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The End of COVID-19 Regulations
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Throughout the course of this COVID-19 pandemic, we have undergone several cycles of announcements, implementations, and revocations of COVID-19-related regulations. On April 14, 2022, Ontario filed yet another regulation – O. Reg. 346/22: Revoking Various Regulations (this “Regulation”) under Reopening Ontario (A Flexible Response to COVID-19) Act, 2020. In the nutshell, this Regulation revokes every single remaining COVID-19-related regulation in the province.

What Are Some Examples of Rules and Restrictions Being Lifted?

A major regulation being revoked is Regulation 364/20: Rules For Areas at Step 3 and at the Roadmap Exit Step, which requires that businesses must operate in accordance with any advice and instructions issued by the Office of the Chief Medical Officer of Health, including with respect to physical distancing, cleaning or disinfecting; establishing, implementing and ensuring compliance with a COVID-19 vaccination policy; and setting out the precautions and procedures that businesses must include in their COVID-19 vaccination policies. In addition, masks and face coverings are no longer required on public transit services, in hospitals, in long-term care homes, laboratories and specimen collection centers, homeless shelters, and congregate care supportive housing residences, among others.
Continue Reading The End of COVID-19 Regulations

Working for Workers Act received Royal Assent, making it now law
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In March, we blogged about Bill 88 or the Working for Workers Act (part 2) (the Act). You can read that post here. On April 11, 2022, the Act received Royal Assent, making it now law. Most significant to employers, who are not Uber etc., are the changes to the Employment Standards Act, 2000  (ESA) and the Occupational Health and Safety Act (OHSA). The Act has attracted the most attention for the creation of the Digital Platform Workers’ Rights Act, 2022, which will have big implications for digital platform workers and “employers” like Uber and Skip the Dishes, however, the Act impacts non-digital platform employers too. 

Here’s the rundown of what’s new in the ESA and the OHSA.
Continue Reading Working for Workers Act 2 Passes in the Ontario Legislature: What Employers Who Aren’t Uber Need to Know to Comply

IT employment standards rights: how do they differ from other employees?
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Tech is on the rise. Tech jobs have exploded in number in past years, but especially so since the pandemic. We work with a lot of tech clients, especially tech startups with workforces that are growing exponentially. There are many types of workers who work with tech companies, amongst them information technology (IT) professionals. It is critical for tech companies that employ IT professionals to understand the rights of their workers, especially their IT professional employees, whose employment standards rights are different from those of some other employees. 

How Are an IT Professional’s Rights Different? 

Under O. Reg. 285/01 of Ontario’s Employment Standards Act, 2000 (“ESA”), IT professionals are exempt from the following requirements under the ESA:
Continue Reading Who is an Information Technology (IT) Professional in Ontario? And What Rules Apply to Them?

We’ve written about terminations in several of our blog posts throughout the years. Some of our employer readers (and clients) may recall scrambling to update their employment contracts following the 2020 release of Waksdale v. Swegon North America Inc. (2020 ONCA 391). Still, many employers who are seeking to terminate their indefinite-term employees on a without cause basis believe that as long as they provide their employees with 2 weeks of notice, or the period of notice set out in the Employment Standards Act, 2000, they are off the hook. More often than not, this notice period is legally insufficient. So, what is the applicable notice period? 
Continue Reading Firing Employees with 2 Weeks of Notice May be Insufficient

An Update on Bill 27, Working for Workers Act, 2021
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In our recent blog, we talked about Ontario’s Bill 27, Working for Workers Act, 2021, which proposed new changes to several pieces of legislation, most notably the Employment Standards Act, 2000. On November 30, 2021, Bill 27 passed third reading and on December 2, 2021, it received royal assent, making it now law. In this post, we will highlight some of the key changes.

Non-Compete Agreements are Prohibited

Under Bill 27, employers are prohibited from entering into employment contracts or other agreements with employees that is or includes a non-compete agreement. Employers will be pleased to know that there is an exception for executives; these employees may still enter into non-compete agreements with employers. 

Executives are defined as “any person who holds the office of chief executive officer, president, chief administrative officer, chief operating officer, chief financial officer, chief information officer, chief legal officer, chief human resources officer or chief corporate development officer, or holds any other chief executive position”.
Continue Reading An Update on Bill 27, Working for Workers Act, 2021

A Proposed Ban on Non-Competes
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On October 25, Ontario Bill 27, Working for Workers Act, 2021 (“the Bill”) passed first reading. This Bill proposes amendments to our key Ontario employment statutes, including the Employment Standards Act, 2000 (the “ESA”) and the Occupational Health and Safety Act. In today’s post, we will review highlights regarding the proposed ban on non-competes and talk about how Ontario businesses can prepare. 

A Ban On Non-Competes

One much-discussed element of the Bill is the proposed ban on non-competition agreements in employment contracts. 

A non-competition agreement restricts – or tries to – an employee’s ability, for a period of time, to work for a competitor after leaving the employer. The restriction is usually somewhere between three months to two years. 
Continue Reading A Proposed Ban on Non-Competes

IDEL and Constructive Dismissal
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The Ontario Superior Court has ruled once again on the right of an employee to assert a constructive dismissal in light of the O. Reg. 228/20: Infectious Disease Emergency Leave (“the Regulation”) under the Employment Standards Act, 2000 (ESA). In the latest decision, the court ruled that the Regulation does not preclude an employee from asserting a common law constructive dismissal. 

As discussed in previous posts, under the Regulation neither a reduction in the employees hours of work or wages constitute a constructive dismissal under the ESA if they occur during the COVID-19 Period. The COVID-19 Period keeps changing on us, but it currently runs from March 1, 2020 to September 25, 2021.  There have been conflicting decisions about whether the Regulation also removes an employee’s right to assert a constructive dismissal under the common law. 
Continue Reading Another Ruling on the IDEL and the Employee’s Right to Pursue Common Law Constructive Dismissal

severance and employer payroll threshold
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A new ruling from Ontario’s Divisional Court has changed which employees will be entitled to severance pay. While the law has been mixed, it was generally the case that the $2.5 million payroll threshold for the purposes of calculating severance pay applied to Ontario payroll only. The Divisional Court has now ruled that global payroll should be considered. 

What’s Severance Pay?

In Ontario, employers with a payroll of more than $2.5 million must, upon termination or severance of employment, pay severance pay to employees with five or more years of service. This aspect of the Ontario Employment Standards Act, 2000 (ESA) increases the legal minimums employers are required to pay to long service employees significantly. Under the ESA, notice of termination caps out at 8 weeks, whereas severance pay can be up to 26 weeks. 
Continue Reading Heads up Multinational Employers! A Change to the $2.5 Million Payroll Threshold Calculation.

manager exemption for overtime
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Last week we wrote about ways employers can manage overtime liabilities with Averaging Agreements and Time in Lieu. This week we will tackle a commonly litigated overtime issue – the manager exemption. 

The Manager Exemption 

Not every worker is entitled to overtime pay. Exemptions are set out in section 8 of Ontario Regulation 285.1 under the Employment Standards Act, 2000. Included in the list of the exempt is the manager or, to be exact, “a person whose work is supervisory or managerial in character and who may perform non-supervisory or non-managerial tasks on an irregular or exceptional basis.” Who exactly falls under this exemption can be unclear. 
Continue Reading Overtime Part 2: The Manager Exemption

vacation pay class actions
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Since 2019, there have been five proposed class actions against insurance companies and banks for failure to pay proper vacation pay to employees, both past and present. The total amount claimed in the aggregate of these five actions is around $1.2 billion. Royal Bank of Canada is a named party in three of the five actions; in one, it is facing a proposed $800-million class-action lawsuit involving thousands of advisors. Bank of Montreal and Allstate Insurance are also named in these class actions. A significant aspect of the allegations against these employers revolves around the calculation of their employees’ vacation pay. The issue is that for many of these employees, the majority of their compensation is and was made up of commissions and bonuses. Their vacation pay, however, was and continues to be based solely on their much lower base salaries.
Continue Reading Vacation pay class actions a heads up for employers