CCPartners | Blog

New Canada Labour Code Amendments Now in Effect

As of July 9, 2023, a number of amendments to the Canada Labour Code (CLC) came into effect of which employers should be aware. These amendments include the following:

Reimbursement of reasonable work-related expenses

Employers are required to reimburse employees for reasonable work-related expenses. The CLC regulations outline factors that are to be considered in determining whether an expense is “work-related”, such as:

• whether the expense is connected to the employee’s performance of work;
• whether the expense enables an employee to perform work;
• whether incurring the expense is required by the employer as a condition of employment or continued employment;
• whether the expense satisfies a requirement for the employee’s work imposed by an occupational health or safety standard; and
• whether the expense is incurred for a legitimate business purpose and not for personal use or enjoyment.

The regulations also state the following factors that should be considered in determining whether an expense is “reasonable”:

• whether the expense is connected to the employee’s performance of work;
• whether the expense is incurred to enable an employee to perform work;
• whether it is incurred at the request of the employer;
• whether any amount of expense is incurred beyond the amount necessary to enable the performance of the work;
• whether the expense is one that is normally reimbursed by employers in similar industries;
• whether the employer authorized the expense in advance;
• whether the expense is incurred by the employee in good faith; and
• whether the claim includes documentation, such as a receipt or invoice, that indicates that the expense was incurred.

Where there is no collective agreement in place establishing a time limit for reimbursing the employee’s expense, employers must pay the employee within 30 days after the employee submits the claim for payment.

Information related to Employment

Employers must provide employees with a copy of any materials that the Minister makes available and that contain information respecting employers’ and employees’ rights and obligations within 90 days of the later of July 9, 2023 or the day on which the Minister of Labour first makes the materials available. New employees must be provided with a copy of this information within 30 days of commencing employment. Employers must also post this information in readily accessible places. If an employee’s employment is terminated, the employer must provide the employee with the most recent version of these materials that relate to terminations of employment. 

Employers must also provide employees with a written statement containing the following information related to their employment:

• the names of the parties to the employment relationship;
• the job title of the employee and a brief description of their duties and responsibilities;
• the address of the ordinary place of work;
• the date on which the employment commences;
• the term of the employment;
• the duration of the probationary period, if any;
• a description of the necessary qualifications for the position;
• a description of any required training for the position;
• the hours of work for the employee, including information on the calculation of those hours and rules regarding overtime hours;
• the rate of wages or salary and the rate of overtime pay;
• the frequency of pay days and the frequency of payment of any other remuneration;
• any mandatory deductions from wages; and
• information about how the employee can claim reimbursement of reasonable work-related expenses.

Employers must provide this statement within 90 days of the latter of July 9, 2023 or the day on which the Minister of Labour first makes the materials available. New employees must receive this information within 30 days of commencing employment. In addition, employers must provide employees with an updated employment statement within 30 days of any change being made to the information. Employers must also retain a copy of any employment statement provided for 3 years after an employee’s employment with the employer ends, and provide the employee with additional copies when requested.

In addition, on December 15, 2023, the Regulations Amending Certain Regulations Made Under the Canada Labour Code (Menstrual Products) will come into force. This will require federally regulated employers to provide menstrual products in each toilet room. If it is not feasible to provide menstrual products in a toilet room, then the employer must provide them in another location in the same work place. Employers must also provide a covered container for the disposal of menstrual products.

If you are a federally regulated employer and want to know how these new amendments will affect your workplace, or have any other questions related to the Canada Labour Code, the team at CCPartners is ready to assist.

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