Labour Code expense reimbursement start date

Summary#

This is the Order fixing the date of the coming into force of certain provisions of the Budget Implementation Act, 2018, No. 2 (SI/2023-12). It sets when a handful of amendments to the Canada Labour Code take effect so that federally regulated employers must reimburse some work-related expenses and give employees written information about their terms and rights. The order uses the 60th day after its publication (May 10, 2023) as the start date — that is July 9, 2023.

What it does#

• Fixes the coming-into-force day for sections 486, 502, 523, 527 and 528 of the Budget Implementation Act, 2018, No. 2 as the 60th day after publication (publication: May 10, 2023; coming-into-force: July 9, 2023).
• Brings into force changes to Part III of the Canada Labour Code that:
  • require employers to reimburse reasonable work-related expenses incurred by employees (the rules apply only to expenses incurred on or after the coming-into-force date);
  • require employers to give employees a written employment statement with specified information and to provide information about employers’ and employees’ rights and obligations under Part III.
• Sets timing expectations:
  • the law requires the written statement and rights information be provided within the employee’s first 30 days of employment (and within 30 days of updates);
  • as a transitional measure, employers have 90 days after the coming-into-force date to provide the written statement and rights information to existing employees.
• Directs that supporting regulations will spell out details such as the time limit for claiming reimbursement when there is no agreement, what counts as a reasonable work expense, and what must appear in the employment statement.

Who's affected#

• Employees and employers covered by the Canada Labour Code, namely people who work for federal Crown corporations (not the public service or Parliament) and employers in the federally regulated private sector (for example: banks, telecom and broadcasting, airports and airlines, railways, trucking, shipping, ports, grain handling).
• Employers in those sectors will need to update hiring paperwork, payroll and expense processes.
• Most Canadians are not affected — workplaces under provincial rules make up over 90% of the workforce.

Why it matters#

• Workers in federally regulated workplaces should be able to get reimbursed for reasonable work costs (uniforms, tools, travel, etc.) without having to start a civil lawsuit for past unpaid expenses that happen after the start date.
• Employers will need systems to track and reimburse expenses and to give standardized written employment information to new and current employees.
• Some important details — for example, exactly what counts as “reasonable” and how long employees have to claim reimbursement — will come from regulations still tied to these amendments, so some specifics remain unclear until those regulations are published.