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

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Act current to 2019-06-20 and last amended on 2019-04-01. Previous Versions

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

DIVISION IXGroup Termination of Employment (continued)

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:Notice or wages in lieu of notice

  •  (1) Except where subsection (2) applies, an employer who terminates the employment of an employee who has completed three consecutive months of continuous employment by the employer shall, except where the termination is by way of dismissal for just cause, give the employee either

    • (a) notice in writing, at least two weeks before a date specified in the notice, of the employer’s intention to terminate his employment on that date, or

    • (b) two weeks wages at his regular rate of wages for his regular hours of work, in lieu of the notice.

  • Marginal note:Notice to trade union in certain circumstances

    (2) Where an employer is bound by a collective agreement that contains a provision authorizing an employee who is bound by the collective agreement and 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 shall

    • (a) give at least two weeks notice in writing to the trade union that is a party to the collective agreement and to the employee that the position of the employee has become redundant and post a copy of the notice in a conspicuous place within the industrial establishment in which the employee is employed; or

    • (b) pay to any employee whose employment is terminated as a result of the redundancy of the position two weeks wages at his regular rate of wages.

  • 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.

  • R.S., c. 17(2nd Supp.), s. 16

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

Marginal note:Application of section 189

 Section 189 applies for the purposes of this Division.

  • R.S., c. 17(2nd Supp.), s. 16

DIVISION XIIGarnishment

Marginal note:Prohibition

 No employer shall dismiss, suspend, lay off, demote or discipline an employee on the ground that garnishment proceedings may be or have been taken with respect to the employee.

  • R.S., 1985, c. L-2, s. 238
  • R.S., 1985, c. 9 (1st Supp.), s. 13

DIVISION XIIISick Leave

Marginal note:Prohibition

  •  (1) Subject to subsection (1.1), no employer shall dismiss, suspend, lay off, demote or discipline an employee because of absence due to illness or injury if

    • (a) the employee has completed three consecutive months of continuous employment by the employer prior to the absence;

    • (b) the period of absence does not exceed 17 weeks; and

    • (c) the employee, if requested in writing by the employer within fifteen days after his return to work, provides the employer with a certificate of a qualified medical practitioner certifying that the employee was incapable of working due to illness or injury for a specified period of time, and that that period of time coincides with the absence of the employee from work.

  • Marginal note:Exception

    (1.1) An employer may assign to a different position, with different terms and conditions of employment, any employee who, after an absence due to illness or injury, is unable to perform the work performed by the employee prior to the absence.

  • (2) [Repealed, 1993, c. 42, s. 32]

  • Marginal note:Benefits continue

    (2.1) The pension, health and disability benefits and the seniority of an employee who is absent from work due to illness or injury shall accumulate during the entire period of the absence if the conditions set out in subsection (1) are met in respect of that absence.

  • Marginal note:Contributions by employee

    (2.2) Where contributions are required from an employee in order for the employee to be entitled to a benefit referred to in subsection (2.1), the employee is responsible for and must, within a reasonable time, pay those contributions for the period of any absence due to illness or injury unless, at the commencement of the absence or within a reasonable time thereafter, the employee notifies the employer of the employee’s intention to discontinue contributions during that period.

  • Marginal note:Contributions by employer

    (2.3) An employer who pays contributions in respect of a benefit referred to in subsection (2.1) shall continue to pay those contributions during an employee’s absence due to illness or injury in at least the same proportion as if the employee were not absent, unless the employee does not pay the employee’s contributions, if any, within a reasonable time.

  • Marginal note:Failure to pay contributions

    (3) For the purposes of calculating the pension, health and disability benefits of an employee in respect of whom contributions have not been paid as required by subsections (2.2) and (2.3), the benefits shall not accumulate during the absence and employment on the employee’s return to work shall be deemed to be continuous with employment before the employee’s absence.

  • Marginal note:Deemed continuous employment

    (3.1) For the purposes of calculating benefits, other than benefits referred to in subsection (2.1), of an employee who is absent from work due to illness or injury where the conditions set out in subsection (1) are met in respect of that absence, employment on the employee’s return to work shall be deemed to be continuous with employment before the employee’s absence.

  • Marginal note:Regulations

    (4) The Governor in Council may make regulations for the purposes of this Division defining the absences from employment that shall be deemed not to have interrupted continuity of employment.

  • Marginal note:Application of section 189

    (5) Section 189 applies for the purposes of this Division.

  • R.S., 1985, c. L-2, s. 239
  • R.S., 1985, c. 9 (1st Supp.), s. 14, c. 43 (3rd Supp.), s. 2
  • 1993, c. 42, s. 32
  • 2001, c. 34, s. 22(F)
  • 2012, c. 27, s. 11
 
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