Significant amendments to the Canada Labour Code [CLC], introduced by Budget Implementation Act, 2018, No. 2, will come into effect on February 1, 2024. These amendments will bring about a substantial transformation in the notice of termination requirements for federally regulated employers, establishing a graduated system based on an employee’s years of service, similar to the notice requirements under provincial employment standards legislation.
Amendments Effective February 1, 2024
The current termination provisions in the CLC provide for a fixed two weeks’ notice of termination or wages in lieu of notice.
As of February 1, 2024, federally regulated employees will be entitled to notice, wages in lieu of notice, or a combination of both, based on the following formula:
- two weeks, if the employee has completed at least three consecutive months of continuous employment with the employer;
- three weeks, if the employee has completed at least three consecutive years of continuous employment with the employer;
- four weeks, if the employee has completed at least four consecutive years of continuous employment with the employer;
- five weeks, if the employee has completed at least five consecutive years of continuous employment with the employer;
- six weeks, if the employee has completed at least six consecutive years of continuous employment with the employer;
- seven weeks, if the employee has completed at least seven consecutive years of continuous employment with the employer; and
- eight weeks, if the employee has completed at least eight consecutive years of continuous employment with the employer.
It’s important to note that these entitlements will not apply to employees terminated for just cause or those who receive notice as a redundant employee as part of a group termination involving 50 or more employees. Further, the entitlements will not impact the existing severance pay requirements under the CLC.
Additionally, the amendments will require employers to provide employees with a statement of benefits outlining their vacation benefits, wages, severance pay and any other benefits and pay arising from their employment.
Takeaways for Employers
Federally regulated employers should proactively familiarize themselves with the new notice requirements. Employers should amend their employment agreements and policies to ensure compliance with these requirements. Employers should also train employees to ensure compliance with the upcoming amendments to the CLC.
This blog is provided as an information service and summary of workplace legal issues.
This information is not intended as legal advice.
