Employment Law Updates in the Federal Sphere

Written by on January 19, 2023 in Employment Law Blog, Employment Law Issues
Employment Law Updates

Another year has come and gone bringing with it both challenges and opportunities. A new year always brings change.

And if you are an employer, you ought to be aware of changes to federal legislation that occurred in 2022. 

Employment Law Updates

Here are a few of the significant changes that took place in employment law in the last 12 months.

Federally regulated employees are now entitled to ten paid sick days per year

Recently, the federal government announced a significant change to the Canada Labour Code, which will give federally regulated private sector employees ten paid sick days per year. One of the anticipated benefits of this change is that employees will be less likely to come to work when they are ill and potentially spread viruses amongst coworkers and customers.

As of December 31, 2022, workers employed for at least 30 days will be granted their first three paid sick days.

Beginning February 1, 2023, workers will be granted their fourth paid sick day. 

Workers will continue to acquire paid sick days on the first day of each month until they have accumulated a maximum of ten paid sick days per year.

Furthermore, the maximum unpaid sick leave for federally regulated workers is also changing from 17 weeks to 27 weeks.

Amendments to the Competition Act – Wage-fixing and No-poach Agreements 

In June of 2022, the federal government announced several amendments to the Competition Act to protect Canadian consumers and workers. From an employment law point of view, the most notable changes are those that prohibit wage-fixing (where employers agree amongst themselves to “fix” or control salaries) and no-poach agreements (where employers agree not to poach each other’s employees) between employers. Employers found guilty of such offenses could face prison time of up to 14 years, a fine as determined by the court, or a combination of both.

These specific amendments will come into effect in June 2023 so that employers have time to ensure that they comply with the new law.

You’ll be paying more for CPP and EI

Employers in 2023 will likely experience some sticker shock regarding payroll taxes like CPP and EI.

Because the Yearly Maximum Pensionable Earnings (YMPE) on CPP has increased, CPP premiums will increase by about 7.3%. This will end up costing employees and employers up to $255 more in contributions for each employee.

Employment Insurance premiums are also increasing by 5.2% per employee, with the maximum insurable earnings increasing from $60,300 to $61,500. 

The combined increases in CPP and EI could result in employers and employees ending up with $325 less in their pockets in 2023.

Contact Minken Employment Law Today

Changes to legislation happen regularly, and it can be difficult for employers and employees to keep up with all the changes. That’s why it’s crucial to have an employment lawyer to contact when you need help. If you have questions about any of the latest changes to employment law – or about an employment-related issue in general – contact us today to speak to a lawyer. We can be reached at: 905-477-7011 | Toll-Free: 1-866-477-7011 | contact@minken.com.

For regular updates and alerts please sign up for our Newsletter to receive up-to-date Employment Law information, including new legislation and Court decisions impacting your workplace. 

Please note that this article is for informational purposes only and does not constitute legal advice.

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