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Bill C-58: Canada’s Anti-Replacement Worker Law Is Now in Force: What Federally Regulated Employers Must Know
Canada's federal anti-replacement worker legislation is now law. Bill C-58, which amends the Canada Labour Code to prohibit federally regulated employers from using replacement workers during legal strikes and lockouts, came into force on June 20, 2025. The change is significant employers who relied on the ability to continue operations through a labour dispute by reassigning work or hiring temporary staff no longer have that option. Penalties for non-compliance reach $100,000 per day. Federally regulated employers need to understand what is now prohibited, where the limited exceptions apply, and what their strike and lockout contingency plans need to look like going forward.
Are you a federally regulated employer with a collective agreement coming up for renewal or a potential labour dispute on the horizon?
Your strike and lockout contingency planning needs to reflect the new law. Using replacement workers in a way that violates Bill C-58 attracts penalties of up to $100,000 per day. Get legal advice on what your options now look like.
Call: 1-800-771-7882 Speak With a Labour LawyerWhich employers and sectors are affected
Bill C-58 applies to employers regulated under the Canada Labour Code federally regulated industries. If your organization operates in one of the following sectors, you are subject to the new prohibition.
Provincially regulated employers the large majority of Canadian workplaces are not affected by Bill C-58. However, Quebec and BC already have similar restrictions in place at the provincial level, and labour groups have publicly stated that extending anti-replacement worker legislation across all provinces is a priority. Provincially regulated employers in other provinces should monitor this space.
What is now prohibited
External replacement workers
Federally regulated employers cannot hire individuals from outside the organization to perform the duties of striking or locked-out employees. This includes temporary staffing agencies, contractors, and any external workers brought in specifically to maintain operations during a legal work stoppage.
Internal redeployment to bargaining unit work
Non-union employees and existing staff from other parts of the organization cannot be assigned to cross picket lines and take over bargaining unit duties during a strike or lockout. This significantly limits the employer's ability to maintain normal operations through a labour dispute using its existing workforce.
Management performing bargaining unit work
Managers and supervisors cannot fill in for striking employees unless the work in question is genuinely part of their regular, ongoing duties performed before the labour dispute. Assigning managers to bargaining unit tasks they would not normally perform in order to maintain operations during a strike is prohibited.
The limited exceptions
Bill C-58 provides narrow exceptions where the use of replacement workers may be permitted. These apply only where there is a genuine and imminent threat to the life, health, or safety of the public, or where serious damage to property would result without intervention. Even where these exceptions apply, the law requires a specific sequence: the employer must first offer the work to members of the bargaining unit who are not participating in the strike or lockout before seeking any other source of assistance. The exceptions are narrow and the procedural requirement is strict. Do not assume an operational inconvenience or financial pressure qualifies get legal advice before relying on any exception.
What federally regulated employers need to do now
Are you a federally regulated employer reviewing your labour relations strategy in light of Bill C-58?
The anti-replacement worker law fundamentally changes the balance in collective bargaining and labour disputes. Our team advises employers on labour law compliance and dispute strategy. Get advice before a dispute puts the new rules to the test.
Get Legal Advice Or call us: 1-800-771-7882Frequently asked questions about Bill C-58
When did Bill C-58 come into force?
Bill C-58 came into force on June 20, 2025. It amends the Canada Labour Code to prohibit federally regulated employers from using replacement workers during legal strikes and lockouts. The law applies to all federally regulated employers from that date forward.
Does Bill C-58 apply to provincially regulated employers?
No. Bill C-58 applies only to employers regulated under the Canada Labour Code federally regulated industries including banking, telecommunications, airlines, rail, and interprovincial transportation. The majority of Canadian workplaces are provincially regulated and are not subject to Bill C-58. However, Quebec and BC already have similar restrictions and pressure is building to extend anti-replacement worker legislation to other provinces.
Can managers perform bargaining unit work during a strike under Bill C-58?
Only where the work is genuinely part of their regular, pre-existing duties. Assigning managers to bargaining unit tasks they would not normally perform in order to maintain operations during a strike is prohibited. Where you intend to rely on this exception, the regular nature of the manager's duties before the dispute must be clearly documented. Get legal advice before relying on the management exception in any specific situation.
What are the exceptions to the replacement worker prohibition?
The exceptions are narrow. Replacement workers may be used where there is a genuine and imminent threat to the life, health, or safety of the public, or where serious property damage would result without intervention. Even where these conditions are met, the employer must first offer the work to bargaining unit members not participating in the strike or lockout. Operational inconvenience, financial pressure, or customer service disruption do not qualify as exceptions. Get legal advice before relying on any exception.
What are the penalties for violating Bill C-58?
Penalties of up to $100,000 per day apply for violations of the anti-replacement worker provisions. This is a deliberate enforcement mechanism designed to make non-compliance more expensive than the operational benefit of using replacement workers. The financial exposure from a violation particularly during an extended labour dispute is significant and should be a primary consideration in any strike or lockout contingency planning.
Questions about Bill C-58 or collective bargaining strategy for federally regulated employers?
Our team advises employers across Canada on labour law, collective bargaining, and strike and lockout preparedness. Contact us for a confidential consultation before a labour dispute puts the new rules to the test.
Call us at 1-800-771-7882 or fill out the form below and we will be in touch.
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