Do you know whether your workplace is governed by provincial, territorial or federal legislation and what that means for you as an employee? Under the Constitution Act of 1867, Sections 91 and 92 divide powers between the federal and provincial jurisdictions. When you are experiencing employment issues, it is important to know whether your organization is regulated by provincial or federal jurisdiction. This guides you on what actions to take and what advice to follow in order to resolve the problems you are experiencing.
With that said, the majority of workplaces fall under provincial or territorial jurisdiction and consequently follow the legislation of the province or territory in which the business is located. In some instances, businesses are federally regulated. These are usually very industry-specific businesses. Some federally regulated businesses can also be subjected to provincial legislation.
Many of the workplace rules under provincial, territorial and federal legislation are similar but there are some significant differences too. This is especially true when it comes to public holidays, severance, benefits, and other employment entitlements. Here is a closer look at your employee rights under these different legislations.
Provincially Regulated Businesses
90% of employees in Alberta are regulated by the province. That means most people in Alberta are governed by the Employment Standards Code of Alberta. Provincially regulated employees in other provinces are governed similarly. For example, provincially regulated employees in Ontario are governed by the Employment Standards Act, 2000. Meanwhile, provincially regulated employees in British Columbia are governed by the Employment Standards Act, 1996.
These legislations include provincially observed statutory holidays. For example, Féte Nationale (St. Jean Baptiste Day) is only observed in Quebec. If you do not work in Quebec, you are not entitled to this statutory holiday. Similarly, St Patrick’s Day and St George’s Day are only observed in Newfoundland and do not apply to other provinces. On the other hand, federally regulated businesses must observe all public holidays that are outlined under federal legislation, such as National Day for Truth and Reconciliation on September 30th. Provincially regulated businesses do not need to observe every federal holiday and do not need to pay their employees general stat pay or overtime wages.
Federally Regulated Businesses
As previously mentioned, federally regulated businesses tend to be quite industry-specific. They are usually private-sector or public-sector businesses that provide essential or non-essential public services that are vital to our society. In general, only the following workplaces fall under federal jurisdiction:
- Air transportation
- Banks
- Crown corporations (such as Canada Post Corporation)
- Port services
- International or provincial borders
- Radio and television broadcasting (Canadian Broadcasting Corporation)
- Working for First Nations organizations
- Railways & Trucking
- Road transportation
- Telecommunications
- Grain elevators & feed mills
- Postal and courier services
- Uranium mining and processing and atomic energy
Altogether, only about 6% of Canadian employees are federally regulated and consequently governed by the Canada Labour Code (CLC). The CLC establishes federal labour standards that employers must adhere to, statutory holidays, minimum working conditions, etc.
For example, under the CLC, federal employers do not have the right to terminate non-unionized, non-managerial employees with 12 months of service or more without cause, even if termination notice and/or pay is offered. Meanwhile, their provincial counterparts can terminate non-unionized staff without cause. Provincial employers can terminate employees as long as they are provided with the applicable notice, or pay in lieu of notice, of termination as outlined in provincial legislation. Provincial termination entitlements differ too.
Businesses Affected by Both Federal and Provincial Legislation
Some businesses are federally and provincially regulated. This means they are subjected to certain parts of the CLC and of provincial legislation. For example, some parts of the public sector are only subjected to parts II and IV of the CLC such as the federal public service and parliament. Private-sector firms and municipalities in Yukon, the Northwest Territories and Nunavut are also subjected to only part I of the CLC.
What Are You?
Whether you are seeking legal counsel, experiencing a change in employment or signing a severance package, it is important to determine whether you are federally regulated, provincially regulated, or both! This will help you to navigate workplace practices with more ease, ensure you are treated and paid fairly and get the benefits you deserve. Don’t have enough time? Use Borderless to get to know these regulations better and make the most out of the legislation that is designed to protect you.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
