Federal Post
Federal Government Launches Consultation on Proposed Regulatory Amendments to New Leave Provisions Under the Canada Labour Code
Date: July 3, 2025
On June 28, 2025, the federal government published proposed regulatory amendments in the Canada Gazette that would implement significant changes to leave entitlements for federally regulated employees. The proposed Regulations Amending Certain Regulations Made Under the Canada Labour Code (Leave Related to Pregnancy Loss, Bereavement Leave and Leave for Placement of Child) support the implementation of provisions from the Fall Economic Statement Implementation Act, 2023, which received royal assent on June 20, 2024.
The proposed amendments are as follows:
Canada Labour Code
The Fall Economic Statement Implementation Act, 2023 introduced three new categories of protected leave under Part III of the Canada Labour Code (Code). These legislative changes establish the framework for leave related to pregnancy loss, enhanced bereavement leave, and leave for placement of child, with the proposed regulations providing the operational details necessary for implementation.
Leave Related to Pregnancy Loss
The Code amendments establish leave entitlements for employees who experience pregnancy loss, including situations where their pregnancy does not result in a live birth, their spouse or common-law partner’s pregnancy does not result in a live birth, or they intended to be the legal parent of a child born to another person through surrogacy arrangements.
For stillbirths, defined as the complete expulsion or extraction of a foetus on or after the 20th week of pregnancy or after the foetus has attained at least 500 grams, employees are entitled to up to eight weeks of leave. For other types of pregnancy loss, employees may take up to three days of leave. The first three days of leave related to pregnancy loss are paid for employees who have completed at least three consecutive months of employment.
Enhanced Bereavement Leave
The Code currently provides employees with up to ten days of bereavement leave following the death of an immediate family member, with the first three days paid for employees with three months of continuous service. The amendments expand this entitlement to allow employees to take bereavement leave for up to eight weeks following the death of their child or the child of their spouse or common-law partner.
This extended leave includes additional protections typically associated with long-term leaves under the Code, including the right to receive notice of employment opportunities, resume employment in the same or similar position, retain benefits, and modify the length of leave with adequate notice. Employers are prohibited from considering an employee’s use of bereavement leave in promotion or training decisions.
Leave for Placement of Child
The amendments establish leave for placement of child, providing employees with up to 16 weeks of unpaid leave to carry out responsibilities related to the placement of a child into their care through adoption or surrogacy. This leave provision was developed to coordinate with amendments to the Employment Insurance Act that provide a 15-week wage replacement benefit for adoptive parents, with the 16-week duration accounting for the standard Employment Insurance waiting period.
Canada Labour Standards Regulations
The Canada Labour Standards Regulations require comprehensive amendments to accommodate the new leave entitlements. The proposed changes address wage calculation methods, record-keeping requirements, and administrative procedures necessary for proper implementation.
The regulations prescribe wage calculation methods for employees whose hours vary or who are paid on bases other than time, ensuring consistent compensation during leave periods. Multi-employer employment situations are specifically addressed by deeming employees in such arrangements to be continuously employed for the purpose of qualifying for paid leave, which particularly affects longshore workers who work under dispatch systems.
Employers must maintain records of amounts paid during pregnancy loss leave, changes to bereavement leave length, and supporting documentation for leave requests. These records may be requested during Labour Affairs Officer inspections or investigations. The amendments would require employers to update posted labour standards notices to include the new leave provisions, ensuring employees are informed of their entitlements.
The amendments update terminology throughout the regulations by changing “medical certificate” to “certificate from a health care practitioner” and “sick leave” to “medical leave” to maintain consistency with recent Code amendments. Moreover, the amendments clarify wage calculation methods to ensure that earnings from the new leave types are properly excluded from overtime pay calculations. Additionally, the amendments repeal an outdated requirement for employers to post sexual harassment policies, which was removed from the Code in 2018.
Standards for Work-Integrated Learning Activities Regulations
Amendments to the Standards for Work-Integrated Learning Activities Regulations would extend certain new leave provisions to student interns. Student interns would have access to leave related to pregnancy loss and enhanced bereavement leave provisions, though without payment entitlements.
Administrative Monetary Penalties (Canada Labour Code) Regulations
The proposed amendments establish specific violations and corresponding penalty structures under the Administrative Monetary Penalties (Canada Labour Code) Regulations. These penalties enable enforcement of the new leave provisions through financial consequences for non-compliance.
Type B violations, which carry penalties of $2,000 to $10,000 for individuals and $10,000 to $50,000 for corporations, include failing to pay employees for leave related to pregnancy loss, failing to continue benefit contributions during bereavement leave, and preventing access to income-replacement schemes during bereavement leave.
Type C violations, resulting in penalties of $5,000 to $25,000 for individuals and $25,000 to $100,000 for corporations, include denying employees their right to take any of the three leave types, failing to provide required notices during bereavement leave, not allowing employees to resume their position after leave, and taking disciplinary or promotional decisions based on leave usage.
Implementation Timeline
These amendments affect approximately one million employees working for 19,150 employers in federally regulated industries, including transportation, telecommunications, banking, and industries declared by Parliament to be for the general advantage of Canada. The government is accepting public input on the proposed regulations until July 28, 2025.
The amendments for leave related to pregnancy loss and enhanced bereavement leave are scheduled to come into force on December 12, 2025, or an earlier date set by Governor in Council order. The leave for placement of child will be implemented alongside related Employment Insurance amendments through a separate Order in Council process projected for 2026.
For more information regarding the proposed regulatory amendments or the new leave provisions under the Code, please reach out to George G. Vuicic or your regular Hicks Morley lawyer.
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