Ontario has an Employment Standards Act that applies to most employees and employers. The Act covers the following topics:
- Who is covered by the Act
- Child Employment
- Payment of Wages
- Parental Leave
- Hours of Work
- Employment Agencies
- Annual Vacation
- Minimum Wage
- General Holidays
- Pay Legislation
- Termination of Employment
Minimum Wage
Under the Employment Standards Act most employees must be paid $10.25 per hour effective March 31, 2010. Under special circumstances, different rates apply to some groups, such as:
Students under age 18 working less than 28 hours per week during a school year: $9.60 per hour, effective March 31, 2010. Employees serving alcohol directly to customers: $8.90 per hour, effective March 31, 2010.
There are no longer special rates for learners, ambulance workers or construction workers; and no special wage rates for commission sales people, live-in superintendents or janitors.
Employers cannot deduct pay for faulty workmanship, cash shortage, or loss of property where any other person had access to the cash or property. Regulations governing deductions for income tax, court orders and deductions are to be authorized by employees.
Holidays
Full-time, part-time and student employees are entitled to public holidays at their regular pay:
- New Years Day
- Family Day
- Good Friday
- Victoria Day
- Canada Day
- Labour Day
- Thanksgiving Day
- Christmas Day and Boxing Day
Easter Sunday, Easter Monday and the first Monday in August (often called the Civic holiday weekend) are not mandatory.
Conditions for Paid Holidays
To qualify to be paid for a holiday, a worker must:
- have been an employee for three months,
- have earned wages on at least 12 days during the four (4) work weeks immediately prior to the holiday,
- have worked their regularly scheduled work day prior to the holiday, and their first scheduled work day after.
If an employee agrees to work a holiday they must receive either public holiday pay plus premium pay for the hours worked on a 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.
Overtime Pay
Employees are entitled to overtime pay for any hours worked in excess of 44 hours per week. These employees must be paid at least 1.5 times their regular rate for each hour worked over 44 hours. Hours may be averaged over a number of weeks to avoid paying overtime – this requires the employee’s consent and the written approval of the local Employment Standards office of the Ministry of Labour. Separate regulations cover local cartage, highway transportation or construction workers (sewer, roads, water main) as well as seasonal live-in employees at a tourist resort. Not included are employees working on commission, traveling sales people and some supervisors and managers.
Vacation Pay
Entitlement to vacation pay applies to all full-time, part-time and student employees. Vacation entitlement begins to accrue from first day of employment – after one year, an employee is entitled to two weeks vacation with pay. Vacation pay is not less than 4% of total gross wages earned yearly, including overtime. All outstanding vacation pay must be paid within seven (7) days of termination or on what would have been the employee’s next pay day, whichever is later.
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