Modernized Document Service and Wage Rules

Summary#

The Regulations Amending Certain Regulations Made Under the Canada Labour Code update how some federal labour rules work. They let officials use modern ways to serve legal documents and set a clear formula for how non-hourly employees are paid for time spent at hearings. The rules came into force on April 12, 2023.

What it does#

• Updates the Canada Labour Standards Regulations so documents can be served by:
  • courier;
  • fax or other electronic means;
  • leaving a document with an adult at an individual’s last-known home.
• Allows substitutional service when someone cannot reasonably be reached. That means leaving the document at a last-known address, place of business, usual residence or workplace.
• Sets acceptable proof of service: signed acknowledgement, a certificate of service, a courier receipt, or an electronic transmission record.
• Clarifies when service is treated as delivered:
  • courier or registered mail is deemed delivered on the 7th day after sending (unless acknowledged sooner);
  • electronic/fax service is treated as delivered the same day it was sent.
• Adds rules (to both the Canada Occupational Health and Safety Regulations and the Canada Labour Standards Regulations) for calculating the regular hourly rate for employees who are not paid by the hour when they must attend hearings before the Canada Industrial Relations Board (CIRB):
  • general rule: use the employee’s wages earned in the 4-week period before the week of the hearing divided by hours worked (excluding overtime);
  • if no hours in that 4-week period, use the previous 4-week period instead;
  • for commission-paid employees with at least 12 weeks continuous employment, use wages and hours from the prior 12-week period;
  • a binding collective agreement’s rate or method takes priority;
  • if hours cannot be determined or the calculated rate is below the applicable minimum wage, use the minimum wage.
• Adjusts the Administrative Monetary Penalties (Canada Labour Code) Regulations schedule to reclassify three Part II wage-related provisions from level C to level B (no new penalties introduced).

Who's affected#

• Employees and employers covered by the Canada Labour Code — mainly federally regulated workplaces such as:
  • banks, telecommunications, railways, shipping, airlines and airports, port operations, interprovincial trucking and bus operations, and industries declared by Parliament.
• Employers and employees who must attend or are summoned to hearings before the Canada Industrial Relations Board (CIRB).
• The government’s enforcement staff, called the Labour Program, who serve legal documents and enforce orders.
• The number of potentially affected CIRB cases is limited: the CIRB disposed of about 531 cases per year on average in recent years, and roughly 15% of matters resulted in oral hearings — only some of those relate to Parts II or III of the Code.

Why it matters#

• Easier service of documents can help the Labour Program reach hard-to-contact employers. That reduces delays in enforcing payment orders and compliance orders. It makes it more likely employees actually receive money or remedies ordered for them.
• A clear formula for calculating pay for non-hourly workers who attend CIRB hearings reduces confusion and disputes between employers and employees. That can cut down on complaints and streamline enforcement.
• The changes mostly affect federal-jurisdiction workplaces. The government expects modest implementation costs (previous estimates for similar changes suggested about $1.5 million over 10 years for training and updates). Any change in actual compensation owed to employees from using the shorter 4-week or 12-week windows is expected to be small; an extreme scenario put the 10‑year impact at about $15,000 over 10 years.