More changes to labour and employment laws
In recent weeks, the Government of Ontario has announced a series of legislative changes to the province’s labour and employment regulations:
- On April 26, the government passed Bill 3, the Pay Transparency Act;
- On May 7, the government announced a review of the public holiday pay system introduced by Bill 148; and
- On May 8, the government passed Bill 53, the Government Contract Wages Act.
Continue reading for the details of each announcement and what they mean for Ontario’s businesses.
The Pay Transparency Act
On April 26, 2018, the Government of Ontario passed Bill 3, the Pay Transparency Act. The legislation is a part of Then Now Next: Ontario’s Strategy for Women’s Economic Empowerment, and aims to close the gender wage gap. Starting January 1, 2019, Ontario will:
- require all publicly advertised job postings to include a salary rate or range;
- bar employers from asking a job candidate about their past compensation;
- prohibit reprisals against employees who discuss or disclose compensation; and
- establish a framework to require large employers to track and report compensation gaps based on gender and other diversity characteristics.
The pay transparency disclosure measures will first apply to the Ontario Public Service, and then apply to employers with more than 250 employees in 2020, and will extend to those with more than 100 employees in 2021.
Read the legislation here. The chamber released an Advocacy Snapshot on the Pay Transparency Act in April 2018, found here.
Statutory Holiday Pay
On May 7, 2018, the government of Ontario announced that, following feedback and discussions with stakeholders, it will undertake a review of the public holiday system of theEmployment Standards Act. The review will be conducted in 2018 by the Ministry of Labour and forms part of the Ontario government’s on-going review of the province’s labour and employment legislation.
As an interim measure, while the review takes place, the government will be reinstating the previous holiday pay system, effective July 1, 2018.
The chamber was one of many voices that expressed concern regarding the public holiday pay system introduced by Bill 148, and welcomes the government’s decision to review the legislation and reinstate the previous system. Under Bill 148’s changes, for a statutory holiday, employers would be required to pay employees the total wages earned during the previous pay period divided by the number of days worked. This led to some employers paying their part-time employees more than their full-time employees on statutory holidays.
Read the government’s announcement here.
Government Contract Wages Act
On May 8, 2018, the government of Ontario passed Bill 53, the Government Contract Wages Act. The legislation aims to ensure that people working in construction, building cleaning, or security jobs under contracts with the government will be paid the fair, prevailing wage in those sectors.
The Act allows Ontario to establish minimum rates of pay for workers under contract with the government. Private-sector contractors and subcontractors on government contracts will be required to pay according to those rates. The minimum rates of pay will be established after consultations with stakeholders to ensure that they are evidence-based.
The changes are a part of Ontario’s on-going review of its labour and employment regulations. Read the legislation here.