Employment statements: now mandatory for federally regulated employers
Due to recent changes to the Canada Labour Code (the “Code”), federally regulated employers are now required to provide workers with written “employment statements”.
Specifically, the federal government has added section 253.2 to the Code. It mandates:
An employer must, within the first 30 days of an employee’s employment, provide the employee with a written statement containing information relating to their employment that is prescribed by regulation.
Updates to the Canada Labour Standards Regulations have further fleshed out the content of employment statements. As such, we now know that employment statements must contain the following information:
the names of the parties to the employment relationship;
the job title of the employee and a brief description of their duties and responsibilities;
the address of the ordinary place of work;
the date on which the employment commences;
the term of the employment;
the duration of the probationary period, if any;
a description of the necessary qualifications for the position;
a description of any required training for the position;
the hours of work for the employee, including information on the calculation of those hours and rules regarding overtime hours;
the rate of wages or salary and the rate of overtime pay;
the frequency of pay days and the frequency of payment of any other remuneration;
any mandatory deductions from wages; and
information about how the employee can claim reimbursement of reasonable work-related expenses.
As of July 9, 2023, new federally regulated employees are to be provided with employment statements within their first 30 days. There is a transition period for existing employees. Employers have until October 7, 2023 to provide such workers with their employment statements.
If any of the information contained in an employment statement changes, employers are to provide affected workers with an updated statement within 30 days.
Employers are also required to keep employment statements on file for 3 years after a worker’s employment ends. Until this period expires, additional copies of issued employment statements must be sent to workers upon their request.
Practical considerations
Employers should first review existing employment agreements and related onboarding materials before creating and distributing employment statements. In practice, much of the information required may already be included in these documents. To the extent that information is missing, these details must be shared in writing with affected workers within the timelines described above.
If employers plan to create written employment statements separate and apart from their employment agreements, coordination will be key. Employers must ensure information contained within these documents is not inconsistent or contradictory. Likewise, existing policies and procedures should be cross-checked and aligned with employment statements.
Finally, if your organization is looking to draft its first employment statement, Employment and Social Development Canada has created a standard template form worth reviewing. The form is not mandatory. It may, however, provide a useful starting point when designing an employment statement suitable for your workplace.
This article was originally published on August 11, 2023 at First Reference Talks.
Vey Willetts LLP is an Ottawa-based employment and labour law firm that provides timely and cost-effective legal advice to help employees and employers resolve workplace issues in Ottawa and across Ontario. To speak with an employment lawyer, contact us at: 613-238-4430 or info@vwlawyers.ca.
