Employment Standards Compliance

In Ontario, most employers are required to abide by the basic obligations set out in the Employment Standards Act, 2000 (“ESA”). These basic requirements involve hours of work, overtime, vacation entitlement, public holidays, leaves of absence, deductions from wages, internship, minimum wage, keeping records, and more. Depending on the size of the employer, newer requirements include written policies on disconnecting from work and on electronic monitoring of employees, mandatory information for new employees and rules for publicly advertised job postings. Most non-compete agreements are also prohibited. The ESA also specifies the minimum requirements for notice of termination, severance, and termination pay.

Employers that are federally regulated in Ontario, such as banks, are governed by the Canada Labour Code (“Code”), which sets out their basic requirements and obligations. Under the Code, both employers and employees must abide by the minimum standards set out to ensure a level playing field for all federally regulated industries.

For Unionized Employers

For employers that are unionized, it can be complex to properly interpret and apply the basic requirements and obligations while ensuring compliance with the collective agreement. However, unless specifically provided for by statute, the basic requirements and obligations cannot be contracted out of through the collective agreement. Where the collective agreement provides a greater right or benefit than the ESA on a particular standard, the agreement will prevail. Unionized employees generally enforce their ESA rights through the grievance procedure under the collective agreement rather than through a claim to the Ministry.

Failure to Comply

It is important for the applicable statutes to be interpreted and applied properly in practice, as failure to do so could result in legal action. In Ontario, the Ministry of Labour, Immigration, Training and Skills Development (often still called the Ministry of Labour) conducts proactive inspections and investigates claims and complaints, through the Employment Standards Program, to ensure fairness in the workplace. Violations found by the Ministry can result in compliance orders, orders to pay wages/fees, notices of contravention with monetary penalties, Part I Notices of Offence (“tickets”), and even prosecution. On conviction, an individual can be fined up to $100,000, and a corporation up to $100,000 for a first conviction, $250,000 for a second and $500,000 for a third or later conviction.

Our employment lawyers understand the importance of correctly interpreting and applying the ESA’s or Code’s provisions. Our lawyers can help employers understand and comply with the provisions of the Employment Standards Act and the Canada Labour Code, and can represent them in the course of a regulatory proceeding.

Call us at +1 647 948 7819 today!