Order Fixing April 1, 2019 as the day on which Certain Provisions of the Act Come into Force: SI/2019-4

Canada Gazette, Part II, Volume 153, Number 4

Registration

SI/2019-4 February 20, 2019

BUDGET IMPLEMENTATION ACT, 2017, NO. 1

Order Fixing April 1, 2019 as the day on which Certain Provisions of the Act Come into Force

P.C. 2019-64 January 31, 2019

Her Excellency the Governor General in Council, on the recommendation of the Minister of Labour, pursuant to subsections 402(5), (6) and (7) of the Budget Implementation Act, 2017, No. 1, chapter 20 of the Statutes of Canada, 2017, fixes April 1, 2019 as the day on which sections 357, 358, 361 and 362, subsections 363(1), (3), (4) and (7), 364(1) and (4), sections 366 and 367, subsection 368(2) and sections 369, 371, 372, 374, 375, 385, 388 and 389 of that Act come into force.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

To fix April 1, 2019, as the day on which sections 357, 358, 361 and 362, subsections 363(1), (3), (4) and (7) and 364(1) and (4), sections 366 and 367, subsection 368(2) and sections 369, 371, 372, 374, 375, 385, 388 and 389 of the Budget Implementation Act, 2017, No. 1 come into force.

Objective

To introduce a number of compliance and enforcement tools under Part III of the Canada Labour Code (the Code).

Background

The Code is an Act of Parliament that regulates industrial relations (Part I), occupational health and safety (Part II), and labour standards (Part III) in industries that fall within federal jurisdiction. The Code applies to employers and employees in federal Crown corporations (e.g. Canada Post Corporation) and federally regulated private sector industries, such as

The provinces and territories have the jurisdiction to enact labour and employment legislation for all other industries that operate within their borders, such as manufacturing firms, restaurants and retail stores, timber and construction companies.

The Budget Implementation Act, 2017, No. 1, which received royal assent in June 2017, introduced a number of amendments to the Code to strengthen compliance and enforcement provisions, create additional incentives to comply, and enhance powers and responsibilities of officials.

Implications

The amendments included in this Order aim to modernize compliance and enforcement measures under the Code by clarifying existing provisions and introducing new tools and administrative procedures to create stronger incentives to comply.

This Order brings into force the following amendments:

Some employers will face increased financial and administrative costs and burdens as a result of the overall compliance and enforcement package (primarily due to the addition of administrative fees on payment orders). However, these costs should not affect law-abiding employers. The latter should also benefit from measures that will help ensure that they are not undercut by competitors who fail to comply with the Code’s requirements. Overall, these amendments are aimed at bringing clarity to existing enforcement measures, improving the recovery of unpaid wages, creating efficiencies where possible, and improving compliance.

Consultation

These amendments are the culmination of several rounds of consultations concerning the Code since the publication of the final report of the Federal Labour Standards Review Commission, Fairness at Work: Federal Labour Standards for the 21st Century, released in 2006. The report highlighted a number of issues, including an overall need to improve compliance through improved enforcement tools and methods. Feedback from subsequent stakeholder consultations has highlighted the need to strengthen the ability of Labour Program inspectors to recover unpaid wages and proactively address compliance issues.

Additional consultations were held in October 2017 to April 2018 with a wide range of stakeholders regarding the coming into force and implementation of the compliance and enforcement amendments to the Code contained in the Budget Implementation Act, 2017, No. 1. Employer and employee representatives, interested individuals and community groups were given the opportunity to submit written comments by email. In-person consultation sessions were also attended by key business and labour organizations, advocacy groups, and academics.

The consultations revealed a consensus among stakeholders on the need to move forward with efforts to improve compliance and enforcement of the Code. Employee and employer representatives were generally supportive of efforts that will promote respect for labour standards and occupational health and safety requirements, improve working conditions and ensure that employees are getting timely payment of their wages. Stakeholders expressed the view that in order for the implementation of these amendments to be effective, there will be a need for the Government to provide detailed guidance to employers, employees and inspectors with respect to their individual responsibilities under the amended legislation.

Departmental contact

Judith Buchanan
Director
Labour Standards and Wage Earner Protection Program
Workplace Directorate
Labour Program
Employment and Social Development Canada
165 De l’Hôtel-de-Ville Street
Place du Portage, Phase II, 10th Floor
Gatineau, Quebec
K1A 0J2
Telephone: 819-654-4362
Fax: 819-997-5151
Email: judith.buchanan@labour-travail.gc.ca