Labour Program administrative monetary penalties (AMP)
On this page
- What is an administrative monetary penalty (AMP)
- Who may receive an AMP
- How violations and size of business are categorized for an AMP
- How an AMP is calculated
- Requesting a review of an AMP
- Public naming of employers
What is an administrative monetary penalty (AMP)
An administrative monetary penalty (AMP) is a financial deterrent to non-compliance with the:
- Canada Labour Code (Code), and
- related regulations
The goal of this penalty is to:
- encourage compliance
- serve as a supplement to existing enforcement measures, and
- offer an alternative to prosecution
As a part of the compliance and enforcement process, the Labour Program will focus on supporting and encouraging employers, to be compliant with the Code, through:
- education, and
- awareness
In general, an AMP would only be issued:
- after voluntary compliance measures are exhausted, and
- non-compliance persists
In some cases, the severity of the violation and the impact on employees, or the re-occurrence of the violation, may require the Labour Program to issue an AMP earlier in the compliance and enforcement process. As well, if the issuance of an AMP does not help to deter non-compliance and the violation continues to occur, the Labour Program may issue an AMP for each day on which the employer/individual:
- committed the violation, or
- continues the violation
Who may receive an AMP
Anyone may receive an administrative monetary penalty if they violate or fail to comply with:
- a provision of the Code
- a direction of the Code
- an order (for example, a payment order), or
- a condition of an ‘excess hours’ permit
This includes:
- employers
- employees, such as those involved in cases of reckless or deliberate behaviour that endangers the health and safety of themselves or others within the workplace
- officers
- directors or agents of a corporation
- senior government officials or other person exercising managerial or supervisory functions, and
- federal departments and other government organizations
How violations and size of business are categorized for an AMP
The Labour Program categorizes violations under the Code based on how they affect an employee(s).
Violation category A
Related to administrative provisions in the Code, including:
- Part II (occupational health and safety), and
- Part III (labour standards)
Violation category B
Occupational health and safety:
- related to low-risk hazards that may result in a minor injury or illness that requires medical treatment but that do not result in disabling injuries
Labour standards:
- related to calculations and payment of wages
Violation category C
Occupational health and safety:
- related to medium-risk hazards that may result in:
- a serious injury, or
- an illness that prevents an employee from effectively performing their regular work duties
Labour standards:
- related to leave or other standards which could have an impact on:
- financial security, or
- health and safety of an individual or group of individuals
Violation category D
Occupational health and safety:
- related to high-risk hazards that may result in serious injury or fatality
Labour standards:
- related to the employment and protection of employees under 18 years of age
Violation category E
Related to occupational health and safety only as it relates to:
- immediate life-threatening hazards, or
- hazards known to cause latent occupational disease
These hazards give an employee little to no opportunity to avoid or minimize severe injury or death or occupational disease.
For a complete list of Part II and Part III violations, refer to Schedules 1 and 2.
Size of business
The penalty amount for a type A, B, C, D or E violation will differ based on whether the employer is:
- an individual
- a micro business (any business with fewer than 5 employees or less than $30, 000 in annual gross revenues)
- a small business (any business with fewer than 100 employees or less than $5 million in annual gross revenues, that is not a micro business), or
- a large business, which means any business that is not a micro business or small business
How an AMP is calculated
First AMP amount
The amount of the first AMP is based on:
- the type of violation(s), and
- the size of your business
The Labour Program refers to this amount as a ‘baseline amount’ and calculates it based on the following formula:
- violation(s) + business size = baseline amount (first monetary penalty)
Second or subsequent AMP amount
The amount of your second or subsequent penalty is equal to the baseline amount plus 200% of the baseline amount for repeat non-compliance which includes any previous:
- monetary penalty for same or higher classification of violation
- prosecution, or
- injunction
The Labour Program calculates this amount based on the following formula:
- Violation(s) + business size = baseline amount
- Baseline amount + 2 x baseline amount = Second (and subsequent) monetary penalty
Requesting a review of an AMP
Within 30 days from the date on which the notice of violation (AMP) is served, you may request in writing, a review of:
- the penalty
- the facts of the violation
- both 1. and 2.
To do this, you must make your request to the Head of Compliance and Enforcement (the Head). Your request must contain a concise statement of the facts and grounds to support a review.
When you request a review, the requirement to pay the administrative monetary penalty (AMP) is put on hold until the review is completed. For more information, consult Cancellation of review.
In exceptional circumstances, you may be allowed to make a request for review in more than 30 days after you were served with the notice of violation.
Request for a review of an AMP filed outside the 30-day period
The Head will consider requests for reviews made after the 30-day period on a case-by-case basis. The Head will grant the request only if you meet all of the following conditions:
- you provide a good reason(s) in writing for being unable to file the request for review within the 30-day period
- you provide proof which supports the reason(s), and
- you make the request as soon as possible
If your request does not meet the above conditions, the Head will not review it. The Head’s decision to not review your request cannot be appealed to the Canada Industrial Relations Board (Board).
Reason and supporting evidence to request a review of an AMP outside the 30-day period
Examples of “good reasons” and proof are:
- you filed the request for review with a government official who had no authority to deal with the request for review. Proof of filing may include a date stamped acknowledgement letter, or
- you were physically unable to request a review due to reasons such as illness or being out of the country. Proof may include proof of hospitalization or proof of airline tickets and/or itinerary confirming the dates of travel
Make the request for a review as soon as possible
You must make the request for review as soon as possible. For example, if you were outside the country 2 months after the 30-day period to request a review, you must submit the request as soon as you return.
Request for a review of an AMP may be treated as an appeal
The Head may decide whether to treat your request for review as:
- an appeal, or
- a review
If the Head treats the request as an appeal, they will refer the matter to the Board. If the Head treats the request as a review, the Labour Program will conduct the review.
Cancellation of a request for a review of an AMP
The Labour Program will cancel a request for review if you:
- pay the penalty before the review or while the Review Team is conducting the review, or
- request that the Labour Program cancel the review
Following a Labour Program review decision of the AMP
Once a decision on the review is made, you will be notified in writing. If the decision is related to an occupational health and safety matter (Part II of the Code), you must, without delay, give a copy of the decision to the workplace committee or health and safety representative.
If the decision states that:
- there is no violation:
- the Labour Program will cancel the notice of violation and you are not required to pay the penalty
- a violation was confirmed and/or the amount of penalty is upheld (confirmed or varied), then you must do one of the following:
- pay the amount of the penalty, or
- if you disagree with the decision, you may appeal the decision in writing. You must do so within 15 days after the day on which the Labour Program served the review decision. You must send the request for appeal to the Board and it must contain a statement of the grounds of appeal
Note that if you do not pay the full amount of the penalty or do not request an appeal, you will be considered to have committed the violation. You will be liable to pay the penalty amount set out in the decision letter. You may also be publicly named on the Labour Program Website.
A penalty constitutes a debt to Her Majesty in right of Canada. Failure to pay the amount may result in collection action by the Canada Revenue Agency.
Public naming of employers
The Labour Program will publicly name employers who have received an AMP.
Related links
- Employer compliance with federal labour standards
- Federal labour standards
- Occupational health and safety
- Canada Labour Code, Part IV, Administrative Monetary Penalties
- Administrative Monetary Penalties (Canada Labour Code) Regulations
- Administrative Monetary Penalties - IPG 106
- Public naming of employers
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