Canada Labour Code Changes And Impacts On First Nations – Employee Benefits & Compensation

Amendments to the Canada Labour Code

Impacting federally regulated employers, including First Nations
and other entities within or associated with First Nations, the
Canadian Labour Code (the Code) has been amended
to require longer termination notice and a written benefit
statement for individual employees.

As of February 1, 2024, amendments to the Code require
federally regulated employers to:

(1) increase the amount of termination notice provided to
individual employees; and

(2) provide a written statement of benefits to employees on
dismissal.

These amendments do not alter the notice period for group
terminations.

Indigenous employers

First Nations’ Band Councils and Indigenous self-governments
are generally considered federal employers. For help in determining
jurisdiction of Indigenous organizations, employers can refer to
the Guide on jurisdiction of Indigenous
organizations.

Increased entitlements on termination of employment

Federally regulated employers must now provide employees who
have worked for at least three continuous months with increased
working notice or wages in lieu of notice on dismissal, unless it
is for just cause.

Employees with at least three consecutive months of employment
are entitled to prior written notice, wages in lieu of notice, or a
combination of the two, in accordance with the following:

Employers are still required to provide severance pay pursuant
to section 235 of the Code, which is in addition to
termination notice.

Written statement of benefits

Federally regulated employers must provide employees with a
written statement of benefits upon dismissal. This must contain
detailed information on the employees accrued vacation benefits,
wages, severance pay, and details on any other benefits and pay
earned through their employment up to the date of the statement of
benefits. Employers must provide the statement of benefits within
specified time periods.

Implications for First Nation employers

First Nations’ employment matters are generally under
federal jurisdiction and, if so, the new amendments of the
Code apply.

To ensure compliance with the new amendments, some of the steps
that may be practical for organizations to undertake include
ensuring that the following documents provide the applicable
minimum amount of notice and written statement of benefits:

• Employment agreements (for current and prospective
  employees)




• Offer letters




• Termination letters




• Policies and procedures

It is also important for human resources and managerial staff to
be aware of these requirements to ensure compliance. Failure to
amend the above documents may render the entire document legally
unenforceable, requiring the employer to provide common law
reasonable notice.

While the amendments are likely to increase the cost of
dismissing employees, compliance is mandatory for applicable
employers.

If you are not sure whether this amendment to the Code
applies to your organization, or you need help updating your
organization’s current documentation to comply with the recent
amendments, MLT Aikins Labour & Employment and Indigenous practice groups have extensive
experience navigating these requirements and would be happy to
assist.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.