BUSINESS OWNERS - START PLANNING NOW FOR THE ORPP
 

The provincial government has recently passed legislation to move forward with the new Ontario Retirement Pension Plan (ORPP). The plan is seen as a province wide solution to help Ontario workers retire with greater financial security.

The ORPP will require workers to contribute 1.9% of their annual earnings, up to a maximum of $90,000 annually, and employers will have to match these employee contributions dollar for dollar. 

Employers with existing Defined Benefit or Defined Contribution Pension Plans that are deemed financially comparable to the ORPP will be exempt, however it appears that Group RRSP and Deferred Profit Sharing Plans will not likely qualify for the exemption. 

The ORPP will be phased in beginning in January, 2017 for eligible employers with more than 500 employees; in January, 2018 for eligible employers with 50 – 499 employees; and in January, 2019 for eligible employers with fewer than 50 employees.

Details and clarifications will continue to surface in the coming months, but employers are encouraged to begin planning for these additional expenses now.  NCHR will monitor these developments closely.
 
 

REMINDER - EMPLOYERS MUST PROVIDE THIS POSTER TO ALL EMPLOYEES 

Employers are reminded to provide a copy of the Ministry of Labour poster entitled “What You Should Know About the Ontario Employment Standards Act”, to all employees.  Additionally, all new hires must be provided with a copy of this poster within 30 days of hire.  This requirement became law earlier this summer.

Here is the poster: http://www.labour.gov.on.ca/english/es/pdf/poster.pdf
 

'USE IT OR LOSE IT' IS NOT A LAWFUL VACATION POLICY

Employers should encourage employees to utilize all paid vacation time in the current vacation year, in order to avoid unnecessary expenses and potential liabilities. 

Unused paid vacation routinely becomes a liability for organizations when employees (most commonly, former employees) complain to the Ministry of Labour about not being appropriately compensated for unused vacation. The Ministry of Labour has the authority to ensure employees receive their outstanding vacation pay, and can issue penalties or fines upon organizations for violations of the Employment Standards Act, Ontario. 

More simply put, ‘use it or lose it’ is not a lawful vacation policy in Ontario.

In order to reduce these risks, managers should clearly document when employees go on vacation, and must encourage employees to utilize their earned vacation time every year.  The benefits of time away from work should not be underestimated either.  NCHR also encourages employers to implement clear policies that permit limited carry-over vacation time into the next vacation year. These policies need to be implemented and monitored in order to help reduce these potential organizational risks.

As most of our clients currently utilize the calendar year for vacation purposes, now is the time to review outstanding employee vacation balances and encourage employees to book their vacation time before the end of 2015.


Contact us for more information:  info@nchr.ca -  905-818-NCHR -  http://www.nchr.ca
 
This e-newsletter from NCHR Consulting & Recruitment Services contains important information about HR related legislative updates and other best practice suggestions and lessons learned, to help you better manage your business and employee situations.    

NCHR e-newsletter: Seventh Edition