Employees who work for federally regulated employers can recover unpaid wages that they believe their employer owes them through a wage recovery system outlined in the Canada Labour Code. Through the system, the Labour Program is authorised to collect up to 24 months of unpaid wages or other amounts owed for hours worked, vacation pay, general holiday pay, severance pay, and pay in lieu of notice of termination of employment. The Labour Program can also determine the amounts owed using the best available evidence in the event that an employer fails to provide payroll records. Employees who suspect that their employer owes them unpaid wages or other amounts may file a complaint with the Labour Program.
If the Program finds the employer owes the employee wages, they will first ask for voluntary payment, if not agreed, they will issue a Notice of Voluntary Compliance for a review request to be made by the employee, and if still not complied, a Payment Order may be issued to collect unpaid wages.
If the Program finds that the employer does not owe the employee wages or other amounts, both will receive the Prgoram’s findings in writing, along with a Notice of Unfounded Complaint, giving the employee the opportunity to request a review. If a pattern of non-compliance is found, the employer may face enforcement action.