Order fixing the date of the coming into force of certain provisions of the Budget Implementation Act, 2018, No. 2: SI/2023-12

Canada Gazette, Part II, Volume 157, Number 10

Registration
SI/2023-12 May 10, 2023

BUDGET IMPLEMENTATION ACT, 2018, NO. 2

Order fixing the date of the coming into force of certain provisions of the Budget Implementation Act, 2018, No. 2

P.C. 2023-360 April 21, 2023

Her Excellency the Governor General in Council, on the recommendation of the Minister of Labour, pursuant to subsections 534(8) and (10) of the Budget Implementation Act, 2018, No. 2, chapter 27 of the Statutes of Canada, 2018, fixes the 60th day after the day on which this Order is published in the Canada Gazette, Part II, as the day on which sections 486, 502, 523, 527 and 528 of that Act come into force.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

This Order in Council, pursuant to subsections 534(8) and (10) of the Budget Implementation Act, 2018, No. 2, chapter 27 of the Statutes of Canada, 2018 (BIA 2018 No. 2), fixes the 60th day after the day on which this Order is published in the Canada Gazette, Part II, as the day on which sections 486, 502, 523, 527 and 528 of that Act come into force to amend the Canada Labour Code (the Code).

Once in force, these amendments will make changes to Part III (Standard Hours, Wages, Vacations and Holidays) of the Code to modernize federal labour standards by requiring employers to reimburse reasonable work-related expenses and provide a written employment statement as well as information respecting the employers’ and employees’ rights and obligations under Part III of the Code.

Objective

The objective of this Order is to bring into force amendments to Part III of the Code that are designed to modernize federal labour standards related to the recovery of unpaid work-related expenses and to clarify employees’ conditions of employment in the federally regulated private sector.

Background

The Code sets out the rights and responsibilities of employers and employees in federally regulated workplaces and is divided into four parts: Part I (Industrial Relations); Part II (Occupational Health and Safety); Part III (Standard Hours, Wages, Vacations and Holidays); and Part IV (Administrative Monetary Penalties).

Part III of the Code establishes basic labour standards (e.g. payment of wages, protected leaves) for persons employed in federal Crown corporations and federally regulated private-sector industries, such as

• international and interprovincial transportation by land and sea (including railways, shipping, trucking and bus operations);
• airports and airlines;
• port operations;
• telecommunications and broadcasting;
• banks;
• industries declared by Parliament to be for the general advantage of Canada or for the advantage of two or more provinces, such as grain handling and uranium mining; and
• First Nations Band Councils.

The BIA 2018, No. 2 contained changes to the Code that address legislative gaps but require supporting regulations. At present, the definition of wages under Part III does not include work-related expenses (e.g. uniforms, equipment, travel and accommodations, training, fuel). Employees seeking reimbursement for work-related expenses have limited options to recover the expense short of commencing a civil action against their employer. Civil proceedings can be costly for both employees and employers and take a substantial amount of time to conclude. Employers in the federally regulated private sector are also not currently required to provide employees with any documentation about their employment status or the nature of their relationship with the employer.

The legislative provisions brought into force by this Order include requirements for employers to provide their employees with

• reimbursement for reasonable work-related expenses;
• a written employment statement containing information relating to their employment within the first 30 days of employment; and
• information respecting the employers’ and employees’ rights and obligations under Part III of the Code within the first 30 days of their employment and within 30 days of any updates.

The amendments to the Code also provide that

• the reimbursement of work-related expenses applies only to expenses incurred on or after the day on which this amendment comes into force;
• the employer must provide information respecting the employers’ and employees’ rights and obligations under Part III of the Code within 90 days of the coming into force of this amendment; and
• the employer must provide the employee with a written employment statement containing information relating to their employment, as set out in the regulation, within 90 days of the coming into force of this amendment.

Supporting regulations brought into force at the same time as the Code provisions will prescribe the time limit for reimbursement in cases where there is no agreement in place between the employer and the employee, factors to consider in determining whether an expense is work-related or reasonable, as well as information to be included in the employment statement.

Implications

When in force, the legislative amendments to the Code will require employers to reimburse reasonable work-related expenses and provide a written employment statement and information respecting the employers’ and employees’ rights and obligations under Part III of the Code within the first 30 days of their employment. As of the coming-into-force date, employers have 90 days to provide their employees with the written employment statement.

The changes to Part III of the Code will apply to persons employed in federal Crown corporations (but not the public service or employees of Parliament) and federally regulated private sector industries. All other workplaces, which make up over 90% of the Canadian workforce, are under provincial employment jurisdiction.

Consultation

The 2017–2018 modern labour standards consultation process did not include consultations on the amendments to Part III of the Code related to the recovery of unpaid work-related expenses and to clarify employees’ conditions of employment in the federally regulated private sector. The legislative provisions contained in BIA 2018, No. 2 were introduced to address a legislative gap, as employees seeking reimbursement for work-related expenses had limited options to recover them.

Contact

Annic Plouffe
Acting Executive Director
Labour Standards and Wage Earner Protection Program
Employment and Social Development Canada – Labour Program

Place du Portage, Phase II, 10th floor
165 De l’Hôtel-de-Ville Street
Gatineau, Québec
K1A 0J9
Email: EDSC.DMT.ConsultationNTModernes-ConsultationModernLS.WD.ESDC@labour-travail.gc.ca