Ontario has passed bill 148 which will amend the Employment Standards Act, 2000 (ESA) and the Labour Relations Act, 1995 (LRA), updating legislation that sets minimum employee protections and entitlements. Areas of amendment include holidays, vacations, overtime, and leaves as well as minimum wage. The bill passed second reading on October 18, 2017 and was referred to the Standing Committee on Finance and Economic Affairs.
It received third reading and Royal Assent on November 27, 2017.
DETAILS OF THE PROPOSED CHANGE:
The table below shows the payroll impacting changes in the proposed law with a comparison to the current law.
|Current Requirement||Requirement after January 2018|
|Holidays||Holiday Average: Four-week period of regular wages* divided by 20 (pro-rates the holiday average for part-time employment)Example: 3–day work week, 6 hours per shift = 3.6 hours’ holiday paySubstitute Holidays – where an employee works on a public holiday there is an option to be paid regular pay but have a substitute day off with public holiday pay*Include vacation pay payable||Holiday Average: Previous pay period of regular wages** divided by the days worked (recognizes per shift hours for part-time employment)Example: 3–day work week, 6 hours per shift = 6 hours’ holiday paySubstitute Holidays – retained, but written statement is required confirming:1. The worked holiday2. The date of the substitute holiday
3. The date the statement was delivered
**Exclude vacation pay payable. Refer to:
|Overtime multiple rates||Mixed hourly rate – prorate the rate to apply based on how much time was spent at each rate divided by the weekly threshold of 44 hours||Pay the rate of the work performed after the weekly threshold is reached.|
|Vacation||2 weeks||3 weeks, after 5 years|
|Record retention||3 years for vacation records||5 years for vacation records|
|Leaves||Personal emergency leave; 10 days unpaid limited to employers with >50 employeesParental leave – 35 weeks/ 37 weeksPregnancy leave for still-birth or miscarriage – 6 weeksFamily medical leave – 8 weeksCrime-related child disappearance leave – 52 weeks||Personal emergency leave: 8 days unpaid 2 days paid, available to all employees, no medical certificate can be requiredParental leave – 61 weeks/ 63 weeks
Effective date not yet proclaimedPregnancy leave for still-birth or miscarriage – 12 weeksFamily medical leave – 27 weeksCrime-related child disappearance leave – 104 weeks
Death of a child leave – 104 weeks
Domestic or sexual violence leave of 10 days and 15 weeks (in addition to Personal emergency leave, if eligible)
|General Minimum wage||October 1, 2017 – 11.60 per hour||January 1, 2018 – 14.00 per hour
January 1, 2019 – 15.00 per hour
WANT TO LEARN MORE?
Additional information is available at the following links:
Information provided by Quinte Payroll Services
Ceridian continues to monitor Ontario’s proposed employment standards. Stay tuned for more information on the actions required and what it means to you.