Employment standards have been evolving at an unprecedented rate in recent years. For federally-regulated employers, there are several recent amendments to the Canada Labour Code (the “Code”), which have either taken effect or will be taking effect in the near future. We highlight five of these changes, in order of their effective dates, in this month’s Employment Update.
I. REIMBURSEMENT OF WORK-RELATED EXPENSES
As of July 9, 2023, employers are required to reimburse employees for reasonable work-related expenses. The following factors are to be considered when determining whether an expense is "work-related”:
(a) whether the expense is connected to the employee’s performance of work
(b) whether the expense enables an employee to perform work
(c) whether incurring the expense is required by the employer as a condition of employment or continued employment
(d) whether the expense satisfies a requirement for the employee’s work imposed by an occupational health or safety standard
(e) whether the expense is incurred for a legitimate business purpose and not for personal use or enjoyment.
The expense must also be “reasonable,” which is to be determined using the following prescribed factors:
(a) whether the expense is connected to the employee’s performance of work
(b) whether the expense is incurred to enable an employee to perform work
(c) whether the expense is incurred at the request of the employer
(d) whether any amount of expense is incurred beyond the amount necessary to enable the performance of the work
(e) whether the expense is one that is normally reimbursed by employers in similar industries
(f) whether the employer authorized the expense in advance
(g) whether the expense is incurred by the employee in good faith
(h) whether the claim includes documentation, such as a receipt or invoice
Expenses that meet the above criteria must be reimbursed within 30 days of the date that the employee submits the expense claim, absent a written agreement specifying a different time frame.
Despite this new requirement, certain expenses may not be eligible for reimbursement, including where they are specifically excluded by way of: (1) a collective agreement or other written agreement between an employer and its trade union, or (2) a written contract between an employer and employee.
