Labour and Employment Law Blog

Increased termination notice periods for federally regulated employers come into effect on February 1, 2024.^[1]

Greater Notice Requirements

The Canada Labour Code (the “Code”) currently requires federally regulated employers to provide at least two weeks’ notice of termination or wages in lieu of notice when terminating an employee’s employment on a without cause basis, if the employee has been employed with the employer for at least three consecutive months.^[2] 

As of February 1, 2024, federally regulated employers will have to comply with new graduated individual notice of termination requirements as set out in the table below.  These new notice period requirements bring the Code’s individual notice of termination provisions more in line with those found in provincial employment standards legislation.

 Benefit Statement

The upcoming amendments to the Code will also require federally regulated employers to provide employees with a written statement upon termination of employment that sets out their:  vacation benefits, wages, severance pay, and any other benefits and pay arising from their employment.  The deadline for providing an employee with this statement depends on whether the employee is given working notice of termination or pay in lieu of notice as follows:

• if working notice is given, the employee must receive the notice “as soon as possible,” but no later than 2 weeks before the termination date;
• if pay in lieu of notice is given, the employee must receive the notice no later than the termination date; and
• if an employee receives a combination of notice or pay in lieu of notice, the employee must receive the notice “as soon as possible,” but no later than 2 weeks before the termination date, unless the period of notice is shorter, in which case, the day on which notice is given to the employee of their termination date.

As this statement of benefits is already a requirement in the group terminations context^[3], the intention behind this amendment is to impose the same requirements for both group and individual terminations of employment under the Code.

Takeaways

Federally regulated employers should review their employment agreements to ensure that the termination provisions are in compliance with these changes to the Code.  They should also ensure that there are procedures in place to ensure that terminated employees receive a statement of benefits within the requisite time period.

[1] These amendments received royal assent on December 13, 2018 (via the Budget Implementation Act, 2018, No. 2, SC 2018, c. 27), with a to-be-determined coming into force date.

[2] Code, section 230(1).

[3] Code, section 213(2).