Recent & upcoming changes to the Canada Labour Code and related legislation

In addition to the significant introductions/amendments made and/or introduced in 2024 for federally regulated employers, there are several upcoming and proposed amendments to the Canada Labour Code (CLC). This post recaps some of the key legislative changes and provides an overview of what to anticipate in 2025.

While some of these changes are not yet in effect, employers should be aware of them and start planning accordingly.

2024 CLC termination provision amendments

Effective February 1, 2024, federally regulated private sector employers who terminate without cause are required to follow increased notice or pay in lieu of notice requirements. The amendments largely align termination provisions with most provincial requirements (albeit higher within the first year), which require the following:

  • At least three months of employment (but less than 3 years) – 2 weeks’ notice
  • At least three years of employment – 3 weeks’ notice
  • At least four years of employment – 4 weeks’ notice
  • At least five years of employment – 5 weeks’ notice
  • At least six years of employment – 6 weeks’ notice
  • At least seven years of employment – 7 weeks’ notice
  • At least eight years of employment – 8 weeks’ notice

Employers are also required to provide a statement of benefits at time of termination (e.g., outstanding owed vacation, wages, severance, pay in lieu of notice (if applicable), etc.). In addition to the foregoing, current provisions related to severance pay and the Code’s unjust dismissal conditions continue to be in effect.

Upcoming amendments to the Canada Labour Code (CLC)

There are several upcoming and proposed changes to CLC legislation for the coming year. Although not in force until December 17, 2025, the following leave of absence provisions will be required in the coming year:

  • Pregnancy Loss Leave – Employees will be entitled to take 8 weeks of unpaid leave in the case of a stillbirth, and 3 days for any other pregnancy loss. For employees who’ve been employed for at least three months, the first 3 days will be paid.
  • Leave for Placement of a Child – As for those who are currently entitled to ‘maternity’ or ‘pregnancy’ leave, new parents who adopt or are surrogates will be eligible to take 16 weeks of unpaid leave (separate from Parental Leave).
  • Bereavement Leave for the Death of a Child – Bereavement leave provisions will be updated to entitle parents to 8 weeks of unpaid leave in the event of their child’s death.

While not in force yet, other proposed amendments to the CLC include:

  • Right to Disconnect – Employers will be required to develop a policy that sets out expectations, exceptions, and associated guidelines related to employees’ right to disconnect from work after hours. Employers must consult with employees in the development of this policy, which is to be effective one year after coming into force.
  • Misclassified/”Gig” Workers – Any person who is paid by an employer will be presumed to be an employee, and employers will be required to demonstrate that a worker is an Independent Contractor, if in fact that’s the case. The new provision will allow workers to issue complaints, if they feel they’ve been wrongly classified.

Accessibility, Pay Equity, and Employment Equity Acts

Further to our 2024 post, components of the Accessibility and Pay Equity Acts came into force in 2024; however, how those Acts refer to specific employers is still an evolving landscape. Also proposed are changes to the Employment Equity Act that would, among other amendments, expand designated equity groups to include Black and 2SLGBTQI+ workers; update the language from Aboriginal Peoples to Indigenous Peoples; replace the term “members of visible minorities” with “racialized people”; and align the definition of “persons with disabilities” with the Accessible Canada Act.

Our HR Consultants can help you navigate ongoing legislation amendments and update your practices/documents accordingly.