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More Legislative Changes Coming with Bill 66

Bill 66, Restoring Ontario’s Competitiveness Act, 2018 was recently introduced in the Ontario Legislature (“Bill 66”).  Bill 66—as the name suggests—aims to make Ontario more competitive by reducing regulatory burden and giving businesses more flexibility.

Bill 66 proposes to make the following changes to existing legislation:

  • Excess Hours of Work and Overtime Averaging Applications: Bill 66 proposes to amend the Employment Standards Act, 2000 (“ESA”) to no longer require approval from the Director of Employment Standards of an application for excess hours of work and overtime averaging.

Employers would still be required to enter into written agreements with employees to have employees work excess hours and to average overtime hours worked.  Additionally, employers can only average an employee’s hours of work for the purposes of calculating overtime pay over a maximum of four (4) weeks.

  • ESA Poster: Bill 66 proposes to remove the requirement for employers to provide both the ESA poster to employees and post it in the workplace. Employers will only have to provide the most recent version of the ESA poster to the employees.
  • “Non-Construction Employers”: Public bodies, including municipalities, school boards, hospitals, colleges and universities, will be deemed “non-construction employers” through an amendment to the Labour Relations Act, 1995 (“LRA”).

This proposed amendment to the LRA will help to prevent certain broader public sector entities from becoming bound to collective agreements for the construction industry, when these entities are not actually in the construction business.

  • Merging Pension Plans: The Pension Benefits Act will be amended to make it easier for private-sector employers to merge single-employer pension plans with jointly sponsored pension plans.
  • Exemption from Guardrail Requirements for the Auto Sector: For assembly lines, there will be a new, targeted exemption from guardrail requirements for a conveyor and raised platform.
  • Workplace Hazardous Materials Information System (WHMIS) regulation: This proposed amendment to WHMIS regulations would allow new labels to be placed on old containers, preventing the need to dispose of chemicals with old labels. By removing the need to re-purchase newly labeled chemicals unnecessarily, this would result in saving Ontario universities an estimated $60.2 million to $107.9 million.

Bill 66 was introduced and carried first reading on December 6, 2018.  As Bill 66 progresses through the legislature, the proposed amendments may change and new amendments may be put forth.  We will continue to keep you updated.

The author would like to thank Jonathan Meyer for his assistance with this blog.

More Legislative Changes Coming with Bill 66

ESA Update: Ontario Government to Temporarily Reinstate Pre-Bill 148 Public Holiday Pay Formula Effective July 1, 2018

As you are aware, Bill 148 made substantial changes to the Employment Standards Act, 2000 (“ESA”) that took effect on January 1, 2018.  Among those changes was a new formula for calculating public holiday pay.  This new formula required employers to calculate public holiday pay based on the regular wages earned in the pay period before the public holiday, divided by the number of days the employee worked in that pay period.

In a surprising turn of events, the Ontario government announced on May 7, 2018 that it will be reviewing the public holiday provisions of the ESA. The Ministry of Labour will conduct this review in 2018 and interested parties can provide submissions on the Public Holiday Pay Review to exemptions.review@ontario.ca.

More surprising—the government has also enacted a new regulation, Ontario Regulation 375/18, which reinstates, on an interim basis, the old public holiday pay formula for all employers.  As a result, effective July 1, 2018, public holiday pay will be calculated under the old public holiday pay formula as follows:

Public holiday pay is equal to the total amount of the regular wages and vacation pay earned in the 4 weeks before the work week in which the public holiday occurred, divided by 20.

Ontario Regulation 375/18 is a temporary measure while the Public Holiday Pay Review occurs, which means the public holiday pay formula could change again after the Public Holiday Pay Review is complete.

To read Ontario Regulation 375/18, click here: https://www.ontario.ca/laws/regulation/r18375.

For employers who have updated their public holiday policies to reflect the new formula under Bill 148, you will need to revisit these updated policies (or simply revert to your old public holiday policies) in preparation for July 1, 2018. Additionally, employers who have implemented the new public holiday pay formula into their human resources information systems or payroll systems will need to ensure these systems are changed back to the old public holiday pay formula come July 1, 2018.

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ESA Update: Ontario Government to Temporarily Reinstate Pre-Bill 148 Public Holiday Pay Formula Effective July 1, 2018