Budget Implementation Act, 2018, No. 2 (S.C. 2018, c. 27)
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Assented to 2018-12-13
PART 4Various Measures (continued)
DIVISION 15Modernization of the Canada Labour Code (continued)
SUBDIVISION AR.S., c. L-2Canada Labour Code (continued)
480 Section 213 of the Act is replaced by the following:
Marginal note:Redundant employee — employment terminated
212.1 (1) In addition to giving notice under section 212, the employer must give each redundant employee whose employment is terminated during the group notice period or the group termination period
(a) notice in writing of the employer’s intention to terminate their employment on a date specified in the notice, which cannot be before the day after the group notice period ends, at least eight weeks before that date;
(b) wages in lieu of notice, at their regular rate of wages for their regular hours of work, for at least eight weeks or, if it is greater, the number of weeks between the day on which their employment is terminated and the day on which the group notice period ends; 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 eight weeks or, if it is greater, the number of weeks between the day on which the redundant employee is given notice of the date of the termination of their employment and the day on which the group notice period ends.
Marginal note:Failure to give group notice
(2) For the purposes of calculating a redundant employee’s entitlement under subsection (1), if an employer does not give notice under section 212, the group notice period is deemed to start on the earlier of the day on which the redundant employee receives written notice of the termination of their employment and the day of the termination of the employment of the redundant employee.
Marginal note:Insufficient group notice
(3) For the purposes of calculating a redundant employee’s entitlement under subsection (1), if an employer gives notice under subsection 212(1) fewer than 16 weeks before the date of the termination of the employment of the redundant employee, the group notice period is deemed to start on the earlier of the day on which the employer gives notice under that subsection and the day on which the redundant employee receives written notice of the termination of their employment.
Marginal note:Collective agreement
(4) If an employer is bound by a collective agreement that contains a provision authorizing a redundant employee to displace another employee on the basis of seniority, the displaced employee is a redundant employee for the purposes of this Division.
Marginal note:Notice
(5) If a redundant employee displaces another employee, the employer must give the displaced redundant employee notice under subsection (1) and must give a copy of that notice to the trade union that is a party to the collective agreement.
Marginal note:Conditions of employment
(6) If an employer gives notice under paragraph (1)(a) or (c), the employer
(a) is prohibited from reducing the rate of wages or altering any other term or condition of employment of the redundant employee except with the written consent of that employee; and
(b) must, between the time when the notice is given and the day on which the employee’s employment is terminated, pay to them their regular rate of wages for their regular hours of work.
Marginal note:Expiration of notice
(7) If a redundant employee to whom notice is given under paragraph (1)(a) or (c) continues to be employed by the employer for more than two weeks after the date specified in the notice, the employer is prohibited from terminating the employment of the employee, unless
Marginal note:Statement of benefits
(8) An employer must give each redundant 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:Cooperation with Commission
213 An employer who carries out a group termination and any trade union representing a redundant employee must give the Canada Employment Insurance Commission any information requested by it for the purpose of assisting any redundant employee and must cooperate with the Commission to facilitate the re-establishment in employment of that employee.
Marginal note:Transitional support measures
213.1 (1) Unless the employer gives a redundant employee referred to in subsection 212.1(1) notice under paragraph 212.1(1)(a), they must provide the transitional support measures set out in the regulations to that redundant employee.
Marginal note:Amount payable
(2) If an employer fails to provide the transitional support measures required under subsection (1), the redundant employee is entitled to be paid an amount equal to the prescribed value of those measures.
481 (1) Section 227 of the Act is amended by adding the following after paragraph (a):
(a.1) prescribing circumstances where an employer is exempted from the application of a provision of this Division and any measure that that employer must take in respect of redundant employees;
(2) Section 227 of the Act is amended by adding the following after paragraph (b):
(3) Section 227 of the Act is amended by striking out “and” at the end of paragraph (c) and by adding the following after paragraph (d):
482 Section 228 of the Act is repealed.
483 The Act is amended by adding the following after the heading of Division X of Part III of the Act:
Marginal note:Application
229.1 This Division does not apply to an employee whose termination of employment is by way of dismissal for just cause.
484 Section 229.1 of the Act is replaced by the following:
485 Subsections 230(1) and (2) of the Act are replaced by the following:
Marginal note:Employer’s duty
230 (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.
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