Paid Medical Leave Regulations

Summary#

This notice describes proposed Regulations Amending Certain Regulations Made Under the Canada Labour Code (Medical Leave with Pay). The rules spell out how the new paid medical leave (up to 10 days a year) for federally regulated workers would be calculated, who is eligible, what records employers must keep, and how non‑compliance could be penalized. The proposed rules were published on July 16, 2022 and are tied to the coming‑into‑force of the legislative changes on December 1, 2022; there is a 30‑day comment period.

What it does#

• Clarifies eligibility so that some longshoring workers who work for multiple employers (casual daily dispatch and bullpen workers) are treated as continuously employed and can qualify for paid medical leave.
• Applies the existing definition of “regular rate of wages” (from the Canada Labour Standards Regulations) to calculate pay for medical leave. For irregular hours or non‑hourly pay this generally uses the average daily earnings over the 20 days worked before the leave.
• Adds employer record‑keeping requirements. Employers would have to keep, for each paid medical leave period:
  • the start and end dates;
  • the employment year in which the leave was earned;
  • how many days were carried forward from a previous year;
  • any written request from the employer for a medical certificate; and
  • any medical certificate provided by the employee.
• Says employers that use a year other than the calendar year for vacation must use that same year to calculate medical‑leave entitlements and carryovers.
• Adds medical leave with pay to rules about hours‑of‑work averaging.
• Updates the Standards for Work‑Integrated Learning Activities Regulations so student interns (who are unpaid) are not entitled to paid medical leave.
• Adds designations to the Administrative Monetary Penalties (Canada Labour Code) Regulations so failures related to medical leave and the new record‑keeping rules can attract monetary penalties (different violations are classified as type A, B or C depending on severity).
• Notes the proposal was developed after consultations and is intended to come into force with the related legislative provision on December 1, 2022 (or when the Act’s section comes into force).

Who's affected#

• Employees covered by Part III of the Canada Labour Code — for example, workers in banking, telecommunications, interprovincial and international transport, ports and airports, and some Crown corporations.
• Casual and dispatch longshoring workers on both coasts who work for multiple employers. The rules aim to make these workers eligible for paid medical leave.
• Employers in federally regulated sectors. They will need to pay eligible leave days and keep the new records.
• Student interns covered by the Standards for Work‑Integrated Learning Activities Regulations remain eligible for unpaid medical leave but would not get the new paid medical leave.
• Small employers: the government estimates compliance costs for small longshoring employers of about $22.4 million (present value) over 10 years, and record‑keeping costs for small employers across the federal jurisdiction of about $2.9 million (present value). The estimated cost per impacted small business is about $1,602 (present value).

Why it matters#

• Workers in federal industries would get a clear right to paid medical leave that starts with 3 days after 30 days of continuous employment and then accrues one day per month up to 10 days a year. Unused days carry forward and reduce the next year’s accrual.
• The rules close a gap for some casual longshoring workers who might otherwise have been excluded because they work for several employers. That means more workers can stay home when sick without losing pay.
• Employers will face new payroll and tracking responsibilities. The government estimates total discounted costs of about $166.8 million over 10 years, with monetized benefits of about $80.6 million, producing a net negative impact in that accounting (−$86.2 million present value).
• The changes also set out enforcement tools, including monetary penalties, so workers’ rights can be checked and enforced.
• This is a proposed set of regulations linked to the statutory changes. It was published for comment and was intended to start when the related law took effect on December 1, 2022. If you want to comment, the notice allowed submissions within 30 days of publication.