On March 20, 2023, the Ontario government announced the introduction of Bill 79, the Working for Workers Act, 2023 (“Bill 79”). If passed, Bill 79 will make several amendments to Ontario’s employment standards and occupational health and safety legislation, among other changes.
Most relevant to employers, Bill 79 proposes to amend the provisions of the Employment Standards Act, 2000 (the “ESA”) with respect to reservist leaves and the circumstances in which a mass termination is triggered to include remote workers. Bill 79 also proposes to increase fines for corporations under the Occupational Health and Safety Act (the “OHSA”).
An overview of these proposed changes is provided below, along with an update on the upcoming minimum wage rate increase.
1.Minimum Wage Hike
The Ontario government has announced that effective October 1, 2023, the general minimum wage rate will increase from $15.50 per hour to $16.55 per hour. Special minimum wages rates will also increase, as detailed in the announcement.
2.Changes to Mass Termination Provisions
The ESA provides for enhanced notice entitlements if 50 or more employees are terminated within the same four-week period at an employer’s “establishment” - this type of employment termination is referred to as a “mass termination.” The ESA currently defines “establishment” as the “location at which the employer carries on business.”
Bill 79 proposes to amend the definition of “establishment” such that the phrase “location at which an employer carries on business” would include an employee’s private residence “if the employee performs work in the private residence and the employee does not perform work at any other location where the employer carries on business.”
If Bill 79 passes, these changes would come into effect on the later of July 1, 2023 or the day Bill 79 receives Royal Assent. From that date onward, employers will need to ensure that they include any employees who work exclusively from home when determining how many employees fall within the employer’s “establishment”.
The above change has the primary impact of ensuring that employees working remotely from home, on an exclusive basis, receive the same entitlements on termination as those otherwise working in the employer’s “establishment.”
3.Expansion of Reservist Leave
Bill 79 would also expand the reservist leave provisions under the ESA to provide that an employee who is in treatment, recovery, or rehabilitation in respect of a physical or mental health illness, injury, or medical emergency that results from participation in certain operations or activities is entitled to reservist leave. Employees would also be eligible for reservist leave after two consecutive months of employment (currently, employees are eligible for such leave after three consecutive months of employment). The changes to the reservist leave provisions would come into effect on the day Bill 79 receives Royal Assent.
If Bill 79 passes, employee handbooks and other policies pertaining to leaves of absence may need to be updated to ensure they accurately capture the amended reservist leave provisions.
4.Increased Fines for Corporations under the Occupational Health and Safety Act
Bill 79 proposes to amend the OHSA to increase the maximum fine for a corporation convicted under the act, from $1,500,000 to $2,000,000. This change to the OHSA would come into effect on the day Bill 79 receives Royal Assent.
Employers should be aware of this increased potential liability, noting that such a penalty could be imposed for each OHSA conviction (as opposed to a maximum total penalty).
Next Steps
We will continue to monitor the progress of Bill 79 and will post any relevant updates on this blog.
