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payroll

Bill 148 came into effect on Jan. 1, 2018…here’s what you need to know about the changes to the HR & payroll landscape that come with it:

Minimum Wage Increase

The minimum wage rates in effect as of January 1st are as follows:

General Minimum Wage – $14.00/hour

Minimum Wage for Students (under 18) – $13.15/hour

Minimum Wage for Liquor Servers – $12.20/hour

Please ensure that your wage rates are updated to reflect these rates for any hours worked on or after January 1st. Further increases are scheduled for January 1, 2019.

Stat Holidays

The statutory holiday pay calculation is changing to: total regular wages earned in the pay period preceding the holiday, divided by the number of days worked in that pay period. This change adds some complexity, as actual days worked must now be calculated.

Employers are now required to provide a written statement to employees of a day being substituted for the holiday.

Overtime Calculations

The need to “blend” the various rates at which the employee worked in the pay-period has been eliminated. Employers must now use the actual rate at which the work was performed.

Vacation Entitlement

Vacation with pay entitlement is increasing to 3 weeks, after 5 years of service with the same employer.

Leaves

The bill introduces new and provides for changes to many existing entitlements:

 

Leave NameDescription
Crime Related Disappearance of a
Child
Up to 104 weeks of unpaid leave
Critical Illness LeaveUp to 37 weeks of unpaid leave if a minor child is critically ill

Up to 17 weeks if an adult family member is critically ill
Death of a ChildUp to 104 weeks of unpaid leave
Domestic Violence Leave10 days (of which the first 5 days are paid) + up to 15 weeks of unpaid
leave
Family Medical LeaveUp to 28 weeks of unpaid leave in the event a family member is at
significant risk of dying within the next 52 weeks (up from 8 weeks
currently)
Maternity Leave Up to 12 weeks of unpaid leave in the event of miscarriage or stillbirth
(increase from current 6 weeks)
Parental LeaveUp to 61 weeks of unpaid leave (for the parent who has taken maternity
leave)(up from 35 weeks currently)

Up to 63 weeks of unpaid leave in all other cases (up from 37 weeks
currently)
Personal Emergency LeaveUp to 10 days of unpaid leave of which the first 2 days are paid

Equal Pay For Equal Work

Coming into effect April 1st, this element requires that employers pay all employees performing substantially the same work at the same rate of pay as a full time employee. This protection extends to temporary, seasonal, casual, part-time and temporary help agency employees. However, there are exceptions for differences in rate of pay based on
factors other than employment status, such as seniority, merit and quantity or quality of production.

Record Keeping

Changes have also been made to the records required to be kept by employers:

  • The dates and times that the employee was scheduled to work or to be on call for work, and any
    changes made to the on call schedule
  • The dates and times that the employee worked
  • If the employee has two or more regular rates of pay for work performed for the employer and, in a
    work week, the employee performed work for the employer in excess of the overtime threshold, the
    dates and times that the employee worked in excess of the overtime threshold at each rate of pay
  • Any cancellations of a scheduled day of work or scheduled on call period of the employee, and the
    date and time of the cancellation
  • Any written notice provided to employees regarding substitute holidays
  • The amount of vacation pay that an employee earned during a vacation entitlement year and how the
    amount was calculated
  • In cases of an alternative vacation entitlement year, the amount of vacation pay an employee earned
    during the stub period and how that amount was calculated
  • Documents related to an employee taking the new Domestic or Sexual Violence Leave
  • Increases the retention period of records for vacation time and vacation pay from three years to five
    years

Please ensure that you review your HR & payroll procedures, and your employee records to ensure that you are in compliance with the modified requirements.

For full details on the labour laws in Ontario, visit The Employment Standards Workbook.