Federally regulated employer

The Canada Labour Code defines a federal work, undertaking or business as one within the legislative authority of Parliament. Employment and Social Development Canada publishes a list of industries, such as air transportation, banks, telecommunications, railways that cross provincial or international borders and road transportation services, including trucks and buses, that cross provincial or international borders.

Why the label matters in a deal

Ontario’s guide says employers in sectors under federal jurisdiction are not covered by its Employment Standards Act. The federal page says that a worker outside the listed industries should consult the employment standards for their own province or territory. Which regime applies decides which notice, pay and dismissal rules you diligence. The Canada Labour Code entry names the Parts. The guide to buying a long-haul trucking carrier shows one business where the question comes up.

• Compare the target’s actual operations with the federal list, not only its name
• Ask the seller which regime it has applied and which agency has dealt with complaints
• Ask counsel what happens if a business has both federal and provincial operations