Reviewing Recent Changes To The Canada Labour Code And Scrutiny Of Ontario Termination Provisions

This two-part article addresses recent updates to the Canada Labour Code and explores recent scrutiny from an Ontario court on the interpretation of a termination provision that was held to be offside the Employment Standards Act, 2000 ("ESA").

Part I: Changes to the Canada Labour Code

Effective February 1, 2024, federally regulated employees should note the following changes to Part III of the Canada Labour Code ("CLC"), which establishes basic labour standards for employees of federal Crown corporations and federally regulated private-sector industries.

Graduated Notice Entitlement (s. 230 (1.1))

The introduction of a graduated notice entitlement brings an approach to notice periods akin to provincial employment standards. Previously, the notice entitlement under the CLC was a standard minimum of two weeks' notice of termination or pay in lieu to any employee who has completed at least three months of continuous employment, with notable exceptions for