Government of Canada strengthens enforcement measures to better protect rights of employees in federally regulated workplaces Français
GATINEAU, QC, Dec. 23, 2020 /CNW/ - The Government of Canada is committed to making sure that workers in federally regulated workplaces are respected and protected. That is why the Government has significantly modernized the Canada Labour Code and its compliance and enforcement provisions in recent years.
Today, the Minister of Labour, Filomena Tassi, announced that the final Regulations required to enact the new Part IV (Administrative Monetary Penalties) of the Canada Labour Code are now published in the Canada Gazette, Part II. The new Part IV of the Code, which comes into force on January 1, 2021, establishes an Administrative Monetary Penalties System that penalizes employers who do not comply with the Code's health and safety or labour standards. Once the new Part IV is in force, employers who do not comply with the Code's occupational health and safety or labour standards provisions could face a monetary penalty of up to $250,000.
Monetary penalties will be calculated based on the type of violation, the size of business and any previous monetary penalties for violations of same or higher classification. To provide employers with more time to adjust to these changes, monetary penalties for administrative violations—for example, record keeping and reporting requirements—will not be imposed until January 1, 2022.
The Administrative Monetary Penalties System is a new enforcement tool that stands as an intermediary between existing voluntary compliance measures and prosecution. Administrative monetary penalties, along with the ability to name violators, will create stronger incentives for employers to comply with their obligations and help ensure employees are better protected. These new measures are in addition to other important changes the Government is moving forward with, such as new pay transparency requirements, workplace harassment and violence prevention regulations, and a proactive pay equity system to help address wage gaps in federally regulated workplaces. Together, these efforts will help create workplaces where workers feel safe, valued, included and secure.
To help stakeholders understand the new provisions of the Code and the Regulations, the Government will make tools and guidance available on Canada.ca. Employers are encouraged to contact the Labour Program at 1-800-641-4049 if they need assistance understanding the new regulatory requirements.
Quote
"By creating Part IV of the Canada Labour Code, we are moving ahead with an Administrative Monetary Penalties System. This tool will help promote compliance with occupational health and safety while also improving labour standards. Improved working conditions and greater compliance with the Code will provide a better environment that enables workers to reach their potential, which benefits employers, the economy and all Canadians."
– The Minister of Labour, Filomena Tassi
Quick Facts
- The Administrative Monetary Penalties Regulations made under the new Part IV of the Code will prescribe key elements, including the:
- designation of violations for which a monetary penalty can be issued;
- determination of the penalty amount payable for each violation;
- reduction of the penalty amount for reason of early payment;
- method by which the penalty amount may be paid;
- manner in which a Notice of Violation may be served; and
- calculation of wages due to an employee for the time spent at an appeal proceeding that would otherwise have been time spent at work.
- The Government expects this more robust compliance and enforcement regime to contribute to:
- a decrease in disabling injuries and fatalities in the workplace;
- a decrease in unlawful treatment of employees such as unjust dismissals, unpaid wages or working hours above the maximum hours of work; and
- mitigating experiences of discrimination, harassment and violence in the workplace.
- The coming into force of the new Part IV of the Code on January 1, 2021, will also:
- bring into force another new enforcement tool available under Part III (Labour Standards) of the Code, compliance orders, which will require employers to cease a contravention and take any specified steps within a stated period;
- help address the misclassification of employees by prohibiting employers from treating them as though they are not their employees (for example, classifying an employee as an independent contractor) and requiring employers to prove otherwise if a complaint is filed under Part III of the Code; and
- establish a new Head of Compliance and Enforcement who will exercise the powers and perform the duties and functions related to day-to-day administration and enforcement of Part II (Occupational Health and Safety), Part III (Labour Standards) and Part IV (Administrative Monetary Penalties) of the Code.
Associated Links
Government of Canada moves forward with pay transparency measures for greater equality in workplaces
Government of Canada moves forward on pay equity to help address wage gaps in federally regulated workplaces
Labour Program: Changes to the Canada Labour Code and other acts to better protect workplaces
Backgrounder: Administrative monetary penalties and public naming of employers
The tools available in the Canada Labour Code to address non-compliance of Part II (Occupational Health and Safety) and Part III (Labour Standards)—such as Assurances of Voluntary Compliance (AVCs), directions, payment orders and prosecution—were mostly put in place in the 1960s. While these existing tools are important and still needed, more tools are needed for situations that are more serious than can be managed with voluntary compliance measures and existing directions and orders, but not as serious as those situations where criminal prosecution is the best option. Having different tools that are appropriate for different types of situations will help the Labour Program to ensure that hard-working Canadians work in safe and healthy workplaces where their rights are respected.
This is why the Government of Canada announced in Budget 2017 its intention to amend and modernize compliance and enforcement measures by introducing a new Part IV (Administrative Monetary Penalties) of the Code. The Budget Implementation Act 2017, No.1, which received Royal Assent on June 22, 2017, includes provisions to strengthen enforcement provisions of Part II and Part III of the Code and enact a new Part IV. Part IV provides for administrative monetary penalties and the public naming of employers that have committed a violation as additional compliance and enforcement measures to fill the gap between voluntary compliance measures and prosecution. Part IV also sets out the basic framework for the new Administrative Monetary Penalties System, covering matters such as review and appeal procedures.
The final Administrative Monetary Penalties Regulations are now published in Part II of the Canada Gazette and will come into force on January 1, 2021, alongside the legislation. The regulatory amendments aim to effectively implement provisions of Part IV of the Code, mainly the Administrative Monetary Penalties System, including:
- schedules designating and classifying violations;
- penalty amounts;
- the formula for calculating administrative monetary penalties;
- an early payment option; and
- the publication of the names of employers that have committed violations under Part II and Part III.
To provide employers with more time to adjust, monetary penalties for administrative violations—for example, not complying with record-keeping and reporting requirements—will not be imposed until January 1, 2022.
Other amendments to compliance and enforcement measures under the Code already in force:
On April 1, 2019, the following amendments came into force by Order in Council:
- a new power for inspectors to determine wages and other amounts owed based on available evidence;
- ability for inspectors to order employers to conduct an internal audit;
- ability for inspectors to issue a notice of voluntary compliance;
- extension of the period covered by a payment order;
- application of administrative fees on payment orders;
- ability for employers to pay a security when requesting a review of a payment order;
- ability for inspectors to issue an order to the debtor of a corporate director, such as a bank, for wages owed to an employee during their incumbency (this order may be issued if an inspector was not able to collect from the employer, debtor of the employer or director themselves); and
- the modernization of service of documents.
On July 29, 2019, adjudicative functions under Part III (Labour Standards) of the Code were transferred to the Canada Industrial Relations Board.
SOURCE Employment and Social Development Canada
For media enquiries, please contact: Lars Wessman, Director of Communications, Office of the Minister of Labour, Filomena Tassi, 873-396-0742, [email protected]; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]
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