The Canada Labour Code is the federal law that sets minimum workplace rights for employees in federally regulated industries, including rules for wages, hours, overtime, leave, termination, severance and workplace safety.
The Code does not apply to every employee in Canada. It mainly applies to federally regulated employers such as banks, airlines, telecommunications companies, Canada Post and businesses that transport people or goods across provincial or international borders.
If the Canada Labour Code applies to you, its termination and severance rules are minimum rights—not necessarily everything you are owed. If you are terminated, don’t sign a release before having your full severance package reviewed—you may be owed as much as 24 months’ pay.
On This Page:
- 1. What the Canada Labour Code Covers
- 2. Who Is Federally Regulated?
- 3. Wages, Hours, Overtime & Leave
- 4. Termination, Severance & Unjust Dismissal
- 5. What If Your Employer Breaks the Code?
- 6. What Federally Regulated Employees Should Do
What Does the Canada Labour Code Cover?
The Canada Labour Code governs several major areas of employment for federally regulated workplaces.
The Code is divided into four main parts:
- Part I: Unions, collective bargaining, strikes and lockouts
- Part II: Workplace health and safety
- Part III: Minimum employment standards, including wages, hours, overtime, vacations, holidays, leaves and termination
- Part IV: Compliance and administrative monetary penalties
For most non-unionized employees looking for information about pay, time off or losing their job, Part III is the most important part of the Code.
The Canada Labour Code creates minimum employment rights. An employment contract can provide better rights, and non-unionized employees can also have greater common-law rights when their employment ends.
Who Is Covered by the Canada Labour Code?
The Canada Labour Code applies because of the industry or business you work for—not simply because you live in Canada or work in more than one province.
Common federally regulated employers include:
- Banks
- Airlines and airports
- Telecommunications companies
- Radio and television broadcasters
- Canada Post and certain postal or courier operations
- Railways that cross provincial or international borders
- Trucking, bus and other transportation companies that operate across provincial or international borders
- Ports, shipping and certain marine transportation businesses
- Pipelines that cross provincial or international borders
- Most federal Crown corporations
Most employees in retail, restaurants, construction, manufacturing and other businesses operating within one province are governed by provincial employment standards instead.
Read our comprehensive list of federally regulated employers and workplaces.
Does working in Ontario, Alberta or B.C. mean provincial employment law applies?
No. A federally regulated employee remains governed by federal employment standards even though they physically work in a province.
For example, an employee working at a federally regulated bank in Toronto does not become provincially regulated simply because the workplace is in Ontario.
If you are unsure which rules apply, identify what your employer actually does. The industry—not the address on your paycheque—usually answers the question.
What Rights Does the Canada Labour Code Give Employees?
The Canada Labour Code sets minimum standards for pay, working time, overtime, vacations, holidays and several job-protected leaves.
What is the federal minimum wage?
The federal minimum wage is $18.15 per hour as of April 1, 2026.
If the minimum wage in the province or territory where you work is higher, the higher rate applies.
See our guide to the federal minimum wage in Canada for current rates and detailed rules.
What are standard hours of work?
For many federally regulated employees, standard hours are eight hours per day and 40 hours per week.
Hours beyond the standard limit normally qualify for overtime. In most cases, overtime must be paid at least 1.5 times the employee’s regular rate or provided as equivalent paid time off where the legal requirements are met.
Different rules can apply to certain industries, occupations and modified work schedules.
What paid sick leave is available?
Eligible federally regulated employees can earn up to 10 days of paid medical leave each year.
Employees normally earn three paid medical days after 30 days of continuous employment and then one additional day for each further month of employment, up to the annual maximum.
What personal leave is available?
Federally regulated employees can take up to five days of personal leave each calendar year for certain qualifying reasons.
After three consecutive months of employment, the first three days are paid.
The Code also contains maternity, parental, compassionate care, critical illness and other protected leaves. Leave protects your employment; income-replacement benefits such as EI are separate programs.
For pregnancy and childbirth issues, see our guide to maternity leave in Canada.
Termination, Severance & Unjust Dismissal Under the Canada Labour Code
Federally regulated employees can have several separate rights when their employment ends: termination notice, statutory severance, common-law severance and, for eligible employees, unjust dismissal protection.
How much termination notice does the Code require?
After at least three months of continuous employment, the minimum individual notice or pay instead of notice increases with service:
- 3 months to under 3 years: 2 weeks
- 3 years: 3 weeks
- 4 years: 4 weeks
- 5 years: 5 weeks
- 6 years: 6 weeks
- 7 years: 7 weeks
- 8 years or more: 8 weeks
These are minimum federal standards. They are not a formula for your full severance package.
Does the Canada Labour Code also require severance pay?
Yes. An employee with at least 12 months of continuous employment can also be entitled to statutory severance pay when the legal requirements are met.
The minimum is the greater of:
- Two days’ wages for each completed year of employment; or
- Five days’ wages.
This statutory severance is separate from termination notice or pay in lieu.
Can federally regulated employees receive more severance?
Yes. Many non-unionized employees can be owed substantially more than the Canada Labour Code minimums.
Your full severance can depend on your employment contract, age, position, length of service and the availability of similar employment.
If you are terminated, don’t sign a release before having your full severance package reviewed—you may be owed as much as 24 months’ pay.
What is unjust dismissal?
Unjust dismissal is a special Canada Labour Code protection that allows many eligible non-unionized employees to challenge the reason their employment was terminated.
Employees with at least 12 consecutive months of employment can have access to this process if they meet the legal requirements.
Unlike an ordinary severance claim, an unjust dismissal complaint can lead to remedies such as reinstatement as well as compensation.
Learn more about this topic, including the tight deadline to file a claim, in our guide to unjust dismissal.
What if your employer says you were fired for cause?
Being told you were fired “for cause” does not make the allegation legally valid.
If cause is not established, you can be owed termination and severance compensation. Eligible employees can also have unjust dismissal rights.
Do not sign a document admitting cause or accepting that you are owed nothing before getting advice.
Learn more abour your rights in a termination for cause scenario.
What If Your Employer Breaks the Canada Labour Code?
Employees can file complaints with the federal Labour Program for violations of federal labour standards.
Complaints can involve issues such as:
- Unpaid wages
- Unpaid overtime
- Vacation or holiday pay
- Termination pay
- Statutory severance pay
- Protected leave rights
- Unjust dismissal
Different complaints have different deadlines and procedures. Act promptly instead of assuming every workplace claim has the same limitation period.
A Labour Program complaint also does not necessarily deal with every common-law claim you have against your employer. If your employment has ended, your complete severance rights should be assessed separately.
What Should Federally Regulated Employees Do?
If you have a federal employment problem, first confirm that the Canada Labour Code applies and then identify the specific right, deadline and financial claim involved.
- Confirm your employer is federally regulated. The industry your employer operates in usually determines jurisdiction.
- Keep important documents. Save your employment contract, pay records, schedules, leave correspondence and termination documents.
- Do not rely only on Code minimums after termination. Your full severance package can be much larger.
- Watch short deadlines. This is especially important for unjust dismissal.
- Don’t sign a release immediately. Once signed, a release usually prevents you from pursuing additional compensation.
- Get advice before resigning. A major pay cut, demotion or other fundamental change can raise constructive dismissal rights.
Canada Labour Code FAQs
Does the Canada Labour Code apply to every employee in Canada?
No. Most employees are covered by provincial employment legislation. The Canada Labour Code applies mainly to federally regulated industries and businesses.
Is Canada Labour Code severance all I am owed?
No. The Code sets minimum termination and severance rights. Many non-unionized employees can have greater common-law rights unless an enforceable employment contract validly limits them.
Can a federally regulated employer fire you without cause?
A federally regulated employer can end employment, but paying minimum termination amounts does not necessarily settle every legal issue.
Eligible non-unionized employees can have separate unjust dismissal protections, and all terminated employees should determine whether the severance package reflects their full legal rights.
Get Help With a Canada Labour Code Problem
Federal employment law gives employees important rights, but Code minimums do not always tell you the full value of your claim—especially after termination.
Samfiru Tumarkin LLP helps non-unionized federally regulated employees challenge improper terminations and major workplace changes, pursue unpaid compensation, and secure the full severance pay and compensation they are legally entitled to receive.
If you have been fired, accused of cause, offered a severance package or faced a major change to your job, get advice from one of our employment lawyers before signing a release or giving up your rights.