Compliance Considerations for Multi-Jurisdictional Employers

Employers operating in multiple Canadian jurisdictions must navigate a complex framework of employment standards and laws to remain in compliance with provincial and federal jurisdiction requirements.

Below are five core compliance areas warranting close attention from multi-jurisdictional employers:

1. Mandatory Policy Requirements. Workplace policy requirements vary across Canadian jurisdictions. All Canadian jurisdictions require health and safety and harassment prevention policies, and most require violence prevention policies. Only Alberta, British Columbia, Quebec and federally regulated employers must implement employee-specific privacy policies. Ontario alone requires policies on electronic monitoring and disconnecting from work. At this time, only Ontario and Manitoba require workplace accessibility policies. For more information, please see our Blakes Bulletin: Keeping Current on Mandatory Workplace Policies Across Canada.
2. Overtime Rules. Overtime pay rules vary by Canadian jurisdiction, including eligibility thresholds, exemptions, tracking and permissible time banking. For example, unlike most other provinces, Quebec often exempts salaried employees from overtime. Some provinces, such as Alberta, B.C. and federally regulated sectors, require both daily and weekly hour tracking. Averaging agreements must meet jurisdiction-specific conditions and, in some cases, require written approval.
3. Vacation Entitlements. Vacation pay and time off requirements also vary by jurisdiction. Generally, vacation entitlement accrues during a reference year. In Alberta, B.C. or Ontario, the default vacation reference year is the employee's first year of employment, whereas in Quebec, it runs from May 1 to April 30. Vacation pay is generally calculated as a percentage of wages, but Canadian jurisdictions differ on what is to be included in that calculation. For example, in Ontario, vacation pay paid is excluded in the calculation of vacation pay owed, but in B.C., vacation pay is included. Employers must also carefully consider the provincial and federal requirements when determining whether to include incentive compensation in the calculation of vacation pay. Statutory vacation entitlements cannot generally be forfeited or carried over.
4. Leaves of Absence. There is a lengthy list of statutory job-protected leaves of absence available to employees in Canada. Again, those leaves vary by jurisdiction, with some extending up to 18 months or more in duration. Most, but not all, leaves are unpaid, although in most cases, benefits should be continued. Ontario recently introduced two new leaves, including a long-term illness leave which comes into force on June 19, 2025, and a placement of child leave which comes into force on a date yet to be named. For more information, see Blakes Bulletin: Working for Workers Acts Four, Five and Six: In-Force Dates and New Regulations for Ontario Employers. 
5. Statutory Termination and Layoff Requirements. Although the requirements for implementing temporary layoffs are prescribed under the various employment standards statutes and usually permitted under collective bargaining agreements, they can result in constructive dismissal claims for non-unionized workers under the common law. Each statute also prescribes the minimum notice and severance pay obligations for employers when terminating employment. In Ontario and under federal jurisdiction, severance pay may be required in addition to notice or pay in lieu. Enhanced protections exist for certain employees under the federal jurisdiction and in Quebec and Nova Scotia after one, two and ten years of service, respectively, when the termination is without sufficient justification. Special statutory requirements also apply to mass or group terminations. An employee’s statutory termination entitlements may not be limited but contract. Outside of Quebec, employment contracts may limit or enhance the employee’s common law entitlements but are often challenging for employers to enforce.

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