Labor law
in Canada.

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Canada

Labor law in Canada – Overview

Also known as employment law, Canada labor law outlines what an employer must do for its employees by law.

Employers are required to apply minimum standards to ensure certain levels of work practice and uniformity across the workforce. Minimum standards are applied to conditions such as working hours, minimum pay level, mandatory employee benefits, and holiday periods.

Keep in mind that, in Canada there are different federal and provincial laws are applicable depending on the region in which a company operates. 90% of Canadian employees are protected by provincial labor laws.

Notice period laws in Canada

Dismissals in Canada

There are variations in the statutory notice period across Canada’s provinces and territories. A notice period of 2 weeks (i.e. 10 working days) is standard across Canada, including in federally regulated industries.

There are a number of factors that affect the legal requirement to provide a notice period.

For example, employers are not required to provide written notice in the following circumstances:

the employee has not completed three consecutive months of continuous employment;
the employee terminates their own employment;
the employee is dismissed for reasons that constitute ‘just cause’;
the contract provides a specific end date for prescribed work;
the employee is on a lay-off that does not constitute a termination of employment.

Furthermore, the statutory notice period usually extends with the length of employment. See the statutory notice period that must be given in the province of Ontario, as an example.

Resignations in Canada

If the employee has been employed for up to 3 months, they must provide 1 week’s notice in writing. If they have been employed from 3 months to 2 years, they must provide 2 weeks’ notice in writing.

Severance laws in Canada

Generally, employees who complete at least 12 consecutive months of continuous employment qualify for severance pay. The minimum severance payment is five days’ worth of pay.

The calculation for severance pay is two days’ pay at the employee’s regular rate of wages for each full year of employment.

Employers are required to provide severance pay in all circumstances except the following:

when a lay-off does not result in a termination of employment;
when an employment contract includes an end date and employment ends on said date;
when an employee is dismissed for reasons that constitute ‘just cause’;
when an employee terminates their own employment.

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FAQs

What are the most relevant legal documents related to employment law in Canada?

The Employment Standards Act (ESA) and Employment Standards Code (ESC).

Can I terminate an employee during their probationary period in Canada? How much notice do I need to give?

Yes. A contract of employment can be terminated during the probationary period for any reason that is non-discriminatory. In Canada, statutory notice periods only apply to employees who have completed 3 consecutive months of employment.

Can the employee terminate employment during their probationary period in Canada? How much notice do they need to give?

Yes. Employees have the right to terminate their employment during the probationary period. The requirement to provide notice will depend on the details of the agreement entered into, such as the length of the probationary period. If termination is within the first 3 months no period of notice is required.

After the probationary period, what is the process to terminate employment in Canada?

If an employee has completed 3 consecutive months of employment, the statutory notice period applies. The notice, including the reason(s) for the termination, must be provided in writing.

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