Labour Standards and Compliance

This regulatory program is based on Part III of the Canada Labour Code.

The objective of Part III is to provide minimum standards for wages as well as specified benefits and workplace policies and practices. The Government prohibits employers and employees from operating below these minimum standards, even if they voluntarily agree to do so. Establishing minimum employment standards provides a "level playing field" for the industries subject to Part III of the Canada Labour Code.

It applies to all federally regulated industries and most Crown corporations, but does not apply to the federal public service.

The Labour Standards Program’s Response to Non-Compliance

Assurance of Voluntary Compliance (AVC) – An AVC is the employer’s written commitment to an inspector that a non-monetary violation of the Code will be corrected within a specified period of time.

Letter of Determination – When a violation is identified, the employer is formally requested in writing to correct the non-compliance situation. Depending on the nature of the violation, this may be to immediately pay the wages or other amounts determined to be owing, or to implement appropriate policies and workplace practices.

Payment Order – In cases where the employer refuses to pay the amounts owing to the employee, the inspector may issue a written order to the employer or the directors of the corporation, to pay the specified amounts. In some situations, the Regional Director of the Labour Program may issue a written order to a third party who is indebted to the non-compliant employer. The debtor is ordered to pay, up to the amount indicated in the payment order, to the Receiver General for Canada rather than the employer. The money is then forwarded to the entitled employee.

A payment order may be filed in Federal Court which ensures it is enforceable as a judgement of that Court.

Appeals – A person who is affected by a payment order may appeal the decision of the inspector. Orders to debtors of employers cannot be appealed.

Failure to Keep Records – If an employer refuses to uphold the record-keeping requirements of the Code, an AVC is requested and, in some cases, prosecution may be undertaken.

Court Actions – Where a breach of Part III is not corrected in spite of the efforts of the inspector, prosecution may be undertaken. Criminal prosecution may be undertaken whenever someone, knowing the legal obligations, wilfully breaks the law. Repeated violations are one indication that the actions are intentional.

The Labour Program’s compliance policy also pertains to other program areas such as occupational health and safety, workplace equity, and the fire protection services.
For additional information, refer to the publication entitled "Compliance Policy".