Administrative Monetary Penalties for Labour Code

Summary#

These are the final Administrative Monetary Penalties (Canada Labour Code) Regulations. They let the federal Labour Program issue fines and publicly name employers who break parts of the Canada Labour Code for federally regulated workplaces. The rules came into force on January 1, 2021 (with Type A administrative violations delayed until January 1, 2022).

What it does#

• Sets up a system of administrative monetary penalties (AMPs) for specific violations of Parts II (occupational health and safety) and III (labour standards) of the Canada Labour Code.
• Lists which code sections and regulations can be enforced with an AMP (in long schedules attached to the Regulations).
• Sets baseline penalty amounts based on the violator type and the seriousness of the violation:
  • Baseline penalties range from $200 (an individual, lowest category) up to $50,000 (large business or government department, most serious category).
  • For small and micro businesses the baseline amounts are lower (for example, a small business baseline can be $500 to $15,000, and a micro business baseline $250 to $7,500 depending on violation type).
• Adds a history-of-non-compliance increase: if the same employer has relevant prior enforcement within five years, an extra amount equal to twice the baseline penalty is added (so the total can end up being up to three times the baseline).
• Offers an early-payment option for less serious violations (Types A, B and C): paying one half of the penalty within 20 days after the notice is served resolves the matter.
• Explains how notices of violation can be served (in person, registered mail, courier, fax or electronic means) and what counts as proof of service.
• Allows a person or employer to request an administrative review; requests must be in writing and state the grounds (there is a 30 days reference in the Code for review timing).
• Enables public naming of employers who receive AMPs, after review and appeal processes are complete. Published details can include the employer’s name, the nature of the violation, the penalty, location and key dates.
• Provides methods for calculating an employee’s regular rate of pay for Board appeals when the employee is not paid hourly (4-week and 12-week calculations, collective agreement rules, and a minimum-wage floor).
• Delays AMPs for Type A (administrative) violations for the first year after the regulations come into force (i.e., until January 1, 2022) to allow employers time to adjust.

Who's affected#

• Federally regulated employers and their employees. That includes, for example, banks, airlines, railways, shipping companies, telecommunications and broadcast firms, Canada Post, and some First Nations governance entities such as First Nations band councils — basically workplaces covered by the Canada Labour Code.
• The federal Labour Program (part of Employment and Social Development Canada) will administer the AMP system and publish names.
• Small employers are specifically recognized: the rules create separate categories for micro businesses (fewer than five employees or under $30,000 annual revenue), small businesses (fewer than 100 employees or under $5 million annual revenue), and large businesses or departments — these categories determine baseline penalty amounts.
• It is possible that workplaces served by other federal departments (for example, transport-related rules enforced by Transport Canada) will still be subject to AMPs overseen centrally by the Labour Program.

Why it matters#

• This gives regulators a faster, money-based tool short of criminal prosecution to push non‑compliant employers to fix problems in workplace safety and labour standards.
• Fines are concrete (from hundreds to tens of thousands of dollars). The public-naming power adds reputational pressure, which can motivate compliance.
• Employers already following the Code should not see new costs. But businesses that are repeatedly non-compliant can face much higher penalties (the history-of-non-compliance multiplier) and public disclosure.
• The rules include protections for small and very small businesses (separate, lower penalty tiers and a delayed start for administrative penalties) and set clear time limits for early payment and review.
• The Labour Program will develop policies about when to issue AMPs; the Regulations themselves list the violations and set the penalty math, but operational choices (like whether to issue multiple AMPs across worksites) are addressed in practice guidance.