Canada Labour Code changes for federally regulated employers in 2025 and 2026
For federally regulated employers, the federal minimum wage has been $18.15 an hour since 1 April 2026, replacement workers have been banned during strikes and lockouts since 20 June 2025, and new pregnancy loss leave and extended bereavement leave for the death of a child started on 12 December 2025. The right to disconnect policy and placement of a child leave are law but not yet in force.
Federal minimum wage rises to $18.15
What happened
On 1 April 2026, the federal minimum wage went up to $18.15 an hour. It applies to federally regulated private-sector employers, such as banks, airlines and telecoms companies. It rises every 1 April in line with inflation.
What it means for you
Check that every federally regulated employee earns at least $18.15 an hour. If the province's minimum wage is higher, you must pay the higher rate.
Dates to know
- 1 April 2027The next yearly increase, based on 2026 inflation.
Source: Employment and Social Development Canada. We check this page every week. Last checked .
The Canada Labour Code sets employment standards (Part III), labour relations rules (Part I) and health and safety rules (Part II) for federally regulated employers, such as banks, airlines, interprovincial transport, telecommunications and most federal Crown corporations. Everyone else follows their province's or territory's employment law. Since mid-2025, the Code has changed in several ways that matter to these employers. Bill C-58 banned the use of replacement workers during a strike or lockout from 20 June 2025. On 12 December 2025, Part III gained a new job-protected leave related to pregnancy loss (up to 8 weeks after a stillbirth, up to 3 days in other cases, with the first 3 days paid after 3 months of service) and longer bereavement leave of up to 8 weeks on the death of a child. The federal minimum wage is indexed to inflation every 1 April and has been $18.15 an hour since 1 April 2026. An employer can ask for a medical certificate only after a medical leave of at least 5 consecutive days. Two changes passed in 2024 are still waiting to start: a duty to adopt a policy on work-related communication outside scheduled hours, often called the right to disconnect, and a 16-week unpaid leave for the placement of a child through adoption or surrogacy.
What is the federal minimum wage in 2026?
$18.15 an hour since 1 April 2026, up from $17.75. It applies to federally regulated private-sector employers, and if a province's or territory's minimum wage is higher, the employer must pay the higher of the two.
The rate is adjusted every 1 April by the annual average Consumer Price Index for the previous calendar year (2.1% for 2025), rounded up to the nearest 5 cents.
What does the replacement worker ban mean?
Since 20 June 2025, federally regulated employers cannot use replacement workers to do the work of unionised employees who are on strike or locked out. The ban applies to any strike or lockout ongoing on or after that date.
Limited exceptions apply where a threat to health or safety cannot be managed with the existing workforce. A union or employee can complain to the Canada Industrial Relations Board, which investigates. The same Bill introduced a maintenance of activities process for collective bargaining that started on or after 20 June 2025.
What new leave started on 12 December 2025?
Leave related to pregnancy loss: up to 8 weeks after a stillbirth and up to 3 days for any other pregnancy loss, with the first 3 days paid if the employee has 3 months of continuous service. Bereavement leave on the death of a child was also extended to up to 8 weeks.
Pregnancy loss leave covers the pregnant person, their spouse or common-law partner, and anyone who intended to be a legal parent of the child, and can be taken in the 26 weeks after the loss. Bereavement leave for any other immediate family member stays at up to 10 days, with the first 3 days paid after 3 months of service. Employees must give the reason for these leaves but do not have to provide documents.
When can an employer ask for a medical certificate?
Only after a medical leave of at least 5 consecutive days. The request must be in writing and made no later than 15 days after the employee returns to work.
Employees earn up to 10 days of paid medical leave a year and can take up to 27 weeks of medical leave in total. A certificate cannot be required for a shorter absence of 3 or 4 days.
Is the federal right to disconnect in force?
No. The Code has been amended to require federally regulated employers to adopt a policy on work-related communication outside scheduled hours, but the change is not in force as of 8 October 2026. Once it starts, employers will have one year to bring a policy into effect.
The policy must set a general rule on communication outside scheduled hours, any exceptions and their reasons, and its effective date. The Labour Program's forward regulatory plan lists the supporting regulations with publication dates still to be determined.
Is there a new leave for adoption or surrogacy?
It has been enacted but is not yet in force. The Code will give up to 16 weeks of unpaid leave for the placement of a child into an employee's care through adoption or surrogacy, starting on a date to be set by order.
Until then, adoptive parents use unpaid parental leave of up to 63 weeks (71 weeks if shared between two eligible employees), taken within 78 weeks of the child coming into their care.
Hiring in Canada?
What Teamed handles for you if your Canadian hire is federally regulated
Whether an employee falls under the Canada Labour Code or provincial law decides which wage floor, leave rules and policies apply, and Teamed, as the legal employer, applies the federal set where it governs and tracks the two changes that have not started yet.
These sit with us
- Pay checked against the $18.15 federal floor and any higher provincial rate
- Pregnancy loss and child bereavement leave granted, with paid days for staff past 3 months of service
- Medical certificates requested only after 5 consecutive days of leave
- A disconnecting policy ready for when section 177.2 comes into force
You keep
The role, the budget and the day-to-day management of your people. We carry the employment duties that come with being the legal employer.
Two of these changes are law but not yet in force, so part of the job is watching for the order that starts them.
Key figures
| Detail | Value |
|---|---|
| Federal minimum wage from 1 April 2026 | $18.15 an hour for federally regulated private-sector employers, up from $17.75 on 1 April 2025. Adjusted every 1 April by the previous year's annual average CPI (2.1% in 2025), rounded up to the nearest $0.05. If the provincial or territorial rate is higher, the higher rate applies. (source) |
| Replacement worker ban (Bill C-58) | In force 20 June 2025. Federally regulated employers are prohibited from using replacement workers to do the work of unionised employees on strike or locked out; applies to any strike or lockout ongoing on or after 20 June 2025. (source) |
| Leave related to pregnancy loss and child bereavement leave | In force 12 December 2025. Pregnancy loss leave: up to 8 weeks for a stillbirth, up to 3 days in any other case, first 3 days paid after 3 months of continuous service (Canada Labour Code, s. 206.51). Bereavement leave on the death of a child: up to 8 weeks, first 3 days paid after 3 months of continuous service. (source) |
| Medical certificate rule | An employer may, in writing and no later than 15 days after the employee returns, require a health care practitioner's certificate only where the medical leave was at least 5 consecutive days (Canada Labour Code, s. 239(2)). Up to 10 days of paid medical leave a year (s. 239(1.21)) and up to 27 weeks of medical leave (s. 239(1)). (source) |
| Policy on disconnecting (right to disconnect) | Not in force. Section 177.2, added by 2024, c. 17, s. 248, is listed under amendments not in force in the Code (current to 21 September 2026). Once in force, an employer must bring a policy into effect on or before the first anniversary of becoming subject to the section. (source) |
| Leave for placement of a child | Not in force. Section 206.01, added by 2024, c. 15, s. 357, is listed under amendments not in force. Announced as a 16-week unpaid leave for workers placing a child into their care through adoption or surrogacy, to start on a date set by order in council. (source) |
Frequently asked questions
Does the Canada Labour Code apply to my Canadian employees?
Only if your business is federally regulated, such as banking, air transport, interprovincial road or rail transport, telecommunications or broadcasting. Most employers follow the employment law of the province or territory where the employee works.
Is the federal minimum wage the minimum for every employee in Canada?
No. It applies to federally regulated private-sector employers. If the province's or territory's minimum wage is higher than $18.15, the federally regulated employer must pay the higher rate.
Do federally regulated employers need a right to disconnect policy now?
Not yet. The requirement is in the Code but not in force as of 8 October 2026. When it starts, employers will have one year to put a policy in place.
Can an employer ask for a sick note after a 2-day absence?
No. Under the Canada Labour Code, a medical certificate can only be requested after a medical leave of at least 5 consecutive days, in writing, within 15 days of the employee's return.
Canada has fourteen sets of employment standards, one federal and one for each province and territory. When Teamed is your legal employer, we apply the right one for where each person works and update your contracts, policies and payroll as the law changes, so you never have to read a statute to stay compliant.
