WHAT'S NEW IN THE LAW
Canada Labour Code Changes effective February 1, 2024
Previously, the Canada Labour Code ("CLC") provided employees with three months of service or more with only two weeks of notice upon termination, regardless of the employee's years of service. Effective February 1, 2024, the CLC is amended such that federally regulated employees are now entitled to notice upon termination that is more in line with the provinces' minimum standards:
At least 3 months of continues service – 2 weeks
At least 3 years – 3 weeks
At least 4 years – 4 weeks
At least 5 years – 5 weeks
At least 6 years – 6 weeks
At least 7 years – 7 weeks
At least 8 years– 8 weeks
These amendments do not apply to group terminations (when employment is terminated for 50 or more employees in a single industrial establishment in a period of four weeks) or to employees who are dismissed for just cause.
These amendments do not displace the requirement to pay severance pay, which remains unaltered (the greater of two days wages per each full year of service, or five days wages, for employees with 12 months of consecutive employment).
Under the amendments, employers must also provide a statement of benefits to employes as soon as possible, but by no later than two weeks before the date of termination, upon termination of employment. The written statement must outline vacation benefits, wages, severance pay, and any other benefits and pay.
Q: How does this affect me?
A: If you're a provincially regulated employer, this does not affect you at all. If you are a federally regulated employer, these new standards apply to you.
We recommend that you have your contracts, policies and procedures reviewed by us to ensure compliance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.