Canadian Workplace Law Changes: What’s Ahead for 2024?
Governments across Canada are continuing to implement a wide range of laws which impact employers across the country.
Here are some highlights relevant to organizations doing business in Canada:
National Dental-Care Plan – The Canadian federal government is adopting a dental program in phases, with benefits under the Canadian Dental Care Plan being available to certain eligible Canadians as early as May 2024. The concept is to offer Canadians who lack dental care with access to a form of benefits. The challenge is, like most benefit programs, one of costs. The federal rules attempt to limit benefits to lower-income earners who are uninsured. Relevant individuals are supposed to soon be receiving letters which will provide further details.
Increases to CPP premiums – The maximum level of benefits under the Canada Pension Plan have increased for 2024, so employers and employees will be required to pay increased premiums. The formula for these contributions has also been amended, with increases of up to $188 for employers and workers on earnings of those who earn up to $73,200.
Modern Slavery Law – Canadian private companies and certain government organizations will be required to comply with the federal Modern Slavery Act, which took effect on January 1, 2024. Under this regime, organizations must report on the measures which they have taken to prevent and decrease the risk of child labour or forced labour in their operations. This includes a specific review of supply chains, and all other relevant aspects of the operation. For those organizations which are required to comply, reports must be filed by May 31, 2024. In addition, the filed reports will need to be published prominently on the organization’s website. Penalties for non-compliance include fines of up to $250,000, as well as a potential ban on importing goods to Canada.
International Student Reforms – In response to sustained criticism about what were allegedly loose rules, the federal rules relating to study permits for international students have been tightened up. Effective January 1, 2024, participating students must now show that they have at least $20,635 in savings (up from $10,000), along with the costs of their first year of tuition and travel. The precise impact of this change is unclear, but it would not be surprising if this moderates demand among international students to study in Canada.
Ontario Rules for Temporary Work Agencies and Recruiters – Effective July 1, 2024 temporary work agencies and recruiters will need to have a licence to assign staff to work in Ontario. Under amendments to Ontario’s Employment Standards Act (ESA), clients (meaning employers looking for temporary workers or permanent hires) will be banned from using unlicensed services. The legislation also implements new rules which will require certain organizations to obtain a $25,000 letter of credit to cover wages owed to relevant employees.
Ban on “Canadian Experience” Requirements: Under Ontario Bill 149, the ESA would also be amended to prohibit organizations from including any requirements related to “Canadian experience” in publicly advertised job postings or any associated employment application documents. This amendment is intended to remove barriers to employment imposed on internationally-trained or qualified workers. If passed, these revisions to the ESA would track the stated position of the Ontario Human Rights Commission (and others across Canada), which is that a strict requirement for Canadian experience is often discriminatory on the basis of protected grounds, including potentially race, ethnic origin and ancestry.
Artificial Intelligence (AI): Another provision Ontario’s Bill 149 involves amendments to the ESA relating to the use of AI by employers. Under these provisions, employers would be required to disclose in public job postings whether they will use AI to screen, assess or select applicants for a position. This type of disclosure requirement is something which many have predicted will soon apply more broadly across Canada. A related set of legal issues arises about whether or not the AI tools which an organizations uses may be discriminatory based on their use of historic data. There are also a number of associated legal issues, including with respect to data privacy and the question of whether applicant’s have consented to the use of their personal information, either in the context of being applicants or being included within relevant data sets.
The above is just a list of highlights of what is expected to be a very active year for Canadian workplace law. Employers are best advised to continue to track the changing set of rules which apply to their Canadian operations.