Ontario HR Compliance · Federal enforcement & penalties
Administrative Monetary Penalties (Part IV): Framework and Baseline Schedule
Part IV of the Canada Labour Code sets administrative monetary penalties for designated violations, classified Type A through Type E and scaled by employer size, with a repeat-violation multiplier and a $250,000 statutory cap per penalty.
Part IV of the Canada Labour Code, in force since January 1, 2021, together with the Administrative Monetary Penalties (Canada Labour Code) Regulations, sets penalties for designated violations of Parts II and III. Each violation is classified by severity, Type A (least serious, largely administrative) through Type E (most serious), and the baseline dollar amount depends on both the violation type and the size of the violator:
| Violation type | Individual | Micro business | Small business | Large business/department |
|---|---|---|---|---|
| Type A | $200 | $250 | $500 | $2,000 |
| Type B | $500 | $750 | $1,500 | $6,000 |
| Type C | $1,000 | $1,500 | $3,000 | $12,000 |
| Type D | $2,000 | $3,500 | $7,000 | $25,000 |
| Type E | $4,000 | $7,500 | $15,000 | $50,000 |
“Micro business” is its own category — fewer than 5 employees or under $30,000 in revenue — sitting between an individual and a small business. A history of non-compliance within the prior 5 years adds twice the baseline amount, so a repeat penalty totals three times the baseline figure. Type A through C penalties are reduced by half if paid within 20 days. No single penalty can exceed the statutory cap of $250,000, and a penalty cannot be imposed more than 2 years after the violation occurred. Type A violations only became enforceable on January 1, 2022, a year after the rest of Part IV took effect.
This is general information, not legal advice; the dollar figures above are drawn from the Labour Program’s published reproduction of the regulation’s Schedule 3 and should be confirmed against the current regulation before relying on them, since the schedule is subject to amendment.
Source: Justice Laws — Administrative Monetary Penalties (Canada Labour Code) Regulations, SOR/2020-260 ·
Also: Government of Canada — Administrative monetary penalties (Labour Program)
Last reviewed .
Confidence: Verified
Related notes
- Federal Labour Program Enforcement Tools (CLC) — The federal Labour Program enforces the Canada Labour Code along a compliance continuum — education, compliance orders, payment orders for unpaid wages, administrative monetary penalties, and prosecution for serious cases — with the statutory obligation and the enforcement consequence always kept as separate, separately sourced claims.
- CLC Part II Prosecutions and Maximum Penalties — Serious Part II health-and-safety contraventions can be prosecuted, with maximum fines up to $1,000,000 and/or up to two years' imprisonment for the most serious offences; real, named prosecutions include Rogers Communications ($260,000), Logistec Arrimage/Stevedoring ($300,000), and Ken Johnson Trucking ($125,000).
- Real Federal AMP Enforcement Examples — Published administrative monetary penalty examples from the Labour Program's public-naming page show the AMP grid in practice, from a single $36,000 notice to $87,000 for a failure to give reasonable assistance — but the list ages: names are removed roughly two years after payment and confirmed compliance.
- Recordkeeping (CLC Part III) — Federal employers must keep hours and wage records for 36 months, paid-medical-leave records for 3 years, and the required averaging and holiday-substitution notices — recordkeeping failures are a designated AMP violation.
- Federal vs. Ontario Jurisdiction: The Employment-Law "Instead Of" Rule — A federally regulated employer follows the Canada Labour Code and related federal statutes in place of Ontario employment law, not on top of it — the federal regime replaces the ESA, OHSA, Human Rights Code, AODA and Pay Equity Act rather than adding to them.