NEWS OF THE MONTH
Updates on Pay Equity Plans and New Regulations for Federal Employers
Canadian federally regulated employers with 10 or more employees must post their pay equity plans by September 3, 2024 and provide any required increases in compensation on September 4, 2024. Employers unable to meet this deadline can request an extension through the Pay Equity Portal, provided they demonstrate genuine progress and a clear plan to complete the work.
If granted, extensions will require employers to pay retroactive compensation from the day after the plan is posted, along with daily interest. If denied, the original deadline and associated penalties will apply.
Recent amendments to the Pay Equity Regulations introduce clearer guidelines for administrative monetary penalties. Violations can result in fines ranging from $500 to $50,000, based on the severity of the breach and the size of the employer. Factors influencing penalty amounts include the employer’s negligence, economic advantage gained from non-compliance, and steps taken to address the violation.
Employers should act promptly to meet deadlines or request extensions to avoid fines and ensure compliance with the Pay Equity Act.
Holiday Announcement
As the Civic Holiday approaches in Ontario, we want to take a moment to wish you a relaxing long weekend! ☀️ Just a friendly reminder that our office will be closed on Monday, August 5th, to celebrate. We’ll be back to our regular schedule on Tuesday, August 6th.
If you have any urgent requests while we’re away, please drop us an email at service@hrcovered.com, and we’ll get back to you as soon as we resume operations. 🙂
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FEDERAL NEWS
Changes to the Canada Labour Code: Presumption of Employee Status and Disconnecting from Work Policy
The Canada Labour Code has introduced new changes that include the presumption of employee status and a disconnecting from work policy. These changes aim to protect employees by ensuring they are recognized as such unless proven otherwise and by promoting work-life balance through the disconnecting from work policy. The right-to-disconnect policies are set to come into force in 2025, allowing employers sufficient preparation time.
Legislation Looks to Pay Flight Attendants for Pre- and Post-Flight Work
Conservative MP Lianne Rood has introduced Bill C-409 to amend the Canada Labour Code, aiming to address wage disparities for flight attendants. The proposed legislation seeks to ensure flight attendants are paid for pre- and post-flight duties, including security checks, passenger service, and mandatory training.
Currently, flight attendants are only compensated while the plane is in motion, leaving pre- and post-flight tasks unpaid. Rood argues that this situation is unfair and disproportionately impacts women and diverse workers.
If passed, Bill C-409 would mandate compensation for all hours worked, including delays and training, reflecting a shift towards better recognition of the extensive duties performed by flight attendants.
Federal Government Consultant Charged for $250,000 Timesheet Fraud
The investigation, initiated by Public Services and Procurement Canada (PSPC) in summer 2021, revealed overbilling through fraudulent timesheets from January 2020 to June 2021. The case was referred to the RCMP’s Sensitive and International Investigations Unit (SII), which confirmed the discrepancies through contractor statements and timesheet reviews. The consultant is set to appear in court in September.
PROVINCIAL NEWS
ONTARIO
Ontario Court Rules Employer Not Obligated To Preserve Past Service Benefits
An Ontario small claims court has ruled that an employer’s description of post-divestment benefits as “comparable” to previous coverage did not create a contractual obligation to maintain past service benefits. The case involved Josef Kreppner, who claimed a pension shortfall after transitioning to the Municipal Property Assessment Corp (MPAC) following a government divestment.
Deputy Judge Dennis Ong found that the promise of “comparable” benefits was merely informational and not a binding commitment. This ruling distinguishes general informational statements from unequivocal promises, offering clarity for plan administrators. However, some experts believe the decision may have overlooked established legal principles regarding benefits-related misrepresentations.
Ontario Plans to Welcome More Immigrant Health Care Workers
Ontario is making changes to the Ontario Immigrant Nominee Program (OINP) to address health care labour shortages and better protect newcomers. Key changes include:
- Expanded Eligibility: Increasing the number of occupations eligible for the In-Demand Skills stream from 22 to 56.
- Easing Requirements for Nurses: Nurses registered with the College of Nurses of Ontario will no longer need a bachelor’s degree to qualify for certain OINP streams.
- Fraud Prevention: Raising minimum penalties for fraud from $2,000 to $10,000 to protect newcomers from exploitation.
Alberta Sounds Alarm Over Illegal Fees Imposed on Immigrants
Alberta is alerting the federal government about a scam where immigrants are charged large sums for jobs, often through illegal sales of labour market impact assessments (LMIAs). This practice, involving employers, immigration consultants, and recruiters, exploits temporary foreign workers who are unaware that these fees should be covered by employers.
The Canada Border Services Agency has charged some immigration consultants and unauthorized practitioners, including a recent conviction in Edmonton where an immigration business owner charged up to $45,000 to arrange employment for foreign workers.
ALBERTA
Alberta Updates Rules for Private Sector Pension Plans
Alberta has introduced updates to the rules governing private sector pension plans to enhance future security for recipients. The amendments focus on the target benefit component, setting a “provision for adverse deviation” at 7.5%, plus an additional percentage determined by a reviewer to meet funding and risk management objectives.
Alberta has introduced updates to the rules governing private sector pension plans to enhance future security for recipients. The amendments focus on the target benefit component, setting a “provision for adverse deviation” at 7.5%, plus an additional percentage determined by a reviewer to meet funding and risk management objectives.
Nate Horner, president of the Treasury Board and minister of finance, stated that these predictable and stable funding rules will benefit both administrators and employers, offering more flexibility for benefit improvements such as cost-of-living increases and better retirement benefits.
The provincial government emphasized that reducing volatility and easing requirements will help pension plans support their members more effectively. Currently, 57% of unretired Canadians feel unprepared for retirement, according to the Healthcare of Ontario Pension Plan (HOOPP).
These changes will provide flexibility for nearly 180,000 members across 20 target benefit pension plans in Alberta, aligning the province with others like British Columbia, which implemented similar changes in 2022.
CRA Orders Alberta Couple to Repay $14,000 in CERB Payouts
The Canada Revenue Agency (CRA) has ordered an Alberta couple, Ron and Daria Roffel, to repay $14,000 in Canada Emergency Response Benefit (CERB) payouts. The CRA claims Daria exceeded the allowable hours worked and earned too much to qualify for the benefit, although the couple maintains she had reduced hours at work.
CERB provided eligible Canadians with $2,000 for a four-week period during the COVID-19 pandemic. Eligibility required recipients to have earned no more than $1,000 in employment or self-employment income for 14 or more consecutive days within the four-week benefit period.
Despite filing for CERB during the pandemic, the Roffels received an email years later demanding repayment. The CRA has since withheld their tax returns, GST refunds, and carbon tax rebates. The couple’s appeals have failed, and the CRA reiterated that while good faith applicants would not face penalties or interest, they must repay any ineligible amounts.
Earlier this year, the CRA began reviewing the benefits eligibility of approximately 200,000 Canadians.
BRITISH COLUMBIA
B.C. Expands Mental-Health Presumption for Workers
British Columbia has broadened its Workers Compensation Act to include 11 additional occupations under its mental-health presumption. Effective June 10, this update simplifies the process for workers in these roles to claim compensation for psychological injuries related to work trauma. The newly covered occupations are:
- Community-integration specialists
- Coroners
- Harm-reduction workers
- Parole officers
- Probation officers
- Respiratory therapists
- Shelter workers
- Social workers
- Transition house workers
- Victim service workers
- Withdrawal-management workers
The mental-health presumption allows for automatic consideration of work-relatedness once a psychological injury is diagnosed, expediting claims with WorkSafeBC. Previously, this presumption applied primarily to first responders.
The B.C. Ministry of Labour specifies that eligible occupations must involve exposure to traumatic events and be clearly defined. Workers outside these roles can still file claims if they believe their mental-health issues are work-related.
SASKATCHEWAN
Saskatchewan’s Immigration Services Act Now in Effect
Saskatchewan’s new Immigration Services Act, effective July 1, aims to enhance the management and protection of foreign workers in the province. The legislation replaces The Foreign Worker Recruitment and Immigration Services Act, introducing several key measures:
- Immigration recruiters and consultants must be licensed by the Saskatchewan government.
- Recruiters must post a financial security to compensate victims of violations.
- Charging recruitment fees to foreign workers and unethical practices like withholding documents or threatening deportation are forbidden.
- Violators face significant fines (up to $750,000 for individuals, $1,250,000 for corporations) and can lose their right to practice or hire foreign workers.
Employers are now required to register with the government and cover all costs associated with hiring foreign workers, ensuring that any consultants they use are properly licensed.
Saskatchewan to Increase Minimum Wage in October
Saskatchewan will raise its minimum wage to $15 per hour starting October 1, 2024, completing a series of incremental increases that began in 2022. The wage has been gradually increased from $11.81 to $13, with a $1 rise each year.
NEWFOUNDLAND AND LABRADOR
Newfoundland and Labrador Reinstate Recruitment and Retention Incentives for Nurses
Newfoundland and Labrador has decided to reinstate its recruitment and retention incentive for retired registered nurses and nurse practitioners seeking to return to work or who are already employed by its local health services.
Eligible retirees can receive up to $500 in reimbursement for license-related fees with a commitment to work 390 hours per year. The incentive is available until March 31, 2025.
The program, originally introduced in 2022, saw nearly 230 retired nurses rejoin the workforce. It was part of broader efforts stemming from a Nursing Think Tank aimed at addressing nursing profession challenges.
Additional measures include signing bonuses for hard-to-fill positions and incentives for work in long-term care and family care teams. Since April 2023, over 520 nurses have been hired by NL Health Services. Budget 2024 allocates $10 million to continue these recruitment and retention efforts.
NBFL Urges Public Inquiry into Travel Nursing Contracts
The New Brunswick Federation of Labour (NBFL) has joined calls for a public inquiry into the province’s travel nursing contracts, echoing demands from the New Brunswick Government’s Public Accounts legislative committee and the New Brunswick Nurses Union.
A recent Auditor General’s report highlighted significant issues with these contracts, including mismanagement and inadequate documentation from the Vitalité Health Authority. The report also criticized the contracts as poor value for money, suggesting that funds would have been better utilized for recruiting and retaining full-time nurses, who are the lowest paid in the country.
NEW BRUNSWICK
PRINCE EDWARD ISLAND
PEI Expands WCB Coverage to Include Psychological Injuries from Harassment
Prince Edward Island’s Workers Compensation Board (WCB) will extend its compensation coverage to include psychological injuries resulting from work-related harassment, effective January 1, 2025. This move aligns with the province’s Occupational Health and Safety (OHS) practices, updated in 2020 to include Workplace Harassment Regulations.
The WCB will soon inform employers about their updated rights and responsibilities. A new Psychological Care Process will facilitate timely diagnosis and treatment for these injuries, offering access to psychologists and counselors. In 2023, 2% of accepted WCB claims were for psychological injuries.
This change comes after public consultations and aims to enhance coverage inclusivity while continuing prevention efforts against workplace harassment.
Northwest Territories to Raise Minimum Wage in September
Starting September 1, 2024, the Northwest Territories (NWT) will increase its minimum wage from $16.05 to $16.70 per hour. This adjustment follows a new formula based on the Consumer Price Index (CPI) and average hourly wages for 2023.
Earlier this year, the minimum wage in federally regulated sectors in NWT also increased to $17.30 per hour. The new formula aims to enhance transparency, support businesses, and ensure that the lowest earners receive annual pay raises.
Saskatchewan, Nova Scotia, and several Atlantic Canadian provinces have also announced minimum wage adjustments this year.
NORTHWEST TERRITORIES
MINIMUM WAGE IN CANADA
BY PROVINCE/TERRITORY (2024)
Alberta: $15 per hour, which has been in effect since October 1, 2018. Students under 18 years of age who work less than 28 hours per week earn a minimum wage of $13.00 per hour. Salespersons (including land agents and certain professionals) earn a minimum wage of $598 per week. Domestic employees (living in their employer’s home) earn a minimum wage of $2,848 per month.
British Columbia:$16.75 per hour, which has been in effect since June 1, 2023. The wage will increase to $17.40 per hour as of June 1, 2024. For live-in camp leaders, the daily rate for each day or part day worked is $133.69. For live-in home support workers, the current daily rate is $124.73 per day or part day worked. The minimum wage for resident caretakers is a monthly wage based on the number of suites in the building: $1002.53 per month plus $40.17 for each suite for a building with 9 to 60 residential suites / $3414.85 per month for a building with 61 or more residential suites.Gig workers using app-based services will earn a minimum wage of $20.88 per hour starting September 3, 2024.
Federal Minimum Wage: $17.30 per hour, which has been in effect since April 1, 2024.
Manitoba: $15.30 per hour, which has been in effect since Oct. 1, 2023. The wage will increase to $15.80 on October 1.
New Brunswick: $15.30 per hour, which has been in effect since April 1, 2024.
Newfoundland and Labrador: $15.30 per hour, in effect as of April 1, 2024.
Northwest Territories: $16.05 per hour, which has been in effect since Sep. 1, 2023. The wage will increase to $16.70 on September 1, 2024.
Nova Scotia: $15.20 per hour, in effect as of April 1, 2024.
Nunavut: $19 per hour, which has been in effect since January 1, 2024.
Ontario: $16.55, which has been in effect since October 1, 2023. The wage will increase to $17.20 an hour on October 1, 2024. The special minimum wage rates are as follows:
- $15.60 per hour for students under the age of 18 who work 28 hours a week or less when school is in session or work during a school break or summer holidays.
- $18.20 per hour for homeworkers (those who do paid work out of their own homes for employers).
- Hunting, fishing, and wilderness guides earn $82.85 per day when working less than five consecutive hours in a day and $165.75 per day when working five or more hours in a day.
Prince Edward Island: $15.40 per hour, which has been in effect since April 1, 2024. The wage will increase to $16 per hour on October 1, 2024.
Quebec: $15.25 per hour, which has been in effect since May 1, 2023.
Saskatchewan: $14 per hour, which has been in effect since Oct. 1, 2023. The wage will increase to $15 per hour as of Oct. 1, 2024.
Yukon: $17.59 per hour, which has been in effect since April 1, 2024.
PROVINCIAL. TERRITORIAL & FEDERAL STATUTORY HOLIDAYS 2024
Still searching the internet for this year’s statutory holiday list? No need to look any further! We’ve got you covered with a comprehensive list for both federally and provincially regulated employers, ensuring you stay informed throughout the year.
BLOG
Vacation Time and Vacation Pay in Ontario: A Comprehensive Guide for Employers
Dealing with vacation time and pay can feel like a daunting task. With all the complex rules, meticulous tracking, and legal details to consider, it’s easy to get overwhelmed. That’s why we’re here to help. Our latest blog is packed with practical information to make understanding vacation time and pay in Ontario a breeze.
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