Earlier this year, the Government of Ontario put forth Bill 148 – the Fair Workplaces, Better Jobs Act.
Bill 148 proposes changes to the Employment Standards Act, as well as the Labour Relations Act. Many of these changes will be effective as of January 1, 2018 and have to do with wages, equal pay for equal work, various leaves of absence and worker classification.
Labour Costs
- As of January 1, 2018, minimum wage will increase from $11.43 to $14.00
- As of January 1, 2019, minimum wage will increase from $14.00 to $15.00
- After 5 years of service, vacation pay will increase from 4% of wages per year (equivalent to 2 weeks) to 6% of wages per year (equivalent to 3 weeks)
- The Three-Hour-Rule will entitle employees to a minimum of three hours of pay if they are sent home after working less than three hours and normally work more than three hours a day
- On-call employees will receive a minimum of three hours per 24 hours on-call, even if they work less three hours
- Part-time employees perform mostly the same work as full-time will be paid the same rate unless based on an objective system
Paid Leave
After introducing the Bill, there were many concerns from employers, associations, and chambers of commerce. Some Standing Committee revisions related to various leaves of absence are below.
- Still birth and miscarriage leave is extended from 6 weeks to 12 weeks
- Parental leave is extended from 37 weeks to 63 weeks
- If an employee has take pregnancy leave, parental leave will be 61 weeks
- Equal pay for equal work now has a more clearly defined seniority system exemption
- Employees will receive 2 paid sick days per year so long as they have been employed for a minimum of 1 week
Other Changes
In addition to these increased labour costs and leaves of absence, there will be other significant changes.
- Employers will be subject to greater fines if they mislabel employees as contractors
- There will be restrictions on scheduling practices
- Unions will have increased abilities to organize, as well as certify new bargaining units and extend existing ones
For more information, watch this free webinar or get in touch with Koroll & Company. We would be happy to discuss how these changes will affect you and help you strategize for the new year.