Employers will need legal counsel on sweeping changes to law

Kevin Marshall

December 20, 2017

Both employers and employees should brush up on changes coming in January 2018 under the Fair Workplaces, Better Jobs Act.


“Inevitably, there will be many employers, especially smaller ones, that aren’t as familiar with the changes to the law.”


The change getting the most buzz is the hike in minimum wage to $14 an hour from $11.40.


“It will definitely cause some ripples in the economy.”


It’s the part of Bill 148 that could have the most far-reaching implications, he says, with many economists projecting job losses from the tens of thousands to 10 times that.


Marshall says layoffs or terminations resulting from the 23 per cent hike in the minimum wage may prompt employees to seek legal advice and bring claims, either for wrongful dismissal or to negotiate a fair settlement.


The minimum wage will rise again to $15/hr in 2019.


“I expect there will be many employers that will have to lay off or fire people and they’re going to need some legal services to respond to situations where employees are seeking a better severance package than what’s being offered.”


Several changes to the Employment Standards Act, 2000 will have an impact on employers, specifically new laws around personal emergency leave.


Where personal emergency leave was previously only provided in workplaces with 50 or more employees, it will be available to staff in workplaces of any size as of Jan. 1. Employees are entitled to up to 10 personal emergency leave days annually — two of them paid.

New rules around scheduling are “definitely helpful to workers.” Employees whose shifts are cancelled with less than 48 hours notice are now entitled to three hours of regular pay. If they normally work more than three hours per day and show up for their shift, they must be paid for a minimum of three hours.


Employees with five years or more at a workplace will now qualify for three weeks of vacation, up from the previous two weeks.


The new law providing up to 104 weeks of unpaid leave after the death of a child from any cause, or following a crime-related child disappearance, as “quite cutting edge.”


Meanwhile, family medical leave is increased from the current level of up to eight weeks in a 26-week period, to up to 27 weeks in a 52-week period to provide care for an ill family member. And an employer is no longer permitted to ask for a sick note from an employee who takes a personal emergency leave.


New equal pay for equal work changes “are not quite so meaningful as it may seem at first glance.”  While the bill says part-time, casual and seasonal employees doing the same job as full-time employees are entitled to equal pay, there are caveats and exceptions.


However, it is good news for temporary help agency placements doing the same work as a permanent employee, who will be entitled to the same pay.


Employers will be prohibited from wrongly classifying employees as independent contractors.


“Now the onus is on the employer to prove the worker is not an employee and that is new.”


With the new legislation, employers may need to revisit existing employment agreements.


“A contract cannot contradict the law, they may wish to take some action to make sure they are complying with the law."


“It would be wise at the outset for both the employer and employee to understand what is entailed in the relationship and that includes making provisions for its termination.”