Regulations Amending the Canada Labour Standards Regulations (Employees Under 18 Years of Age): SOR/2023-40
Canada Gazette, Part II, Volume 157, Number 7
Registration
SOR/2023-40 March 9, 2023
CANADA LABOUR CODE
P.C. 2023-185 March 9, 2023
Her Excellency the Governor General in Council, on the recommendation of the Minister of Labour, makes the annexed Regulations Amending the Canada Labour Standards Regulations (Employees Under 18 Years of Age) under section 181footnote a and subsection 264(1)footnote b of the Canada Labour Code footnote c.
Regulations Amending the Canada Labour Standards Regulations (Employees Under 18 Years of Age)
Amendments
1 The heading before section 10 of the Canada Labour Standards Regulations footnote 1 is replaced by the following:
Employees Under 18 Years of Age
2 (1) The portion of subsection 10(1) of the Regulations before paragraph (a) is replaced by the following:
10 (1) An employer may employ a person under the age of 18 years in any office or plant, in any transportation, communication, maintenance or repair service, or in any construction work or other employment in a federal work, undertaking or business if
(2) Subparagraph 10(1)(b)(iv) of the English version of the Regulations is replaced by the following:
- (iv) is not work that they are prohibited from doing under the Canada Shipping Act, 2001 by reason of their age, and
(3) Subsection 10(2) of the Regulations is replaced by the following:
(2) An employer may not cause or permit an employee under the age of 18 years to work between 11 p.m. on one day and 6 a.m. on the following day.
3 Paragraph 24(2)(a) of the Regulations is replaced by the following:
- (a) the full name, address, Social Insurance Number, occupational classification and sex of the employee, and if the employee is under the age of 18 years, the age of the employee;
Coming into Force
4 These Regulations come into force on the day on which section 449 of the Budget Implementation Act, 2018, No. 2, chapter 27 of the Statutes of Canada, 2018, comes into force, but if they are registered after that day, they come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
Canada ratified the International Labour Organization’s (ILO) Minimum Age Convention, 1973 (C138) in 2016. To ensure full compliance, the Government of Canada made amendments to the Canada Labour Code (the Code) through the Budget Implementation Act, 2018, No. 2 (BIA 2018) to raise the minimum age of employment from 17 to 18. To support these legislative amendments, corresponding regulatory amendments will be made to the Canada Labour Standards Regulations (CLSR).
Background
Canada Labour Code and Canada Labour Standards Regulations
The Code sets out the rights and responsibilities of employers and employees in federally regulated workplaces and is divided into four parts: Part I (Industrial Relations); Part II (Occupational Health and Safety); Part III (Standard Hours, Wages, Vacations and Holidays); and Part IV (Administrative Monetary Penalties).
Part III of the Code establishes basic labour standards (e.g. payment of wages, protected leaves) for persons employed in federal Crown corporations and federally regulated private-sector industries, such as international and interprovincial transportation by land and sea (including railways, shipping, trucking and bus operations); airports and airlines; port operations; telecommunications and broadcasting; banks; industries declared by Parliament to be for the general advantage of Canada or for the advantage of two or more provinces, such as grain handling and uranium mining; and First Nations Band Councils.
Section 179 of Part III provides that a person under the age of 17 may only be employed in an occupation specified by regulation and subject to the conditions fixed by regulation for employment in that occupation. Paragraph 181(f) provides the authority for the Governor in Council to make the regulations for the purposes of section 179. Upon the coming into force of the changes made by BIA 2018, the age referenced in section 179 and paragraph 181(f) will increase from 17 to 18.
The occupations and conditions of employment for persons under the age of 17 are set out in section 10 of the CLSR. Specifically, the CLSR currently provides that a person under 17 years of age may be employed in a federal work, undertaking or business, if
- the work in which they are to be employed is not one which is listed as a hazardous occupation, including in underground mines and in other work that is likely to be injurious to their health or to endanger their safety; and
- they are not required, under the law of the province in which they ordinarily reside, to be in attendance at school.
In addition, a person under 17 years of age may not work between 11 p.m. on one day and 6 a.m. on the following day.
Finally, paragraph 24(2)(a) of the CLSR requires employers to keep records of the age of employees under the age of 17.
Federal Jurisdiction Workplace Survey
The 2015 Federal Jurisdiction Workplace Survey (FJWS) indicated that there were 895 100 employees subject to federal labour standards, including 1 369 who were younger than 18 years of age. From fiscal year 2010–2011 to 2019–2020, employees under the age of 18 were involved in 67 hazardous occurrences recorded in Hazardous Occurrence Investigation Reports (HOIRs), of which 34 were reported in road transportation and 12 in air transportation. Of these occurrences, 65 resulted in disabling injuries. There were no fatalities reported between 2010 and 2020 for employees under 18 in the federal jurisdiction.
Federal Labour Standards Review
In 2004, the Minister of Labour appointed Commissioner Harry Arthurs to review Part III of the Code. Included in the Federal Labour Standards Review was an examination of workers most in need of protection, which included children and young workers. The report noted that very few children were employed in the federal jurisdiction, and that compulsory education mandated by provinces and territories already effectively precludes employment by those under the age of 16. However, the report also recommended that Part III of the Code ban dangerous work for employees under the age of 18. The amendments in BIA 2018 will satisfy this recommendation once they come into force.
International Labour Organization’s Minimum Age Convention, 1973
In 1973, Canada signed ILO C138, which states that work that is likely to jeopardize health and safety should not be carried out by individuals who are younger than 18 years old. The ILO is a United Nations Specialized Agency that brings together representative employer and worker organizations and governments to develop policies and programs to promote decent working conditions. Canada ratified C138 in 2016, which has been ratified by 173 countries including Canada.
To apply C138 in legislation and in practice, the Government of Canada amended Part III of the Code through BIA 2018. This included changing the age referenced in section 179 and paragraph 181(f) of the Code from 17 to 18. To support these legislative amendments, corresponding regulatory amendments will be made to the CLSR.
Objective
The objectives of the Regulations Amending the Canada Labour Standards Regulations (Employees Under 18 Years of Age) [the Regulations] are to amend the minimum age provisions in the CLSR to align with the BIA 2018 amendments to the Code, satisfy one of the recommendations of the Arthurs Report, comply with C138, and in doing so, better protect young employees in the federal jurisdiction.
The additional public policy benefits include a potential decline in occupational injuries, since young workers in the federal jurisdiction will face less hazardous work in their work environment. The Government will also be heeding the call of stakeholders who have argued that young workers need adequate labour protection because they may be more likely to undertake unsafe work practices, accept lower pay, and are often less aware of their workplace rights.
Description
Section 10 and paragraph 24(2)(a) of the CLSR will be amended to raise the referenced minimum age from 17 to 18. Section 10 of the CLSR currently provides that a person under 17 years of age may be employed in a federal work, undertaking or business, if
- the work in which they are to be employed is not one which is listed as a hazardous occupation, including in underground mines and in other work that is likely to be injurious to their health or to endanger their safety; and
- they are not required, under the law of the province in which they ordinarily reside, to be in attendance at school.
In addition, a person under 17 years of age may not work between 11 p.m. on one day and 6 a.m. on the following day.
Paragraph 24(2)(a) of the CLSR currently requires employers to keep records of the age of employees under the age of 17. As a result of the Regulations, the reference to the age of 17 in section 10 and paragraph 24(2)(a) of the CLSR will be increased to 18 years of age.
Two minor technical amendments to section 10 of the CLSR will also be made. The first will replace the “or” by an “and” at the end of subparagraph 10(1)(b)(iv) of the English version to ensure that the intent of the text is clear. The second will update the language of subsection 10(2) of the French version from “11 heures du soir” to “vingt-trois heures.”
Regulatory development
Consultation
A discussion paper pertaining to several amendments to Part III of the Code, including minimum age, was shared in June 2019 with over 600 federally regulated stakeholders from the employer and employee communities as well as including Indigenous partners, community organizations, and think tanks. The consultation was broad in scope seeking feedback on a variety of Code amendments passed in BIA 2018 that aimed at improving protections for employees, particularly those in precarious work, while supporting productive workplaces.
Only two comments specifically regarding the minimum age of employment were received from stakeholders. The Canadian Labour Congress urged the Government to “seize the opportunity of changes to the minimum age of employment in order to strengthen protections for young workers and adopt a precautionary approach to limiting exposure of young workers to hazards and protecting them from illness and injury at work. These precautions should carefully take into account the individual’s age, schooling, learning and development needs, … , and other obligations.”
The Calgary & District Labour Council suggested that the federal government pursue amendments similar to those adopted by British Columbia. Legislation in British Columbia specifies that an employer should not hire a worker who is under 19 years of age to perform hazardous work unless specified by regulations and that the worker is at least 16 years of age. The Calgary & District Labour Council also supported prohibiting work between 11 p.m. and 6 a.m. for employees under 18 years of age.
Prepublication
On July 2, 2022, the Regulations were prepublished in the Canada Gazette, Part I. Stakeholders had 30 days to submit their comments using an online commenting feature as well as through the Labour Program’s consultation email inbox. One comment was received during the prepublication process and it was from the Canadian Labour Congress (CLC). The CLC was largely in support of the regulatory amendments and agreed with the regulatory approach to set a higher minimum age of employment. They raised concerns regarding how provincial and territorial variation in the area of youth employment may impact the federal government’s commitment to ILO C138. They also recommended that the federal government work with provinces and territories to strengthen employment protections for young workers.
Modern treaty obligations and Indigenous engagement and consultation
There have been no impacts on modern treaties identified in relation to the Regulations. However, as the Regulations will affect all employers and employees, including Indigenous employers and employees on reserve, Indigenous stakeholders were invited to participate in the consultation/information sessions held in summer 2019. No comments were received from Indigenous participants.
Instrument choice
The regulatory amendments are required so that the CLSR is aligned with legislative changes made to the Code by BIA 2018, when they are brought into force. Therefore, the baseline scenario of no action is not feasible in this case. The legislative and regulatory amendments will bring Canada into compliance with its commitments under C138, heed the expert opinion from the Federal Labour Standards Review, and address stakeholder concerns raised in the 2019 consultations.
Two policy options were considered to implement C138 in Canada. The first was a more comprehensive approach that would set additional conditions for underage work in the federally regulated workplaces. For instance, some provinces and territories have different provisions for young workers in different age brackets and have a “sliding scale” where employment conditions become less restrictive as a young worker ages. However, it is unlikely that a similar system is needed in the federal jurisdiction. The typical work performed by workers under 18 years of age (e.g. food services and retail industries) is primarily under provincial jurisdiction and far fewer of these workers in this age group are employed in federally regulated sectors.
Establishing a sliding scale would also entail a comprehensive review of each sector within the federal jurisdiction in order to fix the specific conditions of work for young workers in various industries. In addition to this being time-consuming, there is no evidence to suggest that such an expansive approach is needed. This would only serve to further delay Canada from meeting all of its commitments under C138 and could lead to criticism of the Canadian position internationally.
The second and preferred option is to simply raise the minimum age of employment from 17 to 18. This responds to the ILO Committee of Experts and balances the need to protect young workers in the federal jurisdiction while preserving their opportunities for career development. The Labour Program could explore options to implement a sliding scale at a later date if future evidence indicates it is necessary. Therefore, this option is timely and appropriate considering current circumstances. The Regulations will be brought into force on June 12, 2023, at the same time as the amendments to the Code, which will be brought into force via an Order in Council.
Regulatory analysis
The CLSR sets out the occupations and conditions of employment, including for hazardous work, for persons under 17 years of age. The amendments will increase the minimum age of employment from 17 to 18 years. Employment in hazardous work is the main component for the purpose of this cost-benefit analysis. Therefore, the scope of this cost-benefit analysis is the impact of the Regulations on workers in hazardous occupations and their employers.
The total discounted costs of the Regulations are estimated to be $27,730,631 over the 10-year period beginning in 2023, in which Period 1 begins when the regulations are registered and will cover the twelve months after registration. This will include the costs to employers associated with hiring slightly older workers, the costs to employees 17 years of age in terms of forgone salary and record-keeping costs. The benefits associated with the Regulations include conformity with international obligations and a reduction in the risk of accidents from employing workers 17 years of age. Analysis was conducted using the value of statistical life to determine the number of avoided injuries needed, per year and per injury type, for the cost-benefit analysis to breakeven (i.e. for the benefits to be at least equal to the costs). Assuming that the type of injury avoided is moderate, the analysis estimates that approximately 11 injuries per year would need to be avoided for the benefits to equal the costs. On the assumption that the type of injury avoided is severe, the analysis suggests that approximately 5 injuries per year would need to be avoided for the cost-benefit analysis to reach the breakeven point.
Benefits and costs
Costs and benefits for the 10-year analytical period are discounted to Year 0 at a discount rate of 7% and expressed in 2020 Canadian dollars. Where possible, impacts are quantified and monetized. Only direct costs and benefits impacting stakeholders are considered in the cost-benefit analysis. Benefits and costs are assessed by comparing the baseline scenario against the regulatory scenario. The baseline scenario depicts what is likely to happen in the future if the Government of Canada does not implement the Regulations. The regulatory scenario provides information on the intended outcomes of the Regulations.
Baseline and regulatory scenarios
In the baseline scenario, workers of 17 years of age can continue working in hazardous occupations during the analytical period of 10 years. In the regulatory scenario, employers are not allowed to hire new workers of 17 years of age in hazardous occupations. Moreover, employers would need to update employees’ records to add the specific age of employees who are 17 years of age, in addition to what is currently done in the baseline where this is required for employees under the age of 17 years.
Costs
Costs to employers associated with hiring slightly older workers
As a result of the Regulations, employers are expected to incur additional salary costs associated with the hiring of slightly older workers. The present value of the total costs associated with the salary costs is estimated to be $5,435,996.
Costs to employees 17 years of age in terms of forgone salary
Under the Regulations, newly hired employees 17 years of age would not be allowed to work in hazardous occupations. As hazardous occupations tend to offer slightly higher pay than non-hazardous occupations, this would result in a slight reduction in salary for these employees. The present value of the total costs associated with the salary loss is estimated to be $22,294,635.
Record-keeping costs
The Regulations are expected to result in record-keeping costs as employers would need to keep a record of employees’ age for 17-year-old workers. The present value of the total salary costs associated with record keeping is estimated to be $1,974.
Costs to government
There may be additional costs to government associated with compliance monitoring and enforcement; however, these are expected to be negligible. This is because the same requirements exist for persons under the age of 17.
Benefits
The Regulations will support conformity with international obligations as they will allow Canada to comply with its commitments under C138. In addition, the Regulations would result in a potential decline in occupational workplace injuries, since young workers in the federal jurisdiction will face less hazardous work in their work environment.
Breakeven analysis
A breakeven analysis was used to assess the number of avoided injuries which the Regulations would need to yield for the cost-benefit analysis to breakeven or accrue net benefits.
Using a Value of Statistical Life (VSL) of about $7.9 million (2020 $Can value, TBS CBA Guide value indexed to 2020 $Can) and the Relative Disutility Factors by Injury Severity Level (MAIS) index, the Labour Program assessed the ranges for which the analysis reaches the breakeven threshold according to different levels of severity of injuries in hazardous occupations. The analysis focused on the first four levels of injuries (MAIS 1 to 4). Table 1 provides the fractions of the VSL and associated values for different levels of severity, and the value of one avoided injury per person.
MAIS level | Severity | Fraction of the VSL | Value of one avoided injury per person (Can$) |
---|---|---|---|
MAIS 1 | Minor | 0.003 | $23,960 |
MAIS 2 | Moderate | 0.047 | $375,368 |
MAIS 3 | Serious | 0.105 | $838,587 |
MAIS 4 | Severe | 0.266 | $2,124,422 |
MAIS 5 | Critical | 0.593 | $4,736,022 |
MAIS 6 | Unsurvivable | 1.000 | $7,986,547 |
In order to estimate the number of annual injuries that need to be avoided for the benefits to breakeven with the costs, the Labour Program used the values for each type of avoided injury from Table 1. The number of injuries which the Regulations would need to prevent in order for the benefits to be equal or higher than the costs are presented in Table 2.
Injury type | Break-even number of avoided injuries per year |
---|---|
Minor | 166 |
Moderate | 11 |
Serious | 5 |
Severe | 2 |
The results show that as the severity of injury type increases, the breakeven number of avoided injuries per year decreases. A moderate injury type requires a minimum of 10.5898 (11 rounded up) injuries per year to breakeven, while a serious injury type requires a minimum of 4.7402 (5 rounded up) for the cost-benefit analysis to breakeven.
According to the Labour Program Hazardous Occurrence Investigation Report (HOIR), 53 disabling injuries were reported for employees of 17 years of age in federally regulated workplaces over the period spanning from the 2010–2011 fiscal year to the 2020–2021 fiscal year, i.e. a period of 11 years. Of this total, 32 injuries occurred in the road transportation sector, 9 in the federal public service, and 8 in the air transportation sector. This leads to an average number of disabling injuries of 4.8181 per year. Given that disabling injuries can be considered serious, the Regulations are likely to result in more benefits than costs if the number of injuries per year for the 10-year analytical period is to remain consistent with the historical average.
Cost-benefit statement
- Number of years: 10 (2023–2032)
- Base year for costing: 2020
- Present value base year: 2022
- Discount rate: 7%
Impacted stakeholder | Description of cost | 2023 | Sum 2024–2031 | 2032 | Total (present value) | Annualized value |
---|---|---|---|---|---|---|
Employers | Wage differential costs associated with hiring slightly older workers | $688,598 | $4,327,309 | $418,114 | $5,434,022 | $773,683 |
Record-keeping costs | $250 | $1,572 | $152 | $1,974 | $281 | |
Employees | Forgone salary costs to employees | $2,825,173 | $17,754,028 | $1,715,434 | $22,294,635 | $3,174,254 |
All stakeholders | Total costs | $3,514,021 | $22,082,909 | $2,133,701 | $27,730,631 | $3,948,218 |
Impacts | 2023 | Sum 2024–2031 |
2032 | Total (present value) |
Annualized value |
---|---|---|---|---|---|
Total costs | $3,514,021 | $22,082,909 | $2,133,701 | $27,730,631 | $3,948,218 |
Qualitative impacts
Positive impacts
- Conformity with international obligations (C138)
- Reduction in the risk of accidents from employing workers of 17 years of age
Small business lens
It is estimated that approximately 13.06% (around 69 employees) of employees who are under 17 years of age employed in the federal jurisdiction work in small businesses in hazardous and non-hazardous occupations. The total present value cost of small business costs to employers and employees are estimated to be $710,199.
It is worth noting that the transitional provision set out in BIA 2018 for the amendments to the Code, which will allow employees who are 17 years of age to be considered as if they are 18 years of age as long as they remain employed by the same employer in the same position upon the coming into force of the amendments to the Code, will alleviate the impacts on small businesses since employers will be allowed to keep their current employees.
Small business lens summary
- Number of small businesses impacted: 8 729 (50% of total small businesses under federal jurisdiction in 2021)
- Number of employees impacted: 69
- Number of years: 10 years
- Base year for costing: 2020
- Present value base year: 2022
- Discount rate: 7%
Description of cost | Annualized value | Present value |
---|---|---|
Wage differential costs associated with hiring slightly older workers | $101,080 | $709,941 |
Total compliance cost | $101,080 | $709,941 |
Cost per impacted small business | $11.58 | $81.33 |
Description of cost | Annualized value | Present value |
---|---|---|
Record-keeping costs | $37 | $258 |
Total administrative cost | $37 | $258 |
Cost per impacted small business | $0.00 | $0.03 |
Totals | Annualized value | Present value |
---|---|---|
Total compliance cost | $101,080 | $709,941 |
Total administrative cost | $37 | $258 |
Total cost (all impacted small businesses) | $101,117 | $710,199 |
One-for-one rule
The Regulations will implement a non-discretionary obligation and are exempt from the requirement to offset administrative burden and regulatory titles under the one-for-one rule.
The amendments will not result in a new regulatory title and will not be considered as a title in or a title out under Element B of the Government of Canada’s one-for-one rule. Businesses will not have to complete or submit any additional documents, reports, license applications, and authorizations associated with injuries in the workplace beyond what they are currently required to do.
However, as a result of the Regulations, employers will need to update employees’ records to add the specific age of employees who are 17 years of age, in addition to what is currently done in the baseline where this is required for employees under the age of 17 years. Consequently, some additional information reporting is expected to arise from the Regulations for employers with employees 17 years of age with records not already specifying their age. The efforts expected from employers to update employees’ records are likely to be minimal.
The record-keeping costs are based on the assumptions that employers will spend 30 seconds per employee 17 years of age to record their age, a manager’s salary of $60.23/hour, and a population of 17-year-old workers projected to grow at a rate of 1.23%. The annualized average administrative costs are estimated to be $118.63, or $0.21 per business (2012 $Can, 2012 discount base year).
Regulatory cooperation and alignment
Provinces and territories
The Labour Program conducted jurisdictional analyses of how the issues in the Regulations are addressed across Canada. In provinces and territories (PTs), the minimum age for employment is determined by a variety of statutes, including employment standards laws, occupational health and safety legislation, and education acts, as well as in provisions in vocational training regulations, child welfare legislation, laws governing establishments where liquor is sold, specific industrial regulations (e.g. mines and factories) and other statutes.
Rather than setting an absolute minimum age of work, there are many protections and age restrictions for young workers regarding hazardous occupations. For example, many PTs prohibit employment of people younger than 18 in underground mines and put restrictions on their work on the working face of open-pit mines. Other statutes restrict the work of young persons with hazardous materials or in certain sectors and environments. The minimum age for such work varies and depends on the jurisdiction and the occupation. In some jurisdictions, restrictions do not apply when children are employed on the family farm, or in the family business.
Coordination with other federal departments and agencies
The Explosives Regulations, 2013, the Nuclear Safety and Control Act, and the Canada Shipping Act, 2001 are referenced in paragraph 10(1)(b) of the CLSR. An individual is not allowed to work in a place where they are prohibited from entering under the Explosives Regulations, 2013, they are not to work as a nuclear energy worker as defined in the Nuclear Safety and Control Act, and they cannot perform work they are prohibited from doing under the Canada Shipping Act, 2001 by reason of their age.
Consultations with regulators at the Canadian Nuclear Safety Commission and Natural Resources Canada (NRCan) Explosives Safety and Security Branch were undertaken in the winter and fall of 2021. There is no foreseeable impact to the Nuclear Safety and Control Act and related regulations; however, the current Explosives Regulations, 2013 have a referenced minimum age of 17. The Labour Program is working with the Explosive Safety and Security Branch to coordinate the development of regulatory amendments if required.
The Canada Shipping Act, 2001 lists international conventions and protocols that Canada has signed that relate to matters that are within the scope of the Act and that should be brought into force in Canada by regulation. Many of them, such as the Minimum Age (Sea) Convention (Revised), 1936, the Minimum Age (Trimmers and Stokers), 1921, and the Maritime Labour Convention, 2006 regulate the minimum age of work. Consultations with Marine Safety and Security regulators at Transport Canada (TC) were undertaken in the winter and fall of 2021. The Marine Personnel Regulations currently have a referenced minimum age of 16. The Labour Program is working with regulators in the Safety and Security Branch at TC to coordinate the development of regulatory amendments if required. There are no other foreseeable impacts to the Canada Shipping Act, 2001 and related regulations.
Strategic environmental assessment
In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.
Gender-based analysis plus
A gender-based analysis plus (GBA+) was undertaken in the context of the BIA 2018 amendments to the Code, which includes the increase to the minimum age. Men make up the majority of the federally regulated private sector workforce (62%) and tend to be overrepresented in hazardous work. The 2015 Federal Jurisdiction Workplace Survey indicates that of those employees under the age of 18 subject to federal labour standards, 79% are men and 21% are women. In the period from fiscal year 2010–2011 to 2019–2020, employees under the age of 18 were involved in 67 hazardous occurrences, with 55 of the hazardous occurrences involving men and 12 involving women. Therefore, it is likely that the amendments may impact men more than women. The potential gender-based impact includes a lower rate of occupational injuries for men under 18 due to their over-representation in the federal jurisdiction.
Implementation, compliance and enforcement, and service standards
Implementation
The amendments made to the Code through BIA 2018 will come into force, by Order in Council, on June 12, 2023. No additional coordination or performance measurement is foreseen besides the regulatory amendments.
The Regulations will come into force on the same day as the amendments to the minimum age provisions of the Code by BIA 2018, i.e. June 12, 2023.
If the Regulations are registered after the amendments to the Code come into force, then the Regulations will come into force on the day on which they are registered.
Compliance and enforcement
Labour Affairs Officers will detect non-compliance with requirements under Part III of the Code by conducting inspections, either proactively or in response to a complaint. Compliance will be achieved using a variety of approaches along a compliance continuum. This may include educating and counselling employers on the regulatory changes including their record-keeping obligations, seeking an assurance of voluntary compliance from the employer, or issuing a compliance order to cease the contravention and take steps to prevent its reoccurrence. To address more serious or repeated violations, an administrative monetary penalty under the new Part IV of the Code may be issued.
To learn more about how administrative monetary penalties may be issued, please consult the interpretations, policies and guidelines (IPG) document titled Administrative Monetary Penalties — Canada Labour Code, Part IV — IPG-106.
The regulatory amendments do not require changes to the Administrative Monetary Penalties (Canada Labour Code) Regulations (the AMPs Regulations). Subsection 10(2) of the CLSR will remain designated in Schedule 2 of the AMPs Regulations as a D-level violation. Paragraph 24(2)(a) of the CSLR will remain designated in Schedule 2 of the AMPs Regulations as an A-level violation. With respect to obligations under Part III of the Code, each designated violation is classified as either Type A, B, C or D, in order of increasing severity, according to the level of risk and/or the impact of the violation as outlined in Table 8.
Type | Part III |
---|---|
A | Related to administrative provisions |
B | Related to the calculation and payment of wages |
C | Related to leave or other requirements, which could have an impact on the financial security, or health and safety, of an individual or group of individuals |
D | Related to the employment and protection of employees who are under the age of 18 |
Contact
Annic Plouffe
Director
Labour Standards and Wage Earner Protection Program
Labour Program
Employment and Social Development Canada
Email: EDSCDMTConsultationNTModernesConsultationModernLSWDESDC@labour-travail.gc.ca