Important update for all federal employers! Amendments to the Canada Labour Code are now in force as of February 1, 2024. Do you fall into this category? And if so, what does this mean for you?
Federal Employers
As we’ve discussed in a previous blog, the Canada Labour Code is a federal law which sets out minimum employment standards for sectors that fall under federal power.
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Since 2019, there have been five proposed class actions against insurance companies and banks for failure to pay proper vacation pay to employees, both past and present. The total amount claimed in the aggregate of these five actions is around $1.2 billion. Royal Bank of Canada is a named party in three of the five actions; in one, it is facing a proposed $800-million class-action lawsuit involving thousands of advisors. Bank of Montreal and Allstate Insurance are also named in these class actions. A significant aspect of the allegations against these employers revolves around the calculation of their employees’ vacation pay. The issue is that for many of these employees, the majority of their compensation is and was made up of commissions and bonuses. Their vacation pay, however, was and continues to be based solely on their much lower base salaries.
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Rideau Hall is the latest workplace to become famous for its toxicity. The story of Julie Payette’s reign and downfall serves as an important reminder for workplaces. The law attempts to protect employees from violence and harassment in the workplace with both proactive and reactive requirements. However, when the offending behaviour comes from the very top, as was the case for the Rideau Hall employees, feelings of powerlessness are pervasive.
The independent workplace report resulting from a review of the circumstances at Rideau Hall reported that 43 employees described the work environment as “hostile.” Out of 93 current and former employees interviewed, only 10 described the work environment in neutral or positive terms.
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When it comes to workplace violence and prevention, the federal government has been playing catch up with the provinces. Starting in 2017, the feds have been working on amendments to the Canada Labour Code (CLC) to more fully address workplace violence and harassment. While Bill-65 – snappily named An Act to amend the Canada Labour Code (harassment and violence), the Parliamentary Employment and Staff Relations Act and the Budget Implementation Act, 2017, No. 1 – establishing the amendments was passed in 2018, the changes had not come into effect nor had a date for their coming into effect been announced. New regulations were announced on June 24, 2020, which provide employers with more details regarding what will be required of them and setting out an effective date of January 1, 2021, for the changes. There are also requirements that employers need to meet before January 1, 2021. More details can be found on the government site here.
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