A number of amendments to the Canada Labour Code have recently come into force, or are set to come into force in the coming months, including requirements for employers to reimburse employees for work-related expenses, to provide written employment statements to employees and to supply free menstrual products in the workplace.
Reimbursement of Work-Related Expenses
As of July 9, 2023, federal employers are now required, with certain exceptions, to reimburse employees for reasonable work-related expenses. The Canada Labour Standards Regulations provide a list of factors for determining whether an expense is work-related. They include:
- whether the expense is connected to the employee’s performance of work;
- whether the expense enables an employee to perform their work;
- whether the employer requires the employee to incur the expense as a condition of their employment or continued employment;
- whether the expense satisfies an occupational health and safety standard requirement for the employee’s work; and
- whether the expense is incurred for a legitimate business purpose and not for personal use or enjoyment.
In addition to the requirement that an expense be work-related, it must also be reasonable to qualify for reimbursement. When determining the reasonableness of an expense, employers must consider:
- the connection between the expense and the employee’s performance of work;
- the amount of the expense;
- the pre-authorization of the expense by the employer;
- whether the expense is one that is normally reimbursed in similar industries;
- the good-faith of the employee in incurring the expense; and
- whether there is supporting documentation, such as a receipt or invoice.
For expenses that qualify as both work-related and reasonable, employers have a timeline of 30 days after the employee submits the claim to reimburse them. Unionized employees may be subject to different rules if stipulated in a collective agreement.
Employment Statement
Also in force as of July 9, 2023 is a new requirement for federal employers to provide new employees with a written employment statement within 30 days of their start date. For existing employees, the employer must have provided a written statement by October 7, 2023.
The written employment statement must include:
- The names of the employee and the employer;
- The employee’s job title and a brief description of the duties and responsibilities of the position;
- The address of the employee’s ordinary place of work;
- The date on which the employment begins (or began);
- The length of the employment;
- How long the probationary period will be (if any);
- The required qualifications for the position;
- Any required training for the position;
- The hours the employee is expected to work, including a description of how those hours will be calculated and the rules regarding overtime hours;
- The wage or salary that the employee will receive for the position, including the rate of overtime pay;
- The frequency of when the employee will be paid, as well as the frequency of any other remuneration;
- Any mandatory deductions from the employee’s wage; and
- Information describing how the employee can claim reimbursement for reasonable work-related expenses.
Much of this information is already routinely included in other employment documents, such as offer letters, employment contracts, employee handbooks and policies, orientation and on-boarding materials, and collective agreements. The Labour Program has clarified that as long as all of the required information is included, employers can continue present practices of conveying this information through these types of employment documents (or a combination of them), or can choose to provide the information separately in an employment statement.
If any changes are made to the information included in the written employment statement, such as promotion, change of duties, change to pay structure, or change of location, employers must provide the employee with an updated employment statement within 30 days after those changes. In addition, the employer must retain a copy of the employment statement for three years after the employment ends and, if requested, the employer must provide the employee with additional copies of the employment statement.
Provision of Menstrual Products
On December 15, 2023, the Regulations Amending Certain Regulations Made Under the Canada Labour Code (Menstrual Products) will come into force. It will require federally regulated employers to provide menstrual products including tampons and menstrual pads as well as a covered disposal container in each toilet room. In workspaces where it may not be feasible to provide the menstrual products in a toilet room, they must be provided in another discreet location. These products are to be provided at no cost to the employee.
It is important to note that the requirement is to provide these products to all workers who menstruate, including cisgender women, non-binary individuals, transgender men, and intersex individuals.
If you have questions about how the amendments will affect your organization, please do not hesitate to contact a member of our Miller Thomson LLP Labour and Employment Group.
For information about recent changes to the termination provisions in the Code that have also been announced by the Government of Canada, please see our companion Labour and Employment Communique.
