Payroll Compliance Legislation II Exam -Questions with
Correct Answers/ Latest Version (2024/2025)/ 100% Pass
Federal Canada Labour Code - ✔✔Every employer and employee in Canada is covered under
either the federal Canada Labour Code, Part III (CLC) labour standards legislation or
provincial/territorial employment/labour standards legislation. Approximately 6% of the
Canadian workforce is covered by the CLC, while provincial/territorial labour laws govern
the remaining 94%.
Who does the CLC apply to? - ✔✔The CLC applies to employees working in certain industries
and occupations that freely cross provincial boundaries or those under the legislative
authority of the federal government. The CLC also governs organizations performing
functions or duties on behalf of the government of Canada
What happens if the organization falls under federal jurisdiction? - ✔✔If the organization
falls under federal jurisdiction, it does not matter where the employee works; the standards
set out in the federal Canada Labour Code, Part III apply
The Canada Labour Code, Part III applies to - ✔✔industries and undertakings of an inter-
provincial/territorial, national or international nature, for example, transportation,
communications, radio and television broadcasting, banking, uranium mining, grain
elevators, and flour and seed operations
organizations whose operations have been declared for the general advantage of Canada or
two or more provinces, and Crown corporations such as the Canadian Broadcasting
Corporation
What about employees who are not not governed under the CLC? - ✔✔Employees who are
not governed under the CLC are subject to the employment/labour standards legislation of
the jurisdiction in which they work. In another case, an employee who normally works in
Toronto, Ontario, might travel to Montreal, Québec, for a few days of work. Québec
employment/labour standards do not apply in this situation unless the employee primarily
(more than 50 %) performs work in Québec during the pay period in question
What about if employees are working under union agreements? - ✔✔When employees are
working under union agreements, the terms of the agreement take precedence over the
employment/labour standards as long as the terms and conditions in the agreement at least
meet the minimum standards. Neither employees nor employers can "contract out" of any
,legislated employment/labour standard. Essentially, employers must provide, and
employees must receive the minimum standards set out in the legislation in their
jurisdiction. Most union agreements, however, provide better standards than the provincial
minimums. Some organizational policies also provide better than the minimum
employment/labour standards, in which case the policy or collective agreement prevails.
What are exemptions to the labour code? - ✔✔Not all employees or types of employment
are covered under employment/labour standards acts and regulations. For example, many
jurisdictions exempt supervisors, managers and professional employees, such as
accountants, doctors and lawyers, from certain sections of the act, such as hours of work
and overtime
Who does the Employment Standards Code not apply to in Alberta? - ✔✔In Alberta, the
Employment Standards Code does not apply to employees of municipal police services
(except for the maternity, parental or reservist provisions) or to employees whose jobs are
covered by laws that apply to specific occupations and professions, for example, lawyers
and dentists
What appears on a pay statement? - ✔✔The common information that must appear on the
pay statement in most jurisdictions is:
employee name
pay period dates
rate of pay and hours of work at each rate
gross earnings
itemized deductions
net pay
What is an administrative position? - ✔✔Government departments use an administrative
position to detail further how to apply legislative policy and regulation. For example, an act
may not include details about electronic pay statements. Still, employment standards
officers may interpret how they would instruct an employer to proceed in such cases.
Which provinces have an exception for timing of payments? - ✔✔Except for Ontario and
federal (Canada Labour Code, Part III), all jurisdictions require that employees receive their
, pay according to a specified frequency. The pay date must fall within a specified number of
days, or within a specified interval, after the end of the pay period.
What is Quebec's policy regarding timing of payments? - ✔✔When a pay date falls on a
floating statutory holiday such as Christmas Day, New Year's Day or Canada Day, Québec is
the only province that legislates that the payment must be paid the day before the holiday.
In all other jurisdictions, the payment must be paid within, not after, the legislated time
frame as specified in the chart that follows. It should be noted that Manitoba and Nova
Scotia use working days instead of calendar days in their timing of payments. It is a general
practice across Canada that most employers adopt the Québec rule and pay the payment
the day before the holiday. However, this practice is not enforced by legislation.
Who is the minimum age and new hires enforced by? - ✔✔the minimum age at which an
individual can be employed is established not only by employment/labour standards but
also by occupational health and safety, youth employment and construction safety
legislation.
What is the minimum wage? - ✔✔The minimum wage is the lowest hourly rate that an
employer can pay an employee. It varies by jurisdiction, and exemptions may apply.
What does hours of work legislation cover? - ✔✔Minimum hours (call-in pay)
Maximum hours
Averaging hours
Compressed workweek
Overtime
Rest periods
What is the hours of work legislation? - ✔✔The hours of work legislation sets the maximum
number of hours per day or per week an employee is allowed to work, regardless of
overtime pay provisions
What is call-in pay? - ✔✔Legislation on the minimum hours of work, also known as call-in
pay, sets the minimum number of hours of work an employee must be paid for if called into
work by the employer. All jurisdictions across Canada have call-in pay legislation that covers
employees called in to work outside of their regularly scheduled shifts. Most jurisdictions
