Equal Treatment and Temporary Help Rules

Summary#

These are the final regulations called Regulations Amending Certain Regulations Made Under the Canada Labour Code (Equal Treatment and Temporary Help Agencies) (registered as SOR/2026-75). They add rules to the Canada Labour Standards Regulations and to the Administrative Monetary Penalties (Canada Labour Code) Regulations to put into practice equal-pay protections and new rules for temporary help agencies under the Canada Labour Code. The government estimates a present-value cost of $6,115,860 and monetized benefits of $1,428,172 over 10 years, for a net monetized cost of $4,687,688. The instrument was registered on April 23, 2026 and published on May 6, 2026. They come into force when section 451 of the Budget Implementation Act, 2018, No. 2 comes into force (or on registration if that day is already past).

What it does#

• Adds clear definitions to the Canada Labour Standards Regulations for employment types and terms used in the new equal‑pay rules:
  • Defines “full‑time,” “part‑time,” “permanent,” “temporary,” and “employment status.”
  • Says someone is full‑time if they are treated as such in a collective agreement, contract, employer policy, or if they work an average of 30 or more hours per week under certain schedules.
• Defines which workplace counts as the same workplace (an “industrial establishment”) for comparisons:
  • Uses Employment Insurance (EI) regions to group worksites.
  • Gives rules for workers who travel for a living and for people who work fully remotely (includes a set of indicators to decide which establishment they count as being part of).
• Limits comparisons of pay to like‑for‑like pay types:
  • Workers can only be fairly compared if their pay is calculated the same way (for example both time‑based, mileage, piece rate, commission).
• Lists additional justifications that allow pay differences (exceptions), such as:
  • Continuing to pay a higher old rate after a demotion (“red‑circling”).
  • Higher pay to address hard‑to‑fill skilled positions.
  • Pay differences tied to geographic area or travel status.
• Creates parallel rules for temporary help agencies:
  • Clarifies when a client’s pay system applies and adds obligations for agencies (for example bans on certain employee fees).
• Adds new record‑keeping requirements for employers:
  • Keep records of any pay “system” used to justify differences, any employee request for a wage review and the employer’s written response, and (for temporary help agencies) client assignment dates.
• Updates posted workplace notices and replaces “Equal wages” with “Equal treatment” and “Sick leave” with “Medical leave” in the notice schedule.
• Expands the Administrative Monetary Penalties (Canada Labour Code) Regulations so breaches of the new rules can be fined. New violations are added and classified (types A, B or C) depending on seriousness.
• Sets the employer’s time to respond: if an employee asks for a wage review, the employer must investigate and reply in writing within 90 days (described in the supporting materials).

Who's affected#

• Federally regulated employers and their employees covered by Part III of the Canada Labour Code. That includes sectors such as interprovincial transport, banks, telecoms, and other federal undertakings.
• Workers who are part‑time, temporary, casual, seasonal, or working through temporary help agencies — they are the main group these rules aim to protect.
• Temporary help agencies that fall under federal jurisdiction (the government notes there are few of these now, but future ones could be affected).
• Human resources and payroll staff at impacted employers, who will need to keep new records and run reviews.
• The federal Labour Program, which will enforce the rules and may issue administrative penalties.
• Small businesses: the analysis estimates 19,250 small federally regulated businesses could be affected and gives a small‑business net present‑value impact (see regulatory statement).

Why it matters#

• Gives part‑time and temporary workers a clearer way to challenge lower pay when they do substantially the same work as full‑time or permanent colleagues. Employees can request a review and may get an increase or a written explanation.
• Makes employers more accountable and transparent about pay systems. Employers who rely on pay differences must document the system and communicate it to affected workers.
• Brings temporary help agency employees closer to equal treatment with client employees, and forbids some agency fees that have been used in the past.
• Introduces penalties for non‑compliance. That means employers who fail to follow the rules can face administrative fines.
• It will raise some compliance and administrative costs for employers (and the government). The official analysis covers expected costs and benefits over 10 years and estimates only a small share of workers will request reviews (the government uses assumptions such as 0.2% in the first year and 0.1% afterward, with 15% of reviews resulting in a pay adjustment). These are modelling assumptions, not predictions of what will happen for every workplace.

If anything above is unclear in how it would apply to a specific job or workplace, the supporting guidance materials published by the Labour Program (and the timing of when the rules actually take effect) are the practical next places to check.