LAW 529 Lecture 4: LAW529 Lecture 4
LAW529 Lecture #4
REGULATING WAGES AND HOURS OF WORK
• The primary statutory instrument regarding employment in Ontario is the Employment
Standards Act, 2000 (ESA) and its regulations.
• They are minimum requirements only.
❑ The employer is contractually bound to any greater right or benefit that the ESA
provides to the employee;
❑ The enforcement of rights is complaint-based.
SCOPE OF WAGE REGULATION
• The ESA excludes certain categories of workers from minimum wage and entitlement to
overtime pay.
• Certain categories of workers have a different minimum wage.
• Ref. [O. Reg. 285/01, S. 5]
WAGE DISCRIMINATION
• Equal Pay for Equal Work Laws
❑ Require equal pay for “substantially similar work.”
❑ Ref. Box 21.4
• Equal Pay for Work of Equal Value Laws (Pay Equity)
❑ Address wage discrimination in female-dominated jobs. (Ref. applicable steps on pp.
281-82) – steps in addressing this complaint is here – identify the scope of the pay
equoty evaluation – identify the job classes used – identify the male and female
dominated job classes – evaluate the job classes – compare the evaluation scores –
search for comparators – post a pay equity plan – make upwards adjustments to achieve
pay equity
REGULATING WORKING TIME
• Ontario Employment Standards Act 2000
❑ The maximum hours that an employer can require an employee to work is eight hours in
a day (or the employer-established regular workday, if longer), and 48 hours in a week;
[Ss. 17-21]
• Overtime must be paid at 1.5 times the employee’s regular hourly rate
of pay for each hour worked in excess of 44 hours in a week; [S. 22.
(1)]
• Regulations to the ESA outline a number of employment activities
exempt from the overtime provisions (e.g., firefighters, IT professionals,
managers, etc.).
• Permission to Work Overtime
❑ To avoid liability for overtime pay, employers must ensure that overtime-eligible
employees do not work overtime;
❑ -- many companies have a policy to get permission from supervisor first – IF YOU DON’T
GET PERMISSION AND YOU WORK OVERTIME, ARE YOU STILL ENTITLED TO THE PAY?
YES. YOU HAVE TO PAY THEM WHETHER THEY GOT PERMISSION OR NOT. EVEN IF YOU
HAVE A POLICY THAT IS AGAINST THIS. A good thing to do is to pay but still discipline the
employee to stop them from working overtime.
❑ The regulations to the ESA provide that overtime work shall have been performed
where the employer has permitted it to be done. [O. Reg. 285/01, S. 6]
• By an agreement to vary, an employee may receive time off in lieu of
overtime pay (it must equate to at least 1.5 hours of paid time off for
each hour of overtime); - has to be in writing and has to be voluntary
• Employee has the right to cancel the agreement to vary at any time
• Employees who perform work that is in part exempt from overtime pay
are entitled to overtime pay for all work performed in a work week if
the exempted work is less than one-half of their work time.
• Exemption for Supervisory or Managerial Employees
❑ Exemption from overtime pay remains in effect if they engage in non-managerial work,
provided they do so on an irregular or exceptional basis.
AGREEMENTS TO VARY
• The employer and employee may agree to modify certain prescribed employment standards
(agreements to vary), notably:
❑ The limitation on the daily and weekly hours of work;
❑ The method of averaging weekly hours of work to determine entitlement to overtime
pay;
❑ The substitution of time off in lieu of overtime pay;
❑ The choice to take vacation time in increments of less than one week.
• Agreements to vary must be in writing.
• Vacation has to be given in increments of atleast 1 week
[S. 1. (3)]
• Electronic agreements are enforceable, provided the employee has clearly signified his or her
acceptance.
PUBLIC HOLIDAYS
• Except for certain essential-service occupations, employees are entitled to prescribed days off
with pay. [Ss. 24-32]
❑ Ontario has nine public holidays; [S. 1]
❑ Certain occupations are exempt (e.g., hotels, restaurants, hospitals).
VACATION
• Vacation Time
❑ Employees are entitled to at least two weeks’ vacation after completing 12 months of
continuous service;
▪ This increases to three weeks after five years –Fair Workplaces, Better Jobs Act
(Bill 148)
❑ If they leave their employment prior to the end of 12 months, they are entitled to
vacation pay for their period of employment;
▪ Vacation can be taken in two continuous weeks or separate weeks. It can be
taken in increments of less than one week only by an agreement to vary;
▪ The employer must grant the employee a vacation within 10 months of its being
earned;
• With the agreement of the employee and employer and approval by the
Director of Employment Standards, the employee may forego his or her
vacation. [S. 41]
• Vacation Pay
❑ The employee is entitled to receive pay while on vacation;
❑ Employees are entitled to vacation pay equal to at least four percent of wages (including
overtime pay, public holiday pay, termination pay and commissions) during the 12-
month period for which vacation pay is provided;
❑ Regulations prescribe numerous exemptions from the obligation to pay vacation pay
(e.g., various professions and other employment activities). [O. Reg. 285/01, S. 2]
STATUTORY LEAVES
• The Fair Workplaces, Better Jobs Act (Bill 148) has made changes to the following statutory
leaves:
❑ Pregnancy Leave [Ss. 46-47]
Document Summary
The primary statutory instrument regarding employment in ontario is the employment. The employer is contractually bound to any greater right or benefit that the esa provides to the employee; The esa excludes certain categories of workers from minimum wage and entitlement to overtime pay: certain categories of workers have a different minimum wage, ref. Re(cid:395)ui(cid:396)e e(cid:395)ual pa(cid:455) fo(cid:396) (cid:862)su(cid:271)sta(cid:374)tiall(cid:455) si(cid:373)ila(cid:396) (cid:449)o(cid:396)k. (cid:863) Equal pay for work of equal value laws (pay equity) Address wage discrimination in female-dominated jobs. (ref. applicable steps on pp. Regulating working time: ontario employment standards act 2000. The maximum hours that an employer can require an employee to work is eight hours in a day (or the employer-established regular workday, if longer), and 48 hours in a week; To avoid liability for overtime pay, employers must ensure that overtime-eligible employees do not work overtime; - many companies have a policy to get permission from supervisor first if you don"t.
