Equal Pay and Temporary Agency Rules

Summary#

This is the Order Fixing the 180th Day After the Day on Which this Order Is Made as the Day on Which Certain Provisions of the Budget Implementation Act, 2018, No. 2 Come into Force: SI/2026-18. It sets the coming-into-force date for parts of the Budget Implementation Act, 2018, No. 2 that change the Canada Labour Code. Those changes will take effect 180 days after the order was made — that is on October 20, 2026.

What it does#

• Changes Part III of the Canada Labour Code to promote equal pay and equal treatment for the same work, regardless of employment status (full-time, part-time, casual, temporary).
• Gives employees the right to request a wage review and requires employers to give a written reply within 90 days. If wages are found to be too low, back pay must be paid.
• Adds new rules for temporary help agencies:
  • bans certain fees charged to workers or clients;
  • stops agencies from blocking direct hiring by client employers;
  • requires agencies to pay agency workers the same wage as client employees doing the same work (with limited exceptions).
• Strengthens protection against reprisals and adds complaint routes and time limits:
  • complaints generally must be filed within six months in specified circumstances;
  • inspectors’ orders for back pay are limited to the period from when the employee filed a complaint or first requested a wage review.
• Allows a transition period for existing collective agreements: different-wage provisions in current agreements can continue to apply for up to two years after these rules take effect.
• The new Code rules and related federal regulations come into force on October 20, 2026, to give time for employers and regulators to prepare.

Who's affected#

• Employees and employers covered by the Canada Labour Code, i.e. workplaces under federal jurisdiction such as:
  • banks, telecommunications, airports and airlines, ports and shipping, railways and interprovincial trucking, certain federal Crown corporations, and some industries declared to be for the general advantage of Canada.
• Workers employed by temporary help agencies and the clients that use agency workers.
• Employers and unions with existing collective agreements (because of the two‑year transition rule).
• Not affected: most workplaces in Canada (over 90%) that fall under provincial or territorial labour laws, and the federal public service is excluded from Part III.

Why it matters#

• It aims to reduce pay gaps where the same work is done by workers with different employment statuses (for example, a full‑time worker and a casual worker doing identical jobs).
• The wage-review process and anti‑reprisal rules give workers a clearer, safer way to raise concerns about pay.
• For temporary agency workers, bans on fee‑taking and rules on equal pay could reduce exploitation and make it easier to move into permanent jobs.
• Employers in federally regulated sectors will likely need to review pay practices, payroll systems and collective‑agreement provisions before October 20, 2026.
• The delay until October 20, 2026 and the two‑year transition periods give employers and unions time to adapt and negotiate, and give regulators time to publish supporting rules.