Bill 148 proposes major changes to the Employment Standards Act that affect most industries. This Bill has received Royal Assent, and it is now law. Some of the changes take effect immediately. That doesn’t give you much time!
Here is a summary of the changes so you can start planning.
Minimum Wage Increase – January 1, 2018 and 2019
– Increase to $14/hour January 1, 2018
– Increase to $15/hour January 1, 2019
o Annual increases thereafter at the rate of inflation
Paid Vacation – January 1, 2018
– Employees with more than five (5) years’ service with an employer are entitled to three (3) weeks’ vacation.
Personal Emergency Leave / Paid Sick Days – January 1, 2018
– Ten (10) Personal Emergency Leave days for all employees (not just those working for large employers).
– Two (2) of the ten (10) Personal Emergency Leave days will be paid, the rest unpaid.
– Employers will not be allowed to ask for a Doctor’s note from an employee taking Personal Emergency Leave.
Holiday Pay Calculation – January 1, 2018
– New formula for the calculation of holiday pay for part-time and casual employees
– The new formula is: Sum of regular wages earned/number of days worked in preceding pay period
o i.e. an employee works 1, 8-hour day in the preceding pay period of the Holiday, that employee is entitled to 8 hours of public holiday pay.
Equal Pay for Equal Work (Part-time, Casual, Seasonal, Temporary) – April 1, 2018
– Employees that perform substantially the same kind of work, in the same establishment, that requires substantially the same skill, effort and responsibility; and is performed under similar working conditions, must be paid the same regardless of their status.
– If a part-time, casual, seasonal or temporary employee believes they aren’t receiving equal pay as their full-time counterparts, they can question their employer.
o The Employer is required to respond in writing
– Also applies to employees hired through a temporary help agency.
– Exceptions – seniority system, merit systems, or pay that is determined by quantity or quality of production.
Independent Contractor Classification – November 27, 2017
– Employers must be sure that their Independent Contractors are, indeed Independent Contractors, not Dependent. Penalties will follow for Employers who misclassify.
– Independent contractors can challenge their status and the onus of proof is shifted to the company to prove that person is not an employee.
Scheduling and Minimum Pay – January 1, 2019
– Employees will have the right to request schedule or location changes without reprisal. – Minimum 3 hours pay at regular rate of pay when an employee reports to work.
– Employees will have the right to refuse a shift if they receive less than 4 days’ notice of said shift.
– Minimum 3 hours pay if a shift is shortened or cancelled.
On-Call Pay – January 1, 2019
– Minimum 3 hours pay for each day on-call and not called in.
Crown Employees – January 1, 2018
– Crown Employees are now included in the ESA Hours of Work, Overtime Pay, Minimum Wages, Public Holidays & Vacation with Pay provisions.
Domestic or Sexual Violence Leave – January 1, 2018
– Employees with at least 13 weeks of service can take up to 17 weeks of unpaid leave per calendar year.
o Up to 10 days of the leave can be taken in full or half days, 5 of these days will be paid.
o Up to 15 weeks (or partial weeks) can be taken as well
Maternity & Parental Leave – December 3, 2017
– Increase from 6 to 12 weeks for mothers who suffer a still-birth or miscarriage (January 1, 2018)
– Parental Leave increase from 37 to 63 weeks for adoptive parent or spouse.
– Birth Mother combined leave extended from 12 months to 18 months
– Changes align with changes in Employment Insurance pay for maternity and parental leave.
Critical Illness Leave – December 3, 2017
– Previously known as Critically Ill Child Care Leave
– Employees are entitled up to 37 weeks in a 52-week period to provide care or support to a critically ill child who is under 18 years of age
– Employees are entitled to up to 17 weeks in a 52-week period to provide care or support to a critically ill adult who is a family member
As a result of these changes a full-scale review will be necessary for organizations. Some of the following areas need to be considered:
• Financial impact analyzed;
• Policy manuals and procedures reviewed and updated;
• Scheduling processes reviewed and adapted;
• Collective Agreements reviewed and updated;
• Pay structures and salary grids reviewed to adapt minimum wage requirements and address wage compression issues; and
• Leadership, payroll, finance and HR teams trained.
Are you ready for these changes?
Pesce & Associates is working with clients that are planning ahead to ensure they are fully compliant with the upcoming changes now that Bill 148 has received Royal Assent. We are making presentations to business leaders on the impact of the changes and what you need to consider. Please reach out to your Pesce Senior Consultant or our Managing Partner, Elizabeth Hill at 416.491.1501 ext. 23 or ehill@pesceassociates.com to discuss how we can help.
For more information on our services, please visit our website at www.pesceassociates.com.
Pesce & Associates Human Resources Consultants 