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;
- 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.
Most federal Crown corporations, such as the Canada Mortgage and
Housing Corporation and Canada Post Corporation, are covered, while
federal public service employees are not.
This is a general outline of the undertakings subject to Part III
of the Canada Labour Code. If you are employed in or
operate an undertaking other than described above, you should
contact your provincial or territorial labour department for
information relating to labour standards.
Managerial and Professional Employees
The hours of work provisions of the Code do not apply to
employees who are managers or superintendents or who exercise
management functions or to members of architectural, dental,
engineering, legal, or medical professions. Managers are also
excluded from coverage under the unjust dismissal provisions.
Part-time and Casual Employees
The Code makes no distinction between full-time and
part-time or casual employees. All are covered by its provisions if
they meet the qualifying requirements.
2. Standards
The primary objective of Part III of the Canada Labour Code
is to establish and protect the work place partners' right to fair
and equitable conditions of employment.
Following are brief descriptions of the minimum standards
provided by the Code. For further detail, please refer to
the pamphlets on individual standards.
The Code provisions are minimum standards only and in no
way interfere with more favourable rights or benefits established by
collective agreement, private arrangement or employer policy.
Further, unionized undertakings are exempt from the divisions of the
Code dealing with minimum wages, annual vacations, general
holidays and bereavement leave where the collective agreement
provides rights and benefits as favourable or better than those in
the Code in respect of length of leave, rates of pay and
qualifying periods; and, the collective agreement provides for the
settlement of disputes by a third party.
Hours of Work
Standard hours are 8 in a day and 40 in a week. At least one and
one-half times the regular rate of pay must be paid for hours worked
in excess of standard hours. Maximum hours are 48 in a week. Certain
provisions permit flexibility in applying these standards. As well,
special regulations cover certain classes of workers in specific
industries such as, for example, city and highway transport drivers.
Minimum Wages
The federal minimum wage rate is the general adult minimum wage
rate established by each province and territory, as revised from
time to time. Each time a province or a territory raises its minimum
wage rate, the federal minimum wage rate for that province or
territory is automatically raised.
Annual Vacations
An employee is entitled to at least two weeks vacation annually
with vacation pay of not less than four per cent of gross wages.
After six consecutive years of employment with one employer, an
employee is entitled to three weeks vacation with pay equivalent to
six per cent of gross earnings.
Vacation must be granted not later than 10 months after
completion of the year entitling the employee to the vacation. Any
outstanding vacation pay must be paid on termination of employment.
General Holidays
Employees are entitled to nine holidays with pay each year: New
Year's Day, Good Friday, Victoria Day, Canada Day, Labour Day,
Thanksgiving Day, Remembrance Day, Christmas Day, and Boxing Day.
Provision is made for the substitution of other holidays where so
designated in collective agreements or where the employer and at
least 70 per cent of employees agree to the substitution. When an
employee, who would have been entitled to a general holiday with pay
is required to work on a general holiday, the employee will be paid,
in addition to his regular rate of wages for that day, at a rate at
least equal to one and one-half times his or her regular rate of
wages for the time the employee worked on that day. Special
provisions apply to workers in "continuous operations" and
to managerial and professional employees (see pamphlet 4 in this
series).
Maternity-Related Reassignment and Leave, Maternity Leave
and Parental Leave
An employee who is pregnant or nursing may request that the
employer temporarily modify her job duties or reassign her to
another job, where reasonably practicable, if continuing any of her
current duties may pose a risk to her health or that of the f�tus
or child. A physician's certificate indicating how long the risk is
likely to last and what activities or conditions should be avoided,
is required.
An employee who has worked for the same employer for at least six
months is entitled to up to 17 weeks of maternity leave to have her
child. The employer may not compel an employee to take leave unless
she is unable to perform an essential function of her job and no
appropriate alternative job is available. An additional leave of up
to 37 weeks is available to natural or adoptive parents, each of
whom have worked for the same employer for at least six months and
have or will have care and custody of a child. If both parents work
for federally regulated employers, their combined parental leave
cannot exceed 37 weeks. The combined maternity and parental leaves
cannot exceed 52 weeks.
An employer may not dismiss, suspend, lay off, demote, or
discipline an employee because she is pregnant or has applied for
leave. Pregnancy or intention to take related leave cannot affect an
employer's decision to train or promote her.
Upon their written request, employees on leave are entitled to be
informed of any employment, promotion, or training opportunities for
which they are qualified.
The Code also provides that seniority continue and
pension, health, and disability plans remain in force during leave,
provided the employee pays normally required contributions. The
employer must continue payments to such plans in at least the same
proportion as if the employee were at work. If there is an income
replacement or insurance plan in force at the work place, an
employee on leave is entitled to benefits on the same terms as any
employee absent from work for health-related reasons.
Upon return from leave, the employee must be reinstated in his or
her position or be given a comparable position in the same work
place with the same wages and benefits. However, an employee's wages
and benefits may be affected if, during the leave, the wages and
benefits of the employee's group are changed as part of a plan to
reorganize the work place. For further details and conditions, see
pamphlet 5 of this series.
Termination of Employment
Employers are required to give individual employees two weeks
written notice of termination, or two weeks' pay in lieu of notice,
except where the employee is dismissed for just cause. Employees
must have been continuously employed for at least three months to
qualify for notice or pay in lieu.
If an employer intends to terminate the employment of 50 or more
employees in an industrial establishment within any 4-week period,
at least 16 weeks advance notice must be given in writing to the
Minister of Labour, with copies to the Minister of Human Resources
Development, the Canada Employment Insurance Commission, and any
trade union recognized as the bargaining agent for affected
employees.
Where there is no bargaining agent, notice must be given directly
to the employees.
In addition, an employer who gives notice of a group termination
is required to establish a committee of employer and employee
representatives for the purposes of developing an adjustment plan to
reduce the impact of the termination upon the affected employees.
Severance Pay
Employees with at least 12 consecutive months of service are
entitled to severance pay on termination, except in cases of
dismissal for just cause. The amount of entitlement is the greater
of two days' pay for each completed year of service or five days'
pay.
Payment of Wages
Employers are required to pay employees on the regular payday as
established by the employer's practice and to pay any wages or other
amounts such as overtime pay, general holiday pay, severance pay, or
bereavement pay within 30 days of entitlement.
Wage Recovery
The Code provides an administrative procedure for
collecting unpaid wages and other benefits. If an employer has not
paid an employee wages or other amounts to which the employee is
entitled, a written payment order may be issued by a federal
inspector to the employer or, under certain circumstances, to a
director of the corporation, ordering payment of the amount in
question. A person affected by a payment order may appeal to the
Minister, in writing, within 15 days after service of the order. An
employer or director may file an appeal only if the amount indicated
in the payment order is paid to the Minister. Should the federal
inspector conclude that the employee's complaint is without merit, a
notice of unfounded complaint is issued. The employee may appeal to
the Minister in writing within 15 days after service of the notice.
Garnishment of Wages
An employee may not be disciplined because garnishment
proceedings may be or have been taken against him or her.
Deductions from Wages
An employer may not make deductions from wages or other amounts
due to an employee unless the deduction is required by federal or
provincial law, authorized by a court order or collective agreement,
or where the deduction is related to amounts authorized in writing
by an employee, or overpayment of wages by the employer. An employer
may not make deductions in respect of damage to property or loss of
money or property if any person other than the employee had access
to the property or money in question.
Sick Leave Protection
An employee who has three or more consecutive months of
continuous employment may not be disciplined, demoted, laid off,
suspended, or dismissed because of absence due to illness or injury,
provided the absence does not exceed 12 weeks and the employee, if
requested in writing by the employer, provides the employer with a
doctor's certificate certifying that the employee was not able to
work during that period. Seniority accumulates and pension and
benefit plans continue in force during the absence provided the
employee pays within a reasonable period of time any normally
required contributions. The employer is not required to continue
wage payments during sick leave but must maintain contributions to
health and disability benefit plans in at least the same proportion
as if the employee were at work.
Injured Worker Protection
Employees are protected from dismissal, suspension, layoff,
demotion, or discipline because of absence from work due to
work-related illness or injury. During such absences, employees are
entitled to wage replacement, payable at an equivalent rate to that
provided for under applicable workers' compensation legislation in
the employee's province of permanent residence.
Bereavement Leave
All employees are entitled to bereavement leave on any normal
working day that occurs during the three days immediately following
the death of a member of their immediate family. Employees with
three or more months of service are entitled to be paid for such
leave days.
Unjust Dismissal
After 12 consecutive months of employment, employees who are not
managers or subject to a collective agreement and believe they have
been unjustly dismissed may lodge a written complaint of unjust
dismissal with the Department. The complaint must be lodged no later
than 90 days from the date of the dismissal.
Departmental officials will attempt to arrange a mutually
satisfactory solution to the dispute. Where this is not possible,
the Minister may appoint an adjudicator to settle the matter.
Complaints of dismissal due to lack of work or discontinuance of a
function, or where other procedures for redress are provided in any
federal statute, may not be considered by the adjudicator.
Sexual Harassment
The Code defines sexual harassment and establishes a
right to freedom from such treatment for all employees.
Employers are required, after consultation with employees or
their representatives, to issue and post a policy statement
concerning sexual harassment that shall include:
- a definition substantially the same as the Code
definition;
- a statement that every employee is entitled to employment free
from sexual harassment;
- a statement that the employer will make every reasonable
effort to ensure that no employee is subjected to sexual
harassment;
- an explanation of how complaints may be brought to the
attention of the employer;
- a statement that disciplinary action will be taken against a
person under the employer's direction who subjects an employee
to sexual harassment;
- an assurance that the employer will not disclose the name of
the complainant or the circumstances of the complaint except
where disclosure is necessary for the investigation;
- information respecting employees' rights under the Canadian
Human Rights Act.
3. Administration and Inspection
The Minister of Labour has appointed inspectors to ensure that
the provisions of the Code are respected in the work place.
Inspectors carry out their work from the regional and district
offices of the Department.
Under the Code, inspectors are empowered to inspect and
copy employers' records, require employers and employees to furnish
documents, administer oaths, and take and receive affidavits and
statutory declarations. As well, they have the right to enter
employers' premises and question employers and employees. Employers
are required to give inspectors all reasonable assistance in the
performance of their duties.
Employers are obliged to keep payroll and other records relating
to employment for at least 36 months. They must post an outline of
the Code requirements and notices as required by the Code
and relevant Regulations along with an indication of where one may
obtain further information.
Complaints and Problems
Beyond the regular inspection program, the Department's services
are available to those who want information or wish to file
complaints concerning violations of the Code. Normally, a
complainant's name will not be revealed to the employer without
permission. It may be necessary to disclose the complainant's
identity, however, for purposes of court proceedings.
Complaints should be made as soon as possible after the problem
occurs; complaints of unjust dismissal must be made within 90 days
of the date of dismissal.
4. Information
The following related pamphlets are available from any Labour
Program Office of Human Resources Development Canada:
1 - Summary
2 - Minimum Wages
3 - Annual Vacations
4 - General Holidays
5 - Maternity-Related Reassignment Leave, Maternity Leave and
Parental Leave
6 - Bereavement Leave
7 - Sick Leave and Work-Related Illness and Injury Leave
8 - Unjust Dismissal
Unjust Dismissal - Mediation Process
9 - Hours of Work
9A - Hours of Work - Motor Transport
10 - Terminations
11 - Wage Recovery
12 - Sexual Harassment
For information only. For interpretation and application
purposes, please refer to Part III of the Canada Labour Code
(Labour Standards), the Canada Labour Standards Regulations,
and relevant amendments.
Additional copies of this publication can be obtained
from:
Public Enquiries Centre
Human Resources Development Canada
140 Promenade du Portage, Phase IV, Level 0
Gatineau, Quebec
K1A 0J9
Fax (819) 953-7260
www.hrdc-drhc.gc.ca
�Her Majesty the Queen in Right of Canada, 2002
Cat. No. MP43-345/1-2002
ISBN 0-662-66815-4
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