Changes to requirements regarding individual terminations in the Canada Labour Code (CLC) came into effect on February 1, 2024. The amendments were enacted by the Budget Implementation Act, 2018, No. 2. Federally regulated employers are now required to (i) provide enhanced statutory notice entitlements to employees who are dismissed without just cause, and (ii) provide a termination statement to each employee who is dismissed from employment.
Statutory Notice Entitlements
Previously, in the context of individual terminations without just cause, the CLC required federally regulated employers to provide employees with two weeks' notice of termination or pay in lieu of such notice, if the employees had at least three consecutive months of continuous service. However, as of February 1, 2024, the CLC has been amended to provide employees with a graduated system of statutory notice entitlements that increases based on continuous years of service.
The new statutory entitlements for individual terminations are as follows:
|
Length of continuous service completed |
Statutory notice (or pay in lieu) entitlement |
|
At least 3 consecutive months |
2 weeks |
|
At least 3 consecutive years |
3 weeks |
|
At least 4 consecutive years |
4 weeks |
|
At least 5 consecutive years |
5 weeks |
|
At least 6 consecutive years |
6 weeks |
|
At least 7 consecutive years |
7 weeks |
|
At least 8 consecutive years |
8 weeks |
These amendments only impact statutory notice entitlements in the
context of individual terminations. Group termination notice
entitlements remain unchanged.
These changes also do not impact the statutory severance pay entitlement for certain employees under the CLC.
Termination Statements
As of February 1, 2024, the CLC has been amended to include a new requirement for federally regulated employers to provide each employee who is dismissed from employment with a termination statement setting out the employee's (i) vacation benefits, (ii) wages, (iii) severance pay, and (iv) any other benefits and pay arising from the employee's employment with the employer as of the date of the statement.
The deadline for an employer to provide this statement varies depending on whether the employee receives working notice or pay in lieu of notice:
- Where an employee receives working notice, the statement must be given no later than two weeks before the date of termination.
- Where an employee receives wages in lieu of notice, the statement must be given no later than the date of termination of employment.
- Where an employee receives a combination of working notice and wages in lieu of notice, the statement must be given no later than two weeks before the date of termination of employment unless the period of notice is shorter, in which case the statement must be given no later than the date that notice of termination is given.
This termination statement requirement was already in place for group terminations under the CLC, but it is new for individual terminations.
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