Employment Law for Federally Regulated Employees

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Who is a Federally Regulated Employee?

You are likely federally regulated if you work in industries that cross provincial or international borders, or operate on a national scale. Common federally regulated sectors include:

• Banks (e.g., RBC, TD, Scotiabank, BMO)
• Telecommunications and Broadcasting (e.g., Bell, Rogers, Telus, CBC)
• Transportation (Airlines like Air Canada and WestJet, interprovincial trucking, railways)
• Postal and Courier Services (e.g., Canada Post, Purolator)
• Federal Crown Corporations and First Nations Band Councils

Losing Your Job: Severance & Dismissal

Losing your job is incredibly stressful, and federal employers frequently fail to offer their employees the compensation they are legally owed. It is crucial to understand the difference between standard Canada Labour Code minimums and your true legal entitlements.

• Severance Pay: Many federal employers only offer the bare minimum required by the CLC. However, under Common Law, you may be entitled to up to 24 months of pay. Always use our Severance Pay Calculator before accepting an offer.
• Unjust Dismissal: Federally regulated workers with over 12 months of service have unique protections. Unless there is a legitimate restructuring or “just cause,” your employer cannot fire you without a valid reason. If they do, you may be entitled to reinstatement or additional damages.
• Wrongful Dismissal: Often referred to as wrongful termination or being terminated without cause, this occurs when your employer fires you but fails to provide the correct amount of severance or termination pay.
• Constructive Dismissal: If your employer makes significant, unwanted changes to your job—such as a major pay cut, demotion, or forced relocation—you may have the right to treat the change as a termination and claim full severance.

Your Employment Contract

Your employer can’t use a contract to “opt-out” of the minimum standards set by the Canada Labour Code. However, the wording in your agreement can still significantly impact your rights.

• Employment Contracts: Never sign an employment agreement without having it reviewed. Employers often use them to restrict your future rights.
• Termination Clauses: These clauses attempt to limit your severance to the absolute minimum. Fortunately, many of these clauses are poorly drafted and legally unenforceable.
• Probationary Periods: Even if you are let go during a probationary period, you may still be entitled to severance under Common Law if the contract was not drafted properly.

Workplace Rights & Canada Labour Code Standards

The Canada Labour Code sets strict rules for how federally regulated employers must treat their staff regarding pay, hours, and time off. If your employer is violating these rules, you have the right to pursue what you are owed.

• Federal Minimum Wage: Federally regulated employees are entitled to a specific minimum wage, which is adjusted annually. If your provincial minimum wage is higher than the federal rate, your employer must pay you the higher provincial amount.
• Hours of Work: The CLC establishes standard hours of work (typically 8 hours a day and 40 hours a week) and mandates proper rest periods.
• Overtime Pay: If you work beyond standard hours, your employer is legally required to pay you overtime at a rate of at least 1.5 times your regular wages.
• Vacation Pay: Federal employees earn vacation time and pay based on their years of continuous service, starting at a minimum of two weeks (or 4% of gross wages).
• Statutory Holidays: There are specific general holidays recognized under the CLC. Employees are entitled to time off with pay, or premium pay if required to work.
• Leaves of Absence: The CLC provides various job-protected leaves, including maternity, parental, medical, and bereavement leave. Your employer cannot penalize or fire you for taking a protected leave.

Protect Your Federal Workplace Rights

Navigating the Canada Labour Code and Common Law is complex. Employers often rely on the fact that employees don’t know their full rights.

If you have been fired, denied overtime, or are facing an unfair employment contract, do not sign anything or accept your employer’s word as final. Contact the employment lawyers at Samfiru Tumarkin LLP. We have the resources and expertise to hold federal employers accountable and secure the compensation you deserve.