Canada Labour Code

Marginal note:Transfer

• 189 (1) Despite the lease or transfer of a work, undertaking or business, or any part of a work, undertaking or business, from one employer to another employer by sale, merger or otherwise, the employment of the employee, before and after the lease or transfer, who is employed in or in connection with the operation of that work, undertaking or business, is, for the purposes of this Division, deemed to be continuous with one employer if the work, undertaking or business

  • (a) is a federal work, undertaking or business; or

  • (b) becomes a federal work, undertaking or business due to the lease or transfer.

• Marginal note:Retendering

  (1.1) If, due to a contract being awarded through a retendering process, a second employer becomes responsible for carrying out any particular federal work, undertaking or business, or part of one, that was previously carried out by a first employer, an employee who is employed in or in connection with the its operation before and after the retendering, is, for the purposes of this Division, deemed to be continuously employed with one employer.

• Marginal note:Non-application

  (1.2) Subsections (1) and (1.1) do not apply if the employee’s first day of employment by the second employer is more than 13 weeks after the day that is the earlier of

  • (a) the employee’s last day of employment by the first employer; and

  • (b) the day on which the federal work, undertaking or business is transferred or the first day the second employer carries out the federal work, undertaking or business, as the case may be.

• Marginal note:Period of continuous employment

  (1.3) For greater certainty, if an employer’s work, undertaking or business becomes a federal work, undertaking or business due to a change in its activities, for the purposes of this Division, an employee’s period of continuous employment by the employer includes any period in which the work, undertaking or business in or in connection with the operation of which the employee is employed was not a federal work, undertaking or business.

• Marginal note:Calculation of period of employment

  (1.4) If subsection (1) or (1.1) applies in respect of an employee, any period between their employment by the first employer and their employment by the second employer is not included in the calculation of their period of continuous employment.

• Marginal note:Exception

  (1.5) For the purposes of an employee’s employment by the second employer, this section does not apply in respect of the calculation of the employee’s entitlement under section 230 if the first employer complied with that section in respect of their employment by that employer.

• Marginal note:Exception — severance pay

  (1.6) For the purposes of an employee’s employment by the second employer, this section does not apply in respect of the calculation of their entitlement to severance pay under section 235 if the first employer paid them severance pay in respect of their employment by that employer.

• Marginal note:Inclusion

  (2) For the purposes of subsection (1), a federal work, undertaking or business includes

  • (a) any portion of the federal public administration specified from time to time in Schedule I, IV or V to the Financial Administration Act that is deleted from one of those Schedules and that is established as or becomes a part of a corporation or any federal work, undertaking or business to which this Part applies; or

  • (b) a portion of the federal public administration included in a portion of the federal public administration so specified in one of those Schedules that is severed from the portion in which it was included and that is established as or becomes a part of such a corporation or federal work, undertaking or business.