Labour laws are imperative in maintaining a healthy, productive relationship between employers and employees. Since conventionally, this particular relationship is thought of as a lopsided one: one where the employer holds a majority of authority and power, whereas historically, employees have had to resort to forming unions and groups to ensure that the working conditions and many other aspects and facets of this relationship be better streamlined and accorded towards the employees. Today, labour laws heavily favour employees, and it is a good thing for all of us. In this blog post, we will look at the labour laws in Ontario: what they are, what they mean, and how the labour laws in Ontario are geared to protect employees from a myriad of injustices and wrongs that can be done unless the employee knows their rights. This is all you need to know about labour laws in Ontario.
However, labour laws can only go so far as to provide a guideline, a way forward for corporations and employees to maintain their relationship. It is important that an equally robust and competent law firm be at the helm of managing conflicts and issues that may arise between parties. As such, Dharsi Law is here with its experienced team of lawyers to help employees manage their relationships with their employers, and should anything happen to threaten this balance, Dharsi Law will resolve the situation amicably, as per the law.
Now, lets start by looking at the labour laws in Ontario.
Labour Laws in Ontario: A Quick Rundown
Labour laws are designed to set the boundaries and define the relationship between employers and employees. With a good majority of them being favoured towards the employees, labour laws can help you stay protected as well as securing your professional and financial rights. Lets start by discussing the labour laws of Ontario.
Each of Canada’s 13 provinces have their own specific laws regarding employment and labor laws. The local government of Ontario has their own requirements and regulations for labor compliance. Canada and all of its provinces put a strong emphasis on worker rights and human rights.
Employment Contracts
Written employment contracts are mandatory in Ontario and outline the formal agreement between employers and employees. Employment contracts should outline holiday pay and vacation entitlement, employee benefits plan, critical illness leave and sick pay, payment of wages and overtime and severance and termination. Employment agreements must be signed and agreed upon prior to the new employee’s start date. Anything agreed upon after the start date that isn’t included in the employment contract can be challenged if any compliance problems arise in the working relationship. Ontario labor laws strongly protect an employee’s civil rights. If an employee is wrongfully terminated, then employment contracts can be scrutinized by the court system and Ontario Ministry of Labour. The maximum amount of compensation that employers can give to terminated employees under this act is 34 weeks.
The standard termination practices are as follows: one week compensation per year of service as notice or termination pay up to eight weeks, or one additional week’s compensation per year of service up to 26 weeks as severance pay. Employees are only eligible for severance pay if they’ve been employed somewhere for more than five years, and if they’ve been employed by a company with a revenue of over $2.5 million CAD. Dismissed employees are entitled to a significant amount of compensation if they are terminated without a cause. Law in Ontario dictates that wrongful termination lawsuits should be determined on a case-by-case basis by the courts. The court makes their decision by reviewing both the employment contract and determining if the employer gave advanced notice of termination or a severance payment in lieu of notice.
Notice Period
In Ontario, reasonable notice is determined case-by-case. Some determining factors by the courts include: years of service and seniority, age and educational background, managerial statues and nature of position, circumstances of hiring and termination, availability of other employment, stipulations in the employment contract for termination
Discrimination
Employers must always comply with Ontario’s Human Rights Code, which prohibits hiring or firing based on discrimination for race, gender identity, gender expression, age, marital status, family status and disability.
Hiring Foreign Workers
To hire foreign workers anywhere in Canada, including Ontario, a company must have proper documentation before workers can immigrate to Canada. This documentation proves that the employer was not able to legally find a Canadian citizen to fill the position, and therefore needed to hire a temporary foreign worker for the job. Documentation and approval will vary and depend on each individual case.
Labor and Working Hours
Full-time employees should work a maximum of eight hours per day, unless expressly agreed upon in a written agreement. The maximum number of hours an employee should work in one week is 48 hours. For hourly employees, employers are required to pay employees time and a half for any hours over 40. In most cases, employees are required to receive 11 hours of consecutive time off each day. This does not apply to employees who are on call. Employees can agree to come to work on their day off and skip out on having 11 consecutive hours off. Unless working a split-shift, employers are required to give employees eight hours off in-between shifts.
Employees in Ontario are required to receive at least 24 hours off in one consecutive week, or 48 hours in two consecutive weeks. Employees may not work more than five hours without receiving a 30-minute meal or rest period. Employees and employers may agree to split this 30-minute period into two 15-minute periods within the 5 consecutive hours of work. Meal period and breaks are unpaid unless otherwise stated in the employment contract. Ontario recently increased the minimum wage at the end of 2023 to $16.55 CAD. Employees that work more than 44 hours in one must be provided with overtime pay. If an hourly employee works on a holiday, they are entitled to public holiday pay at time-and-a-half.
Payroll in Ontario
If you plan to hire employees and properly run payroll in Ontario, you have two options: open a local entity and set up your own HR team. Payroll in Ontario can either be run bi-weekly, bi-monthly, or monthly.
Social Security
With very few exceptions, workers over the age of 18 in Ontario with an income over $3,500 CAD per year are required to contribute to the social security benefit system in Canada, also known as the Canadian Pension Plan (CPP). These benefits help with retirement, post-retirement benefits, disability benefits and survivor benefits.
Dharsi Law: Best Employment Lawyers in Toronto!
Workplace grievances are something that is unfortunately common in workplaces across Canada, and while many people may not be able to recognize when something of this gravity happens to them, the majority do not speak out for fear of negative consequences in their workplace. However, that should not be the case. With experienced employment lawyers at Dharsi Law, we encourage people to come forward and play their part in taking such individuals to task. Because without their coming forward, the workplace will continue being a hostile space for employees, and with their interference, we can ensure a healthy workplace for all.
