Labour Code: AMPs and Compliance Orders

Summary#

This federal order (SI/2020-74) sets January 1, 2021 as the day certain parts of the Budget Implementation Act, 2017, No. 1 and related amendments to the Canada Labour Code come into force. The changes bring new enforcement tools for workplace safety and labour standards, including fines, compliance orders and a new compliance office.

What it does#

• Brings into force selected provisions of the Budget Implementation Act, 2017, No. 1 and of the 2018 Act that amended the Canada Labour Code for harassment and violence.
• Creates a new regime for administrative monetary penalties (AMPs) to punish breaches of Parts II (occupational health and safety) and III (labour standards) of the Canada Labour Code.
• Allows a designated official working for the Head of Compliance and Enforcement (HOCE) to issue AMPs and to publish the names of employers who are fined.
• Authorizes inspectors to issue compliance orders under Part III that require employers to stop breaking rules and fix problems; failure to follow a compliance order can lead to an AMP.
• Enables the use of pilot projects to test how Part IV (the AMP regime) and its regulations work in practice.
• Activates the new Head of Compliance and Enforcement (HOCE) role and related responsibilities for oversight and consistent enforcement.
• The government is preparing guidance and training for inspectors, employers and workers to explain the new tools and how they will be applied.

Who's affected#

• Federally regulated employers and their employees. That includes workplaces such as:
  • Crown corporations (for example, Canada Post).
  • Banks, railways, airlines and airports, trucking and interprovincial shipping, ports and related operations.
  • Telecommunications and broadcasting companies.
  • Certain industries declared by Parliament and First Nations Band Councils where the Code applies.
  • The federal public service.
• Workers who rely on federal labour and safety protections — including vulnerable workers — are likely to notice the effects.
• Labour inspectors and the government unit that runs the program (the Labour Program) will use the new tools.

Why it matters#

• The changes give regulators clearer, faster powers to force employers to fix problems and to fine them when they do not comply. That can speed up correction of unsafe or unfair workplace conditions.
• Publishing the names of fined employers and using AMPs is meant to discourage rule-breaking and help level the playing field for employers who already follow the law.
• The measures aim to reduce injuries, unpaid wages, reprisals and other harms — with particular benefit to vulnerable workers.
• The government says it will provide training and guidance, so employers and workers should expect materials to explain how the new rules will work in practice.