Starting October 20, 2026, important changes to Canada’s federal labour rules will introduce new worker pay protections for employees in federally regulated workplaces. The changes focus on equal pay, employment status and temporary help agencies.
For workers in sectors such as banking, telecommunications, transportation, broadcasting, postal services and certain trucking and railway operations, these changes could affect how their wages are determined.
1. Equal Pay for Employees With Different Employment Statuses
One of the major changes under the Canada Labour Code is designed to prevent an employee from receiving a lower wage simply because they have a different employment status.
Employment status can include:
- Full-time or part-time
- Permanent or temporary
- Seasonal
- Casual
- Fixed-term employment
However, the rule does not mean every employee doing similar work must automatically receive exactly the same wage.
For the protection to apply, employees generally need to work in the same industrial establishment, perform substantially similar work, have comparable skill, effort and responsibility requirements, work under similar conditions, and be paid using the same type of wage rate.
For example, if a part-time and full-time employee perform substantially the same duties under comparable conditions, an employer generally cannot pay the part-time employee less solely because they are part-time.
There are also exceptions. Differences may be permitted under legitimate systems based on factors such as seniority, merit, production, geographic location or certain recruitment and retention circumstances.
Importantly, employers cannot simply reduce the higher-paid employee’s wage to resolve a prohibited difference.
2. New Pay Protection for Temporary Agency Workers
The second major change affects temporary help agency workers in federally regulated workplaces.
Beginning October 20, 2026, a federally regulated temporary help agency generally cannot pay its worker less than a comparable employee of the agency’s client when the required comparison conditions are met.
The workers must perform substantially similar work, under similar working conditions, with comparable skill, effort and responsibility requirements and under the same type of wage-rate system.
This could be particularly relevant to workers who are supplied through staffing agencies to federally regulated businesses.
Temporary Agency Fees Also Face New Restrictions
Alongside the pay protections, federally regulated temporary help agencies will face restrictions on charging workers certain fees.
From October 20, 2026, covered agencies cannot charge employees fees for matters such as obtaining employment with the agency, being assigned to a client, job-preparation services such as résumé assistance or interview preparation, or establishing an employment relationship with a client.
Who Is Covered by These Canada Worker Pay Rules?
These changes apply to federally regulated workplaces, rather than every employer in Canada.
Examples include:
- Banks
- Airlines and airports
- Telecommunications companies
- Postal and courier services
- Interprovincial trucking and bus operations
- Certain railways
- Marine shipping and port services
- Radio and television broadcasting
- Certain pipelines
- Uranium and atomic-energy operations
- Most federal Crown corporations
If your employer is not federally regulated, provincial or territorial employment standards may apply instead.
It is also important to understand that employment status is different from immigration status. Being a temporary foreign worker, international worker or permanent resident does not by itself determine whether these particular equal-pay provisions apply. The key question is the employment relationship and whether the workplace falls under federal jurisdiction.
What Can Workers Do If They Believe Their Pay Is Not Compliant?
Under the new federal framework, an employee can make a written request for an employer to review their wage when they believe the equal treatment requirements have not been followed.
The employer is required to review the issue and provide a written response within the applicable 90-day period. Government guidance also provides mechanisms for workers to raise labour-standard complaints where applicable.
Workers should keep copies of employment contracts, pay statements, schedules and written communications related to their wages.
How ICC Immigration Can Help You Secure Your Future in Canada
Understanding Canadian immigration pathways and workplace rules can be complicated, particularly for temporary foreign workers planning their long-term future.
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Whether you are already working in Canada or planning your move, ICC Immigration can help you understand your available Canada immigration options and navigate the application process.