24 Key Developments In Canadian Labour And Employment Law In 2024

• Published date: 15 January 2025
• Subject Matter: Employment and HR, Employee Rights/ Labour Relations
• Law Firm: Littler - Canada
• Author: Ms Rhonda B. Levy, Matthew P. Badrov and Natalie Nicholson

In 2024, Canada saw significant legislative and case law developments in labour and employment law. This Insight provides an overview of notable developments and links to our more detailed articles and commentary.

Legislative Developments

Federal

1. CLC Amendments Strengthen Prohibition Against Misclassification of Workers and Require Federally Regulated Employers Implement Disconnecting from Work Policy

On June 20, 2024, Bill C-69, Budget Implementation Act, 2024, No. 1, was enacted. Among other things, Bill 69 strengthened the prohibition in the Canada Labour Code (CLC) against misclassification by adding the following to Parts I and II of the CLC (and by making similar amendments to Part III of the CLC):

• A presumption that a person who is paid remuneration by an employer is their employee unless the employer proves otherwise (i.e., the burden of proof is on the employer);
• A prohibition against employers treating an employee as if they were not their employee; and
• A complaint process to be used by employees when the presumption and prohibition are contravened.

These amendments, which came into force on June 20, 2024, challenge an employer's ability to characterize workers, including gig workers, as independent contractors, thereby making the rights, protections, and entitlements of employees under theCLC, accessible to them (unless the employer proves these workers are not their employees).

Bill C-69 also requires federally regulated employers to implement a Disconnecting from Work Policy. This requirement has not been proclaimed in force; however, when it is, employers will have one year to create their policies.

For detailed information, read this Littler publication.

2. Ban on Use of Replacement Workers in Strikes or Lockouts in Federally Regulated Workplaces to Become Effective on June 20, 2025

On June 20, 2024, Canada enacted Bill C-58, An Act to amend the Canada Labour Code and the Canada Industrial Relations Board Regulations, 2012, which will come into force on June 20, 2025.

Among other things, Bill 58 amends the CLC by banning an employer's use of replacement workers during a strike or lockout in federally regulated workplaces, subject to certain narrow exceptions.

Bill C-58 also creates a complaint process and penalties for unions that believe an employer was illegally using replacement workers.

For detailed information, read this Littler publication.

Ontario

3. Bill 149 - Working for Workers Four Act 2024 Receives Royal Assent and Amends Key Statutes

On March 21, 2024, Ontario's Bill 149 - Working for Workers Four Act, 2024 received Royal Assent. Among other things, Bill 149 amends the Employment Standards Act, 2000 (ESA), the Workplace Safety and Insurance Act, 1997 (WSIA) and the Digital Platform Workers' Rights Act, 2022 (DPWRA).

With respect to the ESA, Bill 149:

• amends the definition of "employee" to indicate that work performed during a trial period would be included within the meaning of "training";
• adds Part III.1 to the ESA, which sets out requirements and prohibitions related to the content of publicly advertised job postings¹;
• amends the requirements regarding the payment of wages by direct deposit to provide that accounts for direct deposit need to be selected by the employee;
• prohibits employers from deducting an employee's wages where a customer of a restaurant, gas station or other establishment leaves the establishment without paying for the goods or services taken from, consumed at, or received at the establishment;
• adds a new provision that provides that an employer must pay an employee's tips or other gratuities by cash, cheque payable only to the employee, or direct deposit into an account of a financial institution;
• requires employers to retain or arrange for some other person to retain certain records; and
• provides that alternative vacation pay arrangements must be "set out in an agreement" made by the employee with the employer.

Bill 149's amendments to the ESA came into force on March 21, 2024, with exceptions. Some of these excepted ESA amendments came into force on June 21, 2024, including those:

• regarding the payment of employee tips or other gratuities;
• made to the vacation pay provisions; and
• clarifying the direct deposit provisions.

With respect to Bill 149's amendments to WSIA, Bill 149 adds primary-site esophageal cancer to the diseases presumed to be occupational diseases that occur due to the nature of a worker's employment as a firefighter or fire investigator on certain conditions, and adds a new section, which enables "super indexing" increases to Workplace Safety and Insurance Board benefits.

Finally, Bill 149's amendments to the DPWRA provide that specified matters could be prescribed by regulation.

Bill 149's amendments to the WSIA and the DPWRA are not currently in force. They will take effect in the future on proclamation.

For detailed information, read Litter publications dated November 16, 2023, September 11, 2024, and December 10, 2024.

4. Bill 190 - Working for Workers Five Act 2024 Receives Royal Assent and Amends the ESA, OHSA and WSIA

On October 28, 2024, Ontario's Bill 190, Working for Workers Five Act, 2024 (Bill 190), received Royal Assent. Among other things, Bill 190 amends the ESA,Occupational Health and Safety Act (OHSA), and WSIA.

Many of Bill 190's amendments to the ESA became effective on October 28, 2024, including those that prohibit an employer from requiring an employee to provide a certificate from a "qualified health practitioner" as evidence that the employee is entitled to sick leave under the ESA, that increase fines for individuals convicted of an offence under the ESA, and that add regulation-making authority with regard to specific aspects of publicly advertised job postings.

Bill 190 amended the ESA by requiring employers to disclose in publicly advertised job postings whether the posting is for an existing vacancy or not to be included in the posting and adding requirements relating to applicant interviews.²

Many of Bill 190's...