Chapter 2

Question 1

Labour and Employment Standards

Answer 1

Employment/labour standards are legislated rules about working conditions

The purpose of these standards is to encourage fairness, responsibility and cooperation between employers and employees

Employees who are not governed under the Canada Labour Code (CLC) are subject to the employment standards legislation of the province in which they work

Each province has passed legislation outlining the minimum employment standards in its jurisdiction

Question 2

Minimum Standards

Answer 2

Employment Standards provide the basis for the minimum protection of employees.

An employer may voluntarily or by union contract provide more generous payments or benefits. They cannot offer less than the minimum standard for any type of payment of working conditions.

Question 3

Minimum Standards

Employment Standards typically cover:

Answer 3

Hours of regular work.
Overtime rules.
Minimum wages.
Pregnancy, maternal, paternal and other Leaves.
Statement earnings and deductions.
Minimum age.
Statutory Holidays
Successor employers.
Vacation pay or entitlement.
Termination.

Question 4

Minimum Wages

Answer 4

the lowest hourly rate that an employer can pay an employee. It varies by jurisdiction and exemptions may apply

The Canada Labour Code states that employers under federal jurisdiction must follow the provincial rates where employment occurs.

Therefore all workers in Ontario fall under the Employment Standards Act for minimum wages.

Question 5

Labour and Employment Standards

Overtime: banking of overtime hours

Answer 5

banking overtime allows an employee to defer the payment of overtime, or the taking of an equivalent time off, until a later date within a regulated period of time

Question 6

Minimum Wages - Ontario

Answer 6

Minimum Wage Rate June 1, 2014
General Minimum Wage $11.00 per hour
Student Minimum Wage $10.30 per hour

Liquor Servers Minimum Wage $9.55 per hour

Hunting and Fishing Guides Minimum Wage
$55.00 Rate for working less than five consecutive hours in a day
$110.00 Rate for working five or more hours in a day whether or not the hours are consecutive

Home-workers Wage $12.10 per hour
(110 per cent of the general minimum wage)

Question 7

Overtime

Under the Canada Labour Code:

Answer 7

• hours worked over a “standard” eight hours per day or forty hours per week should be paid at a rate of 1.5 times the normal per hour rate of pay.

Question 8

Overtime

Under the Ontario Employment Standards Act:

Answer 8

hours worked exceeding forty-four hours in any week. The amount of pay is the same as under federal legislation at 1.5 times the regular rate of pay.

Question 9

Overtime

There are three general exceptions to this rule:

Answer 9

Management employees and professionals

If employer uses an averaging arrangement for more than one week of work then overtime applies only to those hours exceeding an average of forty hours per week.

If there is a modified work schedule then overtime is paid on the hours in excess of forty per week. Example - if the standard work week consists of four ten hour days then overtime is not paid in excess of eight per day, but only on hours exceeding forty in a week.

Question 10

Hours of Regular Work

Answer 10

Canada Labour Code - eight hours per day, and forty hours per week.

Employees are entitled to one full day of rest each week.

Note that there are some specific industry exemptions for these standard hours. An example is the trucking industry where the Motor Vehicle Operators Hours of Work Regulations stipulates the standard, maximum and overtime hours by type of driving activity.

Question 11

Hours of Regular Work (2)

Answer 11

Ontario Employment Standards - eight hours per day (unless the regularly scheduled hours are more than eight) and the maximum forty-eight hours per week.

In Ontario an employer may request a longer work day or scheduled more than forty-eight hours in the week. An employee is entitled to refuse to work the extra hours without penalty of disciplinary action.
(extra hours must be agreed to by both parties)

Question 12

Hours of Regular Work (3)

Answer 12

Ontario employment standards - rest periods as follows:
A minimum of eleven consecutive hours off work each twenty-four hour period.
A minimum of eight hours off work between shifts.
At least twenty four hours off work each work week
A thirty minute eating period after no more than five hours of work. This does not have to be paid time. An employee and employer may agree to split this into two shorter breaks.

Question 13

Labour and Employment Standards

Averaging Hours:

Answer 13

averaging hours means an employee’s hours of work are averaged over two or more weeks

Question 14

Labour and Employment Standards

Compressed Work Week:

Answer 14

a compressed work week is one in which the number of working days per week is reduced and the number of hours worked per day is increased

Question 15

Statutory Holidays

Answer 15

Employees are entitled to have statutory holidays off work and be paid at their regular rate of pay for these days.

There are 9 Federal Holidays
There are 9 Ontario Provincial Holidays

Employees who have completed 30 days of employment prior to the holiday are entitled to be paid for the holiday at their normal daily rate of pay.

Question 16

Statutory Holidays – Ontario

Answer 16

If an employee works on the holiday then they shall receive their normal pay for the hours worked plus a premium equal to 1.5 times their normal rate.

In Ontario there are exemptions for workers in several industries including hotels, resorts, hospitals, nursing homes and continuously operating businesses.

Question 17

Vacation

Answer 17

An employment entitlement in Canada is the earning of vacation pay.
It can be paid each pay cycle in addition to regular earnings, or
Accrued to be paid when the employee takes vacation/time off from the job.
Canada Labour Code the rate is:
4% of the wages for the first five years of employment
6% for six or more consecutive years
Ontario Employment Standards
4% of wages only

Question 18

Employment Leaves

Answer 18

Pregnancy/Maternity Leave
Parental Leave
Compassionate Leave
Bereavement Leave
Sick Leave
Family Medical Leave
Organ Donor
Personal Emergency
Reservist Leave

Question 19

Deductions from Pay

Answer 19

Under federal and provincial legislation there are clear rules on what amounts may be deducted from wages, including:

Statutory deductions required by law such as Canada Pension Plan contributions, Employment Insurance premiums, and income taxes.
Deductions authorized by a court order such as for family support garnishment of wages.
Amounts defined under a collective bargaining agreement such as union dues or assessments.
A recovery of previously overpaid wages or salary.
Specific amounts authorized by an employee in writing. These may be for amounts as for group insurance premiums, charitable contributions or savings bonds.

Question 20

Labour and Employment Standards

Statement of Wages

Answer 20

every employee must receive a statement with their pay that details information about the payment

Question 21

Labour Standards – Employment Standards

The common information that must appear is:

Answer 21

employee name / employee number
pay period dates
rate of pay and hours of work at each rate
gross earnings
itemized deductions – with enough detail so they can be identified
net pay / amount received

Question 22

Statement of Earnings - Ontario

Answer 22

Ontario has the same minimum requirements plus the reporting of any amounts being paid for room and board

Ontario provides that the Statement of Earnings may be available by electronic file as long as the employee has access to be able to print the statement of wages and deductions.

Question 23

Collective Bargaining/Unions

Answer 23

The employer must also be party to a collective bargaining agreement with a union that acts as an agent for some of the employees.

The union contract takes priority over legislated standards unless the terms are less than the minimum requirements.

Question 24

Information Sources

Answer 24

Labour and employment standards are updated by governments on a routine basis with amended laws or revised regulations and interpretations. Therefore it is very important for an employer to ensure that they are operating in compliance with current legislation.