Proposed legislation imposing new requirements regarding employee misclassifications and disconnecting from work

At a glance

• Legislation is in train to enact changes to federal employment laws proposed by the 2024 Budget.
• Bill C-69 was introduced to Parliament on 2 May 2024.
• The Bill introduces a requirement that employers implement a policy on disconnecting from work.
• The Bill also addresses the classification of contractors and gig workers. 

On 2 May 2024, the Federal Government introduced Bill C-69, An Act to implement certain provisions of the budget tabled in Parliament on 16 April 16 2024 (Bill C-69). 

If passed, Bill C-69 would establish a presumption that any person receiving remuneration from an employer, other than a manager or a person employed in a confidential capacity in matters related to industrial relations, is an employee. Additionally, the Canada Labour Code would be amended to include a prohibition on treating employees as independent contractors or any other categorisation. An employer would bear the burden to prove otherwise. Both of these proposed amendments aim to address employee misclassification.

Bill C-69 would bring a requirement for employers to implement a policy on disconnecting from work. The policy would need to establish:

• guidelines regarding work-related communication outside of scheduled working hours, including the employer’s expectations and the opportunities for employees to disconnect;
• any exception to the rule and its underlying rationale; and
• the effective date of the policy and any other prescribed requirements.

The policy would need to be updated every three years, and an employer would be required to consult with employees and provide them with at least 90 days to provide comments on any draft or amended policy. The initial version of the policy would need to be brought into effect within one year of the proposed section of the Canada Labour Code coming into force.

However, Bill C-69 would permit employers to exclude from the policy’s application employees exempt from the ‘Hours of Work‘ requirements of the Canada Labour Code. It would also introduce special rules for employees covered by a collective agreement.

Bill C-69 passed its third reading on 19 June 2024.