Monday, April 23, 2018

A Quick Guide to Employment Standards Act Changes in Ontario

Bill 148 has overhauled Ontario’s Employment Standards Act. Here is a summary of the important changes that are rolling out and when they come into effect.

November 27, 2017

• Employee misclassification and penalties – Employers may not misclassify employees as “independent contractors.”

December 3, 2017

• Parental leave increase – Up to 61 weeks for employees who take pregnancy leave.

• Leave for critical illness of an adult family member – An employee with six months of service is eligible to take up to 37 weeks of unpaid leave to care for a critically ill child; up to 17 weeks for a critically ill adult.

January 1, 2018

• Minimum wage – General minimum wage is $14 per hour.

• Paid vacation – Minimum two weeks of vacation, four percent of gross annual wages as vacation pay. After five years of employment, minimum three weeks of vacation, six percent of their gross annual wages as vacation pay.

• Statutory/public holidays – The government has halted any changes to the existing formula while it reviews concerns expressed by business owners. It now hopes to have to have a new system in place by 2020.

• Personal emergency leave (PEL) and two paid days – 10 PEL days per year, including first two PEL days with pay.

• Other leaves expanded or created – Domestic or sexual violence leave, family medical leave, leave for the death of a child and for crime-related disappearance, stillbirth or miscarriage leave.

• Expanded definition of employee – “A person who receives training from a person who is an employer, if the skill in which the person is being trained is a skill used by the employer’s employees.”

• Payments to employees and order to pay – An employment standards officer can issue an order for an employer to pay owed money to an employee.

• Collections by the government and authorized collectors – Government rights improved for warrants, liens, and to hold securities.

April 1, 2018

• Equal pay for equal work – Employees must be paid equally if they perform substantially the same work in the same establishment; if they have the same skill, effort, and responsibility; and work is performed under similar working conditions. Temporary help agency employees must be paid the same rate as permanent employees. These exemptions apply: pay for seniority, pay for merit, and a system that determines pay by quality or quantity of production.

January 1, 2019

• Minimum wage – Increases to $15 per hour. Adjustment for inflation will be applied every October starting October 2019.

• Cancellation pay – If a shift is cancelled within 48 hours, employees must be paid for three hours. Not required if the employer cannot provide work due to circumstances beyond the employer’s control.

• Regularly works three hours–guaranteed three paid hours – For most employees, minimum three-hour shift.

• On-call employees guaranteed three paid hours – Employees on call will be paid three hours if no work, or will be paid not less than three hours if called out to work. Required for each 24-hour on-call period.

• Right to refuse–96-hour rule – An employee can refuse work or on-call duty if not provided 96 hours’ notice. Does not apply for emergencies, threats to public safety, essential public services, etc.

• Changes to schedule or work location – After three months, an employee may request to change schedule or work location. Discussion must follow. Employer must provide written reply and must provide reasons for refusal.

A Quick Guide to Employment Standards Act Changes in Ontario

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