Guide to Understanding Employment Law in Canada

Guide to Understanding Employment Law in Canada

Table of Contents

Canadian employment law sets out the rights and responsibilities of employers and employees. It ensures fair treatment, safe work environments, and clear guidelines for hiring, working conditions, and termination. This guide to employment law in Canada contains regulations on the employer-employee relationship, including remuneration, working time, leave, and safety. 

Its general purpose is to protect workers and ensure they are treated fairly. Employment contracts with pertinent information like job description and pay can be verbal or written. Employees are protected against harassment and discrimination, and rules governing dismissal and pay instead of notice are provided. You may use government resources or seek advice from an Canada EOR service provider. 

What Is Employment Law in Canada?

Employment law is a set of rules that regulates how employers and employees interact with each other. It includes wages, working hours, holidays, working conditions, and the code of practice regarding recruitment and dismissals.

Employment law aims to protect workers from discrimination and make the workplace safe and respectful. It also provides solutions for conflicts between employers and employees.

Who Makes Employment Laws in Canada?

Federal Government

The federal government sets employment laws for industries that operate across provincial borders, like banking and air transportation, under the Canada Labour Code. Each province and territory also has its own employment laws, such as Ontario’s Employment Standards Act, which governs local workplaces.

Provincial and Territorial Governments

Each province and territory regulates employment for most local businesses within their jurisdiction. For example, the Employment Standards Act of Ontario enacts the laws for most workplaces in Ontario. These laws include minimum wage, hours of work, and leave entitlements.

What Are the Basic Employee Rights and Standards?

Here are some common employment rules and standards in Canada:

Minimum Wage

In Canada, the federal minimum wage is $17.75 per hour. However, each province and territory has its minimum wage, the lowest an employer can pay an employee. Employers should abide by these rates and pay workers accordingly.

Work Hours

Normal working hours are 8 hours daily and 40 hours weekly. Work beyond these hours typically qualifies for overtime pay, which is typically paid at 1.5 times the regular wage.

Breaks and Rest

Workers should be entitled to breaks during the working day. For instance, after working five hours consecutively, a worker should receive an unpaid 30-minute break. Employees must also receive at least eight consecutive hours of rest between work shifts.

Leaves

Staff may take various forms of leave, such as:

  • Maternity and Parental Leave: Work leave for giving or adopting a baby.
  • Sick Leave: Leave when ill or injured.
  • Bereavement Leave: Absence from work when a close family member passes away.
  • Compassionate Care Leave: Leave to care for a seriously ill family member.

The length and compensation of these leaves vary by state.

Termination Notice

Employers should provide a notice instead of terminating an employee’s employment. The length of the notice varies depending on the individual’s employment period and the province or territory’s laws.

How Do Employment Contracts Work?

Written or Verbal

Employment contracts can be either written or verbal. However, a written contract is preferable as it clearly defines the terms of employment and helps prevent misunderstandings or disputes.

Contents

An employment contract typically includes details such as:

  • Job Title and Responsibilities: The job and function description.
  • Compensation: Wages or salaries information.
  • Working Hours: How many hours should you work each day or week?
  • Leave Entitlements: Details of holiday, sick leave, and others.
  • Termination Conditions: Details of how the employment can be ended.

Probation Periods

Most employers include a probationary period at the beginning of employment, typically three months. During this period, the employee or the employer can terminate the employment with shorter notice than usual.

What Protections Exist Against Discrimination?

Equal Treatment

All employees should be treated equally, regardless of race, gender, age, religion, disability, or other attributes protected by law. Discrimination in hiring, promotion, or termination is prohibited.

Harassment

Workplace and sexual harassment are prohibited. Employers should have a policy for preventing harassment, and employees should report such practices to the employer or the responsible authority.

Human Rights Codes

There is a Human Rights Code in all provinces and territories. This code helps protect individuals against discrimination and harassment at work and provides avenues for individuals to file complaints and seek support.

What Are the Rules for Termination and Severance?

Notice Requirements

Employers should give notice or payment instead of notice before dismissing an employee. The notice period will differ depending on the employee’s time worked and employment practice.

Severance Pay

Employees may be entitled to severance pay in certain cases, such as mass layoffs or after long-term service. This is an additional compensation provided upon dismissal.

Unjust Dismissal

Workers who feel unfairly dismissed can complain to the concerned office. In case the dismissal is found to be unfair, possible remedies may be reinstatement or compensation.

Where Can You Learn More or Get Help?

If you require assistance or have questions regarding employment law, these are some resources:

Government Resources

The Government of Canada provides online resources through Employment and Social Development Canada (ESDC) that outline workers’ and employers’ rights and obligations.

Provincial Websites

Every province has a job rules website where you can find information on local laws. These are great places to learn about rights and rules in your area.

Legal Advice

If you need legal help, consider contacting an employment lawyer. They can provide personalized assistance and help you understand your rights and choices.

Conclusion

Employment law in Canada provides a vital framework that protects workers’ rights and outlines employers’ responsibilities. It covers essential areas such as wages, working hours, leave entitlements, and workplace safety. Understanding these laws ensures that employees and employers can navigate their rights and obligations effectively, minimizing disputes.

If you have questions or need further assistance, various resources are available. The Government of Canada and provincial websites offer helpful information, and consulting an employment lawyer can give you tailored advice. Remember, knowing your rights helps create a fair and respectful workplace for everyone. You can also contact experts like HR Options to learn more about the employment laws and manage compliance.

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