Doing Business in Ontario

Employment Standards Act

The Employment Standards Act (ESA) establishes minimum standards that employers and employees must follow throughout the Province of Ontario.

Some of the basic rights covered include:

Hours of Work

The normal working limits for most workers in Ontario are 8 hours per day and 48 hours per week. Special arrangements may be made for a 12-hour rather than an 8-hour day if employees and employers agree in writing. Employers seeking work days of more than 8 hours or work weeks of more than 48 hours must obtain a permit from:

Director of Employment Standards
400 University Avenue, 9th Floor
Toronto, ON M7A 1T7
Tel: 416.326.7160
Toll-free: 1.800.531.5551
Website: www.ontario.ca/labour

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Payment

Employees must be paid on a regular, recurring payday and given a statement showing their wages and deductions for that pay period.

Overtime Pay

Overtime pay provisions apply to most full-time, part-time, student, temporary help or casual employees. As a general rule, after 44 hours of work in a week, wages must be paid at one and half times the regular rate of pay.

Overtime pay provisions do not apply or special overtime provisions apply to many categories of employees. A complete list is available on the Ontario Ministry of Labour website at www.ontario.ca/labour.

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Vacation Time

Most employees in Ontario are entitled to two weeks paid vacation following one year of employment with the same employer. Should the employee be terminated or resign prior to completing one year of service, the employee is entitled to collect at least 4% of wages earned during the period worked. Employers may determine when an employee may take vacation, although a request for vacation must be granted prior to 22 months passing without the employee having benefit of a vacation.

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Public Holidays

The ESA provides for nine public holidays with pay:

• New Years Day (January 1)

• Family Day (second Monday of February)

• Good Friday

• Victoria Day (3rd or 4th Monday in May)

• Canada Day (July 1)

• Labour Day (1st Monday in September)

• Thanksgiving Day (2nd Monday in October)

• Christmas Day (December 25)

• Boxing Day (December 26)

When an employee works a public holiday, the employee is entitled to public holiday pay plus premium pay for the hours worked on the public holiday or their regular rate for hours worked on the holiday, plus they will receive another day off (called a "substitute" holiday) with public holiday pay. Public holiday benefits apply to full-time, part-time and student employees who meet certain conditions.

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Pregnancy Leave and Parental Leave

Eligible employees are entitled to take 17 weeks of pregnancy leave and 35 weeks of parental leave (if they have taken Pregnancy Leave). All other eligible parents, including pregnant employees who don’t take Pregnancy Leave, can take up to 37 weeks of Parental Leave. These are unpaid, job-protected leaves.

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Emergency Leave

If an employer regularly employs at least 50 people, its workers are allowed to take up to 10 days per year of unpaid, job-protected emergency leave. This leave is for personal illness, injury or medical emergency, or for the death, illness, injury, medical emergency or urgent matter of certain family members.

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Family Medical Leave

Family Medical Leave may be taken to provide care or support to certain family members and people considered to be like a family member in respect of whom a qualified health practitioner has issued a certificate indicating that he or she has a serious medical condition with a significant risk of death occurring within a period of 26 weeks. It is unpaid, job-protected leave of up to eight weeks in a 26-week period.

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Termination

Employees are entitled to written notice of termination. Minimum notice periods are set out in the ESA. As a general rule these amount to 1 week per year worked to a maximum of 8 weeks. Otherwise, the employee is entitled to “pay-in-lieu of notice”.

Notice of termination applies to full-time, part-time and student employees.

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Minimum Wage

The minimum wage is different for liquor servers, home workers, and hunting and fishing guides.

For further information on any of the standards set out in the ESA, please contact:

Ontario Ministry of Labour, Employment Standards
Toll-Free: 1.800.531.5551
Website: www.ontario.ca/labour

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Human Rights

Ontario's Human Rights Code protects people in Ontario against discrimination in employment based on race, ancestry, place of origin, colour, ethnic origin, citizenship, creed (religion), sex (including pregnancy), sexual orientation, disability, age (18 and over, 16 and over in occupancy of accommodation), marital status (including same sex partners), family status, and record of offences.

Ontario Human Rights Commission
Toll-Free: 1.800.387.9080
Website: www.ohrc.on.ca

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Employment Insurance Act

Employers and employees in Ontario both contribute premiums to the Canadian Employment Insurance System for all insurable employment.

Earnings subject to Employment Insurance premiums include salaries, wages and paid leave. This fund insures employees against interruption of work, disability and pregnancy. EI premiums deducted from employees insurable earnings are on every dollar up to a yearly maximum. Employers must also contribute 1.4 times the EI premium withheld for each employee and are responsible is maintaining the employee’s records.

Canada Revenue Agency (CRA)
Toll-Free: 1.800.959.5525
Website: www.cra-arc.gc.ca

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Canada Pension Plan

Employers and eligible employees both contribute to the Canada Pension Plan, which provides pension income as early as age 60, survivor benefits to a spouse and dependent children, and disability benefits to a contributor no longer able to secure employment.

Contribution amounts are based on annual earnings between a minimum level (frozen at $3,500) and a set maximum level adjusted each January, based on increases in the average wage. Employers are required to deduct this contribution from the employee’s pay, make a matching contribution and remit the total to the Canada Revenue Agency along with income tax deductions. The Pension Benefits Act also allows employers to establish private pension plans for the benefit of their employees.

Canada Revenue Agency (CRA)
Toll-Free: 1.800.959.5525
Website: www.cra-arc.gc.ca

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Employer Health Tax

Employers are required to contribute to the Employer Health Tax fund. Contributions depend upon the employer’s annual gross payroll. The tax rate is 1.95% of total payroll expenditures, with the first $400,000 exempt from the tax.

Ontario Ministry of Revenue
Toll-Free: 1.866.668.8297
Website: www.ontario.ca/revenue

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Workplace Safety and Insurance Board

The Workplace Safety and Insurance Act, 1997 provides compensation to workers who suffer from workplace injuries or occupational disease. The Workers’ Compensation Board compensates workers through the payment of lost wages, health care costs and retraining and rehabilitation programs.

Employers fund the Board through annual assessments based on payroll and the accident experience of their industry, thereby transferring to the Board all responsibility for workplace claims of compensation. Workers cannot sue their employers for workplace injuries or occupational disease. Contributions vary by company based on individual claim history; rates also vary by industry. The average premium (industrial assessment rate) is 2.26 % of insurable earnings.

Workplace Safety and Insurance Board
Toll-Free: 1.800.265.7380 or 1.800.387.5540
Website: www.wsib.on.ca

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Occupational Health and Safety Act

The Occupational Health and Safety Act sets out the rights and responsibilities of all parties in the workplace. Its main purpose is to protect workers against health and safety hazards on the job. The Act establishes procedures for identifying and dealing with workplace hazards, and it provides for enforcement of the law when compliance has not been achieved voluntarily.

Ontario Ministry of Labour, Occupational Health & Safety
Toll-Free: 1.800.268.8013
Website: www.ontario.ca/labour

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Trade Unions

Freedom of association is guaranteed by law. Employers are required to recognize and bargain with the trade union representing the majority of their employees.

Ontario Labour Relations Board
Toll-Free: 1.877.339.3335
Website: www.olrb.gov.on.ca

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Immigrant Employment

Non-Canadians are required to obtain a temporary resident visa or obtain Canadian Landed Immigrant status to accept employment. For short-term employment, a work permit is also usually required. Immigrating to Canada permanently can be achieved under specific programs, including but not limited to those for Skilled Workers and Professionals; Canadian Experience Class; Investors, Entrepreneurs, and Self-Employed.

Foreign companies may send individuals or groups of supervisory or technical personnel to Canada as business visitors for the purpose of inspecting the contracted work, as long as the employee(s) remain on the payroll of the foreign company.

Citizenship and Immigration Canada
Toll-Free: 1.888.242.2100
Website: www.cic.gc.ca

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Pay Equity Act

Pay equity is equal pay for work of equal or comparable value.

Under the Ontario Pay Equity Act, men and women whose work involves substantially the same skill, effort, responsibility and working conditions must be paid on the same scale.

Conciliation and appeal procedures are available for employers and employees through:

Pay Equity Commission
Toll-Free: 1.800.387.8813
Website: www.payequity.gov.on.ca

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