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Canada Labour Code (R.S.C., 1985, c. L-2)

Full Document:  

Act current to 2024-02-06 and last amended on 2024-02-01. Previous Versions

PART IIIStandard Hours, Wages, Vacations and Holidays (continued)

DIVISION IXGroup Termination of Employment (continued)

Marginal note:Appointment of arbitrator

  •  (1) The Minister may, on application under subsection 223(1), appoint an arbitrator to assist the joint planning committee in the development of an adjustment program and to resolve any matters in dispute respecting the adjustment program.

  • Marginal note:The Minister shall notify and send a statement of matters in dispute

    (2) Where an arbitrator is appointed under subsection (1), the Minister shall forthwith

    • (a) notify, in writing, the joint planning committee of the decision to appoint an arbitrator and of the name of the arbitrator; and

    • (b) if the application under subsection 223(1) sets out matters in dispute respecting an adjustment program, send to the arbitrator and to the joint planning committee a statement setting out any matters in dispute respecting the adjustment program that the arbitrator is to resolve.

  • Marginal note:Restriction on matters included in statement

    (3) A statement referred to in subsection (2) shall be restricted to such of those matters set out in the application under subsection 223(1) as the Minister deems appropriate and as are normally the subject-matter of collective agreement in relation to termination of employment.

  • Marginal note:Duty of arbitrator

    (4) An arbitrator shall assist the joint planning committee in the development of an adjustment program and the arbitrator, if sent a statement pursuant to subsection (2), shall, within four weeks after receiving the statement or such longer period as the Minister may specify,

    • (a) consider the matters set out in the statement;

    • (b) render a decision thereon; and

    • (c) send a copy of the decision with the reasons therefor to the joint planning committee and to the Minister.

  • Marginal note:Restriction

    (5) An arbitrator may not

    • (a) review the decision of the employer to terminate the employment of the redundant employees; or

    • (b) delay the termination of employment of the redundant employees.

  • Marginal note:Powers of arbitrator

    (6) In relation to any proceeding before an arbitrator under this section, the arbitrator may

    • (a) determine the procedure to be followed;

    • (b) administer oaths and solemn affirmations;

    • (c) receive and accept such evidence and information on oath, affidavit or otherwise as the arbitrator sees fit, whether or not the evidence is admissible in a court of law;

    • (d) make such examination of documents containing personal information relating to any redundant employee and such inquiries relating to any redundant employee as the arbitrator deems necessary;

    • (e) require an employer to post and keep posted in appropriate places any notice that the arbitrator considers necessary to bring to the attention of any redundant employees any matter relating to the proceeding; and

    • (f) authorize any person to do anything described in paragraph (b) or (d) that the arbitrator may do and to report to the arbitrator thereon.

  • 1980-81-82-83, c. 89, s. 32

Marginal note:Applicable provisions

 Sections 58 and 66 apply, with such modifications as the circumstances require, in respect of a decision of an arbitrator under section 224 as though it were a decision referred to in those sections.

  • 1980-81-82-83, c. 89, s. 32

Marginal note:Implementation of adjustment program

 On completion of the development of an adjustment program, the employer shall implement the program and the joint planning committee and any trade union or redundant employees who appointed the members of the committee shall cooperate with and assist the employer in implementing the program.

  • 1980-81-82-83, c. 89, s. 32

Marginal note:Regulations

 The Governor in Council may make regulations for carrying out the purposes and provisions of this Division and, without restricting the generality of the foregoing, may make regulations

  • (a) exempting employers from the application of this Division in respect of the termination of employment of employees employed on a seasonal or irregular basis;

  • (b) requiring employers employing employees in a particular occupational classification, in a particular industry or in an industrial establishment that is within an area or region described in the regulations, to comply with the provisions of this Division in respect of terminations of employment of groups of employees numbering less than fifty but greater than a number prescribed in the regulations;

  • (c) prescribing information to be set out in a notice referred to in subsection 212(1); and

  • (d) prescribing circumstances in which a lay-off of an employee shall not be deemed to be a termination of his employment by his employer.

  • R.S., c. 17(2nd Supp.), s. 16

Marginal note:Waiver of application of Division

 On the submission of any person, the Minister may, by order and subject to any terms or conditions specified in the order, waive the application of this Division, or any provision thereof, in respect of any industrial establishment or of any class of employees therein specified in the order if it is shown to the satisfaction of the Minister that the application of this Division, or any provision thereof, as the case may be, in respect of any industrial establishment

  • (a) would be or is unduly prejudicial to the interests of the employees therein or to any class of employees therein;

  • (b) would be or is unduly prejudicial to the interests of the employer of those employees;

  • (c) would be or is seriously detrimental to the operation of the industrial establishment; or

  • (d) is not necessary, because measures for the assistance of redundant employees at that establishment that are substantially the same or to the same effect as the measures established by this Division or that provision, as the case may be, have been established by collective agreement or otherwise.

  • R.S., c. 17(2nd Supp.), s. 16
  • 1980-81-82-83, c. 89, s. 33

Marginal note:Application of sections 214 to 226

  •  (1) Sections 214 to 226 do not apply in respect of any redundant employees who are represented by a trade union if the trade union and the employer are bound by a collective agreement containing

    • (a) provisions that

      • (i) specify procedures by which any matters relating to the termination of employment in the industrial establishment at which those employees are employed may be negotiated and finally settled, or

      • (ii) are intended to minimize the impact of termination of employment on the employees represented by the trade union and to assist those employees in obtaining other employment; and

    • (b) provisions that specify that those sections do not apply in respect of the employees represented by the trade union.

  • Marginal note:Idem

    (2) Sections 214 to 226 do not apply in respect of any redundant employees who are represented by a trade union if the termination of the employment of those employees is the result of technological change as defined in subsection 51(1) and sections 52, 54 and 55 apply or would, but for subsection 51(2), apply to the trade union and the employer.

  • 1980-81-82-83, c. 89, s. 33

DIVISION XIndividual Terminations of Employment

Marginal note:Application

 This Division does not apply to an employee whose termination of employment is by way of dismissal for just cause.

Marginal note:Employer’s duty

  •  (1) An employer who terminates the employment of an employee must give the employee

    • (a) notice in writing of the employer’s intention to terminate their employment on a date specified in the notice, at least the applicable number of weeks set out in subsection (1.1) before that date;

    • (b) wages in lieu of notice, at their regular rate of wages for their regular hours of work, for at least the applicable number of weeks set out in subsection (1.1); or

    • (c) any combination of notice and amounts of wages in lieu of notice so that the total of the number of weeks of notice in writing and the number of weeks for which wages are paid in lieu of notice is equivalent to at least the applicable number of weeks set out in subsection (1.1).

  • Marginal note:Notice period

    (1.1) The applicable number of weeks for the purposes of subsections (1) and (2) is

    • (a) two weeks, if the employee has completed at least three consecutive months of continuous employment with the employer;

    • (b) three weeks, if the employee has completed at least three consecutive years of continuous employment with the employer;

    • (c) four weeks, if the employee has completed at least four consecutive years of continuous employment with the employer;

    • (d) five weeks, if the employee has completed at least five consecutive years of continuous employment with the employer;

    • (e) six weeks, if the employee has completed at least six consecutive years of continuous employment with the employer;

    • (f) seven weeks, if the employee has completed at least seven consecutive years of continuous employment with the employer; and

    • (g) eight weeks, if the employee has completed at least eight consecutive years of continuous employment with the employer.

  • Marginal note:Notice to trade union

    (2) If an employer is bound by a collective agreement that contains a provision authorizing an employee whose position becomes redundant to displace another employee on the basis of seniority, and the position of an employee who is so authorized becomes redundant, the employer must give at least the applicable number of weeks’ notice set out in subsection (1.1) in writing to the trade union that is a party to the collective agreement and to the employee that the employee’s position has become redundant.

  • Marginal note:Rights of displaced employee

    (2.1) For greater certainty, any employee who is displaced and whose employment is terminated is entitled to and shall be given notice or wages in lieu of notice under subsection (1).

  • Marginal note:Statement of benefits

    (2.2) An employer must give any employee whose employment is terminated a statement in writing that sets out their vacation benefits, wages, severance pay and any other benefits and pay arising from their employment with the employer as at the date of the statement. The statement must be given to the employee

    • (a) in the case of an employee who receives notice under paragraph (1)(a), as soon as possible, but not later than two weeks before the date of the termination of their employment;

    • (b) in the case of an employee who receives wages in lieu of notice under paragraph (1)(b), not later than the date of the termination of their employment; and

    • (c) in the case of an employee who receives a combination of notice and wages in lieu of notice under paragraph (1)(c), as soon as possible, but not later than two weeks before the date of the termination of their employment unless the period of notice is shorter, in which case, the day on which notice is given to the employee of the date of the termination of their employment.

  • Marginal note:Where employer deemed to terminate employment

    (3) Except where otherwise prescribed by regulation, an employer shall, for the purposes of this Division, be deemed to have terminated the employment of an employee when the employer lays off that employee.

Marginal note:Conditions of employment

 Where notice is given by an employer pursuant to subsection 230(1), the employer

  • (a) shall not thereafter reduce the rate of wages or alter any other term or condition of employment of the employee to whom the notice was given except with the written consent of the employee; and

  • (b) shall, between the time when the notice is given and the date specified therein, pay to the employee his regular rate of wages for his regular hours of work.

  • R.S., c. 17(2nd Supp.), s. 16

Marginal note:Expiration of notice

 Where an employee to whom notice is given by his employer pursuant to subsection 230(1) continues to be employed by the employer for more than two weeks after the date specified in the notice, his employment shall not, except with the written consent of the employee, be terminated except by way of dismissal for just cause unless the employer again complies with subsection 230(1) in respect of the employee.

  • R.S., c. 17(2nd Supp.), s. 16

Marginal note:Regulations

 The Governor in Council may make regulations

  • (a) prescribing circumstances in which a lay-off of an employee shall not be deemed to be a termination of his employment by his employer; and

  • (b) [Repealed, R.S., 1985, c. 9 (1st Supp.), s. 11]

  • (c) defining for the purposes of this Division the absences from employment that shall be deemed not to have interrupted continuity of employment and the expression “regular hours of work”.

  • R.S., 1985, c. L-2, s. 233
  • R.S., 1985, c. 9 (1st Supp.), s. 11

Marginal note:Application of section 189

 Section 189 applies for the purposes of this Division.

  • R.S., c. 17(2nd Supp.), s. 16

DIVISION XISeverance Pay

Marginal note:Minimum rate

  •  (1) An employer who terminates the employment of an employee who has completed twelve consecutive months of continuous employment by the employer shall, except where the termination is by way of dismissal for just cause, pay to the employee the greater of

    • (a) two days wages at the employee’s regular rate of wages for his regular hours of work in respect of each completed year of employment that is within the term of the employee’s continuous employment by the employer, and

    • (b) five days wages at the employee’s regular rate of wages for his regular hours of work.

  • Marginal note:Circumstances deemed to be termination and deemed not to be termination

    (2) For the purposes of this Division,

    • (a) except where otherwise provided by regulation, an employer shall be deemed to have terminated the employment of an employee when the employer lays off that employee.

    • (b) [Repealed, 2011, c. 24, s. 167]

  • R.S., 1985, c. L-2, s. 235
  • R.S., 1985, c. 32 (2nd Supp.), s. 41
  • 2011, c. 24, s. 167

Marginal note:Regulations

 The Governor in Council may make regulations for the purposes of this Division

  • (a) prescribing circumstances in which a lay-off of an employee shall not be deemed to be a termination of the employee’s employment by his employer;

  • (b) [Repealed, R.S., 1985, c. 9 (1st Supp.), s. 12]

  • (c) establishing methods for determining whether severance benefits provided to an employee under a plan established by an employer are equivalent to any benefits required to be paid to the employee under this Division; and

  • (d) defining the absences from employment that shall be deemed not to have interrupted continuity of employment and the expression “regular hours of work”.

  • R.S., 1985, c. L-2, s. 236
  • R.S., 1985, c. 9 (1st Supp.), s. 12
 

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