Quebec Language Charter Amendments: Impact on Business Contracts

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The recent amendments to the Quebec Language Charter aim to strengthen French as the province's only official language by enhancing language requirements in commerce, administration, and workplaces. Businesses are obligated to serve clients in French, including business clients, and there are specific rules regarding language in contracts. Exceptions exist for certain types of contracts and scenarios outside Quebec. These changes have significant implications for businesses operating in Quebec.

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QUEBEC CHARTER OF THE FRENCH LANGUAGE L AFFAIRE EST KETCHUP.

Laffaire est ketchup? Quebec expression meaning everything is fine or everything is settled. It is sometimes used to end a meeting when the problem is resolved.

Introduction Royal assent of Bill 96: June 1, 2022 Intent is to further recognise French as the province s only official language. Strengthens the provisions with respect the language of commerce, language of the administration as well as the language in the workplace. 3

COMMUNICATIONS WITH CLIENTS

Right to be served in French Express obligation for businesses to inform and serve consumers in French. Extends to business clients, not just individuals. Timing: June 1, 2022 5

LANGUAGE OF CONTRACTS

Contracts pre-determined by one party As of June 1, 2023: Parties may only be bound by the English version if, after having been provided with the French version, the client expressly requests to be bound by the English version 7

Contracts with standard clauses Contracts containing standard clauses are not all contracts of adhesion. If the essential elements of a contracts are negotiable (e.g. nature of the services, price, term, interest rate, etc.) and the contract is not with a consumer, the contract may not qualify as contract of adhesion The parties have expressly requested that this agreement and all related documents be drawn up in English 8

Exceptions Contracts used in relations outside Qu bec; Loan agreements; Insurance policies having no French equivalent in Quebec if they come from outside Quebec or their use is not widespread in Quebec. Financial contract for the purpose of financial risk management; contract entered into with a person or company carrying out clearing house activities; contract entered into on a platform for trading in a derivative instrument, a transferable security or other movable property; 9

Contracts with the administration All contracts concluded by the Administration (including subcontracting) are drafted exclusively in French Any documents exchanged in the pre-contractual phase and any documents provided as per the agreement will also need to be exclusively in French Any document sent to the government to obtain a permit, an authorization, a subsidy or financial assistance will need to be exclusively in French Timing: June 1, 2023 10

REQUIREMENTS FOR EMPLOYERS

Job postings Job postings must: - Be drawn up simultaneously in French - Be published by transmission means of the same nature - Reach a comparable audience, all proportions kept. Must indicate the reason why English is required when posting a job offer. Timing: June 1, 2022 12

Communications with staff Written communications sent to the entire staff, groups or individual team member must be in French (including after termination). Individuals may request to receive communications in English Application forms, documents related to working conditions, training documents need to be in no less favourable conditions. available in French Timing: June 1, 2022 13

Employment contracts Adhesion see above. French contract must be presented first Negotiated agreement: English agreement is acceptable provided that it is the express wish of the parties Timing: June 1, 2022 14

Knowledge of language other than French Prohibited to require the knowledge of a language other than French except if it is required for the performance of the employee s duties AND the employer took reasonable means to avoid imposing such a requirement. This obligation is deemed fulfilled if : 1. The employer has assessed the language needs associated with the tasks 2. The language knowledge of other staff members is insufficient for the performance of these tasks 3. The employer has restricted as much as possible the number of positions requiring such knowledge Timing: June 1, 2022 15

Recourse for prohibited practices Employers are prohibited from dismissing, laying off, demoting, transferring, taking reprisals or imposing any other penalty on a staff member for the reasons that follow: (1) Employee has demanded a right in relation to the language of work or to deter an employee from exercising a right in relation to the language of work; (2) Employee does not have sufficient knowledge of English, where the performance of the duty does not require it; (3) Employee has taken part in meetings of other francization committee related tasks OR to induce an employee to endorse a francization program or to dissuade them from doing so; (4) Because an employee has, in good faith, communicated information to the OQLF or cooperated with the Office. Timing: June 1, 2022 16

PACKAGING

Packaging Packaging, instructions for use and any other documents provided with the product must be in but no translation can be available under more favourable terms than French. Example: Instruction manual online French. Can be bilingual Same rule applies to invoices, receipts, releases and other similar documents. Timing: June 1, 2022. 18

Trademark exception The current regulations provide for an exception to the general rule: a recognized trademark within the meaning of the Trademarks Act can be used in English only, unless a French version has been registered. 19

Trademark exception This exception is being modified in the following manner: (i) Common law trademarks will no longer be recognised as a trademark exception; Only registered marks will. (i) Generic terms or terms that provide a description of the product that are included in English-only marks will need to appear in French on the product or on a medium which is permanently attached to it. Timing: June 1, 2025 20

Trademark exception 21

ADVERTISING & PUBLICATIONS

Advertising & Publications Advertising on social media, websites and other platforms may be drawn up in a language other than French only if the French version is available in conditions at least as favourable. This also applies to catalogues, brochures, flyers, commercial directories, order forms and other similar documents. Timing: June 1, 2022 23

Public signs and posters General rule remains: French must be markedly predominant Common law trademarks will no longer be recognised as a trademark exception; Only registered marks will. 24

LANGUAGE OF LEGAL PROCEEDINGS

Language of legal proceedings* Court pleadings in English filed by corporations must include a certified French translation. The translation must be done by a licensed translator at the corporation s expense. Timing: September 1, 2022 * Currently suspended by the Superior Court of Quebec 26

SANCTIONS & REMEDIES

Powers of the Office Increased inspection powers May issue an order to comply May seek an injunction Timing: June 1, 2022 28

Penalties Penal sanctions: From $3,000 - $30 000 for companies $700 - $7,000 for individuals / $1,400 - $14,000 for directors and officers Doubled or tripled for subsequent offences Potential for additional fines Each day is a separate offence Administrative penalties such as permit or authorization revoked Timing: June 1, 2022 29

Private right of action Complaint with the office Private remedies to seek redress and compensation (including the cancellation of contract or the reduction of the contractual obligations) Injunction to obtain the cessation of certain language rights and potential punitive damage claims under the Charter of human rights and freedoms Timing: June 1, 2022 30