Employment Law In Canada - CIPD HR-inform

There are various pieces of legislation that govern the employment relationship in Canada and two different classifications of employees; federal and provincial. Federally regulated employees work in industries such as banks, postal services, and air transportation, and are governed by the Canada Labour Code, Canadian Human Rights Act and Canada Occupational Health and Safety Regulations to name a few. If an employee is not regulated by federal employment law, the employee is regulated by provincial employment legislation.

In Canada, approximately 90% of employees are governed by the laws and regulations of the province or territory they live and work in. There are 10 provinces and three territories, each with similar, but often differing, rules and regulations regarding employment law. Ontario is the largest province in terms of population and often influences the other regions in terms of passing bills and legislation. Because of this, this document will profile the different laws and bodies that govern employment law in the province of Ontario.

The most important pieces of legislation that dictate employment law in Ontario are the Employment Standards Act, Ontario Human Rights Code, Occupational Health and Safety Act, Workplace Safety and Insurance Act and Labour Relations Act. Other statutes such as the Accessibility for Ontarians with Disabilities Act and the Pay Equity Act also have an impact on Ontario workplaces. Of these laws, the most prominent one in regulating the employment relationship is the Employment Standards Act (ESA). The ESA covers topics such as wages, overtime, leaves of absence, public holidays, vacation, termination of employment and temporary lay-offs.

In addition to the numerous pieces of legislation, Ontario also has several courts that handle most employment law disputes. For employment law matters disputing high monetary awards, the case will be heard at the Ontario Superior Court of Justice. Alternatively, if the employment dispute is over a monetary amount of $35,000 or less, it will be handled by the Ontario Small Claims Court. If an employee or employer wishes to appeal a lower-court decision, they can take their claim to the Ontario Court of Appeal.

The province also has a number of tribunals that hear employment disputes, such as the Human Rights Tribunal of Ontario. This tribunal hears violations of the Ontario Human Rights Code such as discrimination in the workplace. There are also tribunals such as the Ontario Labour Relations Board which hears disputes regarding labour relations issues as well as appeals from the Ministry of Labour, and the Workplace Safety and Insurance Appeals Tribunal which adjudicates matters regarding compensation for workers injured on the job.

This topic will focus on employees in the province of Ontario who are covered by the ESA, as this applies to most workers in Ontario. Note that federally regulated employees residing in Ontario are not covered by the ESA, and accordingly this topic should not be relied on for workers in that category. Other employees in different provinces and territories are also not covered by the ESA. For these employees, advice on the applicable provincial system should be sought.