Ontario’s Bill 148, the Fair Workplaces, Better Jobs Act, 2017 (“Bill 148”), received Royal Assent on November 27, 2017. Bill 148 has introduced a number of major amendments to the Employment Standards Act, 2000 (the “ESA”) as well as to other employment-related legislation.
In light of these changes, employers who operate in the province of Ontario are well advised to ensure compliance with the recent amendments and take steps in order to avoid liability under the ESA, including but not limited to the following:
- Review independent contractor agreements. New prohibitions against the misclassification of employees as independent contractors, and related offences and penalties, came into force on November 27, 2017.
- Become familiar with changes to statutory leaves, including parental leave, critical illness leave, family medical leave, child death leave, and crime-related child disappearance leave. Major changes to some of these leaves came into force on December 3, 2017; additional changes will be coming into force on January 1, 2018.
- Implement any required changes to personal emergency leave. Changes to this leave will be coming into force on January 1, 2018.
- Become familiar with the new domestic or sexual violence leave. A number of provisions introducing these new leave entitlements will be coming into force as of January 1, 2018.
- Review overtime pay rules. Bill 148 requires that employees who hold more than one position with an employer must be paid overtime at the rate for the position that they are working during the overtime period. This amendment will be coming into force on January 1, 2018.
- Make adjustments to practices regarding public holiday pay. Bill 148 introduced new calculation formulas with respect to public holiday pay, as well as a requirement employers provide a written statement to employees who agree to work on a public holiday and are entitled to a substitute day off. These amendments will come into force as of January 1, 2018.
- Review vacation time and pay entitlements. Bill 148 introduced a new 3-week vacation time entitlement and 6% vacation pay entitlement for employees with 5 or more years of service with their employer. Bill 148 amendments pertaining to vacation time and pay will be coming into force as of January 1, 2018.
- Ensure compliance with the new minimum wage requirements, which will be coming into force on January 1, 2018.
The above are only some of the changes introduced by Bill 148. Changes are also being made with respect to, among other things, on-call pay, scheduling practices, “equal pay for equal work” requirements, as well as record-keeping and enforcement mechanisms.
The application of these revised employment standards will be fact-specific and context-dependent. Should you require guidance with respect to the impact of Bill 148 on your business operations, please consult your Canadian labour and employment counsel without delay.
The repercussions of Bill 148 will likely reverberate across Canada, as Canadian provinces consider whether to implement similar changes to their employment standards legislation.