The Federal Government Unveils the Proposed Regulations for Paid Sick Leave

On July 15, 2022 the federal government released its proposed Regulations Amending Certain Regulations Made Under the Canada Labour Code (Medical Leave with Pay) (the “Proposed Regulations”), with respect to paid sick leave for federally regulated employees.

As summarized in our earlier blog post, employees are entitled to a maximum of 10 days sick leave per year. Employees earn three days of medical leave with pay after 30 days of continuous employment and an additional day for each month of continuous employment, up to a maximum of 10 days per calendar year. Any medical leave that is not used will carry forward to the next year, but each day carried over reduces the number of days that can be earned in the next year by one.

The 10 days of paid sick leave will come into force on December 1, 2022.

The Proposed Regulations include the following key provisions:

  • Definition of “Year”: Employers who use a year other than a calendar year to calculate the entitlement to vacation of their employees can use that same year for the purposes of the paid medical leave provisions.
  • Calculation of “Regular Wages”: The regular rate of wages for employees who are not paid on the basis of time or who work irregular hours is calculated as follows:
    • the average daily earnings of an employee (other than overtime pay) for the 20 days the employee worked immediately before the first day of the period of paid leave; or
    • an amount calculated by a method agreed to under or pursuant to a collective agreement that is binding on the employer and the employee.
  • Record-keeping: Employers will be required to keep records related to each period of medical leave with pay.
  • Penalties: For serious or repeated violations of the sick leave provisions, an administrative monetary penalty of up to $12,000 may be issued depending on the size of the business and whether there is history of non-compliance.

The federal government has invited employers, employer representatives, unions, workers, and other key stakeholders to provide feedback on the Proposed Regulations by August 15, 2022.

Lawson Lundell’s Labour, Employment and Human Rights Group will continue to monitor any changes to the Proposed Regulations. Stay tuned for an update.


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Lawson Lundell's Labour and Employment Law Blog provides updates on the most recent legal developments impacting the Canadian workplace and offers practical tips for employers. We cover a range of topics, including labour relations, employment law, collective bargaining, human rights, employment standards, employment equity, workers' compensation, business immigration, privacy, occupational health and safety and pensions and employee benefits. 

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