HR Ink

Bill 149, The Working for Workers Act, 2023, hit Royal Assent in March of 2024. This means significant changes have already occurred and more are on the horizon for Ontario employers. While there is not an exact timeline for some of these amendments, there are some that became effective in March and some that will be effective as of June 21, 2024. The changes Bill 149 will be bringing are listed below.

Changes as of March 21, 2024

1. Wage Deduction Limitations

Employers who operate a restaurant, gas station, or other establishment serving customers will no longer be permitted to deduct amounts from wages where a customer leaves the premises without paying for goods or services received from the business.

2. Trial Periods

Unpaid trial shifts are banned, as the definition of “employee” has been amended to confirm that work performed during a “trial period” is considered training.

Changes Coming on June 21, 2024

1. Vacation Pay

Bill 149 will introduce vacation pay being paid out before employees take their vacation and this wording will have to be outlined in the employment contract moving forward. Additionally, a written agreement is required if an employer intends to pay vacation pay in any method which alternative to a lump sum prior to an employee’s vacation

However, most employers will be covered by the exceptions set out in subsection 36(2) of the ESA, which provide that if an employer pays the employee by direct deposit or the employee does not take their vacation in complete weeks, then the employer may pay the employee their vacation pay on or before the pay day for the period in which the vacation falls.

2. Tips & Gratuities

Employers will be required to pay an employee’s tips or other gratuities in one of the following methods: cash, cheque (payable to only the employee), or direct deposit (provided the account is selected by the employee, is in their name and they are the only person with access to it).

If an employer opts to pay their employees tips and gratuities by cash or cheque, such payments must be given to the employee at their workplace or at some other place agreeable to the employee. The amendments also provide that any tip sharing policy must be posted in a conspicuous place in the workplace and retained for three years.

Future Changes – Effective Dates TBD

1. Use of Artificial Intelligence

All employers will be required to post a blurb on their job postings if A.I. is being used to screen, assess, or select applicants for the position. This means organizations using any form of ATS in their recruitment process will have to include it on their job postings. It should be noted that AI has yet to be defined in legislation.

2. Record Keeping

Employers will be required to keep copies of publicly advertised jobs for at least 3 years from the date when the posting was removed from the general public.

Definition of publicly advertised has not been defined, but it likely will take a plain interpretation. This means it will be considered public if it is on a public server (ex. LinkedIn)

3. Pay Ranges on Job Postings

All publicly advertised job postings will need to include information about the expected compensation, or the range of compensation, for the position. There are no limitations defined within the bill for compensation ranges. You can also post an exact amount for a position instead of a range. For example, on the job posting you could list $24/hour for compensation.

Employers are not limited to just providing compensation based on the range provided in the job posting. They can award a higher salary than the range posted, but they would have to provide good evidence for why they did and why they did not anticipate that level of pay when they originally posted the job. This expectation would be the same if an employer were to award a lower salary than the range listed on the job posting.

4. Removal of Canadian Experience

Organizations can no longer include any requirements related to Canadian work on their job postings. Experience from all countries will be taken into account. 

Based on the amendments from Bill 149, it is easy to see they are being made to provide candidates and employees with stronger rights. The biggest change listed above that will pose a struggle for many organizations is the compensation ranges to be listed on job postings as this will likely lead to a larger pay transparency project. If you need a jump start for this, check out my blog here as it lists out guidelines to help your organization become pay transparent.