More changes coming to the Canada Labour Code and regulations

Effective July 9, 2023, the Canada Labour Code (the “Code”) and its regulations will be amended to modernize federal labour standards. These changes  are intended to assist workers with the recovery of unpaid work-related expenses, clarify employees’ conditions of employment, and  provide employees who use menstrual products with more hygienic conditions.

Here is our summary of the key changes.

Reimbursement for work-related expenses

Subject to certain limitations, employers will be required to reimburse employees for reasonable ‎work-related expenses within 30 days of ‎an employee submitting a claim for payment where there is no written agreement ‎setting out an ‎alternative time limit. Different rules apply to unionized operations.

The Canada Labour Standard Regulations will be amended to prescribe factors to consider in determining if an expense is work-related and if it is a reasonable expense. Specifically, ‎the factors that will be prescribed by regulation and that should be considered in ‎determining whether an expense is work-related will be the following:

‎(a) whether the expense is connected to the employee’s performance of ‎work;‎

‎(b) whether the expense enables an employee to perform work;‎

‎(c) whether incurring the expense is required by the employer as a ‎condition of employment or continued employment;‎

‎(d) whether the expense satisfies a requirement for the employee’s work ‎imposed by an occupational health or safety standard; and

‎(e) whether the expense is incurred for a legitimate business purpose and ‎not for personal use or enjoyment.‎

The factors that will be prescribed by regulation and that should be considered in ‎determining whether an expense is reasonable will be the following:

‎(a) whether the expense is connected to the employee’s performance of ‎work;‎

‎(b) whether the expense is incurred to enable an employee to perform ‎work;‎

‎(c) whether it is incurred at the request of the employer;‎

‎(d) whether any amount of expense is incurred beyond the amount ‎necessary to enable the performance of the work;‎

‎(e) whether the expense is one that is normally reimbursed by employers in ‎similar industries;‎

‎(f) whether the employer authorized the expense in advance;‎

‎(g) whether the expense is incurred by the employee in good faith; and

‎(h) whether the claim includes documentation, such as a receipt or invoice, ‎that indicates that the expense was incurred.‎

The employer's obligation to reimburse work-related expenses only applies to ‎expenses incurred on or after July 9, 2023.

Written employment statement

Employers will have to provide a written employment statement to employees ‎within the first 30 days of employment. An updated statement will have to be provided within 30 days of any changes in the information. The following information must be included in the employment statement:‎

‎(a) the names of the parties to the employment relationship;‎

‎(b) the job title of the employee and a brief description of their duties and ‎responsibilities;‎

‎(c) the address of the ordinary place of work;‎

‎(d) the date on which the employment commences;‎

‎(e) the term of the employment;‎

‎(f) the duration of the probationary period, if any;‎

‎(g) a description of the necessary qualifications for the position;‎

‎(h) a description of any required training for the position;‎

‎(i) the hours of work for the employee, including information on the calculation of ‎those hours and rules regarding overtime hours;‎

‎(j) the rate of wages or salary and the rate of overtime pay;‎

‎(k) the frequency of pay days and the frequency of payment of any other ‎remuneration;‎

‎(l) any mandatory deductions from wages; and

‎(m) information about how the employee can claim reimbursement of reasonable ‎work-related expenses.‎

Employers will have to retain a copy of the latest employment statement for 36 months after the employee’s employment with the employer ends and provide employees with a copy upon request. The Canada Labour Standard Regulations will be amended to prescribe information that must be included in the written employment statement. If an employer has not provided an employee with a written statement containing the information set out in the regulation before July 9, 2023, the employer must provide the employee with such a statement by October 7, 2023.

Information on rights and obligations

Employers will be required to provide ‎employees with information, provided by the Minister, outlining the rights and obligations of both the ‎employer and the employee, within the first 30 days of employment.  Employers will have to provide updated information within 30 days of any ‎changes.‎ The most recent version of the materials made available by the Minister will need to be posted in a readily accessible place for employees. When an employer terminates an employee, they must give the employee a copy of the most recent materials related to termination of employment not later than the employee’s last day of work. This information has yet to be made available by the Minister as of the time of writing. Employees must be provided with the Ministry’s materials within 90 days after the later of (i) July 9th and (ii) the day on which materials are first made available.

Provision of menstrual products

The Regulations Amending Certain Regulations Made Under the Canada Labour Code (Menstrual Products) SOR/2023-78, published in the Canada Gazette, Part II on May 10, 2023, amended a number of occupational health and safety regulations issued under the Code to ensure appropriate availability of menstrual products to employees. These requirements, which vary by industry, will come into effect on December 15, 2023.