Employment standards in Canada

Canada has 14 distinct legal jurisdictions that regulate the employment relationship. Depending on the nature of your business, your obligations as an employer may be governed by federal, provincial or territorial laws and regulations.

These laws establish the minimum rights and responsibilities for employers and employees. Many leading employers go beyond the minimum by offering additional benefits, policies and workplace practices that can help attract and retain talent.

Federal vs provincial or territorial jurisdiction

  • Federal jurisdiction (Canada Labour Code): Applies to federally regulated sectors such as banking, telecommunications and interprovincial or international transportation.
  • Provincial and territorial jurisdiction: Covers most other employers and employees subject to the employment standards of the province or territory where the work is performed. 

Key employment standards topics

  • Minimum wage rates across Canada: Explore rates for minimum wage, varied by province and territory, as well as the federally regulated sector.
  • Statutory holiday pay: Regulations for statutory (public) holidays vary by province and territory. Employers are required to provide employees with a paid day off and/or additional compensation, depending on local legislation.
  • Bank and government holidays: Statutory holidays applying to your operations may be different from those on which banks, other financial institutions, payroll providers or government offices are closed. These closures may impact payroll processing, direct deposits and remittance schedules. Employers should confirm deadlines if a payroll date coincides with one of these closures.
  • Overtime pay: Each province and territory, as well as the federal jurisdiction, has its own regulations regarding the calculation and requirements for overtime.
  • Progressive discipline and termination: Employers are expected to follow a fair process when addressing performance or conduct issues. Termination rules also include minimum notice periods and severance pay requirements.

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FAQ

What are the employment standards in Canada?

Employment standards are the minimum rights and responsibilities set out by law for employers and employees. They typically cover wages, hours of work, overtime, vacation, holidays, leaves and termination requirements. 

Do federal and provincial/territorial employment standards differ?

Yes. The Canada Labour Code applies to federally regulated industries. All other employers fall under the provincial or territorial legislation where they operate. The requirements can vary significantly, so employers must understand which jurisdiction applies to them.