The ESA in 2015 – The times they are a changing……
January 12, 2015
Ontario has passed legislation which will bring about key changes to the Employment Standards Act, 2000 (“ESA”), amongst other important changes:
- Minimum wage will increase annually in accordance with the Consumer Price Index:
- Effective October 1st and each October thereafter;
- Will be reviewed in 2020 to determine whether this mechanism has been effective;
- This change is intended to effect increases to minimum wage in a more timely fashion.
- The $10,000 cap on wages which can be awarded by Employment Standards Officers is removed.
- Effective February 20, 2015;
- The time limit for filing a complaint to recover wages is increased from 6 months to 2 years;
- This represents a significant broadening of powers and will likely result in more complaints being filed with the Ministry of Labour which would otherwise have been filed as claims in Small Claims Court.
- Employment Standards Officers will have the power to require an employer to conduct a self-audit of its records and/or practices as to whether it is in compliance with the ESA:
- Effective May 20, 2015;
- The employer will be required to report these findings to the officer;
- Knowingly reporting false or misleading information in response is prohibited and will be subject to fines;
- This will eliminate the need to be audited by an Employment Standards Officer who may or may not find non-compliance and will shift the cost of this audit from the Ministry of Labour to employers.
- The ESA poster required to be posted in every workplace must be provided by hand to all new staff within 30 days of the date of hire:
- Effective May 20, 2015;
- This will require an update to hiring checklists as another box to tick off.
- Temporary help agencies and their clients shall be deemed jointly and severally liable for unpaid wages to assignment employees:
- Effective November 20, 2015;
- Including regular wages, overtime and holiday pay;
- Additional and joint record-keeping requirements also come into effect;
- This will no doubt operate as a significant incentive for clients to ensure they deal with reputable agencies and that they understand the true cost of the assignment employees they take on.
Expertise
