Increased termination notice entitlements for federally regulated employees coming February 1, 2024

The federal government has announced that two significant amendments to the Canada Labour Code (the “Code”) are coming into force on February 1, 2024. Federally regulated employers should be aware of the effect these amendments will have upon the termination entitlements of employees.

Increased Termination Entitlements

The first amendment will substantially increase the entitlement to notice of termination for longer service employees. Currently, federally regulated employees are entitled to at least two weeks’ notice for termination without cause after completing three months of consecutive employment. This minimum notice does not increase based on the amount of years of service, unlike provincially regulated employees. 

Under this amendment, the Code will require greater notice to be provided based on the amount of years of service by the employee. Please note that this notice provision is completely separate and apart from the entitlement to “severance.” This article pertains only to notice.

The new notice periods for termination without cause are as follows:

• Two weeks’ notice for employees with at least three consecutive months of continuous service;
• Three weeks’ notice for employees with at least three consecutive years of continuous service;
• Four weeks’ notice for employees with at least four consecutive years of continuous service;
• Five weeks’ notice for employees with at least five consecutive years of continuous service;
• Six weeks’ notice for employees with at least six consecutive years of continuous service;
• Seven weeks’ notice for employees with at least seven consecutive years of continuous service; and
• Eight weeks’ notice for employees with at least eight consecutive years of continuous service.

It should be noted that this amendment only applies to individual terminations. Group termination entitlements remain unchanged.

Written Statement of Benefits

The second amendment will require federally regulated employers to provide a statement of benefits to employees whose employment has been terminated. The statement must outline the employee’s:

• Vacation;
• Wages;
• Severance pay; and 
• Any other benefits and pay entitlements.

The employer must give the employee this statement by the following deadlines:

• If the employee was given working notice of termination, as soon as practicable, but no later than two weeks before the date of the termination;
• If the employee was given pay in lieu of notice, no later than the date of the termination;
• If the employee was given a combination of working notice and pay in lieu of notice, where the working notice period is two weeks or longer, as soon as practicable but no later than two weeks before the date of termination; or
• If the employee was given a combination of working notice and pay in lieu of notice, where the working notice period is less than two weeks, as soon as practicable, but no later than the day on which the employer gives notice to the employee of the date of termination.

This entitlement already exists for group terminations, but now applies to all forms of termination under the Code.

Takeaway for Employers

Federally regulated employers should consider the impact of these amendments on any upcoming terminations. Employer should also ensure current employment agreements and termination policies are in compliance with the amendments, as clauses with insufficient notice periods will no longer be enforceable. These entitlements come into effect as of February 1, 2024. 

EKB’s Labour & Employment team would be pleased to assist you with any questions or inquiries regarding the effects these amendments may have on your workplace or any other employment-related questions.