New requirements for all federally regulated employers across Canada came into effect on July 9, 2023.

These new amendments introduce various obligations for employers to uphold the rights and entitlements of their employees under the Canada Labour Code.

The changes made in July aim to ensure fair treatment and provide clear guidelines for 3 key areas.

 

3 New Requirements for Federally Regulated Employers

1. Reimbursement of Reasonable Work-Related Expenses: Employers are now obligated to reimburse employees for “reasonable, work-related” expenses.
   • Reimbursement is required unless expenses are ineligible based on the Standards Regulation, the terms of a collective agreement, or a written agreement between the employer and employee.
   • Employers must provide reimbursement for eligible expenses within 30 days of a claim, unless alternative time frames are established through collective or written agreements.
   • This obligation applies only to expenses incurred on or after July 9, 2023.
   • Click here for guidelines to determine whether an expense is considered eligible for reimbursement.

2. Providing Ministry of Labour Materials: Employers are now required to provide employees with materials provided by the Ministry of Labour.
   • Employers must inform current employees about their rights under Part III of the Code before October 7, 2023 (90 days past July 9, 2023, when the Code amendments were made).
     • From October 7, 2023 onwards, employers must provide this information within 30 days of an employee’s first day of work.
   • Employers must provide a terminated employee with relevant termination materials from the Ministry of Labour on or before their last day of employment.
   • Any updates to Ministry materials must also be distributed to employees.

3. Employment Statements: Employers must now provide employees with written statements detailing certain terms and conditions of their employment within the first 30 days of employment.
   • Updated statements must be provided within 30 days of any changes to the original statement.
   • As of July 9, 2023, existing employees must be given employment statements by October 7, 2023.

 

Failure to Comply 

Monetary penalties are introduced for non-compliance with the new requirements. The penalty amount depends on factors including the nature of the violation, employer size, and compliance history.

 

Recommendations for Federally Regulated Employers Moving Forwards

1. Establish categories of reimbursable work-related expenses.
2. Create written agreements for non-reimbursable expenses.
3. Ensure timely distribution of Ministry materials and post these materials in accessible areas.
4. Provide accurate employment statements to new and existing employees.

 

Questions? Don’t hesitate to reach out to our team! We’re here to help you stay compliant with the ever-evolving regulatory landscape.