Navigating employment law can be a daunting task, especially for entrepreneurs and small to midsize businesses who may not have extensive experience in the legal realm. A group of Mississauga employment lawyers has observed that numerous clients are unaware that their cases may fall under federal jurisdiction, leading to confusion and potential legal issues. Many business owners are unaware that their cases may fall under federal jurisdiction, leading to potential legal issues. In this article, we aim to provide clarity on how to determine if your employment issue is governed by federal or provincial employment law.
Is your business governed by federal or provincial regulations in employment law?
Employers’ and employees’ rights and responsibilities are governed by either federal laws (statutes of Canada) or provincial laws (statutes of the respective province), depending on the nature of the business. Certain businesses fall under the legislative authority of the federal Parliament and are classified as “federal works or undertakings.” These include:
- Banks
- Marine shipping, ferry, and port services
- Air transportation, including airports and airlines
- Railway and road transportation involving crossing provincial or international borders
- Canals, pipelines, tunnels, and bridges crossing provincial borders
- Telephone, telegraph, and cable systems
- Radio and television broadcasting
- Feed and seed mills and grain elevators
- Uranium mining and processing
- Businesses dealing with the protection of fisheries as a natural resource
- Many First Nation activities
- Most federal Crown corporations
- Private businesses necessary to the operation of a federal statute
For businesses that don’t fall into the specific categories mentioned above, the Supreme Court of Canada has established principles to help determine whether labor relations are governed by federal or provincial jurisdiction. These principles include:
What activities does the business normally engage in?
Does the enterprise being assessed play an essential role in a federal undertaking?
Does the enterprise operate regularly and continuously outside of its home province?
Importance of Determining Federal or Provincial Jurisdiction for Workplace Regulations
Determining whether your business falls under federal or provincial jurisdiction matters because it dictates which set of workplace rules and regulations will govern your business. Resolving disputes related to termination compensation, for example, can be significantly different depending on whether federal or provincial jurisdiction applies. Under the federal system, employees may receive greater remedies for wrongful dismissal by filing a complaint with the Canada Industrial Relations Board compared to filing one with the provincial ministry of labor. Additionally, the Canada Labour Code provides more extensive paid leave rights than the provincial Employment Standards Act. Disputes over jurisdictional authority are handled by workplace administrative tribunals and courts.
Statutory administrative tribunals are established to resolve disputes within the scope of their respective legislation. For instance, the Ontario Labour Relations Board settles disputes within the purview of the Ontario Labour Relations Act, 1995, and also reviews certain orders from the provincial Employment Standards Act, Occupational Health and Safety Act, and employees’ complaints of retaliation under various acts. The Human Rights Tribunal of Ontario handles human rights complaints, while the Workplace Safety and Insurance Board addresses workplace insurance claims, and the Pay Equity Hearings Tribunal deals with pay equity complaints.
Understanding whether your business falls under federal or provincial jurisdiction is crucial for complying with the correct workplace regulations. By determining the applicable laws, you can ensure that you are providing your employees with their rights and meeting your obligations as an employer.