By: Stephanie McDonald and Murtaza Najmi
What is the Canada Labour Code?
The Canada Labour Code (CLC) sets the minimum employment standards for federally-regulated employees in Canada. These standards establish minimum working conditions such as hours of work, health and safety, and minimum wages.
Who Does It Apply To?
You are covered by the CLC if you work for:
- A bank or credit union
- An airlines, airport, or railway
- Telecommunications or broadcasting company
- A shipping or trucking company that crosses provincial borders
- The federal government or a Crown corporation
A list of federally regulated industries and workplaces can be found here.
Why It Matters
The CLC ensures consistent protection for workers in industries that operate across Canada. It sets the floor for how employees are to be treated at work.
Key Minimum Standards
Some core CLC protections include:
- Hours of Work: Maximum 8 hours per day, 40 per week.
- Rest Periods: At least one full day off per week.
- Overtime Pay: At least 1.5 times your regular wage after 40 hours per week.
- Vacation: If you have less than 5 years’ service, you get 2 weeks’ paid vacation, and if you have more than 5 years’ service, you get 3 weeks paid vacation.
- Termination Notice: If you’ve been employed for three consecutive months, you’re entitled to notice of termination or termination pay corresponding to how many years you’ve worked there, up to 8 weeks.
- Severance Pay: If you’ve been employed for 12 consecutive months, you’re entitled to the greater of two days pay per each completed year of employment, or five days pay.
- Reprisal Protection: Employers cannot punish you for asserting your rights.
CLC vs. Common Law Rights
The CLC sets only the minimum standards for federally regulated workers. However, the CLC doesn’t create a ceiling to your entitlements. The common law also applies to your employment. If your employment contract does not clearly limit your rights, you could also have a claim for common law reasonable notice, which is higher than the minimum CLC notice.
Important Resources
Conclusion
If you work in a federally regulated industry and are facing termination, a workplace dispute, or uncertainty about your entitlements, it is critical to understand both your statutory and common law rights before taking action or accepting an offer. An employment lawyer can help you determine whether the CLC minimums apply, whether you are owed more, and what strategy best protects your interests.
If you need help navigating the Canada Labour Code or your employment rights more broadly, Workplace Sage Legal is here to help. Knowledge is power, and knowing your rights can make all the difference. Book a consultation today.
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While reasonable efforts have been made to ensure the accuracy of the content provided, it does not constitute legal advice. Prior to relying on any aspect of this article, you should consult with a suitably qualified legal professional promptly in your relevant jurisdiction, to obtain advice tailored to your individual circumstances
Nothing in this article should be interpreted as forming a solicitor-client relationship or construed as a solicitation for legal services.
