Labour and employment law

I. Introduction

Employment laws applicable to a business operating in Quebec are the same, whether the company is Canadian or foreign. Basically, in view of the existence of two jurisdictions, provincial and federal, all employers carrying on business in an area of activity deemed to be within the provinces’ exclusive jurisdiction are subject to the employment laws of the province in which such business is carried on.¹ However, federal legislation will apply in matters pertaining to employment insurance, among others.

II. Contract of employment and labour standards (non-unionized employees)

(a) The nature of the employment relationship

The concept of employment “at will” does not exist in Quebec. The employment relationship is contractual in nature. It is governed by the general rules of contract as well as by the specific provisions concerning contracts of employment, which are found in the Civil Code. In addition, quite a few statutes affect the employment relationship.

Generally, the contract of employment, like most contracts under civil law, need not be in writing. There are no requirements for handbooks or policy manuals. However, should such handbooks or policy manuals be issued to employees, these documents will in all likelihood constitute confirmation of some (or all) of the terms of the employment contract and will be binding. Short of eliminating such handbooks or manuals, it is possible to minimize the risks associated with their use by incorporating a statement such as the following: “This handbook or policy manual contains guidelines that are subject to change by the Company.” It is recommended, where possible, to give “reasonable” advance notice of the change before a unilateral modification becomes effective.

There is a tacit obligation to act in good faith and deal fairly with third parties, in all matters involving employment law. The Civil Code creates a presumption of good faith; a party alleging bad faith has the burden of proof.

(b) The term of the contract of employment

A contract of employment can be for a fixed or an indefinite term. It cannot be for a perpetual term. Whether or not the contract is for a fixed term will have an impact on the rules applicable to its termination, as will be discussed below.

(c) The content of the contract of employment and labour standards

The general rule is that of freedom to contract. However, the Act respecting labour standards (L.S.A.),² guarantees basic minimum rights to all Quebec employees, whether temporary or permanent, unionized or non-unionized.  Its provisions are “of public order,” meaning that no agreement (including a collective agreement) can deviate from the L.S.A., unless a derogation is specifically allowed by the L.S.A. However, since the requirements imposed by the L.S.A. are a statutory minimum, an individual contract of employment or a collective agreement may grant an employee better working conditions than those provided by the L.S.A.

The L.S.A. deals with wages, hours of work, rest periods, statutory holidays with pay, vacation, various leaves of absence such as family, maternity and parental leaves of absence, and grants various recourses to employees. The L.S.A. also provides that different wage rates based solely on employees’ employment status are prohibited as is, in relation to pension plans or other employee benefits, differential treatment based solely on the employees’ hiring date. Below are the highlights of the most significant provisions.

• during school hours (section 84.4 ARLS);

• at night between 11 p.m. and 6 a.m. (section 84.6 ARLS)⁴ and
• more than 17 hours per week and more than 10 hours Monday through Friday.

• January 1;
• Good Friday or Easter Monday, at the employer’s option;
• the Monday that precedes May 25;
• July 1, or July 2 where Canada Day falls on a Sunday
• the first Monday in September (or Labour Day);
• the second Monday in October (or Thanksgiving);
• December 25.

In addition, the National Holiday Act provides that June 24 is a statutory general holiday and non-working day with pay. June 24, like Independence Day in the U.S.A., must be celebrated on the same day. There are special provisions for employees who are required to work on such days.

(vi) Leave for examinations related to pregnancy (section 81.3 L.S.A.)

Employees are entitled to as many days without pay as are necessary.

(vii) Maternity leave (sections 81.4 to 81.17 L.S.A.)

A pregnant employee is entitled to a maximum of 18 consecutive weeks without pay. During this period, however, the employee is entitled to receive up to 18 weeks of parental insurance benefits (see the section entitled ‘Employment insurance benefits’ for additional information).

The L.S.A. contains fairly elaborate provisions governing the rights and obligations of an employer during and after these periods of absence. An employee who has availed herself of the maternity leave provisions must be reinstated in exactly the same position as she would have been in had she not taken maternity leave. For example, if her employment would normally have been terminated due to restructuring, the employer can terminate her contract of employment. However, the contract of employment cannot be terminated simply because the employer prefers the employee who replaced her during her maternity leave. The legislation prohibits this kind of practice, among others.

(viii) Paternity leave / leave for the non-birthing parent (sections 81.2 and 81.2.1 L.S.A.)

On the birth of their child, including a child born in the context of a surrogacy project, an employee is entitled to a paternity leave (or leave for the non-birthing parent) of not more than five consecutive weeks without pay. The employee who adopts a child is entitled to the same leave. During this period, the employee is entitled to receive up to 5 weeks of parental insurance benefits (see the section entitled ‘Employment insurance benefits’ for additional information).

A three-week written notice stating the expected date of the leave and of the return to work must be given to the employer. However, the notice may be shorter if the birth of the child occurs before the expected date.

(ix) Leave for birth or adoption (section 81.1 L.S.A.)

An employee is entitled to be absent from work for five days for the birth of their child, including a child born in the context of a surrogacy project, or the adoption of a child or where there is a termination of pregnancy in or after the twentieth week of pregnancy. The first two days are remunerated. The leave may be divided into days at the request of the employee and may not be taken more than 15 days after the child arrives home or after the termination of the pregnancy (see the section entitled ‘Employment insurance benefits’ for additional information).

(x) Parental leave (sections 81.10 and following L.S.A.)

Parental leave provides a maximum of 65 consecutive weeks without pay, to be taken by either parent within the 85 weeks following birth or the date the child is entrusted to the employee, in the case of adoption or of a child born through a surrogacy project.

Parental insurance benefits are available (see the section entitled ‘Employment insurance benefits’ for additional information).

Section 81.15 L.S.A. provides for the maintenance of participation in the group insurance and pension plans recognized in the employee’s place of employment subject to regular payment of the contributions payable under those plans, the usual part of which is paid by the employer.

At the end of the parental leave, the employer must reinstate the employee in their former position, with the same benefits, including the wages to which they would have been entitled had they remained at work. If the position held by the employee no longer exists when they return to work, the employer must recognize all the rights and privileges to which they would have been entitled if they had been at work when the position ceased to exist. See also sections 79.5 and 79.6 L.S.A. (rights in the event of dismissals or layoffs and benefits).

A maternity, paternity or parental leave may be divided into weeks if the child is hospitalized, upon request of the employee. The paternity and parental leaves can also be divided into weeks if the employer consents. 

If, during the leave, the child is hospitalized, the leave may be suspended and the employee may return to work during the hospitalization, following an agreement with the employer. Furthermore, an employee who, before the expiry date of the leave, sends the employer a notice accompanied by a medical certificate attesting that the state of health of the child or, in the case of a maternity leave, that the state of health of the employee requires it, is entitled to an extension of the leave for the duration indicated in the medical certificate (see section 81.14.2).

(xi) Family or parental leave and absences (sections 79.6.1 and following L.S.A.)

An employee may be absent from work for 10 days each year to fulfill obligations relating to the care, health or education of the employee’s child or relatives. For employees with three months of uninterrupted service, the first two days taken annually shall be remunerated according to the formula used to calculate holiday pay. The leave may be divided into days. The employee must advise the employer as soon as possible of the leave to be taken and must take reasonable steps to limit the leave and the duration of the leave. It is to be noted that the notion of “relative” extends far beyond usual family members. 

In addition, Section 83.1 of the L.S.A.  provides for the possibility of postponing the payment of the compensatory indemnity to a later date for employees covered by a collective agreement.

NOTE: Section 82 L.S.A. does not apply in certain circumstances, including where the termination is for serious misconduct. A similar exception exists under the Civil Code where the termination occurs for a serious reason (article 2094).

In terms of case law, it has been held that all contracts of employment contain an implied term that they may be terminated upon “reasonable notice.”

This notice period, according to the case law, varies from one individual to another depending upon several factors, the most important ones being the following:

• age;
• level of responsibility and/or position in the corporate hierarchy;
• salary;
• years of service;
• marketability and relocation opportunities;
• circumstances surrounding the hiring of the individual.

This list is not exhaustive and other factors may be considered in particular cases. Likewise, not all of these factors are assigned equal value. There is no mathematical formula.

(e) Benefits during the notice period

Under the L.S.A., benefits will cease at the end of the notice period. Also, when giving the “reasonable notice” required by the Civil Code, one must remember that the objective is to put the employee in exactly the same position they would have been in, had their employment not been terminated. Under the circumstances, an employee would be entitled to all the benefits they would have received during the notice period, which may include, depending upon the employer’s policies, the following benefits:

• sick leave days;
• car allowance;
• employer contributions to a group insurance plan;
• employer contributions to a pension plan;
• bonuses;
• commissions;
• salary increases that would have been given during the notice period.

(f) Collective dismissal (sections 84.0.1 to 84.0.15 L.S.A.)

A collective dismissal is the termination of employment, including layoff for a period of six months or more, involving 10 or more employees from the same establishment in the course of two consecutive months. Except in the case of undertakings of a seasonal or intermittent nature, any employer who, for technological or economic reasons, foresees having to make a collective dismissal shall give notice thereof to the Minister of Labour within the following minimum periods:

• eight weeks when the number of dismissals contemplated is at least equal to 10 and less than 100;
• 12 weeks when the number of dismissals contemplated is at least equal to 100 and less than 300; and
• 16 weeks when the number of dismissals contemplated is at least equal to 300.

In the case of a fortuitous event or when an unforeseeable event prevents the employer from respecting the above-mentioned periods, the employer shall inform the Minister of Labour as soon as possible.

The following employees are not covered by the collective dismissal provision:

• employees with less than three months of uninterrupted service;
• employees whose contract for a fixed term or for a specific undertaking is expiring;
• employees who have committed a serious fault; and
• employees to whom the L.S.A. does not apply, such as senior managerial personnel.

It is important to note that in order to determine the appropriate length of notice, all employees must be taken into account, whether salaried, sales, unionized, non-unionized or management personnel, except those specifically excluded by the law such as senior managerial personnel.

Changing the employees’ working conditions during the period covered by a notice to the Minister, except where the written consent of the employees concerned or the certified association representing them has been obtained, is prohibited.

In addition, an employer who fails to give notice or gives insufficient notice will, with certain exceptions, be required to compensate the employee, although the L.S.A. stipulates that the compensatory indemnities under section 83 L.S.A. and section 84.0.13 L.S.A. are not cumulative (the employee will receive the greater of the two). In addition, failure to give the required notice of collective dismissal will be considered an offence under the L.S.A. and the employer will be subject to a fine of $1,500 for each week or part of a week of failure to comply or late compliance.

The CNESST may take civil proceedings on an employee’s behalf to recover amounts owing for wages and benefits. The prescription period (statute of limitation) is one year from the due date of each payment.

The employer will be required to participate in the establishment of a reclassification assistance committee only where the collective dismissal affects 50 employees or more. Moreover, it will be possible to obtain an exemption where, in the Minister’s opinion, sufficient reclassification assistance measures exist in the establishment concerned by the collective dismissal. Thus, the establishment of a reclassification assistance committee and the related obligations will not apply where the number of employees affected by the collective dismissal is less than 50.

(g) Remedies under the L.S.A.

As mentioned above, employees are protected and granted various remedies. These remedial sections read as follows:

With respect to item (4) above, an employer must of its own initiative transfer a pregnant employee if her conditions of employment are physically dangerous to her or her unborn child. The employee may refuse the transfer by presenting a medical certification attesting that her conditions of employment are not dangerous as alleged. 

This latter section does not apply to unionized employees who can file a grievance, as this is considered a “remedial procedure” within section 124 L.S.A. Pursuant to section 128 L.S.A., an employee may ask to be reinstated in his employment. 

It is possible for a non-unionized employee to whom the L.S.A. applies to be represented free of charge by the lawyers of the CNESST in any proceeding relating to prohibited practices and unjust dismissals.

(h) Psychological and sexual harassment (sections 81.18 to 81.20 and 123.6 to 123.16, L.S.A.)

Psychological and sexual harassment is defined as any vexatious behaviour in the form of repeated and hostile or unwanted conduct, verbal comments, actions or gestures, that affects an employee’s dignity or psychological or physical integrity and that results in a harmful work environment for the employee (section 81.18 L.S.A.). For greater certainty, psychological harassment includes such behaviour in the form of verbal comments, actions or gestures of a sexual nature. Note that a single serious occurrence of such behaviour that has a lasting harmful effect on an employee may also constitute psychological harassment.

The L.S.A. provides that every employee has a right to a work environment free from psychological harassment (section 81.19). Employers must take reasonable action to prevent psychological harassment and, whenever they become aware of such behaviour, to put a stop to it. They must, in particular, adopt and make available to their employees a policy to prevent and manage situations of psychological harassment that includes, in particular, a section on behaviour that manifests itself in the form of verbal comments, actions or gestures of a sexual nature.

Note that it is very important for every employer to check whether it has policies/guidelines in this regard. If not, policies/guidelines should be adopted to fulfill this obligation.

As of September 27, 2024, the employer’s policy has to include the elements provided for in the L.S.A.

Several provisions of the L.S.A. regarding psychological harassment are deemed to be an integral part of every collective agreement. An employee covered by such an agreement must exercise the recourses provided for in the agreement, insofar as any such recourse is available to employees under the agreement. Before the case is taken under advisement, the parties to such an agreement may make a joint application to the Minister for the appointment of a mediator.

An employee who believes they have been the victim of psychological or sexual harassment may file a complaint in writing with the CNESST. Such a complaint may also be filed by a non-profit organization (NPO) dedicated to the defence of employees’ rights on behalf of one or more employees who consent thereto in writing.

A complaint must be filed within two years of the last occurrence of the offending behaviour.

On receipt of a complaint, the CNESST will make an inquiry with due dispatch, according to the rules set out in sections 103 to 110 L.S.A., with the necessary modifications.

If the CNESST refuses to take action following a complaint, the employee or, if applicable, the NPO, may, within 30 days of the decision, make a written request to the CNESST for the referral of the complaint to the Tribunal.

The CNESST may, during the inquiry and with the agreement of the parties, request the minister to appoint a mediator. The CNESST may, at the employee’s request, assist and advise the employee during mediation.

If the employee is still bound to the employer by a contract of employment, the employee is deemed to be at work during mediation sessions.

If no settlement is reached between the parties and the CNESST agrees to pursue the complaint, it is to refer the complaint to the Tribunal without delay.

The CNESST may represent an employee before the Tribunal.

The Tribunal may, if it considers that the employee has been a victim of psychological or sexual harassment and that the employer has failed to fulfill its obligations, render any decision it believes fair and reasonable (for example, reinstatement, monetary compensation, payment for psychological support, except for a period during which the employee is suffering from an employment injury within the meaning of the Act respecting industrial accidents and occupational diseases that results from psychological harassment).

III. Labour Code (unionized employees)

The Labour Code⁵ provides for the certification process, including the possibility of a union being decertified or losing its bargaining rights. It creates a variety of unfair labour practices, offences and remedies. Among them, Section 14 states;

It also deals with the negotiation process, the acquisition of the right to strike and lock out, as well as successor rights following the alienation of all or part of an undertaking, by sale or otherwise. It further provides for grievance and dispute arbitration. It also contains replacement worker provisions, which prohibit the use of workers or subcontractors on site to perform work previously done by unionized employees during a strike or lock-out.

Under the Labour Code, periods are allowed for changing union allegiance. Raiding is possible at different times depending on the duration of the collective agreement.

The rules pertaining to labour organizations and collective bargaining are set out in specific legislation (codes or acts). In Quebec, the first Labour Code was adopted in 1964 and it was substantially amended in 1969, 1977, 2002 and 2015.

The Administrative Labour Tribunal (the Tribunal) is the specialised administrative authority responsible for hearing a wide range of disputes relating to employment and labour relations, occupational health and safety, essential services and construction and professional qualifications. Decisions of the Tribunal are final and without appeal. 

a) Tribunal’s powers

The law provides that the Tribunal is to allow the interested parties to be heard before it renders a decision; the Tribunal may only proceed on the record if it considers it appropriate to do so and with the parties’ consent. However, the obligation to hear the parties does not apply to a labour relations officer who renders a decision on certification, although such officer must allow the parties to present their observations and file any documentation necessary to complete the record.

The Tribunal has jurisdiction over all Labour Code violations and is invested with very broad powers, which go well beyond those usually granted to similar bodies. In general, the Tribunal is empowered to render any decision that it deems appropriate. In addition to maintaining the traditional penal remedies, the legislature has specifically enumerated certain kinds of orders that the Tribunal may issue. These are described as follows:

• order a person, a group of persons, an association or a group of associations to do, not do or cease doing something in order to comply with the Labour Code;
• require any person to redress any act or remedy any omission made in contravention of a provision of the Labour Code;
• order a person or group of persons, in light of the conduct of the parties, to apply the measures of redress it considers the most appropriate;
• issue an order not to authorize or participate in, or to cease authorizing or participating in, a strike or slowdown within the meaning of section 108 or a lock-out that is or would be contrary to the Labour Code, or to take measures considered appropriate to induce the persons represented by an association not to participate, or to cease participating, in such a strike, slowdown or lock-out;
• order, where applicable, that the grievance and arbitration procedure under a collective agreement be accelerated or modified.

b) Decision

The legislation establishing the Tribunal provides for all matters to be heard and decided by a single Tribunal member, with certain specific exceptions, namely:

• where certification is granted by a labour relations officer;
• where the president of the Tribunal considers it appropriate to assign a matter to a panel of three members.

c) Review

Since no appeal lies from a decision of the Tribunal, the Tribunal has the authority, on application, to review or revoke its own decisions in three specific cases, namely:

• if a new fact is discovered that, had it been known in time, could have warranted a different decision;
• if an interested party, owing to reasons considered sufficient, could not present observations or be heard;
• if a substantive or procedural defect is of a nature likely to invalidate the decision.

Review or revocation proceedings must be brought within a reasonable time established at 30 days by relevant case law. A decision may be reviewed by the same member who made it in the first two cases above only. The inclusion of this third ground does not amount to giving the parties a right of appeal, being more akin to the grounds that could serve as the basis for an application for judicial review.

d) Procedure

Decisions of the Tribunal have to be recorded in writing, signed and notified to the parties and give the reasons on which they are based. The Labour Code provided that the Tribunal is to render its decision within three months after a case is taken under advisement, except in the following cases:

• a petition for certification, where a ruling is to follow within 60 days from the filing of the petition;
• a petition under section 111.3 (petition for certification in the public or parapublic sectors), where a ruling is to follow within the period comprised between the end of the period for filing a petition for certification and the date of expiry of the collective agreement;
• an application pertaining to alienation or transfer of the operation of an undertaking, where a ruling is to follow within 90 days from the filing of the application.

These times may be extended by the president of the Tribunal, having regard to the circumstances and the interest of the parties concerned.

e) Members

Members are appointed by the government following consultation with the most representative employee and employer associations.

The term of office for members is five years, renewable for a further five-year period unless the member is notified to the contrary by the government’s authorized agent.

IV. Sale of a business and successorship (sections 96 and 97 L.S.A.)

Successor rights exist in Quebec when a sale of a business occurs. With regard to non-unionized employees, the L.S.A. and the Civil Code contemplate such a situation.

In this context, two sections of the L.S.A. are very important.

The L.S.A. stipulates that in the event of the sale of a business:

It is also interesting to note that the Civil Code contains a somewhat similar provision:

The Labour Code contains similar provisions pertaining to unionized employees (sections 45 and 46): 

The time prescribed for seeking a determination by the Tribunal as to the applicability of section 45 is nine months, as established by case law; but within 30 days from the effective date of the transfer of the operation where a party considers that the transfer was carried out for the main purpose of hindering unionization efforts or undermining the continued integrity of a certified association.

Under subparagraph (1) of the first paragraph of section 45.2, where the operation of part of an undertaking is transferred, for the purposes of labour relations between the new employer and the association involved, the collective agreement referred to in the second paragraph of section 45 that has not expired on the effective date of the transfer is deemed to expire on the day the transfer becomes effective. This rule does not apply in the case of a transfer between employers in the public or parapublic sectors.

At the request of any interested party, if it considers that a transfer has been carried out for the main purpose of hindering the formation of an association of employees or undermining the continued integrity of a certified association of employees, the Tribunal may, as the case may be, set aside the application of the third paragraph of section 45 and the application of subparagraph 1 of the first paragraph of section 45.2.

In the event of such partial transfer of an undertaking, the parties may also agree that section 45 is not to apply, and the agreement will be binding on the Tribunal. However, the clause will not affect, within the transferring employer’s enterprise, the effect of the certification of the association of employees having signed the agreement (section 45.2(2)).

The Labour Code also contains similar provisions pertaining to situations where an undertaking subject to the Canada Labour Code as regards labour relations becomes subject to the legislative authority of Quebec (section 45.3):

Thus, it becomes very important for a buyer to have a good understanding of all working conditions before making a purchase offer.

See also section X ‘Pay Equity Act’ of this document concerning the consequence of the alienation of an enterprise upon the obligations relative to adjustment in compensation under the Pay Equity Act.

V. Discrimination

In June 2008, the preamble of the Charter of Human Rights and Freedoms (Charter),⁶ was amended to include formal recognition of the equality of women and men.

The Charter prohibits discrimination on the grounds mentioned in article 10, which reads as follows:

In order to comply with the provisions of the L.S.A., it is necessary for employers to institute a “Harassment Prevention Policy” (see the section entitled ‘Psychological and sexual harassment’ above).

In matters of employment generally, section 16 provides as follows:

Section 18.1 concerns application forms and interviews and section 18.2 deals with the specific case of a person who has been found guilty or has pleaded guilty to a penal or criminal offence. They read as follows:

With respect to remuneration, section 19 of the Charter provides as follows:

Finally, section 20 is of considerable importance in that any exclusion, distinction or preference based upon the “aptitudes or qualifications required for an employment” is deemed non-discriminatory.

Complaints and proceedings alleging discrimination have become more numerous and more significant in the past few years. Indeed, discrimination can be illegal even if no intent to discriminate can be proven. It is not a question of good faith. Moreover, discrimination may or may not be directed at specific individuals; where it is inherent in the structures of the organization, it is “systemic.”

The Charter provides for various recourses and the courts have developed the concept of the “duty to accommodate” an employee who has been the victim of discrimination on a ground prohibited by the Charter. This has been applied in several cases involving work schedules that came into conflict with religious beliefs. It has also been applied in other situations such as when an employee has a disability.

It should also be noted that the Charter and the L.S.A. specifically prohibit an employer from compelling an employee to retire automatically as of a certain age. An employee is entitled to work until they choose to retire, provided that the employee meets the normal requirements of their position. Indeed, section 84.1 L.S.A. specifically provides that an employer has the right to dismiss, suspend or transfer an employee for “good and sufficient cause.” Employees can challenge such decisions through a complaint filed pursuant to section 122.1 L.S.A.

VI. The Quebec Occupational Health and Safety Plan

The Quebec Occupational Health and Safety Plan is the result of a broad consensus. Quebec has adopted laws setting out the rights and obligations of all its workers and employers, and establishing terms and conditions for their enforcement. They are the Act respecting occupational health and safety⁷ (OHS Act), which deals with prevention, and the Act respecting industrial accidents and occupational diseases⁸ (IAOD Act), which provides for worker compensation and rehabilitation.

These laws make both workers and employers responsible for health and safety in the workplace. To this effect, the CNESST is in charge of applying the laws.

The process for contesting decisions under both the IAOD Act and the OHS Act is before the Occupational Health and Safety division of the Tribunal, which is charged with hearing and deciding contestations of decisions made by the CNESST after an administrative review. There is also a procedure for the medical assessment of a worker who has suffered an employment injury.

a) Occupational health and safety

The OHS Act and its numerous regulations deal with the rights and obligations of an employer as well as its employees in matters of health and safety, provides for the creation of health and safety committees, the appointment of safety representatives and the development of a health and prevention program. In addition, it provides for inspections and creates various remedies, offences and penalties.

An employee has the following general rights:

In addition, section 12 provides for the right to refuse to perform work in certain situations:

There are provisions allowing an employee to seek protective re-assignment if such employee is exposed to a contaminant that poses a danger (section 32). The same protection is given to a pregnant worker under section 40 of the legislation, which reads as follows:

Concerning the indemnity for the pregnant worker, section 42.1 stipulates the following:

Although the OHS Act is comprehensive, its impact is mostly felt in an industrial environment.

a) Workers’ compensation

The IAOD Act defines its purpose as follows, in section 1:

The IAOD Act creates a “no fault” system of liability for an “employment injury” and an "occupational disease" as defined by the act.

The legislation provides for various avenues of recourse by employees and employers, including a medical evaluation procedure. Ultimately, all claims are handled by the Occupational Health and Safety division of the Tribunal.

The payment of the benefits provided under the IAOD Act as well as the administrative costs of this no-fault insurance plan, are financed by way of premiums or assessments paid exclusively by all of Quebec’s employers based on one of the province’s three rate plans.

i) The unit-rate plan: for small businesses

This plan is intended for employers whose total annual premium is less than approximately $9,000. The premium is calculated on the basis of the rate charged for each classification unit to which the employer’s wages are assigned based on the type of industrial activity(ies) being performed and per $100 of total insurable payroll. 

This plan is collectively applied: when an employment injury occurs, all employers classified in the same unit bear the cost.  In 2021, approximately 73% of employers were assessed under this plan.

ii) The personalized-rate plan: for medium-sized and large businesses

This plan is intended for employers whose total annual premium is between $9,000 and $450,000 (these figures are approximate, as the “eligibility thresholds” change from year to year).

The premium is based on a personalized rate: in other words, the rate for the unit(s) in which the employer has been classified is adjusted (i.e. personalized) to take into account the level of claims costs charged to the employer’s file, according to its performance in relation to all employers classified in that unit; in this way the CNESST can reward the employer for efforts made to prevent work-related injuries, success in controlling and managing the claims, and promoting the rehabilitation or return to work of injured workers.

In 2014, approximately 26% of insured employers were being assessed under this plan.

iii) Mutual groups

A variation of the personalized-rate plan whereby the CNESST allows smaller (and therefore less personalized) employers the opportunity to form a prevention mutual group in order to gain more personalization of their assessment rates, thereby generating greater returns for positive claims performance. Member employers are assessed collectively under the personalized-rate plan, which takes into account their common health and safety performance, measured in terms of their collective claim costs.

iv) The retrospective plan: for very large businesses

This plan is intended for very large employers whose annual assessments exceed approximately $450,000. In 2014, approximately 1% of insured employers were being assessed under this plan.

An employer’s personalized rate assessment for any given year (based on its past claims experience and cost levels) will be adjusted after two and then four years so as to take into account that year’s claims cost performance (four years of costs per claim year). The employer will be reimbursed for lower-than-expected claims costs or an additional assessment will be imposed to cover higher-than-expected claims costs.

v) Better management of health and safety = lower premiums

Quebec offers employers many rate plans to allow them to reduce their workers’ compensation assessments by preventing work-related accidents and occupational diseases and by properly controlling and managing the claims that prevention activities could not eliminate.

VII. Employment insurance benefits

a) Federal level:

The federal government has jurisdiction to deal with employment insurance benefits, which provide temporary financial assistance. However, provincial governments that wish to be more involved in questions pertaining to training and the implementation of the new provisions are able to reach agreements with the federal government as provided for under the Employment Insurance Act (EI Act).⁹

Persons who voluntarily leave their employment without just cause or who are dismissed for misconduct do not qualify for benefits. Persons who leave their employment for cause or those who are laid off following a business reorganization do qualify, however. In most cases of layoffs, it is understood that Employment and Social Development Canada (ESDC) will continue to take into account any amounts received as a termination indemnity in considering a claim for benefits.

The issue of just cause having come before the courts on a number of occasions, Parliament saw fit to draw up a list of situations in which a claimant might be considered to have had no reasonable alternative and therefore just cause for voluntarily leaving a job, including sexual or other harassment; the obligation to accompany a spouse or dependent child to another residence; discrimination on a ground prohibited by the Canadian Human Rights Act; working conditions that constitute a danger for health or safety; the obligation to care for a child or an immediate family member; significant modifications of terms and conditions in wages or duties; antagonistic relations between an employee and a supervisor for which the employee is not primarily responsible; practices of an employer that are contrary to law; and undue pressure by the employer on the employee to leave their employment (section 29 of the EI Act enumerates additional situations).

It is also specified that where such circumstances must be proven, the claimant is to be given the benefit of the doubt. Both the claimant and the employer will have the opportunity to provide information to be taken into account by ESDC in determining the validity of the claim. Special rules apply in cases where the issue of harassment arises.

Benefits to employees who become unable to work because of illness or given their role as caregiver are available. Employers may further create a supplemental or benefit program (called SUB) to complement benefits and reduce premiums.

According to the “Working While on Claim” rule, if individuals work while receiving benefits, they can keep 50 cents of the benefits for every dollar earned, up to 90% of their previous weekly earnings.

b) Provincial level – maternity and parental benefits

At the provincial level, the Act respecting parental insurance¹⁰ implemented a parental insurance plan in order to grant maternity benefits, paternity and parental benefits upon the birth of a child and adoption benefits to residents of Quebec, known as the Quebec Parental Insurance Plan (QPIP). It also provides for benefits for the person who agreed to give birth to a child in the context of a surrogacy project and for the parents who are parties to the parental project involving surrogacy. 

QPIP replaces similar benefits that non-Quebec residents have access to under the EI Act.

According to section 3 of the Act respecting parental insurance, a person is eligible under the parental insurance plan if:

• in respect of the qualifying period, the person is required to pay premiums under this plan in accordance with Division II of Chapter IV or, to the extent prescribed by regulation of the Conseil de gestion de l’assurance parentale (Conseil de gestion), under the employment insurance plan established under the Employment Insurance Act (Statutes of Canada, 1996, chapter 23) or a plan established for the same purposes by another province or a territory;
• the person is resident in Quebec at the beginning of the benefit period and, in the case of a person whose insurable earnings from a business are considered, on December 31 of the year preceding the beginning of the person’s benefit period;
• the person’s insurable earnings during the qualifying period are equal to or greater than $2,000; and
• the person has had an interruption of earnings as defined by regulation of the Conseil de gestion.

The maximum duration of the benefits is as follows:

• 18 weeks of maternity benefits for the mother of the child or for the person who gave birth to a child in the context of a surrogacy project;
• 5 weeks of paternity or non-birthing parent benefits for the father of the child, for each adoptive parent or each non-birthing parent involved in a surrogacy project;
• 13 weeks of shareable welcome benefits for adoptive parents and for parents who are parties to a parental project involving surrogacy;
• 32 weeks of shareable parental benefits for the parents of a child, including a child born through a surrogacy project and adoptive parents;

Additional benefits are available for multiple births/adoptions and single parents.

A parent who has begun to receive or has already received benefits relating to a birth or an adoption under the employment insurance plan or a plan established by another province or territory is not eligible to receive benefits under this plan.

Under the basic plan, the amount to be granted as weekly benefits shall be equal to the following percentage of the average weekly earnings (up to a maximum amount):

• 70% for the 18 weeks of maternity benefits, the five weeks of paternity/adoptive/non-birthing parent benefits;
• 55% for the remaining weeks of parental benefits (section 18 of the Act).

The employee can also opt for greater benefits for shorter leave periods under the "special plan".

Under the plan, parents who share a minimum number of weeks of parental benefits may take advantage of a number of additional weeks of benefits.

The employer shall pay the premium in respect of each employee, in the manner set out by the Act respecting parental insurance.

VIII. The Quebec Pension Plan

The Quebec Pension Plan (QPP) is a compulsory pension plan for Quebec workers. The plan was established in 1966 and provides workers and their families with basic financial protection in the event of retirement, death or disability. On January 1, 2019, the QPP was enhanced with an additional plan.

The plan is financed by contributions from workers and employers. The contributions are collected by Revenu Quebec and the Caisse de Dépôt et de Placement du Quebec is responsible for investing funds.

If a worker has contributed sufficiently, the plan provides:

• In case of retirement:
  • a retirement pension for workers who are at least 60 years of age;
  • retirement pension supplement.
• In case of death:
  • a surviving spouse pension;
  • an orphan’s pension;
  • a death benefit.
• In case of disability:
  • a disability pension to a worker who becomes disabled;
  • a pension for a disabled person’s dependent children;
  • additional amount for disability for retirement pension beneficiaries.

IX. Development of manpower training

The object of the Act to promote workforce skills development and recognition¹¹ (the Training Act) is to improve manpower qualifications through increased investment in training and through concerted action among management, unions, community partners and the education sector, and thereby to foster employment, manpower adjustment, integration into employment and labour mobility.

Since January 1, 1996, and in accordance with a phase-in process that was to take place over a three-year period, the Training Act requires certain Quebec employers to spend, on a yearly basis, an amount equal to at least 1% of their total payroll for their Quebec operations on eligible expenditures related to employee training. Employers who fail to meet this obligation will have to pay the difference between the 1% minimum and the amount of the eligible expenditures actually incurred into a fund established and administered by the Quebec government.

Only employers whose total payroll exceed $2,000,000 per year are subject to the Training Act, according to the Regulation respecting the Determination of Total Payroll.

A number of alternatives are available in order to meet this requirement:

• training workers through in-house or outside activities, defined in a training program set up according to the Training Act;
• lending workers or equipment for training purposes;
• providing training leave;
• training apprentices; and
• making a contribution to a sectorial or regional association or other organization recognized by the Commission des partenaires du marché du travail for the implementation of a training plan it has accredited.

Employers must complete the Summary of source deductions and employer contributions form from Revenu Quebec.

Training expenditures incurred in the year preceding the year in which an employer becomes subject to the Act can also be included provided they meet the conditions stipulated therein. Finally, employers must satisfy certain conditions concerning the justification of training expenditures.

X. Pay Equity Act

This legislation was introduced in 1996 to eliminate the salary gap due to systemic gender discrimination suffered by persons holding positions in predominantly female job classes.

The Pay Equity Act¹² (PEA) applies to employers with more than 10 employees. In the cases prescribed by regulation, regardless of the number of employees, employers are required to submit a report.This report takes the form of an annual online declaration to the CNESST whereby the employer provides information to determine whether or not it is subject to the PEA, if it has completed its pay equity exercise and if it has evaluated the maintenance of pay equity.

An employer with 10 to 49 employees must carry out a pay equity process in order to verify the presence of wage gapes due to systemic gender discrimination within its company and correct them. An employer whose enterprise employs 50 or more employees must establish a pay equity plan, and an employer whose enterprise employs 100 or more employees must also set up a pay equity committee that includes employee representatives.

The employer shall, after adjustments in compensation have been determined or a pay equity plan has been completed, maintain pay equity in the enterprise and periodically conduct a pay equity audit in the enterprise. The PEA requires the employer to post the results of the pay equity process.  The audit and the posting of the results obtained must be carried out on the same date every five years.

Where, because of changed circumstances in the enterprise, the compensation adjustments or the pay equity plan are no longer appropriate to maintain pay equity, the employer shall make the modifications necessary to maintain pay equity.

The alienation of the enterprise or the modification of its juridical structure shall have no effect upon obligations relative to adjustments in compensation or to a pay equity plan, which shall be binding on the new employer.

Employers who reach a level of employment of 10 employees after 1996 have four years to carry out their initial pay equity exercise (sections 4 and 37 PEA).

The PEA also requires firms to keep the information used for pay equity audit purposes, along with the content of all postings, for a period of six years after a posting is made.

The legislation sets out fines that may be imposed for offences under the PEA. The maximum, for employers with 100 or more employees, has been set at $45,000 for a first offence. The fines double for a second or subsequent offence.

The PEA provides for a voluntary confidential conciliation process.

XI. Tobacco Control Act

The Tobacco Control Act¹³ (Tobacco Act) came into force in November 2015, with the exception of certain provisions which came into force at later dates. The Act amends the Quebec Tobacco Act¹⁴ which was adopted and assented on June 17, 1998.

The main changes brought by the Tobacco Act concern further restrictions on tobacco use both in enclosed spaces and outdoors, extension of the scope of the legislation by considering electronic cigarettes to be tobacco and tightening standards applicable to the tobacco trade. New penal provisions are enacted, the amounts of existing fines are increased and certain other penal provisions are reinforced by making employers and the directors and officers of legal persons, partnerships and associations more accountable.

The Act prohibits smoking outdoors within a nine-meter radius from any door, air vent or openable window communicating with, among other listed places, a workplace.

a) Closed smoking rooms and smoking areas

It is not permitted to have designated smoking areas in places such as restaurants, or terraces, casinos, sports grounds and workplaces.

The Tobacco Act authorizes the operator of certain facilities to set up smoking rooms to be used only for tobacco smoking and by the people lodged in the place. The smoking rooms must be equipped with a ventilation system that maintains negative air pressure at all times and exhausts smoke directly to the outside of the building. Smoking room doors must be equipped with a self-closing device.

It is permitted to smoke cigars or pipe tobacco in a cigar room, following some conditions, such as: the room must be specially set up for cigar or pipe smoking, the room must have been in operation in May 2005, and it must be equipped with a ventilation system that maintains negative air pressure and directs the smoke directly outside the building. Minors must not be allowed in the cigar room and meals cannot be consumed by customers in the cigar room.

b) Zero tolerance

The operator of a place or business must post notices visible to the persons using the place or business, indicating the areas where smoking is prohibited and must not tolerate smoking in such areas.

The Tobacco Act prohibits the display of tobacco in public view and specifies where the notice prohibiting the sale of tobacco to minors and the warning concerning the harmful effects of tobacco on health should be posted.

c) Standards

The government has reserved the right to determine, by regulation, standards concerning the construction or layout of smoking rooms and cigar rooms, the ventilation systems to be installed and the notices to be posted. Currently, there are no such regulations.

d) Inspection

The Tobacco Act provides that the Minister of Health and Social Services may appoint any person to perform the duties of inspector or analyst, such duties to include the power of ensuring compliance with the Tobacco Act, of taking photographs of the place inspected and of the equipment, property and products found there and of inspecting a place, including a workplace, at any reasonable time.

e) Violations of the Tobacco Act

A person who smokes in a place where smoking is prohibited is liable to a fine of $250 to $750 ($500 to $1500 for a subsequent offence).

The operator of a place or business is liable to a fine of $1,000 to $50,000 ($2,000 to $100,000 for a subsequent offence) for contravening the installation, construction or layout standards prescribed by the Tobacco Act or by regulation. The operator of a place or business that neglects to post the mandatory notices or for tolerating smoking in an area where smoking is prohibited is also liable to a fine of $500 to $12,500 ($1,000 to $25,000 for a subsequent offence). If such an offence continues for more than one day, each day during which the offence continues shall constitute a separate offence.