Question Period Note: PART IV - ADMINISTRATIVE MONETARY PENALTIES

The Government of Canada maintains its commitment to better protect employees in federally regulated sectors through the introduction of administrative monetary penalties for federally regulated private-sector employers subject to Part II and Part III of the Canada Labour Code.

• The Budget Implementation Act 2017, No. 1, which received Royal Assent on June 22, 2017, includes provisions to strengthen enforcement measures under Part II (Occupational Health and Safety) and Part III (Labour Standards) of the Canada Labour Code (the Code) and enacts a new Part IV (Administrative Monetary Penalties).

• The new Part IV came into force on January 1, 2021, and provides for the new Administrative Monetary Penalties (AMPs) system and the public naming of employers who have committed a violation under Part II or Part III of the Code or the related regulations.

• The AMP system is intended to encourage compliance and address serious and repeat occupational health and safety and labour standards violations. Part IV is not intended to have detrimental impact on businesses and it recognized the unique circumstances in which small and micro businesses operate.

• The Government recognizes that many employers are experiencing unforeseen disruptions in their workplace due to the COVID-19 pandemic. Despite the pressures faced during this critical time, many employers have continued to comply with their occupational health and safety and labour standards obligations. During the pandemic, it is paramount that employees' rights as well as their health and safety are protected.

• The first phase of consultations regarding the Administrative Monetary Penalties (AMPs) system took place in Fall 2017-Winter 2018 with stakeholders representing employers and employees, including employer organizations, businesses, labour organizations, advocates for employees’ rights, and professional associations. Internal consultations were also conducted with Labour Program officials.

• A second phase of consultations, involving the same stakeholders, as well as other government departments responsible for the application of certain occupational health and safety regulations, took place in December 2018 prior to the development of proposed AMPs regulations.

• The regulatory proposal was pre-published in the Canada Gazette, Part I, on August 24, 2019, for a 90-day public comment period. During that time, the Labour Program received nine submissions from stakeholders representing employees and employers, in addition to a submission from an individual employed by a government department.

• The final Administrative Monetary Penalties Regulations were published in the Canada Gazette, Part II on December 23, 2020.

• Part IV of the Canada Labour Code, and its associated regulations, came into force on January 1, 2021.

• Budget Implementation Act, 2017, No. 1. committed $8.5 million over 5 years, with $1.6 million ongoing to improve compliance and enforcement under the Canada Labour Code. The majority of these funds were committed to the development and implementation of the new AMPS system. In 2018 the Treasury Board approved the allocation and expenditure of these funds by the Labour Program.

• The Labour Program is working with stakeholders to finalize the interpretation, policy and guidance (IPG) and educational materials to support the implementation of administrative monetary penalties.

• Between April 1, 2016, and March 31, 2020 , non-compliance with Part II and Part III of the Code has persisted:
Part II - about 50,500 violations were identified regarding approximately 2,340 employers, with about 43% being repeat offenders. Only 28% of serious and 47% of non-serious hazardous occurrences were reported on time. In addition to creating occupational health and safety risks, this could result in non-compliant employers gaining a competitive advantage over law-abiding employers and increasing their profits at their employees’ expense, in addition to impeding the conduct of investigations.
Part III - about 10,300 violations were identified regarding approximately 2,710 employers, with about 26% being repeat offenders, which took multiple interventions to bring them into compliance.