This is a summary of the Ontario changes passed or pending that may affect clients.  The info is provided by e2r HR/Law

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Further to our last Alert, here are some additional legislative updates that employers should be aware of.

Working For Workers, 2023

On October 26, 2023 the Working for Workers Act, 2023 received Royal Assent and is now in force. Among a whole slew of changes the following are the most notable:

• Mass Terminations – Remote workers, along with in-office workers, are now to be included when calculating whether an employer meets the threshold of 50 or more employees being terminated. If this threshold is met during a 4-week period, mass termination requirements are triggered.
• Increased Fines – The Ontario Health and Safety Act has been amended to allow for maximum fines to be increased from $1,500,000 to $2,000,000.
• Information for New Hires – The Act allows regulations to be introduced that could require Ontario employers to provide current and prospective employees with written information on their position. No specific regulations have been released as of yet.
• Licenses for Recruiters and Temporary Help Agencies – Temporary help agencies must have a licence to operate, and recruiters must have a licence to act as a recruiter as of July 1, 2024. This does not include employees performing recruiting’s functions as a duty of their position within an organization and recruiting for their organization.

Working For Workers Four Act, 2023

On November 14, 2023, the Ontario government introduced another Working for Workers Act that, if passed would it include the following updates:

• Recruitment – Ontario employers would be required to include expected salary ranges in job postings and indicate if artificial intelligence (AI) is used during their hiring process. Additionally, the Act may ban the use of Canadian work experience as a requirement for a position.
• Workplace Safety and Insurance Board (WSIB) – The concept of “super indexing” would be introduced, allowing for benefits to increase greater than inflations.
• Restaurant and Service Workers – Ontario employers would be required to provide greater protections for workers in the hospitality industry by banning unpaid trial shifts, banning deductions of employee’s wages (in the event of a dine and dash, gas and dash, or any other stolen property), and requiring greater clarity around tips.
• Vacation Pay – Ontario employers would be required to have employees sign an agreement to allow for “alternate pay arrangements”.

READ MORE

 

Provincial legislation on Pay Transparency is expanding across the country.  What this means is that you may (likely) be required to share pay ranges in pubic job postings that could be applied for remotely from anywhere across Canada.  The article below shares more information.

Don’t forget that the Ontario Pay Equity legislation governs all firms over 10 employees in Ontario and must also be complied with. (MORE HERE)

The new National Dental Plan is coming into force in 2024.  As such, employers are required to share if they have benefits coverage, and how staff and their families are covered.  We posted this past month, but are reposting with updates…

The program provides coverage for kids under the age of 18, people with disabilities and seniors.  Initially, this will program will benefit families with net annual incomes below $90,000 and NO private coverage of any kind.

Most employers will not make changes to their offering, as private plans are likely to provide far superior coverage to the federal plan.  That said, clients that have dental plans (OF ANY KIND) will need to report the fact on T-4’s each year.

As I have been fielding questions from advisors across Canada (through CGIB), I’ve come across many of the same questions.  I thought posting them here may answer some of the questions you may have.

• What about employees that “waive” coverage? How are they coded? (3, 4, or 5)
• What if an employee lost coverage/job? (An amended T4? – We aren’t sure just yet.)
• What about classes that have no benefit? (Code1)
• What about growing families (Where staff are moving from “single” to “family coverage)? (Code 3)
• What about 2024 mid year hires? (Code on 2024 T4’s)
• What about Health Spending Accounts (HSA’s)?  Do they need to be reported? (YES, they can be used to pay dental expenses)
• What if the employee used up the HSA for health? (Code 2 or 3, same as someone who used up an insured dental benefit)
• Can an HSA be structured to EXCLUDE dental coverage from eligible expenses? (Yes, with some providers. if that is chosen then Code 1)
• Why don’t we just drop dental coverage to let the government plan cover it? (it’s limited coverage and has $90K household income cut-off)

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This article from the payroll Company “Knit People” provides a good summary.

To support the implementation of the Canadian Dental Care Plan (CDCP), the 2023 Budget Implementation Act includes legislative updates to permit its effective administration of the Dental Care Measures Act.

The Dental Care Measures Act will permit the collection of Social Insurance Numbers from applicants and require the reporting of employer-provided dental coverage via T4 and T4A tax slips.

The legislation requires employers to report on a tax slip whether an employee, former employee, or a spouse of a deceased employee was eligible on December 31 of the reporting tax year, to access dental insurance or dental coverage of any kind, due to current or former employment.

This includes access to ongoing (not one-time occurrence/exceptional) dental care coverage, reimbursement, or insurance as an employee or retiree benefit. Whether or not an individual made use of, or accepted coverage/insurance is not reported. Reporting covers only whether or not it was available to them.

Employers may include Pension Plan Administrators and other organizations that complete T4As and T4s annually.

This reporting requirement will be mandatory beginning with the 2023 tax year reporting cycle, and will continue to be required on an annual basis.As a result, the following new boxes will be added to the T4 and T4A slips for the 2023 tax year along with specific codes:

T4 Box 45: Employer-Offered Dental Benefits
T4A Box 015: Payer-Offered Dental Benefits

Code 1 – No access to any dental care insurance, or coverage of dental services of any kind.
Code 2 – Access to any dental care insurance, or coverage of dental services of any kind for only the payee.
Code 3 – Access to any dental care insurance, or coverage of dental services of any kind for payee, spouse and dependants.
Code 4 – Access to any dental care insurance, or coverage of dental services of any kind for only the payee and their spouse.
Code 5 – Access to any dental care insurance, or coverage of dental services of any kind for only the payee and dependants.

https://help.knitpeople.com/hc/en-us/articles/16416322216599-New-Boxes-added-to-the-T4-T4A-slips-for-National-Dental-Plan

I saw this post and thought it useful to share with clients, as we are seeing people becoming a bit more…mobile… these days.

A few things I’d add…

1.  Check with us before offering any benefit extensions beyond the legislated notice period (AKA stat notice period, Pay In Lieu Of Notice period or PILON), which is generally 1 week per year of service to 8 weeks max.  During this time FULL benefits must be provided.

2.  Ensure you remind staff, in writing, of their options to convert life insurance (LTD if applicable) and health/dental coverage.

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Managing an employee resignation can be challenging, especially when it comes as a surprise. It is important that employers take the correct steps to ensure that departures occur smoothly, from both a practical and legal perspective.

Notice of Resignation

Under many provincial employment standards statutes employees are required to provide their employers with a specific amount of reasonable notice of resignation. An employee’s employment agreement may also stipulate a longer notice period. Some provinces do not have such statutory requirements regarding resignation.

Resignation in Writing

It is very important that employers obtain the resignation in writing, rather than verbally or making assumptions. This eliminates any misunderstanding about the employee’s intention to resign and the timing of the resignation. It also protects against common disputes between the employer and employee relating to the circumstances of the departure and who’s choice it was.

Professional Response

In certain circumstances, employers may feel frustrated or disappointed with an employee who resigns. It is important to respond in a professional manner. Resignations are a natural part of conducting business. Generally, employers cannot refuse an employee’s resignation despite how much they may want them to stay with the organization. However, they may wish to offer the employee an incentive to remain, such as a higher salary or additional benefits, depending on the situation.

After the Resignation

Once the resignation is received, there are several key steps an employer should take:

• Acknowledge the employee’s resignation, confirm the last working day and advise of any necessary exit procedures. Often, it is best practice for this to be communicated in writing.
• Finalize compensation obligations by ensuring all outstanding payments are made according to employment standards (salary, benefits, vacation pay, etc.).
• Make the necessary arrangements to collect company property such as laptops, key cards, etc. It is your equipment so you may need to arrange for a courier pick-up at your expense.
• Remind the employee of any post-employment obligations (confidentiality, non-solicitation, etc.). Often, these obligations are outlined initially in the employment agreement.
• Consider conducting an exit interview to gain insight on their reasons for leaving and obtain feedback on improvements moving forward.
• Issue a Record of Employment as necessary.
• Notify other staff of the employee’s departure by providing the necessary context (but keep it simple and professional). This may be done via email or in person. Typically, responsibilities will have to be reassigned accordingly.

Note that a previous e-Alert, Exit Checklists- A Powerful Tool, provides some further considerations to ensure there are minimal disruptions to the organization after resignation.

Don’t hesitate to reach out to us with any related questions! Our Advisors are here to help you navigate the resignation process. 

On October 1, 2023, the general minimum wage rate that applies to most provincially-regulated employees in Ontario will increase from $15.50 to $16.55 per hour.

The minimum wage rates for students, liquor servers, hunting and fishing guides, wilderness guides and homeworkers in Ontario will also increase on October 1, 2023. The Ontario Ministry of Labour has posted a list of these increased rates on its website.

Provincially-regulated employers in Ontario who are paying their employees the minimum wage should:

• take steps to ensure their payroll records are updated effective October 1, 2023, to reflect the increased rates. If the October 1 change occurs partway through a pay period, an employer will need to treat the pay period as if it were two distinct periods and the employee must receive at least the minimum wage that applies in each of those periods; and
• consider whether this increase in labour costs will impact budgeting, scheduling or staffing needs, and plan accordingly.

https://www.mondaq.com/canada/employee-rights-labour-relations/1367992/general-minimum-wage-in-ontario-will-rise-to-%24-1655-per-hour-on-october-1-2023

I founded Canadian Group Insurance Brokers (CGIB) as an association dedicated to educating employee benefit advisors, across the country.  Along the way, the group has grown to included insurers, TPA’s, and other providers in the group insurance space. Since 2009 we have produced over 70 educational events with hundreds of speakers, ranging in size from workshops of 40 to seminars with over 350 in attendance, all while garnering rave reviews.

As these events have grown, many employers have indicated an interest in attending these full-day educational events.  The feedback from clients is that they love to be the “fly on the wall” in the event and hear what only advisors would generally get to hear. Would you like to be that fly?

Our next seminar is on November 8th and located in Vaughan (near Hwy’s 407 and 400) and the details are all here… https://cgib.glueup.com/event/november-8th-2023-cgib-toronto-seminar-71832/

If you are an existing or prospective client, and and are interested in attending, please drop me an e-mail and I’ll book you a spot (at my cost).

The new National Dental Plan is becoming a reality.

The program is expected to launch later this year, with coverage for kids under the age of 18, people with disabilities and seniors.  Initially, this will program will benefit families with net annual incomes below $90,000 and NO private coverage of any kind.

Sun Life has been awarded the project to get things started.  READ MORE HERE

Most employers will not make changes, as private plans are likely to provide far superior coverage to the federal plan.  that said, clients that have dental plans will need to report the fact on T-4’s each year.

The article for payroll Company Knit People provides a good summary.

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To support the implementation of the Canadian Dental Care Plan (CDCP), the 2023 Budget Implementation Act includes legislative updates to permit its effective administration of the Dental Care Measures Act.

The Dental Care Measures Act will permit the collection of Social Insurance Numbers from applicants and require the reporting of employer-provided dental coverage via T4 and T4A tax slips.

The legislation requires employers to report on a tax slip whether an employee, former employee, or a spouse of a deceased employee was eligible on December 31 of the reporting tax year, to access dental insurance or dental coverage of any kind, due to current or former employment.

This includes access to ongoing (not one-time occurrence/exceptional) dental care coverage, reimbursement, or insurance as an employee or retiree benefit. Whether or not an individual made use of, or accepted coverage/insurance is not reported. Reporting covers only whether or not it was available to them.

Employers may include Pension Plan Administrators and other organizations that complete T4As and T4s annually.

This reporting requirement will be mandatory beginning with the 2023 tax year reporting cycle, and will continue to be required on an annual basis.As a result, the following new boxes will be added to the T4 and T4A slips for the 2023 tax year along with specific codes:

T4 Box 45: Employer-Offered Dental Benefits
T4A Box 015: Payer-Offered Dental Benefits

Code 1 – No access to any dental care insurance, or coverage of dental services of any kind.
Code 2 – Access to any dental care insurance, or coverage of dental services of any kind for only the payee.
Code 3 – Access to any dental care insurance, or coverage of dental services of any kind for payee, spouse and dependants.
Code 4 – Access to any dental care insurance, or coverage of dental services of any kind for only the payee and their spouse.
Code 5 – Access to any dental care insurance, or coverage of dental services of any kind for only the payee and dependants.

https://help.knitpeople.com/hc/en-us/articles/16416322216599-New-Boxes-added-to-the-T4-T4A-slips-for-National-Dental-Plan

If you are an Ontario employer with over 20 employees, you are required to file before the end of the year.  The article below was a good reminder for me.

The government site explains the requirements for firms of ALL sizes.  https://www.ontario.ca/page/accessibility-rules-businesses-and-non-profits

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The Accessibility for Ontarians with Disabilities Act (“AODA”) is a law that sets out a process for developing and enforcing accessibility standards. Under AODA, accessibility standards have been created that organizations must follow.

To ensure employers in Ontario have met current accessibility requirements under AODA, a compliance report must be filed periodically.

If you are a business or non-profit organization with 20 or more employees in Ontario, you must file an accessibility compliance report every 3 years.
If you are a designated public sector organization you must file an accessibility compliance report every 2 years.

The deadline to file in both cases is December 31, 2023.

READ ARTICLE

A good article indicating the responsibilities of employers and employees in obtaining and providing medical information around absences.  If in doubt, reach out to us, an HR consultant, and/or employment lawyer, especially in the messier situations.

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“In the post-pandemic era, employees and employers alike are more cognizant of the importance of keeping sick workers home to contain and prevent the spread of illness. In addition, employers should be keenly aware of their duty to make diligent efforts to accommodate employees with disabilities, which may include providing additional time off or permitting the taking of unpaid leave.

At the same time, chronic and excessive absences can have a significant impact on workplace operations, and may detrimentally affect employers’ bottom lines. As such, employers have a legitimate interest in counteracting chronic absenteeism and ensuring that healthy workers attend work, and only those employees who are actually unable to work due to illness or disability are granted leave or other benefits.

To ensure employees are taking sick leave or benefits for a bona fide reason, arbitrators have held that employers have the right to inquire into absences from work and employees have a continuing obligation to account for their absence, including absences due to illness. Employees have the obligation to provide their employers with “sufficient proof” that their absence was a result of illness or injury. Once an employee provides with the requisite proof of illness or injury, the right to the leave or other benefits is guaranteed….”

https://www.mondaq.com/canada/employee-rights-labour-relations/1355252/navigating-innocent-absenteeism-of-ill-employees-or-employees-with-disabilities-the-employers-right-to-request-medical-documentation-limited-by-privacy-laws?

I received this offer from GreenShield and thought it should be shared.

If you, or a woman you know, needs some help, please pass this along.  There is no cost (for the offer below). Although not a substitute for long term counselling, it may be a great start for those that do not have benefit plan with paramedical benefits, an Employee Assistance Program (EAP) or a Mental Health HSA.

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When you sign up for GreenShield Cares’ Women’s Mental Health Program, you’ll receive two free hours of culturally sensitive talk therapy sessions and a complimentary subscription to online coach-assisted therapy (iCBT). We know that one-size therapy does not fit all. Talking to someone who understands unique needs of women – especially those from marginalized and/or racialized communities ­– can be immensely helpful for one’s healing journey.

Our program offers a personalized counselling matching tool with over 50 matching options, including culture, race, language, and religion, to ensure you can find a mental health professional who shares and/or can relate to your identity and lived experiences. Hundreds of our certified practitioners identify as a person of colour, Indigenous or Black so you can find the support that’s right for you.

https://www.greenshield.ca/en-ca/cares/womens-mental-health