The Act respecting Labour Standards (LSA) governs the working conditions of most full-time and part-time employees in Quebec. Labor standards represent the minimum working conditions that an employer must offer its employees; an employer may never impose working conditions that are less than those stipulated by law. Failure to comply with labor standards can result in fines or prosecution by the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST).
Beyond minimum obligations, in a job market where employers are competing to attract the best talent, it’s imperative to review your value proposition and improve the minimum threshold. Here we present the main standards, along with simple recommendations for improving them!
Minimum wage
The minimum wage in Quebec, $15.75 since May1, 2024, is set by the Quebec government each year. Excluding restaurant employees, this wage cannot be reduced by the addition of other benefits of pecuniary value, such as a car allowance.
=> Today, most employers who used to offer the minimum wage are now offering a higher salary, in order to remain attractive.
Voluntary retirement savings plan
When an employer reaches an annual average of 10 employees, the Voluntary Retirement Savings Plans Act requires him to set up a voluntary retirement savings plan (RVER) within his company. He must automatically enroll the employees concerned in the RVER. Each of the employees concerned then has the choice of whether or not to remain enrolled in the RVER.
=> Although the employer’s contribution is not compulsory, it is a social benefit that remains highly prized by job seekers.
Work uniform
When an employer requires its employees to wear a particular garment, such as a uniform or work boots, it must provide them free of charge to those paid the minimum wage. In addition, the employer must provide the uniform free of charge to all employees if it bears a logo identifying them as employees of his establishment. Employers may not require employees to purchase clothing or accessories that they sell.
=> For jobs that do not pay the minimum wage, such as dental practices or medical clinics, although the employer is not obliged to provide the uniform, it is a significant benefit for the employee. To facilitate management of this benefit, it is often offered in the form of an annual allowance.
Payroll
After the first day’s work, the employer has a maximum of one (1) month to pay the employee his first salary. Thereafter, wages must be paid at regular intervals not exceeding sixteen days, or one month in the case of executives. If the payday falls on a public holiday, the salary must be paid on the previous working day.
Amounts in excess of the usual salary, such as bonuses or overtime worked during the week preceding the salary payment, may be paid in the next salary payment.
Any wage deductions other than those stipulated by law, court order, collective agreement, decree, etc., must be agreed to in writing by the employee.
Working hours
An employee is deemed to be at work and must be paid:
- When she is at her employer’s disposal in the workplace, even if she has to wait for work to be given to her;
- During breaks granted by the employer ;
- During travel required by the employer ;
- During any trial or training period required by the employer.
In addition, an employee who reports for work in the course of his or her employment and who works less than 3 consecutive hours must receive an indemnity equivalent to 3 hours’ normal pay. After a work period of 5 consecutive hours, the employee is entitled to a 30-minute unpaid meal period. This period must be paid if she is unable to leave her workstation, e.g. for receptionist work.
=> Although coffee breaks are not mandatory under the Act respecting labour standards, they have been shown to be beneficial to productivity. At the employer’s expense, the benefits of this little moment should not be overlooked, especially if coffee is provided!
Overtime
In most industries, the standard work week in Quebec is 40 hours. Hours worked in excess of the standard 40-hour work week must be paid at a premium of 50% (time and a half) of the regular hourly wage for non-management personnel.
If the employee accepts, it is possible to replace the overtime payment with time off, but only on condition that this is equivalent to the overtime worked, also increased by 50%.
=> It’s often a good idea to remind candidates and future employees of this minimum obligation, especially if they will be required to work overtime on a regular basis. This will give them a fairer view of their remuneration.
Public holidays
In Quebec, the statutory holidays entitling the holder to time off work and compensation equivalent to 1/20 of the wages earned over the last 4 full weeks, excluding overtime, are as follows:
- January 1 (New Year’s Day) ;
- Good Friday or Easter Monday, at the employer’s discretion ;
- the Monday preceding May 25 (National Patriots’ Day);
- June 24 (National Holiday) ;
- July 1 – or, if this date falls on a Sunday, July 2 (Canada Day);
- 1st Monday in September (Labour Day) ;
- second Monday in October (Thanksgiving) ;
- December 25 (Christmas Day).
An employee who is obliged to work on one of these public holidays is entitled, in addition to his or her salary for the day worked, to an indemnity or compensatory leave with pay, at the employer’s discretion. This compensatory leave must be taken in the three weeks preceding or following the holiday, except for Bastille Day, for which the compensatory leave must be granted the day before or the day after.
=> It is possible to offer other days not worked and paid to enhance the statutory holidays; for example, by allowing Easter Friday and Easter Monday, or by offering an extended vacation between Christmas and New Year’s, all depending on the realities of the employer’s industry.
Vacations
Labor standards require the employer to grant 2 weeks (4%) of vacation between 1 and 3 years’ seniority, and 3 weeks (6%) of vacation beyond 3 years.
=> Vacation time is an important benefit that is very often enhanced by the employer through an internal policy. More and more employers are offering 3 weeks’ vacation upon hiring, and 4 or even 5 weeks later, depending on seniority.
Vacation entitlement is earned over a period of twelve consecutive months known as the “reference year”. Generally running from May 1 to April 30, this is the period during which the employee accumulates vacation pay equivalent to the percentage of salary granted, to be applied to the following reference year.
=> Paid vacation from the very first year is a condition increasingly sought by job seekers and offered by employers of choice.
Paid leave
After 3 months’ continuous service, the employee is entitled to 2 days’ paid absence per year for family reasons or illness.
=> “Personal leave”, “sick leave” or “floating vacations” are key elements of work-life balance, and more and more employers are enhancing this standard with a more extensive leave policy, ranging from 5 to 10 days per year. Special days off for family events are also good incentives for employees, such as back-to-school day for parents or the employee’s birthday… They also contribute to a better work-life balance.
In conclusion
One of the aims of labor standards is to protect workers’ rights, promote social justice, improve working conditions and foster equity and equality. However, we must not forget that these standards are minimum conditions, and that employers are encouraged to offer more in order to be competitive and to be able to integrate the best elements.
Do you have any questions about your obligations as an employer, or would you like support in attracting new talent with competitive benefits? Don’t hesitate to contact our Human Capital team.
