Potential changes involve collective bargaining, training for AI, OHS, wage theft and misclassification
Human resources leaders in federally regulated sectors may soon face new rules for bargaining, grievances and workplace protections as the federal government launches consultations on potential changes to the Canada Labour Code.
Employment and Social Development Canada (ESDC) has issued a consultation document outlining measures that could alter bargaining timelines, create a new mediation tool, strengthen protections against misclassification and wage theft, and modernise occupational health and safety standards.
The Labour Program says it is assessing “if updates to Canada’s federal labour policy are needed to support a modern and fair labour relations framework,” including “a modernized collective bargaining process and bolstered supports for workers.”
Employer feedback wanted
Employers and employer representatives, unions and employee groups will be asked to provide feedback on measures being considered, such as:
- adjusted timelines for collective bargaining
- strengthening training supports for workers impacted by artificial intelligence and automation
- updating workplace health and safety protections
- strengthening protections against misclassification and wage theft, and exploring options to ensure union rights carry over when contracts are retendered.
Consultations will happen in targeted virtual and in-person roundtables, and interested parties will be able to submit written feedback until May 18, 2026. The input gathered through this process will be published in a “What We Heard” report and carefully analyzed to inform policy decisions.
These consultations are about listening to unions, workers, employers and partners across the country to ensure that federally regulated workplaces remain fair, modern and supportive while empowering workers to thrive," said Patty Hajdu, Minister of Jobs and Families and Minister Responsible for the Federal Economic Development Agency for Northern Ontario.
CLC, collective bargaining
ESDC says the measures would apply to sectors under the Code, which “defines the rights and responsibilities of workers and employers, and sets out federal labour law.” Part I governs labour relations and collective bargaining, Part II covers occupational health and safety, and Part III sets minimum labour standards.
On collective bargaining mechanics, the Labour Program is considering mandatory timelines for when talks must begin. Currently, the Code “does not prescribe when parties must begin direct bargaining,” but allows negotiations to start as early as four months before a collective agreement expires.
The government is also reviewing:
- the 60‑day conciliation period and 21‑day cooling‑off period, which could be revised “to allow for better outcomes of good faith bargaining before a statutory strike or lockout is acquired”; and
- the minimum 72‑hour notice of a strike or lockout to the other party and the Minister required under section 87.2.
In addition, ESDC is consulting on a proposed “special mediator” role recommended by the Industrial Inquiry Commission (IIC) on West Coast ports. If parties cannot reach agreement, the special mediator would file a report to the Minister “with an assessment of the issues and potential next steps to conclude the collective agreement”, which could be made public “in part or in whole”. The new role would not replace existing conciliation processes or the Minister’s authority under section 105 to appoint mediators.
Earlier this year, Saskatchewan’s updated employment standards came into effect.
Broader models, enforcement and worker supports
The consultation paper points to alternative models such as:
- Sectoral bargaining, where “multiple employers and/or representative associations” negotiate common terms across a sector.
- Essential‑services designations requiring minimum service levels during strikes or lockouts.
- Geographic certification in certain sectors or regions.
Enforcement and standards are another focus. The document states that “misclassification in the road transportation sector makes it harder for workers to get ahead and undermines fair competition,” and notes that wage theft occurs when employees “are not paid the wages or benefits that they are owed.” The Labour Program is seeking views on tools to “crack down on misclassification” and strengthen deterrence and accountability in sectors with persistent wage theft issues.
On occupational health and safety, ESDC says enhancing protections can “support both workers and employers amid changing work environments”. Possible steps include integrating psychological safety into regulations, expanding proactive inspections, using automation and artificial intelligence to deliver “faster responses and quicker resolutions for workers”, and harmonising training frameworks with provinces and territories to support labour mobility.
Successor rights, insolvency protections and other gaps
The government is also consulting on whether to extend successor rights to contract retendering, beyond current equal‑remuneration and continuity‑of‑employment rules. At present, full successor rights apply when a business is sold or transferred, but not when a service contract changes hands.
On insolvency, the Wage Earner Protection Program (WEPP) is under review “to ensure its integrity”. ESDC says attempts to trigger WEPP payments in restructuring scenarios using mechanisms such as reverse vesting orders “represent a shifting of responsibility for employee wages from employers to public funds and highlight the need to reaffirm and clarify the Program’s intent”.
ESDC says “the purpose of this consultation document is to provide a vehicle to gather views on a series of potential policy measures and/or legislative amendments to the Canada Labour Code,” and is inviting suggestions on gaps, emerging issues and outdated provisions that may require modernisation.
“As the world of work is changing and bringing new challenges, workers and businesses are key to the success of Canada’s ambition,” says Patty Hajdu, Minister of Jobs. “These consultations are about listening to unions, workers, employers and partners across the country to ensure that federally regulated workplaces remain fair, modern and supportive while empowering workers to thrive.”
There have also been changes to the CLC that meant a significant shift in how federally regulated employers’ use temporary workers.
