NEED TO KNOW - More Legal Updates for Employers in Ontario
On March 21, 2024, Ontario’s Bill 149, Working for Workers Four Act, 2024 (‘Bill 149’) was approved, resulting in several amendments to the Employment Standards Act, 2000 (‘ESA’).
Bill 149 is the fourth Bill in a series of wide-ranging legislative changes meant to strengthen protections for employees at work in Ontario. The fifth Bill (Bill 190) is also making headlines for additional proposed changes to Ontario workplaces, which we will discuss once its content is finalized and approved.
Here are some highlights of Bill 149 that most employers in Ontario should be aware of.
Immediate Changes to the ESA:
- The definition of ‘employee’ has changed to ensure that any ‘trial period’ of work for a new employee provides minimum protections under the ESA. In other words, employers are no longer permitted to employ an employee ‘for free’ while they participate in any form of ‘trial period’ of work.
- Employers are no longer permitted to deduct employee wages as a consequence for when a customer of the establishment (a restaurant or gas station, for example) leaves without paying.
Changes to the ESA, Effective June 21, 2024:
- Currently, the ESA requires employers to pay employee vacation pay as a lump sum before the commencement of vacation. However, the ESA also permits employers to pay vacation pay at an alternative time, such as on each regular paycheque, or via salary continuance throughout the employee’s vacation, if and as agreed to by the employee. Going forward, Bill 149 requires these alternative payment methods to be agreed to in writing.
- Tip-sharing policies must be posted at the employer’s establishment in a location where employees are likely to see them, and the policies must be retained for at least 3 years.
- Tips must be paid to employees by cash, cheque (to the employee only), direct deposit or by other prescribed means. If paying by cash or cheque, the employer must ensure payment is given to the employee at the workplace, or another place agreeable to the employee.
 ESA Changes Coming in the Near Future:
We continue to await clarity and effective dates on a number of additional changes that Bill 149 will require for employers in Ontario.
These changes largely pertain to new rules about job postings in Ontario. For instance, employers will (likely):
- Be required to publicly post compensation rates for advertised jobs,
- Be required to publicly declare if they are using any form of artificial intelligence in their job screening and assessment processes, and
- Be prohibited from including within publicly advertised job postings the requirement that applicants must have prior Canadian work experience.
NCHR will continue to monitor these and other upcoming changes.
Ontario Minimum Wage Increasing October 1, 2024
Effective October 1, 2024, Ontario's general minimum wage is set to rise to $17.20 per hour. This represents a 3.9% increase from the current rate.
This will increase annual income for minimum wage earners who work 40 hours per week by $1,352 before deductions.
Minimum Wage Increases Annually
Under the Employment Standards Act, Ontario's minimum wage increases annually based on the Ontario Consumer Price Index (CPI), and aims to provide financial relief to workers amidst rising living costs.
NCHR is here to help.
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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: #41, June, 2024
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