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ESA Changes Impacting your Workplace – More than a Minimum Wage Increase

Sep 6, 2019 | Legislation

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 potential 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 AnnualincreasesthereafterattherateofinflationPaid 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.

    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 TheEmployerisrequiredtorespondinwriting

  • –  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 with less than 96 hours.

    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 Upto10daysoftheleavecanbetakeninfullorhalfdays,5ofthesedayswillbe paid

o Upto15weeks(orpartialweeks)canbetakenaswellMaternity & Parental Leave – December 3, 2017

– Increase from 6 to 12 weeks for mothers who suffer a still-birth or miscarriage (January 1, 2018)

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 starting to work with clients that are planning ahead to ensure they are fully compliant with the upcoming changes in Bill 148 once it has received Royal Assent. If you want to be prepared ahead of time, contact us now! We would be happy to make a presentation

to your leadership team on the impact of the changes and what you need to consider. Also watch for our upcoming webinars.

Reach out to our Managing Partner, Elizabeth Hill at 416.491.1501 ext. 23 or your Senior Consultant to discuss how we can help.

Pesce & Associates is a full-service Human Resources Consulting Group that provides comprehensive, strategic consulting services carefully tailored to each client’s unique needs.

16 Belgate Place, Toronto, ON M9C 3Y4


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