Mediation and Arbitration

This bulletin addresses the same subject as a first bulletin we published on March 10, 2025, regarding Bill 89 tabled by the government. The bill was assented to on May 30, 2025, with a number of amendments and clarifications. The bill provides for major amendments to the Labour Code (L.C.) to improve the way in which the needs of the population are taken into account during labour disputes by introducing two new mechanisms, in particular. Firstly, it grants the Minister of Labour the power to refer parties to binding arbitration when the Minister considers that a strike or lockout is causing or threatening to cause serious harm to the public after unsuccessful mediation or conciliation. Secondly, it creates a framework for a new category of services to be maintained, those “ensuring the well-being of the population,” under which critical services will be maintained during strikes or lockouts. Having followed the parliamentary proceedings closely, we noted that a number of significant amendments were made to the bill since it was introduced. The time limit to negotiate services ensuring the well-being of the population was changed from fifteen to seven clear working days and the date of entry into force of the new provisions postponed to November 30, 2025. During the parliamentary debates, the Minister gave a few examples of what could fall under the concept of “social, economic or environmental security” for the population. Social security could be at stake in situations affecting the development of a vulnerable person, or in cases linked to poverty, isolation or food insecurity, among others. Economic security could also be compromised in similar circumstances, particularly when they affect the ability to get to work or earn wages. The concept of environmental security may include natural disasters or a significant deterioration in environmental quality, in particular. Although it will ultimately be up to the courts to rule on the scope of these new provisions, we believe that the points raised in parliamentary committee will affect how they are interpreted. The following table illustrates the main differences between the general essential services framework that apply to the public services covered by the Act and the new measures that can be put in place to protect the population:   Essential services among public services  Services ensuring the well-being of the population Special powers granted to the Minister Scope of application (subject to exclusions)  Public or comparable services (ss. 111.0.16 and 111.0.17 L.C.) Parties designated by the government by order (s. 111.22.4 L.C.) Any dispute, but does not apply to certain sectors or organizations listed in s. 111.32.1 L.C. Process by which dispute is rendered subject to mechanism ALT decision (s. 111.0.17 L.C.) ALT decision (s. 111.22.5 L.C.) Notice from the Minister to the parties (s. 111.32.2 L.C.) Application criteria Possibility of endangering public health or safety (s. 111.0.17 L.C.) Disproportionate impact on the social, economic or environmental security of the population, particularly that of persons in vulnerable situations (s. 111.22.3 L.C.) Labour conflict that causes or threatens to cause serious or irreparable harm to the public and unsuccessful intervention of a conciliator or mediator (s. 111.32.2 L.C.) Effect once subject to mechanism Right to strike temporarily suspended until legal requirements are met (s 111.0.17 L.C.)   Right to lockout prohibited in public services (s. 111.0.26 L.C.)   Continuation of strike or lockout after a decision making the dispute subject to the mechanism is rendered, unless exceptional circumstances warrant otherwise pending a decision by the ALT on whether the minimum services to be maintained are sufficient (s. 111.22.11 L.C.) Right to strike and lockout ceasing at the time indicated on the Minister’s notice (s. 111.32.2 L.C.) Procedure 1. Mandatory negotiation between the parties (s. 111.0.18 L.C.) 1. Mandatory negotiation between the parties within seven clear working days of an ALT decision (s. 111.22.7 L.C.) Parties consulted for 10 days on choice of arbitrator. If this fails, appointment by the Minister (s. 111.32.3 L.C.)   At any time, the parties may agree upon one of the matters of the dispute. The agreement shall be recorded in the arbitration award, which shall not amend it (s. 111.32.4 L.C.). Procedure 2. Forwarding of the agreement to the ALT for sufficiency assessment. If no agreement is reached, the union must forward a list of which services must be maintained (s. 111.0.18 L.C.). 2. Forwarding of the agreement to the ALT for sufficiency assessment (s. 111.22.8 L.C.) Dispute referred to arbitration, with necessary adaptations (ss. 111.32.2 and 111.32.5 L.C.) Procedure 3. ALT can help the parties to reach an agreement (s. 111.0.18 L.C.) 3. ALT can help the parties to reach an agreement (s. 111.22.7 L.C.) n/a ALT’s main role Sufficiency assessment, recommendations to parties in the event of insufficiency (s. 111.0.19 L.C.) Sufficiency assessment, determination of services to be maintained in case of insufficiency or if no agreement is reached (ss. 111.22.8 and 111.22.9 L.C.) Rule on the conditions of employment in dispute. Term and amendment of decisions The ALT’s decision to require a certified association and an employer to maintain services applies to each negotiation stage.   The ALT may also amend or revoke its decision at any time (s. 111.0.17.1 L.C.). The ALT’s decision to require a certified association and an employer to maintain services applies to the negotiation stage in progress.   The ALT may also amend or revoke its decision at any time, after the parties have submitted their views (s. 111.22.10 L.C.). Save for some exceptions, the award binds the parties for no less than one year or more than three years. The parties may, however, agree to amend the content, wholly or in part (s. 92 L.C.).   The arbitrator may at any time correct an award containing a mistake in writing or calculation or any other clerical error (s. 91.1 L.C.). Entry into force October 30, 2019 November 30, 2025 November 30, 2025 Note that we summarized the information above to make it concise. Given the complexity of the provisions in question and the many nuances and clarifications that may apply, you should read the specific provisions of the Labour Code or contact your legal advisors before making any decisions. We are available to answer any questions you may have about the impact of these new provisions on your business or to help you address such matters.

Understanding the House Agreement On June 6, 2025, a landmark settlement catalyzed a major turning point and reshaped the dynamics of American collegiate sports. By approving the House v. NCAA settlement, U.S. courts authorized universities to directly compensate their athletes for the use of their name, image, and likeness (NIL), which represents a significant departure from previous restrictions. In practical terms, NIL rights grant athletes’ exclusive control over their personal brand, enabling them to generate revenue from the commercial use of their identity. In addition to establishing a new legal framework, this settlement provides for a retroactive payout of $2.8 billion to be shared among Division I athletes, the National Collegiate Athletic Association (NCAA)’s top tier, who have competed since 2016. Building on the Supreme Court’s 2021 ruling in NCAA v. Alston, this development stems from the Court's determination that the NCAA’s restrictions on certain education-related benefits constituted antitrust violations. While Alston laid the groundwork for the commercialization of NIL agreements, the subsequent years were plagued by legal uncertainty and a lack of consistency in regulations surrounding the compensation of collegiate athletes. As states and universities implemented divergent policies and internal rules, former Alabama head coach Nick Saban posed a question that remains unanswered to this day: “Where does it end?” A Uniform National Framework at Last The House v. NCAA settlement establishes the first nationwide framework for compensating collegiate athletes. Starting in the 2025-2026 academic year, Division I programs will be permitted to allocate up to $20.5 million annually distributed among their athletes, covering both athletic potential and NIL monetization. This represents a major shift, as universities themselves, not just third-party sponsors, will now be able to directly fund their athletes. Simultaneously, an independent entity, the College Sports Commission LLC, has been established to oversee NIL agreements valued at $600 or more. The Commission will have the authority to approve, modify or reject deals that exceed fair market value or deviate from their intended purpose. For instance, NIL deals cannot reward athletic performance, influence recruitment or transfer decisions, nor serve as disguised salaries, practices commonly known as pay-for-play incentives. To ensure prompt and confidential resolution of disputes, the agreement introduces an expedited arbitration mechanism. Managed by an independent panel, this procedure requires parties to submit their documents within a short timeframe, with decisions to be rendered within 45 days of case initiation, and with no possibility for appeal. The goal is to safeguard athletes’ rights while preventing an overload of NIL-related cases in civil courts. In the wake of this recognition, the introduction of direct payments and the consolidation of the NIL framework are also reshaping traditional career paths for collegiate athletes. Increasingly, collegiate athletes are choosing to delay their entry into professional drafts, particularly in the NBA and NFL, to benefit from the financial and strategic advantages that college sports now offer. For athletes who are not guaranteed an early draft selection, staying in school can mean earning substantial income, sometimes comparable to that of professional athletes, while retaining greater control over the development of their athletic careers. In an increasingly competitive market, this new leverage is redefining the balance of power between athletes, universities, and professional franchises. This reform also resonates with the journeys of several Quebec athletes who came up through the NCAA, such as Bennedict Mathurin and Luguentz Dort, both of whom reached this year’s NBA Finals. Their stories illustrate how American college sports can serve as a powerful gateway that now financially recognizes and rewards its athletes. The fact that these players grew up in Montréal-North before rising through the NCAA makes it clear that Quebec is claiming its place in this evolving landscape, not only as a pool of talent, but also as a fertile soil for cultivating collegiate careers that are both inspiring and financially profitable. What Lies Ahead? While this reform represents a milestone, it also prompts significant new legal challenges. A pending appeal challenges the $2.8 billion retroactive payout, arguing that it could violate Title IX’s mandate for gender equity in federally funded education programs. Critics warn that, without clear safeguards, the distribution may exacerbate rather than reduce existing disparities between men’s and women’s sports. Furthermore, the Johnson v. NCAA case is currently pending before the U.S. District Court for the Eastern District of Pennsylvania, where collegiate athletes are seeking to be recognized as university employees, which would entitle them to a minimum wage and other labour protections. With over 350 universities and approximately 200,000 athletes impacted, the implementation of this reform is likely to vary significantly across institutions. Collegiate athletics is entering a new era of remunerated athletes but remains for the moment in a state of transition and uncertainty.

Introduction On February 1, 2023, Minister of Justice Simon Jolin-Barrette introduced and tabled in the National Assembly Bill 8 entitled An Act to improve justice efficiency and accessibility, in particular by promoting mediation and arbitration and by simplifying civil procedure in the Court of Québec1 (hereinafter the “Bill”). The Bill makes amendments to several laws, including the Courts of Justice Act2 and the Professional Code3. We are particularly interested in those relating to the Code of Civil Procedure (“C.C.P.”),4 and more specifically to proceedings pending before the Court of Québec of which practitioners and persons subject to trial will want to take note. Proposed Amendments to the Code of Civil Procedure Most of the amendments to the C.C.P. will come into effect on June 30, 20235. We note the following, in particular: Jurisdiction of the Court  Exclusive jurisdiction granted to the Court of Québec to hear applications in which the amount claimed or the value of the subject matter of the dispute is less than $75,000,6 instead of $85,000, which is the limit in effect on the date of this bulletin. However, the Court of Québec will continue to hear applications under the $85,000 limit that were filed prior to June 30, 2023, and these will remain governed by the provisions of the C.C.P., as they read before June 30, 2023;7 Concurrent jurisdiction with that of the Superior Court granted to the Court of Québec where the amount claimed or the value of the subject matter of the dispute is equal to or exceeds $75,000 but is less than $100,000.8 Case management The Bill also introduces a special procedure for applications in civil matters brought before the Court of Québec in which the amount claimed or the value of the subject matter of the dispute is less than $100,000:9 The preparation of a case protocol will no longer be necessary, as set time limits will now apply to all recourses;10 Originating applications must not exceed five pages in length;11 Preliminary exceptions must be disclosed within 45 days of filing an application;12 A defendant’s arguments must be disclosed within 95 days of filing an application;13 Settlement conferences will be held automatically after trial readiness is achieved (settlement conferences may also be replaced by pre-trial conferences);14 Cases will be set down for trial and judgment by a court clerk.15 Requests for particulars as to allegations made or to strike immaterial allegations The Court of Québec will only authorize such requests by way of exception and if warranted on serious grounds.16 Examinations The limit below which holding an oral examination on discovery is not permitted will be increased to $50,000.17 Currently, the limit is $30,000; Each party will be entitled to only a single oral examination on discovery, unless the Court decides otherwise;18 Written examinations must not exceed three pages in length.19 Expert opinion Parties must seek a joint expert opinion in cases where the amount claimed or the value of the property claimed is equal to or less than $50,000, unless the Court decides otherwise.20 Small claims With the parties’ consent, the Court may render judgment on the face of the record when the matter concerns the recovery of a claim of $15,000 or less.21 Adjustments Each of the monetary limits for the Court of Québec’s jurisdiction will be adjusted annually.22 Conclusion The proposed measures will significantly impact how lawyers will now handle and manage disputes in which the amount claimed is less than $100,000. The concurrent jurisdiction of the Court of Québec with that of the Superior Court for cases with a value equal to or exceeding $75,000 but less than $100,000 is interesting: Although the procedure for conducting proceedings in the Court of Québec has been simplified for such cases, it is likely that many cases will nonetheless be instituted in the Superior Court, as its procedural process is a little less intrusive, particularly with respect to joint expert opinions, mandatory settlement conferences and the number of examinations. The Minister of Justice is hopeful that the amendments to the Act will improve access to justice for persons subject to trial, thanks to faster and less costly justice services, among other things. While these amendments will allow for more out-of-court settlements and prevent costly trials, we believe that there is still some uncertainty as to how accessible the expedited process will be, given the current staffing shortages in courthouses. 1. An Act to improve justice efficiency and accessibility, in particular by promoting mediation and arbitration and by simplifying civil procedure in the Court of Québec, Bill 8 (Introduced — February 1, 2023), 43rd Legislature, 1st Session (Qc) (“B.”). 2. Courts of Justice Act, CQLR c. T-16. 3. Professional Code, CQLR, c. C-26. 4. Code of Civil Procedure, CQLR c. C-25.01. 5. Transitional provision: claims of $85,000 initiated in the Court of Quebec before June 30, 2023 will continue under the provisions in effect prior to the coming into force of the PL amendments (PL, s 44). 6. B., s. 3; C.C.P., art. 35. 7. B., s. 44. 8. B., s. 3; C.C.P., art. 35. 9. B., s. 8; C.C.P., art. 535.1. 10. B., s. 8; C.C.P., art. 535.2. 11. B., s. 8; C.C.P., art. 535.3. 12. B., s. 8; C.C.P., art. 535.5. 13. B., s. 8; C.C.P., art. 535.6. 14. B., s. 8; C.C.P., art. 535.12. 15. B., s. 8; C.C.P., art. 535.13. 16. B., s. 8; C.C.P., art. 535.11. 17. B., s. 7; C.C.P., art. 229. 18. B., s. 8; C.C.P., art. 535.9, para. 2. 19. B., s. 8; C.C.P., art. 535.9. 20. B., s. 8; C.C.P., art. 535.15. 21. B., s. 15; C.C.P., art. 561.1. 22. B., s. 3; C.C.P., art. 35.

The March 22, 2017 Budget of the Government of Canada, through its “Innovation and Skills Plan” (http://www.budget.gc.ca/2017/docs/plan/budget-2017-en.pdf) mentions that Canadian academic and research leadership in artificial intelligence will be translated into a more innovative economy and increased economic growth. The 2017 Budget proposes to provide renewed and enhanced funding of $35 million over five years, beginning in 2017–2018 to the Canadian Institute for Advanced Research (CIFAR) which connects Canadian researchers with collaborative research networks led by eminent Canadian and international researchers on topics including artificial intelligence and deep learning. These measures are in addition to a number of interesting tax measures that support the artificial intelligence sector at both the federal and provincial levels. In Canada and in Québec, the Scientific Research and Experimental Development (SR&ED) Program provides a twofold benefit: SR&ED expenses are deductible from income for tax purposes and a SR&ED investment tax credit (ITC) for SR&ED is available to reduce income tax. In some cases, the remaining ITC can be refunded. In Québec, a refundable tax credit is also available for the development of e-business, where a corporation mainly operates in the field of computer system design or that of software edition and its activities are carried out in an establishment located in Québec. This 2017 Budget aims to improve the competitive and strategic advantage of Canada in the field of artificial intelligence, and, therefore, that of Montréal, a city already enjoying an international reputation in this field. It recognises that artificial intelligence, despite the debates over ethical issues that currently stir up passions within the international community, could help generate strong economic growth, by improving the way in which we produce goods, deliver services and tackle all kinds of social challenges. The Budget also adds that artificial intelligence “opens up possibilities across many sectors, from agriculture to financial services, creating opportunities for companies of all sizes, whether technology start-ups or Canada’s largest financial institutions”. This influence of Canada on the international scene cannot be achieved without government supporting research programs and our universities contributing their expertise. This Budget is therefore a step in the right direction to ensure that all the activities related to artificial intelligence, from R&D to marketing, as well as design and distributions, remain here in Canada. The 2017 budget provides $125 million to launch a Pan-Canadian Artificial Intelligence Strategy for research and talent to promote collaboration between Canada’s main centres of expertise and reinforce Canada’s position as a leading destination for companies seeking to invest in artificial intelligence and innovation. Lavery Legal Lab on Artificial Intelligence (L3AI) We anticipate that within a few years, all companies, businesses and organizations, in every sector and industry, will use some form of artificial intelligence in their day-to-day operations to improve productivity or efficiency, ensure better quality control, conquer new markets and customers, implement new marketing strategies, as well as improve processes, automation and marketing or the profitability of operations. For this reason, Lavery created the Lavery Legal Lab on Artificial Intelligence (L3AI) to analyze and monitor recent and anticipated developments in artificial intelligence from a legal perspective. Our Lab is interested in all projects pertaining to artificial intelligence (AI) and their legal peculiarities, particularly the various branches and applications of artificial intelligence which will rapidly appear in companies and industries. The development of artificial intelligence, through a broad spectrum of branches and applications, will also have an impact on many legal sectors and practices, from intellectual property to protection of personal information, including corporate and business integrity and all fields of business law. In our following publications, the members of our Lavery Legal Lab on Artificial Intelligence (L3AI) will more specifically analyze certain applications of artificial intelligence in various sectors and industries.