Compliance with Federal Labour Standards

The Labour Program Compliance Policy supports voluntary compliance through education and consultation while ensuring that enforcement—when required—is fair, foreseeable and nationally consistent.

Part III of the Canada Labour Code regulates minimum employment standards for wages, benefits, policies and practices. The federal government prohibits employers and employees from operating below these minimum standards, even if they voluntarily agree to do so. Establishing minimum standards of compliance ensures a level playing field for all federally regulated industries.

The Labour Program response to non-compliance concerning federal labour standards involves six key actions that escalate in consequence as an employer fails to address the issue at hand:

  1. Assurance of Voluntary Compliance: an employer’s written commitment to a labour standards inspector that a non-monetary violation of the Code will be corrected within a specified period of time.
  2. Letter of Determination: When a violation is identified, the employer is formally requested, in writing, to correct the non-compliance situation. The employer may, for example, be asked to pay wages or other amounts owing immediately, or to implement appropriate workplace policies and practices.
  3. Payment Order: When an employer refuses to pay an employee the amounts owing, the inspector may issue a written payment order to the employer or the directors of the corporation. In some cases, a Labour Program regional director may issue a payment order to a third party who is indebted to the non-compliant employer. The debtor is ordered to pay the Receiver General of Canada the amount indicated in the written order. The federal government then forwards the money to the employee. A payment order may be filed in federal court to ensure it is enforceable as a judgment of that court.
  4. Appeals: Those directly affected by a payment order may appeal the inspector’s decision. Orders to debtors of employers, however, cannot be appealed.
  5. Failure to Keep Records: If an employer refuses to keep appropriate records as required by the Code, an inspector may request an Assurance of Voluntary Compliance.
  6. Court Actions: Prosecutions may be undertaken when an employer does not correct a breach of Part III of the Canada Labour Code—despite the efforts of an inspector—or wilfully breaks the law while fully aware of all legal obligations. Repeat violations are one indication of such intentional, or wilful, action.

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Date Modified:
2012-01-20