(More!) Legislative Changes

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Federal

Effective October 20, 2026, federally regulated employers will see a change to the Canadian Labour Code and its Regulations. Section 182 has been updated to include language that prohibits employers from compensating employees differently based on their employment status (ex. fulltime, parttime, contract) if:

a) they work in the same industrial establishment;
b) they perform substantially the same kind of work;
c) the performance of that work requires substantially the same skill, effort and responsibility;
d) their work is performed under similar working conditions; and
e) any other factor that may be prescribed by regulation is present.

The updated legislation does allow difference in employees’ compensation if it is due to a system based on:

a) seniority;
b) merit;
c) the quantity or quality of each employee’s production; or
d) any other criterion that may be prescribed by regulation.

With this change employers are encouraged to review their compensation practices and adjust if discrepancies exist to ensure they remain compliant. Employee’s who believe they are paid differently, based on their job status, may request that their employer review their compensation. Employers are required to respond to their employee requests within 90 days, and where adjustments are required, they would be retro-actively applied to the date the employee provided notice.

You are encouraged to review your compensation practices to ensure you remain compliant with the legislative changes (where applicable) and increases to minimum wages across jurisdictions. If you require assistance or have additional questions on these changes, please don’t hesitate to reach out to speak to an e2r® Advisor.

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