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Archived - Overview of Part III of the Canada Labour Code (Labour Standards)

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Division XVI - Administration and General

Powers of Inspector

• May inspect and examine all books, payrolls and records that relate to wages, hours of work or conditions of employment.
• The person in charge of the federal work, and every person employed, shall give an inspector all reasonable assistance.
• Where an inspector finds that an employer has failed to pay an employee any wages or other amounts, the inspector may determine the amounts to which the employee is entitled.

Wage Recovery

• Where an Inspector finds that an employer, or director of a corporation, has not paid an employee wages or other amounts, the inspector may issue a written payment order, ordering that the amount in question be paid.
• If the employer will not satisfy the payment order, the Regional Director may issue an order to debtor, i.e. to a bank or business indebted to the employer.
• A Director of a corporation is only liable if it is impossible or unlikely to recover amounts owing from the corporation.
• A Director of a corporation is only liable if the amounts arose during his or her incumbency, and the amount owing is equivalent to six months wages.
• Any person affected by a payment order may appeal the inspector’s decision.
• Minister of Labour appoints referee to hear and decide appeal.

Record Keeping

• Employers are obliged to keep records for at least 36 months after the work was performed. Examples of the required information:
  • Full name, address, Social Insurance Number, occupational classification and sex of the employee;
  • The rate of wages, actual earnings, recording of amounts paid for overtime, vacation pay, general holiday pay, etc.;
  • The payments made after deductions with clear details of the deductions made.

Pay Statement

• Employer is required to furnish the employee with a statement in writing setting out:
  • the period for which a payment is made;
  • the number of hours for which the payment is made;
  • the rate of wages;
  • details of the deductions made from the wages;
  • actual sum being received by the employee.

Deductions

• No employer shall make deductions from wages or other amounts due to an employee except as permitted.
• Permitted deductions are:
  • Those required by federal or provincial Act;
  • Those authorized by a court order or a collective agreement;
  • Amounts authorized in writing by the employee;
  • Overpayments of wages.

Offences and Punishment

In order for an employer to be found guilty of an offence under the Canada Labour Code, the matter must be proven in court beyond a reasonable doubt.

• Every person who discharges, threatens to discharge or otherwise discriminates against a person because:
  • that person has testified or is about to testify in any proceedings; or
  • that person has given any information to an inspector regarding the conditions of work of an employee,
  is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars.
• Every employer who contravenes the Group Termination Division is guilty on summary conviction and liable to a fine not exceeding ten thousand dollars; or an indictable offence and liable to a fine not exceeding one hundred thousand dollars.
• Every employer who refuses or fails to keep any record that is required, or refuses to make available for examination any such record, is guilty of an offence and liable on summary conviction to a fine not exceeding one hundred dollars for each day during which any such refusal or failure continues.
• Where an employer has been convicted of an offence, the court may order the employer to pay any wages or amounts to which the employee is entitled.
• Where an employer has been convicted of an offence in respect of the discharge of an employee, the court may order the employer to pay compensation or reinstate the employee in his employ.
• When inaccurate records are kept:
  • In determining the amount of wages or overtime, if the court finds that the employer has not kept accurate records, the employee affected shall be presumed to have been employed for the maximum number of hours a week allowed and to be entitled to the full weekly wage
• No imprisonment may be imposed by a convicting court, if a person is in default of any fine.
• If the fine that is imposed is not paid, the conviction may be filed in the superior court of the province, and is enforceable in the same manner as if it were a judgment against the person in that court in civil proceedings.

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Date Modified:

2011-12-02