Lawyer and workplace investigator Aleksandra Pressey outlines employment law changes and impacts on employers
The year 2024 will see several changes and additions to labour and employment laws across Canada.
Among those having the greatest impact and offering the greatest opportunity for employers are Ontario’s Working for Workers Four Act, B.C.’s Workers Compensation Amendment Act, and the new Canada Revenue Agency administrative policy, according to Aleksandra Pressey, lawyer and workplace investigator at Williams HR Law.
Within the realms of labour and employment law changes for 2024, pay equity and general transparency are a few trends exhibited across Canadian government agencies, she said.
“Understanding the changes, making sure employers have a plan for these changes and ensuring that any organizational policies and employment agreements are compliant with new legislation are going to be hugely beneficial,” Pressey said.
Working for Workers Four Act (Bill 149): Proposed in 2023 and currently being reviewed by the Standing Committee, the Working for Workers Four Act in Ontario requires employers to, among other things, disclose salary ranges in job advertisements and will ensure that employees with similar roles, skills and responsibilities are being compensated equally.
While the Act has not yet become law, the majority government suggests that the bill will be passed without vast modifications, Pressey said. If the bill comes into law in its current form, there is opportunity for employers to ensure they are meeting legislative obligations, reviewing pay equity plans and being intentional about how they are compensating talent.
Following pandemic pressures, employers must consider their pay scales because disproportionate compensation can cause significant retention issues as well as pay equity and equal pay for equal work concerns, she said.
“I think the Working for Workers Four Act is going to be a big one for a number of reasons — beyond the fact that employers are going to have to disclose salary ranges, because I think it goes deeper than that disclosure. It provides an opportunity for employers to take stock of how they're remunerating to make sure they're not doing something that might be offside from another area of obligation,” Pressey said.
Workers Compensation Amendment Act (Bill 41): The Workers Compensation Amendment Act came into effect in British Columbia on January 1 and enforces workers and employers with a legal duty to cooperate in a worker's early and safe return to work following an injury. The bill also creates a duty for employers to maintain employment following an injury if a worker has been continuously employed by the organization for at least 12 months and the employer regularly employs more than 20 workers.
The duties introduced by this legislation tend to follow existing common law and human rights principles; however, there are additional nuances that it creates. For example, if there are conflicts, where the Act goes beyond what the collective agreement already says, then the Act will prevail if it provides a greater benefit to the worker, unless the conflict is related to seniority, Pressey said.
“There are some nuances within the Act that employers should definitely be aware of, and it might be beneficial to implement policies, if they don't already have them, and make sure that their practices are consistent with this,” she said.
Canada Labour Code: Termination, layoff or dismissal amendment: Amendments to the Canada Labour Code will come into effect on February 4 and will require federally regulated employers to provide employees with a notice of termination period that reflects how long they have been working for the employer.
This amendment will make the Canada Labour Code more closely resemble the graduated notice requirements used in provincial employment standards legislation, keeping in mind that, due to limitations on without cause terminations under the Canada Labour Code, the new notice entitlements will not impact most legislatively permitted without cause terminations.
The amendment will apply to federally regulated employees, which equates to about 6 per cent of Canadian workers. For these employers, it is important they review offer letters and employment agreements to ensure that any termination clauses comply, Pressey said.
New Canada Revenue Agency (CRA) administrative policy with regards to payroll: The new Canada Revenue Agency administrative policy came into effect on January 1 and determines a remote employee's province or territory of employment (POE) for payroll reasons. The policy will allow the CRA to determine the correct province to file an employee's income taxes, pension, and EI.
Following the pandemic, this policy provides an opportunity for employers to consider not only the correct payroll deductions for remote employees but also any other legislation that could differ across provinces, Pressey said.
“I think one of the impacts of this is having to take a look at where employees are located, what payroll deductions may apply, and might also be an opportunity for employers doing this analysis to then consider any other legislation that might be different based on jurisdiction, that they may not have turned their minds to before, and what this means for other obligations from an HR perspective,” she said.
Modern Slavery Act (Bill S-211): The Modern Slavery Act came into effect on January 1 and is intended to prevent the use of forced labour in the supply chains of Canadian companies.
While the goal of this bill is important, it will not impact a large number of employers on a day-to-day basis because of the reporting obligations it creates, Pressey said. The bill focuses on government institutions and certain large Canadian linked entities.
Regulations Amending the Exemptions from and Modifications to Hours of Work Provisions Regulations and the Administrative Monetary Penalties (Canada Labour Code) Regulations: SOR/2023-180: This amendment changes requirements from the 2019 regulation to exempt certain classes of employees within banking, telecommunications and broadcasting, rail transportation and air transportation from previously outlined hours of work provisions.
Amendments to the Federal Competition Act: The Federal Competition Act made it a criminal offence for employers to engage in wage fixing and non-poaching agreements with unaffiliated employers to keep their own costs down. The Act is intended to stop acts of collusion that exist in some industries, Pressey said.
While the Act came into effect in June 2023, Pressey recommends employers familiarize themselves with it as they make considerations for 2024.
“The Competition Act isn't really intended to look at unilateral agreements; it's intended to stop the types of collusion that exist in some types of industries and situations. So, it's really getting some clarity on that, and I think it would be helpful to employers to understand that if you're providing a service to somebody, like consulting, you can very easily say, ‘Don't solicit our employees or contractors.’ That's not going to be offside, as it’s a different thing,” she said.
