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On June 5, 2025, Québec adopted Bill 101, An Act to Improve Certain Labour Laws, which introduces numerous amendments to the Labour Code, the Act respecting labour standards, occupational health and safety legislation, and various other industry-specific statutes. The Bill received royal assent on October 28, 2025, and many of its provisions are already in force or will come into force in the near future. The following sections provide a practical overview of some of the key changes and what employers should know.
I. Labour Code: Grievance Arbitration and Penalties
One of the most significant aspects of Bill 101 concerns grievance arbitration. Specifically, the Bill imposes strict procedural timelines that fundamentally alter how grievances are managed.
A grievance arbitrator would need to be designated within six months of the grievance being filed. If the grieving party fails to request the Minister's appointment of an arbitrator within ten (10) days following the expiry of that period, the grievance would be deemed withdrawn. In addition, the first day of hearing would be required to take place no later than one year after the grievance is filed, subject to a single, time-limited extension granted by the arbitrator.
The Bill requires the parties to consider mediation before moving to arbitration and introduces new evidence-disclosure requirements, generally no later than 30 days before the hearing. Although mediation would not be mandatory, this change is intended to encourage earlier, party-driven dispute resolution. The Bill also clarifies that a mediator may not later act as arbitrator in the same case, and that information shared during mediation cannot be used in arbitration unless both parties agree.
Bill 101 marks the first time that Québec's Labour Code expressly sets out evidence-disclosure obligations for grievance arbitrations. Grievances filed before these provisions come into force would continue to be governed by the current procedural rules.
In addition, Bill 101 substantially overhauls the penal regime under the Labour Code. It replaces what were previously relatively modest fines with significantly higher minimum and maximum penalties, which vary according to whether the offence is committed by an employee, a union representative, or an employer. Minimum and maximum fines would be doubled for a second offence and tripled for subsequent offences, regardless of the nature of the underlying violation. The Bill also creates a new offence for obstructing or misleading a Labour Code investigator, with fines in some cases calculated on a daily basis. In practice, repeated non-compliance could therefore result in very substantial penalties.
II. Labour Standards: New Leaves and Increased Enforcement
Bill 101 also proposes notable amendments to the Act respecting labour standards ("ARLS").
Employees would gain the right to an unpaid, job-protected leave when complying with certain public health, emergency, or civil protection orders (including those issued under the Public Health Act or Emergencies Act). Employers would be permitted to request supporting documentation where the duration of the absence warrants it.
The Bill also expands reservist leave, by reducing the required uninterrupted service to three months, broadening the scope of qualifying activities (including rehabilitation for service-related physical or mental health issues), and allowing absences of up to 24 months over a 60-month period.
From an enforcement perspective, Bill 101 significantly increases fines for a range of ARLS violations, including failures relating to record-keeping, obstruction of the Commission des normes, d'équité, de la santé et de la sécurité du travail ("CNESST"), and agreements that provide conditions below statutory minimum employment standards. Of particular note, penalties for non-compliance with the provisions of the Act, including psychological harassment obligations, could reach up to $50,000. Employers must therefore ensure that their practices, policies and internal processes are fully aligned with all applicable obligations under the Act.
III. Industrial Accidents and Occupational Diseases: Expanded Coverage and Adjusted Indemnities
Bill 101 also seeks to enhance protections under the Act respecting industrial accidents and occupational diseases ("AIAOD").
In particular, the Bill broadens the definition of "worker" to include certain executive officers when they personally perform work for an entity other than the one for which they hold their executive title.
The Bill also introduces a voluntary negotiation mechanism for certain administrative review disputes, including those involving income replacement benefits, the worker's ability to work, return-to-work options, and what qualifies as suitable employment. It also modifies the offence relating to the unauthorized access of medical records by employers, lowering fines in most cases while increasing penalties where the records relate to injuries caused by physical or psychological violence.
In addition, changes to how a worker's income is calculated for income replacement could lead to higher reported earnings. The worker's income will be based on what they earned at the time of the injury and will be adjusted each year on the anniversary of when they became unable to work. This could, in turn, result in higher CNESST premiums for employers.
IV. Occupational Health and Safety
Amendments to the Act respecting occupational health and safety will now allow employers to claim CNESST reimbursement for a portion of the salary paid to pregnant or breastfeeding workers reassigned to other duties.
The Bill also introduces governance changes at the CNESST level, adjusts rules applicable to health and safety committees and representatives, and grants the CNESST new authority to establish building and safety standards for certain categories of buildings.
Finally, Bill 101 postpones the implementation deadlines for certain prevention and worker participation mechanisms that employers were required to put in place in 2025 under Bill 59, extending those deadlines to 2026. This one-year delay provides employers with additional time to prepare. After that date, workplaces with 20 or fewer employees will be required to implement an action plan, while those workplaces with 20 or more employees will need to adopt a formal prevention program and establish a health and safety committee. Until then, employers remain subject to the existing occupational health and safety framework and must continue to meet all applicable interim requirements.
Conclusion
Bill 101 signals a legislative trend toward accelerated dispute resolution, enhanced enforcement mechanisms, and expanded employee protections. While the Bill has received Royal Assent, a number of provisions are not yet in force and will take effect at a later date, including following the adoption of implementing regulations and government orders.
Employers should nevertheless begin assessing how these forthcoming changes may affect their labour relations practices, compliance frameworks and whether changes to any internal policies or practices should be made.
We will continue to monitor the implementation of Bill 101 and remain up-to-date as the regulatory framework and coming-into-force dates are clarified. In the meantime, please do not hesitate to contact us should you wish to discuss the potential implications for your organization.
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
© McMillan LLP 2025
