Federal Post

Federal Equal Treatment and Temporary Help Agencies Regulations Published

· 5 min read By: George G. Vuicic

Federal Post

Federal Equal Treatment and Temporary Help Agencies Regulations Published

Date: May 14, 2026

On May 6, 2026, the federal government published the Regulations Amending Certain Regulations Made Under the Canada Labour Code (Equal Treatment and Temporary help Agencies): SOR/2026‑75 (Regulations) in the Canada Gazette, Part II.

The Regulations operationalize long‑standing, but not yet in‑force, amendments to Part III of the Canada Labour Code (Code) introduced through the Budget Implementation Act, 2018, No. 2 governing standard hours, wages, vacations, and holidays. Part III applies to federally-regulated private‑sector industries and workplaces and Crown corporations, but not to the federal public service.

Together, the statutory amendments and the Regulations establish new equal treatment obligations and a parallel framework for temporary help agency workers, with an in‑force date of October 20, 2026.

To implement these frameworks, the Regulations amend:


Equal Treatment Framework

Core Prohibition

New provisions to Part III of the Code prohibit differences in wage rates based on an employee’s employment status where employees:

  • perform substantially the same work, requiring substantially the same skill, effort, and responsibility
  • in the same industrial establishment
  • under similar working conditions

Key Regulatory Concepts

Industrial establishment (s. 11.3)

An industrial establishment is broadly defined to include all divisions of a federal work, undertaking, or business within the same Employment Insurance (EI) region. This effectively expands the scope of comparator groups beyond a single physical location.

Determining where an employee works (s. 11.4)

The Regulations establish detailed rules for multi‑site employers:

  • generally, the location where the employee most often reports in person governs
  • for transportation workers, the relevant terminal, base, or port applies
  • for remote employees, a look‑back (pre‑remote) analysis is conducted and, failing that, a multi‑factor test applies (e.g., employee’s in-person meeting location and reporting location, and supervisor’s in-person reporting location)

Employment status (s. 11.2)

The Regulations introduce a structured hierarchy for determining employment status

  • full‑time: determined by collective agreement, then employment contract, then employer policy, and finally a default threshold of 30 hours per week (with technical clarifications for averaging plans or modified work schedules)
  • part‑time: any employee not classified as full‑time
  • permanent: employment for an indeterminate period
  • temporary: fixed‑term, seasonal, casual, irregular, or otherwise prescribed employment

System (s. 11.2)

The Regulations provide that permissible wage differentials must be grounded in a defined system (e.g., based on seniority, merit, quantity or quality of production) that apply to all employees whose wage rates are comparable (they work in the same industrial establishment, and perform substantially the same kind of work requiring substantially the same skill, effort and responsibility, under similar working conditions).

The particulars of this system must be communicated in writing to those employees or be readily accessible to them for examination.

Comparable wage rates (s. 11.5)

The equal treatment obligation applies only where employees are paid using the same type of wage rate (e.g., time-based, mileage, piece, per-load, or commission).

Permitted Differentials (s. 11.6)

The Regulations prescribe limited exceptions that may justify wage differences, including:

  • red circling following reclassification or demotion
  • labour shortage‑driven wage increases
  • geographic area differences
  • travel‑related compensation distinctions


Temporary Help Agencies Framework

The Regulations establish a parallel, but adapted, regime for federally regulated temporary help agencies to reflect the tripartite nature of the relationships (agency, employee, client).

Key features include:

  • the relevant system is that of the client, not the agency (s. 16.1)
  • industrial establishment and work location rules mirror the equal treatment framework (ss. 16.2–16.3)
  • wage rate comparability and permitted differentials adopt the same approach as ss. 11.5 and 11.6 (ss. 16.4–16.5)

Since most temporary help agencies likely fall within provincial jurisdiction, it remains to be seen how far-reaching these changes will be in practice.


Expanded Recordkeeping Obligations

Employers must maintain new records in respect of wage review requests, including:

  • records of any system relied upon to justify wage differentials
  • records of employee requests and employer responses
  • for federally regulated temporary help agencies, records identifying client assignments and their duration


Posting Requirements

The CLSR workplace notice posting requirement is updated to include the new equal treatment and temporary help agency provisions.


Administrative Monetary Penalties

The Administrative Monetary Penalties regime is expanded to designate the violations below as Type A, B, or C violations, integrating these regimes into the federal enforcement framework:

  • the equal treatment provisions
  • the temporary help agencies framework
  • the new recordkeeping obligations


Key Takeaways for Federally Regulated Employers

Prior to the October 20, 2026 coming‑into‑force date, employers should:

  • audit workforce classifications against the new definitions of employment status
  • review and formalize compensation systems, ensuring consistency and documentation
  • confirm industrial establishment mappings, particularly for remote and mobile employees
  • assess wage comparability methodologies and rate structures
  • implement enhanced recordkeeping protocols
  • for temporary help agency arrangements with federal agencies, align contracts and practices with the client‑based system framework

If you have any questions about what the new equal treatment and temporary help agencies frameworks, recordkeeping obligations, and administrative monetary penalties mean for your organization, please contact your Hicks Morley lawyer.

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. ©