Canada: Employment Law Tracker – March 2024

Canada: Key Issues

1. Canada Labour Code amendments are now in force to place new obligations on federally-regulated employers, including graduated notice of termination of employment, similar to many provincial employment standards statutes.
2. By denying a rarely-used motion for re-hearing, the Supreme Court of Canada has effectively confirmed its November 10, 2023, decision regarding the definition of "employer" under Ontario's Occupational Health and Safety Act ("OHSA").
3. Ontario superior courts continue to find reasons to render termination clauses void as violating the Employment Standards Act, 2000 ("ESA"). In a decision dated 16 February 2024, the Ontario Superior Court of Justice refused to enforce language that stated the employer could terminate an employee's employment in its "sole discretion... at any time."
4. Responding to an Ontario Court of Appeal decision from January striking down Bill 124 as unconstitutional, the government repealed the law in its entirety.
5. A labour arbitrator confirms that sick leave provisions introduced to the Canada Labour Code in 2022 are a minimum standard. Like with provincially-legislated minimum standards, an employer must either meet that minimum (by providing equivalent benefits that have the same purpose) or beat them (by providing a more generous benefit).

Canada: Terminating a Federally-Regulated Employee? New Requirements that Employers Need to Know

Amendments to the Canada Labour Code have now come into force. These place new obligations on federally-regulated employers, including graduated notice of termination of employment, similar to many provincial employment standards statutes. » Read More

Canada: Update: The Supreme Court of Canada Denies Motion for Re-Hearing in R v. Greater Sudbury

By denying a rarely-used motion for re-hearing, the Supreme Court of Canada has effectively confirmed its November 10, 2023 decision. That decision startled the expansion of the definition of "employer" under Ontario's Occupational Health and Safety Act ("OHSA") to include construction site owners, even if they have minimal involvement in the day-to-day operations of the workplace/jobsite. » Read More

Canada: Contract Permitting Termination in an Employer's "Sole Discretion... at Any Time" is Unenforceable

Ontario superior courts continue to find reasons to render termination clauses void as violating employment standards legislation. In a decision dated February 16, 2024, the Ontario Superior Court of Justice refused to enforce language that stated the employer could terminate an employee's employment in its "sole discretion... at any time". The judge held that this, among other components of the provision, violated the Employment Standards Act, 2000 ("ESA"), and that the employer could not rely on it to override the employee's entitlement to common law reasonable notice of termination. » Read More

Canada: Ontario Repeals Bill 124

Responding to an Ontario Court of Appeal decision from January striking down Bill 124 as unconstitutional, the government repealed the law in its entirety. » Read More

Canada: Meet it or Beat it: Paid Medical Leave under the Canada Labour Code is a Minimum Standard

A labour arbitrator confirms that sick leave provisions introduced to the Canada Labour Code in 2022 are a minimum standard. Like with provincially-legislated minimum standards, an employer must either meet that minimum (by providing equivalent benefits that have the same purpose) or beat them (by providing a more generous benefit). As a result, employers do not need to provide CLC sick days to their employees if an existing sick leave practice produces a more favourable benefit to employees. » Read More