Canada Employment Legislation Changes 2024
Employers in Canada need to be ready to implement these latest regulations for their employees in 2024
In this article, we will delve into the 2024 Employment Legislation Changes for Employers in Canada. Let’s understand the key updates and amendments in labor laws that are expected to impact employers across various sectors.
2024 has brought significant changes to employment legislation across Canada, with notable updates in Ontario, British Columbia, and federal jurisdictions. These amendments impose new obligations on employers and address issues such as termination provisions, wage equity, and workplace standards. Below, we summarize the key legislative changes that employers need to be aware of. Join us as we explore what employers need to know to stay compliant and adapt to the evolving regulatory environment in Canada.
Ontario
Bill 149, Working for Workers Four Act, 2024
Bill 149, which received royal assent on March 21, 2024, introduces several important changes to the Employment Standards Act, 2000 (ESA) and related legislation:
- “Trial” Employees: The ESA now includes individuals on trial shifts within the definition of “employee,” entitling them to minimum wage, overtime, and work hour limits.
- Vacation Pay: From June 21, 2024, employers must secure a written agreement if they wish to pay vacation pay by any method other than a lump sum before the vacation or on the payday for the period in which the vacation falls.
- Job Postings: Employers must include expected compensation and disclose the use of AI in the hiring process. Additionally, job postings cannot include requirements mandating “Canadian experience.”
Bill 190, Working for Workers Five Act, 2024
Introduced on May 16, 2024, Bill 190 proposes further amendments to the ESA, Occupational Health and Safety Act (OHSA), and Workplace Safety & Insurance Act. Key proposals include:
- Workplace Harassment: Expanding the definition of harassment to include virtual and sexual harassment.
- Fines and Penalties: Doubling the maximum fine for individuals violating the ESA to $100,000, the highest in Canada.
- Telework: Extending OHSA protections to private residences where telework is performed.
Minimum Wage Increase
Effective October 1, 2024, Ontario’s minimum wage will rise to $17.20 per hour, reflecting a 3.9% increase based on the Ontario Consumer Price Index.
British Columbia
Minimum Wage Increases
Bill 2: Employment Standards Amendment Act, 2024, received royal assent on March 14, 2024. This legislation mandates automatic annual increases to the minimum wage, tied to inflation.
The first wage increase under this bill took place on June 1, 2024, raising the minimum wage from $16.75 to $17.40 per hour.
Labour Relations Code Amendments
The amendments to British Columbia’s Labour Relations Code (LRC) pose new challenges for businesses during federal work stoppages. The Miscellaneous Amendment Act 2024, which received Royal Assent on April 25, 2024, redefines ‘strike’ and ‘person’ under the LRC.
This amendment permits provincially regulated workers in British Columbia to refuse to cross picket lines of federally-regulated or out-of-province workers without it being considered an illegal strike.
Worker’s Compensation Act Amendments
From January 1, 2024, British Columbia employers must cooperate and maintain the employment of injured workers under the BC Workers Compensation Act. Employers with 20 or more workers must retain injured workers for injuries sustained within six months prior to January 1, 2024.
Mental Health Presumption in British Columbia
On June 10, 2024, British Columbia added 11 new eligible occupations to the mental health presumption under the Workers’ Compensation Act, simplifying access to compensation for workers suffering from psychological injuries due to work-related trauma.
The mental health disorder presumption list now includes the following occupations:
- Community-integration specialists
- Coroners
- Harm-reduction workers
- Parole officers
- Probation officers
- Respiratory therapists
- Shelter workers
- Social workers
- Transition house workers
- Victim service workers
- Withdrawal-management workers
Federal Jurisdiction
Accessibility Plans
Federally regulated employers with 10 to 99 employees were required to publish their first accessibility plans by June 1, 2024, under the Accessible Canada Act. These plans must identify and address barriers in employment and other areas.
Enhanced Termination Entitlements
As of February 1, 2024, changes to the Canada Labour Code require enhanced notice periods upon termination, increasing with years of service.
The current two-week notice requirement will be replaced with a graduated notice requirement as shown below. This is in addition to any statutory severance amounts the employee may be entitled to under the Code, which will remain unchanged.
| Weeks’ Notice (or Pay in Lieu) | Completed Period of Employment |
|---|---|
| 2 weeks | 3 months |
| 3 weeks | 3 years |
| 4 weeks | 4 years |
| 5 weeks | 5 years |
| 6 weeks | 6 years |
| 7 weeks | 7 years |
| 8 weeks | 8+ years |
Employers must also provide a statement of benefits upon termination, detailing all entitlements including wages, vacation pay, severance pay and any other pay or benefits they are entitled to upon termination.
Bill C-69 and Bill C-58
Bill C-69 proposes several amendments to the Canada Labour Code and the Employment Equity Act, including the following:
- Right to Disconnect: Bill C-69 requires federally regulated employers to implement policies regarding communication outside regular work hours.
- Protections for Misclassified Workers: This bill also introduces protections for workers misclassified as independent contractors.
- Ban on Replacement Workers: Bill C-58, effective June 20, 2025, prohibits the use of replacement workers during strikes or lockouts in federally regulated industries, with limited exceptions. Employers who violate this rule face penalties of $100,000 per day. Exceptions include non-unionized contractors hired before the notice of a lockout or strike, or situations where there is a potential threat to health and safety, property, or the environment.
Employers in Canada need to stay informed of these legislative updates to ensure compliance and adapt their workplace practices accordingly. These changes reflect a broader trend toward enhancing worker protections and addressing emerging issues in the modern workplace.
How Beyond Borders HR Can Help You
These 2024 employment legislation changes for Canada can be challenging for employers to process independently. Beyond Borders HR, a global HR consulting firm, stands ready to assist businesses in understanding and implementing these changes effectively. With our extensive expertise in global HR practices, we ensure that your organization stays compliant with the evolving regulatory landscape. Reach out to Beyond Borders HR for tailored solutions, expert guidance, and seamless integration of these legislative updates into your HR policies and practices. Our team is dedicated to empowering your business with the knowledge and support needed to thrive in this dynamic regulatory environment.
