Quebec proposes modernisation of its labour and employment laws

At a glance

• An Act to Improve Certain Labour Laws (Bill 101), was adopted in principle by the National Assembly on 5 June 2025.
• Bill 101 proposes unpaid, job-protected leave for employees affected by public health directives or disasters, and for Canadian Armed Forces reservists, including new provisions for treatment related to military service.
• Employers may face increased fines (up to CAD50,000) for non-compliance with psychological harassment policies, emphasising the need for updated workplace standards.
• The bill strengthens protections for vulnerable workers, mandates minimum time for health and safety reps, and allows employer reimbursement for reassigned pregnant or breastfeeding employees.
• The deadline for implementing mandatory prevention and worker participation mechanisms is extended by one year, though interim health and safety obligations remain in effect.
• Bill 101 introduces confidential negotiation options for workplace disputes, enforces stricter timelines and mediation in labour disputes, and requires unions to disclose annual financial statements.

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Bill 101 was adopted in principle by the National Assembly on 5 June 2025. Its primary objective is to modernise various labour laws and improve employment standards, occupational health and safety, and labour relations. While Bill 101 remains subject to review, if adopted, it would bring some important changes that businesses operating in Quebec need to be aware of. In this article, we have summarised some of the most important changes proposed by Bill 101.

Act Respecting Labour Standards

The amendments proposed by Bill 101 to the Act Respecting Labour Standards (ARLS), would allow employees to take unpaid protected leave when following directives issued under the Public Health Act, the Quarantine Act, or the Emergencies Act. This was likely introduced in response to the uncertainty surrounding this issue during the COVID-19 pandemic. Particularly, if an employee is unable to perform work due to a public health decision or because of a disaster or its imminence, they may be absent from work without fear of job loss. If adopted, this could create difficulties for employers looking to ensure business continuity.  

Additionally, Bill 101 would grant employees who have completed at least three consecutive months of service with their employer and who are Canadian Armed Forces reservists the right to an unpaid leave of absence to participate in operations outside Canada. Currently, this right is generally reserved for an employee credited with 12 months of uninterrupted service. Bill 101 would also introduce leave to receive treatment or participate in a rehabilitation programme for a physical or mental health condition resulting from military service.

If enacted, the amendments to the ARLS would result in higher fines under specific provisions. Notably, a company’s failure to comply with psychological harassment policy requirements could result in fines of up to CAD50,000, thereby underscoring the importance for employers to ensure that their psychological harassment prevention policies are up to date following legislative changes which came into effect on 27 September 2024. See our previous bulletin outlining the main changes here.

Act Respecting Occupational Health and Safety

The proposed amendments to the Act Respecting Occupational Health and Safety (AROHS) aim to enhance protections for vulnerable workers. Notably, the amendments would allow employers to seek reimbursement from the Commission des normes, de l’équité, de la santé et de la sécurité (CNESST) for a portion of the salary paid to pregnant or breastfeeding employees who are reassigned to different roles.

The amendments also provide specific rules regarding the number of workers representatives on the health and safety committee in the establishment, and provides for minimums in terms of the amount of time a health and safety representative may devote to performing certain duties provided in the Act, based on the number of workers within the establishment.

Act to Modernise the Occupational Health and Safety Regime

Importantly, the amendments would delay by one year the deadline for the government to set the coming-into-force date of the provisions relating to prevention and worker participation mechanisms under the AROHS. These provisions, originally set to take effect by no later than 6 October 2025, would have made it obligatory for all businesses to adopt an action plan or prevention programme in health and safety matters, depending on the number of employees within the establishment. However, if Bill 101 is adopted, the obligation to comply with these requirements will be pushed out to a later date.

In the meantime, employers are still required to respect the interim occupational health and safety requirements. This includes obligations related to risk identification, analysis and prevention in health and safety matters. View our previous publication detailing these obligations here.

Act Respecting Industrial Accidents and Occupational Diseases

Bill 101 would also introduce amendments to the rules governing how a worker’s gross income is determined for the purpose of calculating income replacement indemnities, as well as the manner in which these indemnities are subsequently adjusted. These amendments would likely result in a higher gross income for workers, thus we can reasonably anticipate CNESST premiums could also increase for employers to offset the effect of this increase.

If passed, Bill 101 would require the CNESST to offer parties the possibility of initiating a confidential negotiation process to resolve disputes, such as those involving income replacement indemnities, employment capacity, or suitable employment. Any agreement reached through this process would need to be in writing and would be binding on the parties and the CNESST, and would bring the dispute to an end with no possibility of review or contestation before the Administrative Labour Tribunal (ALT).

Other relevant amendments

In addition to the above, we have outlined below other changes of importance to employers that Bill 101 would bring if adopted in its current form:

• The Labour Code: The amendments to the Labour Code aim to increase efficiency in settling workplace disputes by imposing strict timelines for appointing arbitrators and initiating hearings. It also mandates that parties seek confidential mediation before proceeding to arbitration. Additionally, Bill 101 would set new financial disclosure requirements for unions, requiring them to provide their members with annual financial statements. If passed, fines under certain provisions would also increase. For instance, fines for employers who declare or initiate a strike or lock-out contrary to the Labour Code may go up to CAD100,000 for each day or part of a day during which the strike or lock-out continues.
• The Act to Establish the Administrative Labour Tribunal: The amendments to the Act to Establish the Administrative Labour Tribunal would strengthen privacy protections by limiting access to information, including details related to an individual’s physical or mental health, or other confidential information that could cause harm if disclosed. Access to such information, including records held by an employee’s occupational health and safety division, would be restricted to individuals authorised by the ALT.

Bill 101 would introduce notable changes to Quebec’s labour laws. However, the proposed provisions may still be revised or discarded, in whole or in part, as the bill advances through the legislative process.

For more information or inquiries pertaining to the obligations of Quebec businesses and employers, please contact one of our DLA Piper (Canada) LLP Quebec employment and labour lawyers.