Ontario minimum wage to increase on October 1

Very few Mainstay clients have employees being paid at the minimum wage, but those that do need to know that rate is increasing to $15.50 next week.  The Ministry of Labour sent a reminder today.  I’ve clipped it below for your reference.


Minimum wage is the lowest wage rate an employer can pay an employee. Minimum wage rates in Ontario will increase on October 1, 2022. The increase to the general minimum wage will be 50 cents, which will bring the new rate to $15.50 per hour.

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New CRA campaign focuses on personal services businesses: Are you ready?

IF YOU USE, OR INTEND TO USE, INDEPENDENT CONTRACTORS – READ THIS

Many employers use “Independent Contractors”(IC) to perform services for the business.  This is not necessarily a problem if they are kept clearly at arms length (such as your once a week office cleaners).  The problem arises when they work; primarily for you, with tools you supply, when and how you instruct, then these IC’s can be deemed employees by CRA.  This can mean the “employee” loses all their deductions and the “employer” would be required to pay back taxes, withholdings etc.

Many insurance brokers have suggested that these people incorporate to protect the employer they work for, but that in itself does not help.  In fact, an incorporated business with up to 5 staff can be deemed a Personal Service Business (PSB) resulting in the highest tax rates and reducing the ability to write off most business expense.  As a result, this advice is not just potentially damaging, but it can be a difficult spot to “get out of”.

The article below alerts employers to the fact that CRA will be running a campaign in this area…


The Canada Revenue Agency is escalating their scrutiny of personal services businesses, and the consequences for breaching these tax rules can be severe. Find out what you need to know about the CRA’s campaign.

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Why Ontario Employers Should Review Employment Contracts Now

We’ve seen many changes to employment relationships over the past few years and if you’re an Ontario employer, you may need to revisit employment contracts (working with an employment lawyer and/or an HR professional is best).  The article below highlights many of the changes you’ll want to consider.


It is common practice for technology companies to use standard form employment contracts for all staff.1 Often those contracts are precedents from some other source—a prior start up, or even the Internet. Or they may have been provided by a law firm providing legal advice a number of years ago.

Regardless of the source of the standard form, if it has not been updated in the last six months to reflect recent changes in the law, there is a very good chance that some of its key terms are no longer enforceable in Ontario.

Key Highlights

  • Employers likely need to update terms in employment contracts on termination provisions, restrictive covenants and arbitration clauses.
  • Five practical tips for Ontario employers as they review and update employment contacts.
  • Ontario employers need to stay mindful of new policy requirements on disconnecting from work and “electronic monitoring.”

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Enhanced HR Resources for Mainstay clients

If you’re a Mainstay client, you have access to our free HR Resources.  If you’re already signed up, great, they just got better (see below).  If you haven’t yet, please reach out and we’ll give you a discount code to get you set up.


As you may know, 80% of HR Toolkit resources are actually created for employees and managers, and our users have been telling us that they’d like to understand how to make this information available to them.
 
The HR Toolkit now includes a live employee intranet example that marries the HR Toolkit resources (forms, documents, guides, HR processes, and surveys) with a structured navigation that lets users visualize how important information can be served up to your workforce, regardless of your size.  
 
Because it’s always easier to edit, than create!

ESA Guidance Now Contains Chapter On Electronic Monitoring Policies

If you’re an employer with over 25 employees, you’ll want to read this short article as you need a written policy in place by October 2022.

If you’re a Mainstay client, we have provided HR resources that include a sample policy you can adopt to your firm.  If you’re not signed up yet, reach out and I’ll give you the code to access the info, which includes complete employee handbook, policy samples and templates.


In the spring, Bill 88Working for Workers Act, 2022received Royal Assent and became law. Among other things, Bill 88 amended Ontario’s Employment Standards Act, 2000 (ESA) to require certain employers to ensure, within a specific time frame, that they have a written policy in place for all employees with respect to electronic monitoring of employees (Policy).

On July 13, 2022, in its Your guide to the Employment Standards Act, the Government of Ontario published employer guidance for complying with the Policy. In this Insight, we provide a summary of that guidance in Q & A format.

READ Q&A

Ontario Extends COVID-19 Paid Infectious Disease Emergency Leave Yet Again

The Ontario government has extended the IDEL to march 31, 2023.

The post from e2r below provides more information.


If you thought COVID-19 was over, think again.

 
The Ontario government has just announced that it will be extending the Worker Income Protection Benefit program yet again until March 31, 2023. Set to expire on July 31st, 2022, this extension means that employers will still be required to provide three paid infectious disease emergency leave days to employees affected by COVID-19.
 
As a reminder, employees can take the three paid days for reasons such as:
  • going for a COVID-19 test
  • staying home awaiting the results of a COVID-19 test
  • being sick with COVID-19
  • going to get vaccinated
  • experiencing a side effect from a COVID-19 vaccination
  • having been advised to self-isolate due to COVID-19 by an employer, medical practitioner or other authority
  • taking care of a dependent who is:
o   sick with COVID-19 or has symptoms of COVID-19
o   self-isolating due to COVID-19
 
As set out in our last alert regarding this topic here – if an employee has already used up their 3 days, they are no longer entitled to any additional paid days (unless, of course, you already have a sick day policy in place that provides for additional days).
 
Employers must pay the employee their normal rate of pay for the day off, up to $200, and will have up to 120 days to make a claim for reimbursement. Information on employer reimbursement of these days can be found in our previous alert here.

Cross-Border: A Guide To Doing Business In Canada – Key Topics And Developments

The majority of our clients are Canadian companies based in Ontario.  Some have employees in other provinces and occasionally in the US or abroad.  In other cases, the head office is in the US or Europe, and they have smaller offices located here, in Canada, that often represent a small portion of their employees.

For the cases of US employers with Canadian employees, I occasionally provide articles of interest in understanding how our systems are different when it comes to benefits, HR and employment law.  this article references a great 48 page book you can obtain (or download).


On June 28, 2022 the McCarthy Tetrault’s Labour and Employment Group, along with leading partners from other practice areas in the Firm, hosted an insightful webinar on key cross-border topics and trends for business. The webinar coincided with the launch of our Cross-Border – Navigating Canadian Employment Law Guidebook.. The following are some highlights from the panelists:.

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Ontario, Canada: Requirements for Mandatory Policies, Training and Postings

If you have Ontario employees, please read this article for the required postings each office must have.  The link provides a list of all you need to know as well as; posters, sources for documents etc. in order to stay in compliance.


Employers subject to provincial legislation (i.e., not federal employers) that have employees in Ontario often ask about legislative requirements under various employment statutes, including mandatory policies, training, postings, and information sheets under the Employment Standards Act, 2000, the Workplace Safety and Insurance Act, 1997, the Occupational Health and Safety Act, the Accessibility for Ontarians with Disabilities Act, 2005, the Pay Equity Act, the Smoke-Free Ontario Act, 2017, the Working for Workers Act, 2021, and the Working for Workers Act, 2022. To make this information conveniently available, the Littler Toronto office assembled these requirements in a single publication. 

We have prepared an update to this publication dated June 20, 2022 (11th edition), which includes new information about the policy on disconnecting from work and information on the new policy on electronic monitoring of employees, which are mandatory for most employers. This edition of the publication also reflects the elimination of COVID-19 restrictions, with the exception of a masking requirement in long-term care and retirement homes.  Click here to read the June 2022 update.

Ontario Government Passes The Working For Workers Act, 2022 With Important Changes For Employers

A quick to read article on changes affecting Ontario employers.


On Monday, April 11, 2022 Bill 88, the Working for Workers Act, 2022 (the “Act“) received Royal Assent and came into force. The Act is intended to be a part of the Ontario governments continued response to the recommendations contained in a report from the Ontario Workforce Advisory Committee. Previously the government passed Bill 27, Working for Workers Act, 2021 which requires employers with 25 or more employees to implement a right to disconnect policy by June 2, 2022. This Act, like its predecessor, makes several notable changes to the workplace through the creation and modification of legislation.

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