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Hours of Work & Overtime Policy
Canada Labour Code, Part III, Division I
Under Part III of the Canada Labour Code, the standard hours of work for federally regulated employees are 8 hours per day and 40 hours per week. Overtime is payable at 1.5 times the regular rate for all hours worked beyond these thresholds. Modified work schedules and averaging of hours may be permitted with employee consent and conditions specified in the Code. Employers must maintain accurate records of all hours worked.
Failure to properly track and compensate overtime under the Canada Labour Code can result in complaints to the Labour Program, recovery orders for unpaid wages, and administrative monetary penalties. Unlike some provinces, the federal daily overtime threshold is 8 hours, not 44.
- Standard hours: 8 hours/day, 40 hours/week
- Overtime rate: 1.5x regular rate after daily or weekly threshold
- Modified work schedules permitted with conditions
- Averaging agreements must comply with Division I requirements
- Maximum hours provisions apply — cannot exceed 48 hrs/week without permit
- Accurate time records must be maintained for 36 months
Minimum Wage & Pay Equity Policy
Canada Labour Code, Part III, Division III; Pay Equity Act
The federal minimum wage is $18.15 per hour (effective April 1, 2026), indexed annually to the Consumer Price Index. Where a provincial/territorial minimum wage exceeds the federal rate, the higher rate applies. The Pay Equity Act requires federally regulated employers with 10+ employees to establish pay equity plans ensuring equal compensation for work of equal value.
The federal minimum wage is adjusted annually by CPI indexation — employers must update rates each April 1. The Pay Equity Act imposes proactive obligations to analyze compensation and eliminate gender-based pay gaps, with enforcement by the Pay Equity Commissioner.
- Federal minimum wage: $18.15/hr (April 2026), indexed to CPI annually
- Higher provincial/territorial rate applies where applicable
- Pay equity plans required for employers with 10+ employees
- Annual CPI adjustment effective April 1 each year
- Pay statements must detail all deductions and earnings
- Young workers (under 17) have additional protections
Vacation & General Holiday Policy
Canada Labour Code, Part III, Divisions IV & V
Federally regulated employees are entitled to vacation based on years of continuous employment: 2 weeks (4% vacation pay) after 1 year, 3 weeks (6%) after 5 years, and 4 weeks (8%) after 10 years. There are 10 federal statutory (general) holidays: New Year's Day, Good Friday, Victoria Day, Canada Day, Labour Day, National Day for Truth and Reconciliation, Thanksgiving, Remembrance Day, Christmas Day, and Boxing Day.
Federal vacation entitlements differ significantly from most provinces — particularly the 4-week entitlement after 10 years and the inclusion of Boxing Day and the National Day for Truth and Reconciliation as paid holidays. Non-compliance can trigger complaints and monetary penalties.
- 2 weeks (4%) vacation after 1 year of service
- 3 weeks (6%) vacation after 5 consecutive years
- 4 weeks (8%) vacation after 10 consecutive years
- 10 paid general holidays per year
- Boxing Day (December 26) is a federal statutory holiday
- National Day for Truth and Reconciliation (September 30) is a paid holiday
- Holiday pay calculated as 1/20th of wages earned in the 4 weeks prior
Termination, Severance & Unjust Dismissal Policy
Canada Labour Code, Part III, Divisions IX, X & XIV
After 3 consecutive months of continuous employment, written notice or pay in lieu is 2 weeks. After 3 consecutive years it increases by one week per completed year, to a maximum of 8 weeks after 8 years. A combination of notice and wages in lieu is permitted. No notice is required if the employee has not completed 3 consecutive months, resigns, is dismissed for just cause, is on a layoff that is not a termination, or is on a fixed-term contract that ends on its stated date. Employees with 12 or more consecutive months of continuous employment are entitled to severance pay equal to the greater of 2 days' wages per completed year of employment, or 5 days' wages, except in a just-cause dismissal. This is separate from termination notice. Crucially, employees with 12+ months can file an unjust dismissal complaint under Division XIV, which can result in reinstatement and compensation orders by an adjudicator.
The unjust dismissal provisions under the Canada Labour Code are fundamentally different from provincial wrongful dismissal law. An adjudicator can order reinstatement — a remedy rarely available in provincial courts. The mandatory severance pay formula is also unique and separate from notice requirements.
- 2–8 weeks' notice or pay in lieu after 3 months, based on continuous service
- Severance: greater of 2 days' wages per completed year or 5 days' wages
- Severance applies to employees with 12+ months' continuous employment
- Unjust dismissal complaint available after 12 months of service
- Adjudicator can order reinstatement with back pay
- Group termination provisions require 16 weeks' notice for 50+ employees
- Severance is separate from and in addition to termination notice
Workplace Health & Safety Policy
Canada Labour Code, Part II; Canada Occupational Health and Safety Regulations
Part II of the Canada Labour Code establishes comprehensive health and safety obligations for federally regulated workplaces. Employers must ensure the health and safety of every person employed, maintain a workplace free of known hazards, and comply with the Canada Occupational Health and Safety Regulations. Policy health and safety committees are required at workplaces with 20+ employees; a health and safety representative is required where fewer than 20 are employed.
Federal OHS enforcement is conducted by the Labour Program's health and safety officers who have broad powers to inspect, issue directions, and impose administrative monetary penalties. Part II provides robust employee protections including the right to refuse dangerous work and the right to know about workplace hazards.
- Policy Health and Safety Committee required at 20+ employees
- Health and safety representative required at fewer than 20 employees
- Right to refuse dangerous work without reprisal
- Right to know about workplace hazards (WHMIS compliance)
- Workplace violence and harassment prevention programs mandatory
- Regular workplace inspections required
- Hazard prevention program required for all workplaces
- Incident investigation and reporting obligations
Workplace Harassment & Violence Prevention Policy
Canada Labour Code, Part II; Work Place Harassment and Violence Prevention Regulations
The Work Place Harassment and Violence Prevention Regulations (effective January 1, 2021) require federally regulated employers to develop and implement a comprehensive workplace harassment and violence prevention policy. This includes conducting workplace assessments, establishing reporting procedures, providing support measures for affected employees, and ensuring all occurrences are addressed through a resolution process that may include conciliation, mediation, or investigation.
The federal regime for workplace harassment and violence prevention is more prescriptive than most provincial frameworks. Employers must follow specific regulatory steps including mandatory training, joint development of the policy with the workplace committee, and a structured resolution process.
- Joint policy development with workplace health and safety committee
- Mandatory workplace assessment to identify risk factors
- Designated recipient for complaints required
- Structured resolution process: negotiated, conciliation, or investigation
- Annual training for all employees
- Emergency procedures for immediate threats
- Privacy protections for complainants and respondents
- Support measures available throughout the process
Maternity & Parental Leave Policy
Canada Labour Code, Part III, Division VII
Federally regulated employees are entitled to maternity leave of up to 17 weeks (birth mothers) and parental leave of up to 63 weeks. These leaves can be combined for a total absence of up to 78 weeks. Employees must have completed 6 consecutive months of continuous employment to be eligible. The employer must reinstate the employee to the same or comparable position upon return.
Federal parental leave at 63 weeks is among the most generous in Canada. Employers must ensure job protection throughout the leave period and cannot terminate or lay off an employee due to their leave. Employment Insurance benefits coordination is critical.
- Maternity leave: up to 17 weeks for birth mothers
- Parental leave: up to 63 weeks (either parent)
- Combined maternity and parental leave: up to 78 weeks
- 6 months' continuous employment required for eligibility
- Job-protected leave — reinstatement guaranteed
- Leave can be shared between parents
- 4 weeks' written notice required to employer
- Benefits and seniority continue to accrue during leave
Personal Leave Policy
Canada Labour Code, Part III, Division VII
Federally regulated employees who have completed 3 consecutive months of continuous employment are entitled to 5 days of personal leave per calendar year. The first 3 days are paid for employees who have completed 3 months of continuous employment. Personal leave may be used for treating illness or injury, carrying out responsibilities related to the health or care of family members, addressing urgent matters, or attending citizenship ceremonies.
Personal leave under the Canada Labour Code is broader than many provincial sick leave provisions, covering not just illness but also family care and urgent matters. Employers must track the 3-day paid entitlement separately and cannot require medical certificates for absences of 3 days or less.
- 5 days of personal leave per calendar year
- First 3 days are paid after 3 months' employment; medical leave has a separate 30-day qualifying period
- Covers illness, family care, urgent matters, citizenship ceremonies
- No medical certificate required for absences of 3 days or less
- 3 months' continuous employment required for eligibility
- Leave can be taken in one or more periods
Bereavement Leave Policy
Canada Labour Code, Part III, Division VII
Employees are entitled to up to 10 days of bereavement leave upon the death of an immediate family member, with the first 3 days paid for employees who have completed at least 3 months of continuous employment. Immediate family includes spouse/common-law partner, children, parents, siblings, grandparents, grandchildren, in-laws, and any relative permanently residing with the employee.
Federal bereavement leave provides up to 10 days (first 3 paid), which is more generous than most provincial entitlements. The broad definition of family member is also distinctive under the Canada Labour Code.
- Up to 10 days of bereavement leave per occurrence
- First 3 days paid for employees with at least 3 months of continuous employment
- Broad definition of immediate family member
- Includes relatives permanently residing with the employee
- Leave must be taken within 6 weeks of the funeral or memorial
- Can be taken in one or more periods
Victims of Family Violence Leave Policy
Canada Labour Code, Part III, Division VII
Federally regulated employees who are victims of family violence (or whose child is a victim) are entitled to up to 10 days of leave per calendar year, with the first 5 days paid. This leave can be used to seek medical attention, obtain victim services, seek counselling, relocate, seek legal assistance, or take any other measures prescribed by regulation.
This leave entitlement is unique to the federal jurisdiction and more generous than most provincial equivalents. Employers must handle these requests with strict confidentiality and cannot require proof of family violence for the first 5 days.
- 10 days per calendar year (first 5 paid)
- Available to victims or parents of child victims
- Covers medical attention, counselling, relocation, legal assistance
- Strict confidentiality requirements
- 3 months' continuous employment required
- Can be taken in one or more periods
- No proof required for the paid portion
Medical Leave (Unpaid) Policy
Canada Labour Code, Part III, Division VII
Employees who have completed 3 consecutive months of continuous employment are entitled to unpaid medical leave of up to 27 weeks due to personal illness, injury, organ or tissue donation, or medical appointments during working hours. This is a job-protected leave, and the employer must reinstate the employee upon return.
The 27-week unpaid medical leave entitlement under the Canada Labour Code provides significant job protection for employees dealing with serious health issues. Employers must coordinate with Employment Insurance sick benefits and ensure reinstatement rights are preserved.
- Up to 27 weeks of unpaid medical leave
- Covers personal illness, injury, organ/tissue donation
- 30-day qualifying period, then 1 additional paid day at the start of each month up to 10 days
- A health-care practitioner certificate may be required for paid or unpaid leave of 5 days or longer
- Job-protected — reinstatement guaranteed
- Coordinates with EI sick benefits
Medical Leave with Pay Policy
Canada Labour Code, Part III, Division VII
After a 30-day qualifying period of continuous employment, the employee earns the first 3 days of medical leave with pay, then 1 further day at the start of each following month, to a maximum of 10 days per year. Unused days carry over into the next year, still subject to the 10-day maximum. This is separate from the 27-week unpaid medical leave. If a paid or unpaid medical leave is 5 days or longer, the employer may require a health-care practitioner's certificate.
The 10-day paid medical leave entitlement under the Canada Labour Code is a significant employer obligation, separate from the 27-week unpaid medical leave. Employers must track usage per calendar year, carry unused days forward within the annual maximum, and apply the health-care certificate rule for medical leave of 5 days or longer.
- Up to 10 days of paid medical leave per calendar year
- First 3 paid days after 30 days of continuous employment, then 1 day at the start of each following month
- Covers illness, injury, organ donation, appointments, quarantine
- Unused paid medical leave carries over, still subject to the 10-day maximum
- A health-care practitioner's certificate may be required for leave of 5 days or longer
- Separate from 27-week unpaid medical leave entitlement
Compassionate Care Leave Policy
Canada Labour Code, Part III, Division VII
Employees are entitled to up to 28 weeks of compassionate care leave to care for or support a family member who has a serious medical condition with a significant risk of death. A medical certificate is required. The leave must be taken within a 52-week period and can be shared among eligible family members.
Compassionate care leave provides essential job protection for employees caring for seriously ill family members. Employers must understand the broad definition of family member under federal law and coordinate with Employment Insurance compassionate care benefits.
- Up to 28 weeks within a 52-week period
- Medical certificate required (significant risk of death)
- Broad definition of family member applies
- Leave can be shared among family members
- Job-protected — reinstatement guaranteed
- Coordinates with EI compassionate care benefits
- Can be taken in one or more periods of at least 1 week
Privacy & Personal Information Policy (PIPEDA)
Personal Information Protection and Electronic Documents Act (PIPEDA)
Federally regulated employers must comply with PIPEDA when collecting, using, and disclosing employee personal information in the course of commercial activities. PIPEDA's 10 fair information principles — including accountability, consent, limiting collection, and safeguards — govern how employers handle personal data. This applies instead of provincial privacy legislation for federally regulated employers.
Unlike provincially regulated employers who may be subject to provincial privacy laws, federally regulated employers must comply with PIPEDA. The Office of the Privacy Commissioner of Canada investigates complaints and can make recommendations — non-compliance can result in Federal Court orders and significant reputational damage.
- 10 fair information principles must be followed
- Meaningful consent required for collection, use, and disclosure
- Collection limited to what is necessary for identified purposes
- Personal information must be protected by appropriate safeguards
- Employees have right to access their personal information
- Mandatory breach notification for real risk of significant harm
- Privacy Impact Assessments recommended for new programs
- Applies instead of provincial privacy legislation
Employment Equity Policy
Employment Equity Act
The Employment Equity Act requires federally regulated employers with 100 or more employees to implement employment equity by identifying and eliminating employment barriers for four designated groups: women, Aboriginal peoples, persons with disabilities, and members of visible minorities. Employers must conduct workforce analyses, prepare annual equity plans, and file reports with the Labour Program.
Employment equity obligations are unique to the federal jurisdiction. Non-compliance can result in compliance audits by the Canadian Human Rights Commission, directions to develop plans, and potential tribunal proceedings. Annual reporting to the Labour Program is mandatory.
- Applies to employers with 100+ employees
- Four designated groups: women, Aboriginal peoples, persons with disabilities, visible minorities
- Workforce analysis required to identify underrepresentation
- Employment equity plan must be developed and implemented
- Annual reporting to the Labour Program mandatory
- Canadian Human Rights Commission conducts compliance audits
- Reasonable accommodation for designated group members
- Integration with hiring, promotion, and training policies
Right to Refuse Dangerous Work Policy
Canada Labour Code, Part II, Sections 128-129
Under Part II of the Canada Labour Code, every employee has the right to refuse dangerous work if they have reasonable cause to believe that the use or operation of a machine or thing, a condition in the workplace, or the performance of an activity constitutes a danger to themselves or another employee. The employer cannot take disciplinary action against an employee exercising this right. A structured investigation process involving the workplace health and safety committee and, if unresolved, a health and safety officer, is mandated.
The right to refuse dangerous work under Part II is one of the strongest worker protections in Canadian law. Employers must have a clear policy and process to handle refusals, document investigations, and ensure no reprisal. Failure to comply can result in directions, administrative monetary penalties, and prosecution.
- Every employee has the right to refuse dangerous work
- No reprisal or disciplinary action permitted
- Employer must investigate the refusal immediately
- Workplace committee or representative must be involved
- Health and safety officer called if unresolved internally
- Employee remains protected and paid during investigation
- Applies to all federal workplaces under Part II
- Danger includes imminent or serious threat to health or safety
Traditional Aboriginal Practices Leave Policy
Canada Labour Code, Part III, Division VII
Federally regulated employees who are Aboriginal peoples (First Nations, Inuit, and Métis) are entitled to up to 5 days of unpaid leave per calendar year to engage in traditional Aboriginal practices. This leave recognizes the importance of cultural practices and is unique to the federal jurisdiction. Employees must have completed 3 consecutive months of continuous employment.
This is a leave entitlement unique to the Canada Labour Code with no equivalent in any provincial legislation. Employers must understand this obligation and ensure managers are trained to handle requests respectfully and in compliance with both the Code and the Canadian Human Rights Act.
- Up to 5 days of unpaid leave per calendar year
- Available to First Nations, Inuit, and Métis employees
- For engagement in traditional Aboriginal practices
- 3 months' continuous employment required
- Unique to the federal jurisdiction — no provincial equivalent
- Must be administered consistently with human rights obligations
Critical Illness & Injury Leave Policy
Canada Labour Code, Part III, Division VII
Employees are entitled to leave to care for a critically ill or injured family member: up to 37 weeks for a critically ill child and up to 17 weeks for a critically ill adult family member. A medical certificate from a specialist is required. The leave is job-protected, and the employer must reinstate the employee to the same or comparable position upon return.
These extended leaves provide crucial job protection for employees dealing with family health crises. Employers must coordinate with Employment Insurance benefits and ensure compliance with reinstatement obligations. The 37-week entitlement for critically ill children is among the longest in Canada.
- Critically ill child: up to 37 weeks within a 52-week period
- Critically ill adult: up to 17 weeks within a 52-week period
- Specialist medical certificate required
- Broad definition of family member applies
- Leave can be shared among family members
- Job-protected — reinstatement guaranteed
- Coordinates with EI family caregiver benefits
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Federal Employment Law at a Glance
Minimum Wage
$18.15/hr
April 2026, indexed to CPI annually
Overtime Threshold
8 hrs/day
Or 40 hrs/week at 1.5x rate
Statutory Holidays
10 days
Including Boxing Day & Truth & Reconciliation Day
Severance Pay
2 days/yr
Greater of 2 days/year or 5-day floor
Canada Labour Code, Part I
Industrial relations — union certification, collective bargaining, strikes and lockouts for federally regulated industries
Canada Labour Code, Part II
Occupational health and safety — workplace safety obligations, right to refuse dangerous work, workplace committees
Canada Labour Code, Part III
Labour standards — hours of work, wages, holidays, leaves, termination, severance, unjust dismissal
Canadian Human Rights Act
Prohibits discrimination on 13 grounds in federal workplaces — employment, services, accommodation
Canada Occupational Health and Safety Regulations
Detailed OHS requirements for federally regulated workplaces — hazard prevention, protective equipment, confined spaces
Personal Information Protection and Electronic Documents Act (PIPEDA)
Privacy law governing collection, use, and disclosure of personal information by federally regulated employers
Employment Equity Act
Requires federally regulated employers (100+ employees) to achieve workplace equity for four designated groups
Pay Equity Act
Proactive pay equity obligations for federally regulated employers with 10+ employees — equal pay for work of equal value
Work Place Harassment and Violence Prevention Regulations
Comprehensive framework for preventing and addressing workplace harassment and violence in federal workplaces
Canada Labour Standards Regulations
Detailed regulations supporting Part III of the Canada Labour Code — record keeping, calculations, exemptions
Leave entitlements
- Maternity Leave: 17 weeks
- Parental Leave: 63 weeks
- Personal Leave: 5 days (3 paid)
- Bereavement Leave: Up to 10 days (first 3 paid)
- Victims of Family Violence Leave: 10 days (5 paid)
- Medical Leave (Unpaid): 27 weeks
- Medical Leave with Pay: 10 days per calendar year
- Compassionate Care Leave: 28 weeks
- Critical Illness — Child: 37 weeks
- Critical Illness — Adult: 17 weeks
- Traditional Aboriginal Practices: 5 days (unpaid)
- Court or Jury Duty Leave: As needed (job-protected)
- Reservist Leave: As needed (job-protected)
- Leave Related to Death or Disappearance of a Child: Up to 104 weeks
All leaves are job-protected under the Canada Labour Code, Part III, Division VII. Eligibility generally requires 3 months' continuous employment (6 months for maternity/parental). Paid days are employer-paid; longer leaves coordinate with Employment Insurance benefits.