Are Labour Laws Provincial or Federal? Know Your Rights in Ontario
Losing your job. Being denied severance. Getting paid less than you’re owed. If you’re facing a workplace issue in Ontario, you might assume that your employer is following the law—but how do you know for sure? The problem is, not all workers are protected by the same employment laws. Some fall under Ontario’s Employment Standards Act (ESA), while others are covered by the Canada Labour Code (CLC). The difference could determine whether you get severance, how much notice you’re entitled to, and even whether you can take legal action.
That’s why one of the most important questions you can ask is: Are labour laws provincial or federal? The answer determines your rights.
For instance, if you work for a bank, airline, or telecommunications company, your employment falls under federal law. But if you work in retail, construction, healthcare, or most office jobs, Ontario law applies. The trouble is, many workers don’t realize which laws apply to them until it’s too late—until they’re fired without proper notice, denied severance pay, or forced into unfair conditions.
At Whitten & Lublin, we help employees take control of their situations. If your employer is telling you that you aren’t entitled to severance or that they can fire you without notice, don’t just take their word for it. Let’s break down whether your rights fall under provincial or federal jurisdiction and what that means for you.
Who Follows Provincial Labour Laws?
Most workers in Ontario are covered by the Employment Standards Act, 2000 (ESA). This law sets the minimum rights that employees are entitled to, including:
- Severance pay if you’ve been with your employer for a long time
- Termination notice so you’re not let go without warning
- Minimum wage, overtime pay, and vacation pay
- Leaves of absence (e.g., medical, parental, bereavement leave)
If you work in a restaurant, retail store, healthcare, education, manufacturing, construction, or most office jobs, Ontario labour standards apply to you. Your employer must follow the ESA, and if they don’t, you have legal options.
But what if your employer tells you otherwise?
Employers sometimes misrepresent employment laws, either because they don’t understand them or because they hope you won’t question them. If you’re being denied severance, overtime pay, or termination notice, you need to verify which laws actually apply.
Who Follows Federal Labour Laws?
A small percentage of workers—around 6% of Canadians—fall under the Canada Labour Code (CLC) instead of provincial law. These workers are in federally regulated industries, including:
- Banks and financial institutions (e.g., RBC, TD, Scotiabank)
- Air transportation (e.g., Air Canada, WestJet, airport workers)
- Railways and interprovincial trucking
- Telecommunications and broadcasting (e.g., Bell, Rogers, CBC)
- Crown corporations and federal government jobs
If you work in one of these industries, your severance pay, termination notice, and workplace protections are covered by the Canada Labour Code—not the Ontario ESA. This means different rules apply, and it’s critical to understand them before signing anything from your employer.
How Federal and Provincial Labour Laws Affect Your Rights
If you’ve been fired, offered severance, or had your employer change your pay or working conditions, the law that applies to you determines your next steps. Here are some key differences:
Severance Pay
- Under Ontario law, employees with five or more years of service and where the employer has a payroll of at least $2.5 million may be eligible for severance pay.
- Under federal law, employees with at least one year of service are always entitled to severance—a minimum of two days’ pay per year worked, plus termination pay.
Termination Notice
- In Ontario, employers must provide one week of notice per year of service, up to a maximum of eight weeks.
- Under federal law, employees with three months of service must receive at least two weeks’ notice (or pay in lieu).
Vacation Entitlements
- The ESA provides two weeks of vacation after one year of employment and three weeks after five years.
- The Canada Labour Code provides two weeks after one year, three weeks after five years, and four weeks after ten years.
Foreign Workers and Employment Rights
If you’re a foreign worker, you have the same employment protections as any other worker in Canada, but which laws apply to you depends on your industry. If you work for a federally regulated employer, you are covered by federal employment laws. Otherwise, Ontario’s ESA applies.
If your employer is threatening your job or withholding pay because of your work status, this is illegal. You have rights, and you don’t have to accept unfair treatment.
Why This Matters—And What You Can Do
Many employees don’t know that different labour laws apply to different workplaces, and employers sometimes take advantage of that. If you’re being let go, pressured to sign an agreement, or denied pay that you believe you’re owed, don’t accept it without verifying your rights first.
At Whitten & Lublin Employment Lawyers, we help employees understand their legal position and take action when necessary. You don’t have to accept what your employer says at face value—if they’re telling you that you have no right to severance, that they can fire you without cause, or that you have no legal options, we can help you fact-check that.
What to Do If You’re Facing a Workplace Issue
- Don’t sign anything before confirming which labour laws apply to you
- Check your industry—are you covered by provincial or federal law?
- Get legal advice if you’re being denied severance, termination notice, or fair pay
Our Employment and Labour Lawyers in Toronto & GTA can review your situation and help you take action. Whether you’ve been wrongfully dismissed, underpaid, or pressured into an unfair agreement, we will make sure you understand your legal rights—and fight to get you what you deserve.
Final Thoughts
If you don’t know whether labour laws are provincial or federal, you might not realize when your rights are being violated. Most workers in Ontario fall under the ESA, but federally regulated employees follow different rules. Understanding this distinction is key when dealing with termination, severance, and workplace disputes.
If your employer is telling you that you aren’t entitled to severance, can be fired without notice, or don’t have legal options, you need to double-check. Contact Whitten & Lublin today to make sure your rights are protected—and take control of your employment situation. Call 416 640 2667 or contact us online to schedule a consultation.