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ARTICLE · 31 DECEMBER 2020

Federal Update: New Monetary Penalties Effective Under The Canada Labour Code On January 1, 2021

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On January 1, 2021, the Canada Labour Code ("the Code"), which applies to federally regulated employers, will be amended to add a new Part IV, titled "Administrative Monetary Penalties."

CanadaEmployment and HR
Inna Koldorf
Inna Koldorf
Catherine Phelps
Catherine Phelps
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On January 1, 2021, the Canada Labour Code ("the Code"), which applies to federally regulated employers, will be amended to add a new Part IV, titled "Administrative Monetary Penalties." The purpose of Part IV is to establish an alternative penalty system to promote compliance with Part II (Occupational Health and Safety) and Part III (Standard Hours, Vacations, and Holidays) of the Code. The government has indicated in a Regulatory Impact Analysis Statement that this new penalty system is necessary to curb what it views as widespread non-compliance with the Code in the federal sector.

Part IV introduces the following key measures to promote compliance with the Code:

  1. Penalties of up to $250,000. Under the new Part IV of the Code, federally regulated employers may be subject to Administrative Monetary Penalties ("AMPs") of up to $250,000 for certain violations of the Code. The violations that will give rise to AMPs have been identified by government regulation a

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