Reimbursement of Work-Related Expenses

Summary#

This is a proposed set of regulations called Regulations Amending Certain Regulations Made Under the Canada Labour Code to support changes from the Budget Implementation Act, 2018, No. 2. It would require federally regulated employers to reimburse reasonable work-related expenses and to give new employees a written employment statement (both tied to the Canada Labour Code). The proposal was published on October 1, 2022 and invited public comments for 30 days after publication.

What it does#

• Sets rules for reimbursing work-related costs:
  • Lists the factors to decide if an expense is work‑related (for example, whether it helps an employee do their job or was required by the employer).
  • Lists the factors to decide if an expense is reasonable (for example, whether the employer authorized it, whether receipts are provided).
  • Requires reimbursement within 30 days after an employee files a claim, unless the employer and employee have another written time limit.
• Requires a written employment statement to be given to employees within the first 30 days of employment. The statement must include:
  • names of the parties, job title and duties, place of work, start date and term of employment;
  • probationary period and required qualifications or training;
  • hours of work (including how they are calculated and overtime rules), pay rate (including overtime), pay frequency, and mandatory deductions;
  • information on how to claim reimbursement of reasonable work-related expenses.
• Updates the Administrative Monetary Penalties (Canada Labour Code) Regulations so failure to provide the statement or to reimburse on time can be treated as enforceable violations (different violation types depending on the rule).
• Clarifies that these are proposed regulations (not law yet) and that they would come into force when the related sections of the Budget Implementation Act, 2018, No. 2 are brought into force or when the regulations are registered.

Who's affected#

• Employers and employees covered by Part III of the Canada Labour Code — that is, workplaces in the federally regulated private sector such as:
  • air transportation, airports and airlines;
  • interprovincial road transportation (trucking and bus operations);
  • railways, shipping and ports;
  • telecommunications and broadcasting;
  • banks, postal and courier services;
  • First Nations band councils and other industries declared to be of national advantage.
• The proposal highlights that small trucking firms (especially those with fewer than five employees) may feel the biggest cost impact because road transportation generates many expense claims.
• Non‑unionized employees may notice the biggest practical benefit, since collective agreements often already cover expense reimbursement and employment terms.

Why it matters#

• For employees: it would make it easier to get money back for work costs (uniforms, training, fuel, travel, etc.) without having to launch a civil lawsuit. That means fewer out‑of‑pocket losses and less time and cost spent on court actions.
• For employers: it creates clearer, standardized rules about what must be reimbursed and the information to give new hires. Some employers will need to set up or formalize claim processes and provide written statements.
• The government expects small, ongoing costs for employers but also expects savings from fewer court cases. For example, the proposal estimates an annualized employer cost tied to expense reimbursement of about $84,890, and estimated annual savings from avoided civil litigation of about $507,612 (these are government estimates and may not reflect every workplace).
• The regulations would also let labour inspectors use administrative penalties for certain violations, which can change how disputes are enforced in the federal sector.

If anything here is unclear about who must do what or when these rules would take effect, that's because this notice describes a proposal and its planned implementation; the rules would only have legal force once finalized and brought into force.