Human Resources Legislative Update
Federal Government Publishes Proposed Canada Labour Code Regulations Regarding Reimbursement of Work-Related Expenses, and More
Date: October 3, 2022
On October 1, 2022, the federal government published two proposed Regulations Amending Certain Regulations Made Under the Canada Labour Code (Regulations) amending the Canada Labour Standards Regulations. The Regulations pertain to the reimbursement of work-related expenses and employee information and the service of documents and regular rate of wages.
The proposed Regulations have been published for comment by October 31, 2022 (note the new online commenting feature embedded in the Regulations).
Reimbursement of Reasonable Work-Related Expenses and Employee Information Regulations
The Budget Implementation Act, 2018, No. 2 (Bill C-86) enacted Division XII.1 “Reimbursement of Work-related Expenses” which has not yet been proclaimed into force. This new Division requires employers to reimburse employees for reasonable work-related expenses, subject to prescribed exceptions.
The proposed Regulations set out the following factors to be considered in determining whether or not an expense is work-related:
(a) whether the expense is connected to the employee’s performance of work;
(b) whether the expense enables an employee to perform work;
(c) whether incurring the expense is required by the employer as a condition of employment or continued employment;
(d) whether the expense satisfies a requirement for the employee’s work imposed by an occupational health or safety standard; and
(e) whether the expense was incurred for a legitimate business purpose and not for personal use or enjoyment.
The proposed Regulations also set out the factors to consider in determining whether or not the expenses are reasonable:
(a) whether the expense is connected to the employee’s performance of work;
(b) whether the expense was incurred to enable an employee to perform work;
(c) whether it was incurred at the request of the employer;
(d) whether any amount of expense was incurred beyond the amount necessary to enable the performance of the work;
(e) whether the expense is one that is normally reimbursed by employers in similar industries;
(f) whether the employer authorized the expense in advance;
(g) whether the employee incurred the expense in good faith; and
(h) whether the claim includes documentation, such as a receipt or invoice, that indicates that the expense was incurred.
The Regulations specify that the time limit for payment to the employee is 30 days after the day on which the employee submits the claim for payment.
Bill C-86 also enacted a section titled “Information Related to Employment,” which requires the employer to provide the employee with a written statement containing information relating to their employment as prescribed by regulation and within specified time frames. This section has not yet been proclaimed into force.
The proposed Regulations set out the following information to be included in that statement:
(a) the names of the parties to the employment relationship;
(b) the job title of the employee and a brief description of their duties and responsibilities;
(c) the address of the ordinary place of work;
(d) the date on which the employment commences;
(e) the term of the employment;
(f) the duration of the probationary period, if any;
(g) a description of the necessary qualifications for the position;
(h) a description of any required training for the position;
(i) the hours of work for the employee, including information on the calculation of those hours and rules regarding overtime hours;
(j) the rate of wages or salary and the rate of overtime pay;
(k) the frequency of pay days and the frequency of payment of any other remuneration;
(l) any mandatory deductions from wages; and
(m) information about how the employee can claim reimbursement of reasonable work-related expenses.
Service of Documents and Regular Rate of Wages Regulations
The proposed Regulations add additional manners of service of legal documents issued by Labour Canada to those already existing under the Code. These include service through courier, fax or other electronic means, and (where service is to an individual) leaving the documents with someone who appears to be an adult member of the same household at the last known address or usual place of residence of the individual being served.
The proposed Regulations also allow for substitutional service by way of the Labour Program effecting service by leaving a copy of the notice or order at a person’s last known address, residence or workplace. In addition, the Regulations set out what constitutes additional proof that the document has been sent, as well as when the service of the document is deemed to have been effected.
The proposed Regulations set out how an employee’s wages are to be calculated for time spent appearing at a Canada Industrial Relations Board (CIRB) hearing. Among other things, the Regulations provide for calculating wages where employees are paid, in whole or in part, on a commission basis.
Administrative Monetary Penalties (AMPs)
The proposed Regulations also include updated AMPs for these new requirements, should any of them be violated.
Editor’s Note: these proposed regulatory amendments were filed as Regulations Amending Certain Regulations Made Under the Canada Labour Code and come into force on April 12, 2023.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Hicks Morley Hamilton Stewart Storie LLP and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Hicks Morley Hamilton Stewart Storie LLP. ©
