Updates to Canada Labour Code and Implications

Updates to Canada Labour Code and Implications

The federal Budget Implementation Act, 2018, No. 2 introduced a number of changes to federally regulated employees whose employment rights are governed by the federal Canada Labour Code (the “CLC”). One of these changes is set to come into effect on February 1, 2024 – changes to the minimum amount of notice one is entitled to under the CLC if terminated without cause.

Prior to these changes, the minimum amount of notice under the Canada Labour Code for a termination without cause was two weeks’ notice or payment in lieu thereof. However, the CLC is being amended to provide for a graduated increase in the minimum amount of notice starting in February 2024. The minimum will remain at two weeks’ notice for those employed with their employer for less than three continuous years. However, once one is employed for three continuous years their minimum notice will be equal to three weeks, then four weeks’ notice after completing a fourth year of continuous service, then five weeks’ notice after a fifth year of service, and on up to a total of eight weeks’ notice for those employed for a continuous period of more than eight years.

This increase to the minimum notice of termination under the CLC is a welcome change for employees, and the CLC will now look more similar to provincial employment standards legislation in this regard. However, these are just the minimum entitlements under the CLC. Employees might be entitled to a lot more if terminated without cause, depending on the wording of their employment contract.

How Can Individuals Contact Whitten & Lublin for Employment Law Assistance?

If you are an employee who has been let go without cause recently, we recommend that you seek legal counsel to better understand your right to a fair severance package.  We at Whitten & Lublin are happy to provide insight and advice into your specific circumstances.  If you are looking for employment lawyers and would like more information about what Whitten & Lublin can do for you, please contact us online or by phone at (416) 640-2667 today.

Author – Nasyr Asmi