Posts tagged: temporary agencies

Employer Alert: Payroll Costs in Ontario are Going Up (Again) on April 1, 2018.

By , March 20, 2018 9:10 am

Who Should Read this Blog

If you use a temporary help agency or hire casual or part-time employees then you should read this article. Because starting next month there is a change to the Employment Standards Act, 2000 (the “ESA”)  that could increase your payroll costs.

Equal pay for equal work takes effect on April 1, 2018

As of April 1, 2018 Ontario employers are required to pay temporary workers and casual & part-time employers the same rate of pay as full-time employers performing substantially the same work unless an exemption applies.

Wage rates can no longer be kept confidential.

Assignment employees from a temporary help agency can ask your non-assignment employees how much they are paid for doing substantially the same work.

A casual or part-time employee can ask you how much you pay a full-time employee doing substantially the same work. If you terminate or punish an employee for making this inquiry then you could be required to reinstate the employee to his or her job or compensate the employee for any wage loss.

What are the exemptions to this new law?!!!

It should be noted that there are certain exceptions to the provisions regarding equal pay for equal work. The provisions do not apply when the difference in rates of pay are made on the basis of  (a) a seniority system, (b) a merit system, (c) a system that measures earnings by quantity or quality of production, or (d) any other factor other than sex or employment status. Nevertheless, before you assume that this exemption applies to your organization, you should consult a lawyer.

Lessons to be Learned

1.The cost of temporary agency workers who perform substantially the same work as full-time employees is going up unless your organization can fall into one of the statutory exemptions.

2. Similarly, the wage rates of casual employees, and part-time employees is going up unless your organization can fall into one of the statutory exemptions.

3. Do not discipline a casual or part-time employee for asking how much your organization pays a full-time employee doing substantially the same work.

4. An employer generally has the right to establish an employee’s job duties and therefore determine whether temporary agency workers, casual employees and part-time workers are performing substantially the same work as full-time employees.

5. As long as an employer does not set different wage rates based on sex or employment status, an employer generally has the right to set wage rates based on seniority, merit and production quantity/quality.

For five other recent changes to the ESA that recently came into effect click here.

For 30 years, Doug MacLeod of the MacLeod Law Firm has been advising employers on all aspects of the employment relationship. If you have any questions, you can contact him directly at 416 317-9894 or at [email protected]

The material and information in this blog and this website are for general information only. They should not be relied on as legal advice or opinion. The authors make no claims, promises, or guarantees about the accuracy, completeness, or adequacy of any information referred to in this blog or its links. No person should act or refrain from acting in reliance on any information found on this website or blog. Readers should obtain appropriate professional advice from a lawyer duly licensed in the relevant jurisdiction. These materials do not create a lawyer-client relationship between you and any of the authors or the MacLeod Law Firm.


Doing Business in Ontario: New Employment Laws Are Overwhelming Small Businesses

By , August 12, 2014 9:41 am

New Mandatory Training Obligations for Small Employers

Mandatory Training under AODA has been in effect since January 1, 2012

Most small employers are not aware of the existence of AODA because most employees and customers are not disabled and the issue of providing access to or accommodating disabled customers does therefore not occur very often.

I suspect the Ontario government is trying to educate small employers about their obligations under AODA. However, the reality is, this kind of training is not a priority and likely will not become a priority until the Ontario government starts enforcing this legislation. Fines for non-compliance are significant.

Mandatory Training under OHSA has been in effect since July 1, 2014

OHSA training is a different story. Small employers are generally more aware of OHSA because the Ministry of Labour regularly target certain industries for workplace safety inspections and fines for a violation of this law is significant. Fines of $ 50 000 or more are common if a workplace accident is involved.

New Mandatory Employee Leaves of Absence

Employee absenteeism is the bane of most small business owner’s existence. There is often only one person in a position and therefore a person’s absence can disrupt operations. Because one employee typically performs a diverse range of duties at a small business it is often difficult to find a temporary replacement. Accordingly existing staff usually have to pick up the slack. A day here and there is not usually a problem but extended absences can create an overworked and stresses out workforce.

Accordingly, small business owners traditionally tended to refuse requests for time off work. The legal landscape is changing in this regard. It started with pregnancy leave. This was followed by mandatory parental leave, personal emergency leave and family emergency leave. Three new leaves take effect in October.

Mandatory Family Caregiver Leave takes Effect on October 29, 2014

An employee will have the right to take 8 weeks unpaid leave to provide care and support to certain family members who have a serious medical condition including a spouse, child, parent, sibling or grandparent. The term “serious medical condition” is not defined…

Critical Ill Child Care leave takes Effect on October 29, 2014

 An employee with 6 months service can take up to 37 weeks off work to provide care or support to a critically ill child if a qualified health practitioner certifies that the child is critically ill and requires the care or support of one or more parents.

This leave is in addition to other mandatory leaves such as the Family Emergency leave and the Personal Emergency leave.

Employer Takeaways

It is difficult for small business owners to keep up to date on new employment laws.

In our experience, it is relatively easy to comply with the mandatory training requirements under AODA and OHSA in terms of time and cost.

On the other hand, we think it will be very difficult for small employers to find temporary workers to replace staff who take family caregiver or critical child care leaves. If few people take this leave – like the dearth of men taking parental leave – this will not be a practical problem.

If, however, employees start regularly taking leaves of absence to care for parents or children then small employers will no doubt start thinking of ways to discourage employees from taking such a leave, or start hiring employees who are less likely to take the leave. This could result in employees filing no cost complaints against  small businesses under the Employment Standards Act or the Human Rights Code.

In sum, these new leaves will likely place an extra scheduling burden on employers. Taking preventive measures like establishing a relationship with a temporary placement agency will reduce the harmful impact that this new law can have on your business.

For more information on recent developments in Ontario’s employment laws, and their implications on employers   click here.

For the past 25 years, Doug MacLeod of the MacLeod Law Firm has been advising employers on all aspects of the employment relationship. If you have any questions, you can contact him at 416 317-9894 or at [email protected]

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