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McMillan LLP | Vancouver | Calgary | Toronto | Ottawa | Montréal | Hong Kong | mcmillan.ca Employment Law in Canada: Province of Ontario Provincially Regulated Employers

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Page 1: Employment Law in Canada · 2019-10-11 · Federal and provincial jurisdiction In Canada, the power to make laws is divided between the federal and provincial governments. In the

McMillan LLP | Vancouver | Calgary | Toronto | Ottawa | Montréal | Hong Kong | mcmillan.ca

Employment Law in Canada: Province of Ontario Provincially Regulated Employers

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Employment Law in Canada: Province of Ontario - Provincially Regulated Employers | McMillan LLPPage 2

IntroductionThe following provides a summary of aspects of Canadian law that may interest corporations considering doing business in Canada and specifically in Ontario. The information may also be of interest and useful to human resources professionals seeking an overview of Ontario employment-related law.

The Employment & Labour Relations group prepared this briefing, which is accurate at the time of writing. Readers are cautioned against making any decisions based on this material alone. This information does not constitute legal advice and any decisions should be made only after consultation with qualified professional advisors.

Only the laws of Ontario, Canada’s most populous province, will be addressed in this summary. Information respecting the laws of Québec, Alberta and British Columbia is available through McMillan’s offices in Montréal, Calgary and Vancouver respectively.

The information in this brochure is current to December 2018, and includes legislative amendments taking effect January 1, 2019.

Federal and provincial jurisdictionIn Canada, the power to make laws is divided between the federal and provincial governments.

In the area of employment law, the federal government has exclusive constitutional jurisdiction over specific works and undertakings, such as shipping, railways, broadcasting, airlines and banks. Many employment relationships, however, do not come within exclusive federal jurisdiction and are governed by the law of the province in which they are located.

The general rule, therefore, is that the provinces have jurisdiction over employment matters, while the federal government has jurisdiction over specific works and undertakings. With the exception of Québec, employment law is very similar from province to province.

Minimum standards of employment

All Canadian provinces have enacted legislation setting out minimum standards that govern the basic terms and conditions of employment, including minimum wage levels, vacation and holiday pay, hours of work, leaves of absence, notice

Minimum wage $14.00 (employees 18 or older) $13.15 (student employees Under 18)

Hours of work Eight (8) hours per day 48 hours per week

Overtime pay over 44 hours per week (1.5 times regular wage)

Public holiday 9 holidays: New Year’s Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Remembrance Day, Christmas Day, Boxing Day

Vacation Two (2) weeks after 12 months of employment; 4% of wages as vacation pay (employees with less than five (5) years of service)

Three (3) weeks after each year of employment; 6% of wages as vacation pay (employees with five (5) years of service or more)

Pregnancy Leave 17-week job-protected leave without pay

Parental/Adoptive leave

61- or 63-week job-protected leave without pay; 61 weeks if the employee took pregnancy leave, 63 weeks if the employee did not

Sick leave Three (3) days of job-protected leave without pay for personal illness, injury or medical emergency

Evidence reasonable in the circumstances to prove entitlement

Family responsibility leave

Three (3) days of job-protected leave without pay for illness, injury or medical emergency, or urgent matters concerning a prescribed family member

Evidence reasonable in the circumstances to prove entitlement

periods for termination, and, in some jurisdictions, severance payments. Employers and employees are not permitted to contract out of these minimum standards.

In Ontario, minimum standards of employment are defined by the Ontario Employment Standards Act, 2000 (the “ESA”). Some of the minimum standards at the time of writing are set out below:

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During leaves provided for under the ESA as summarized above, employment is deemed continuous while the employee is on leave for purposes of calculating length of employment, service and seniority to determine the employee’s rights under an employment contract, including annual vacation entitlement, termination pay and entitlements to any pension or medical plan. During leaves the employer must continue to make payments to any pension, medical or other plans beneficial to the employee where the employer pays the entire cost of such plan. Where both the employer and employee share the cost of the plan, and the employee chooses to continue to pay his or her share of the cost of the plan during the absence, the employer must continue to make its own share of the plan costs.

Termination of employment in OntarioTermination of employment is one of the most significant areas of employment law. Usually, the analysis of a termination begins with an examination of whether there is “cause” for the termination, followed by an assessment of the employer’s obligations in connection with the termination.

Termination for cause

There is no employment “at will” in Canada. An employer is generally only entitled to dismiss an employee from employment without notice where it has “cause” in law to do so.

There is no end to the various types or degrees of conduct or misconduct that can constitute cause for the termination of an employee’s employment. However, cause may be thought of as existing on a spectrum, with single incidents of serious employee misconduct at the “high” end of the spectrum, and minor but repeated incidents of unsatisfactory conduct at the “low” end.

Bereavement leave Two (2) days of job-protected leave without pay for the death of a prescribed family member

Evidence reasonable in the circumstances to prove entitlement

Family medical leave

28-week job-protected leave without pay

Certificate from a qualified health practitioner stating that a prescribed individual has a serious medical condition with a significant risk of death within a 26 week period

Family caregiver leave

8-week job-protected leave without pay

Certificate from a qualified health practitioner stating that a prescribed individual has a serious medical condition

Critically illness leave

37-week job-protected leave without pay (critically ill child)

17-week job-protected leave without pay (critically ill adult)

Certificate from a qualified health practitioner stating that a prescribed child or adult is critically ill and requires the care or support of one or more family members and sets out the period during which the child or adult requires the care or support

Child death or crime-related child disappearance leave

104-week job-protected leave without pay

If the employee is the parent of a child who has died, or if the employee is the parent of a child who has disappeared and it is probable, considering the circumstances that the child disappeared as a result of a crime

Evidence reasonable in the circumstances to prove entitlement

Domestic or sexual violence leave

Up to 10 days or up to 15 weeks of job-protected leave (the first 5 days of which in each calendar year are paid, with the balance being unpaid) if an employee or a child of the employee experiences domestic or sexual violence or threat of domestic or sexual violence and the leave of absence is taken for a prescribed purpose, such as to seek medical attention or counselling

Evidence reasonable in the circumstances to prove entitlement

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In all but the most serious of misconduct cases, a single incident of employee misconduct usually does not constitute cause for termination of employment. Single incidents of serious misconduct that constitute cause do occur from time-to-time. For example, employees are sometimes caught stealing or misappropriating significant assets or resources from their employer. In such cases, where strong evidence of the theft or misappropriation is obtained, cause for termination of the employee’s employment may exist. However, such cases are relatively rare.

Normally, cause or potential cause cases arise in the context of much less serious conduct, such as attitude, attendance or job performance problems. Cause may exist in these cases, but usually only if the employee has continuously failed to meet the employer’s reasonable, expressed expectations, despite repeated warnings to the contrary. In that regard, the courts (and other authorities of this jurisdiction) generally require the employer to provide a series of clear, written warnings to the employee regarding the employee’s unsatisfactory conduct and the need to improve or correct that conduct, before terminating the employment relationship for cause. The employee should be notified that the employment relationship is in jeopardy as a result of the maligned conduct, and should be given a reasonable opportunity to improve or correct the conduct before being dismissed for cause.

As should be clear from the foregoing, termination of employment for cause is considered “exceptional”, and a substantial burden is placed on an employer to establish that it has cause to end the employment relationship without notice.

Termination without cause

In the absence of cause for dismissal, employers must generally provide employees with working notice of termination of employment or pay in lieu of notice.

In Ontario, an employee’s entitlements on termination without cause arise from three (3) potential sources:

1. minimum standards established by the ESA;

2. the right to reasonable notice of termination at common law; and

3. termination provisions in an enforceable, written employment contract.

Each of these is briefly discussed below.

The Employment Standards Act: notice and severance pay

The ESA sets out minimum standards for two (2) types of potential termination entitlements: notice of termination and severance pay. These obligations may be avoided where there is cause for the dismissal of an employee. In the ESA cause is not a general concept, but rather, is comprised of a collection of specific, enumerated types of misconduct. In the absence of such misconduct, notice and severance pay obligations must be considered, and each of these is discussed below.

Notice of termination

The ESA provides minimum standards for individual notice of termination obligations and, where 50 or more employees are terminated from an establishment within a four (4) week period, mass termination obligations.

An employer can comply with the notice requirements under the ESA by providing working notice, termination pay in lieu of notice or a combination of both. During the statutory notice period, the employer must maintain group health and welfare benefits whether or not the employer chooses to provide working notice or pay in lieu of notice.

Individual notice

Individual notice of termination requirements are based on the length of the employee’s period of employment, as follows:

period of employment length of notice

less than three (3) months no notice

three (3) months or more, but less than one (1) year

one (1) week

one (1) year or more, but less than three (3) years

two (2) weeks

three (3) years or more, but less than four (4) years

three (3) weeks

four (4) years or more, but less than five (5) years

four (4) weeks

five (5) years or more, but less than six (6) years

five (5) weeks

six (6) years or more, but less than seven (7) years

six (6) weeks

seven (7) years or more, but less than eight (8) years

seven (7) weeks

eight (8) years or more eight (8) weeks

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Mass terminations

A different set of requirements exists for mass terminations of employment, which is the termination of 50 or more employees at the employer’s establishment within a four (4) week period. Depending on the number of employees dismissed within that period, the mass notice requirements range from eight (8) weeks to 16 weeks for each employee (regardless of their period of employment). An employer undertaking a mass termination must comply with certain statutory obligations including the filing of a Form 1 with the Director of Employment Standards (the “Director”). A Form 1 requires information about the terminations, including the number of affected employees, the economic circumstances surrounding the intended terminations and the measures proposed to assist the employees. Notice to the employees is deemed not to have been given until the Form 1 is received by the Director.

Severance pay

Severance pay is payable under the ESA to employees with five (5) or more years of service in either one of two circumstances:

1. where the severance occurred because of a permanent discontinuance of all or part of the business of an employer at an establishment and as a result, 50 or more employees have their employment relationship severed by the employer within a six (6) month period; or

2. where the employees have their employment terminated by an employer with an annual payroll of $2.5 million or more.

Severance pay is payable at the rate of one (1) week of pay per year of employment (plus a prorated amount for any part-year of employment), to a maximum of 26 weeks’ wages. It is important to emphasize that an employee does not qualify for severance pay until completion of five (5) or more years of service.

Unlike the requirement to give notice of termination, severance pay obligations cannot be discharged by way of working notice; severance pay is pay.

The common law: reasonable notice

The entitlements to notice of termination and severance pay established by legislation are minimum standards only; greater obligations may be imposed by the terms of an employment agreement or, in the absence of an agreement, by common law. Common law is the law which has been developed in the courts.

Where there is no explicit agreement between the employer and the employee that governs termination or notice, the court will imply into the parties’ employment contract an

unwritten term for termination on “reasonable notice”. Such a contract term imports an obligation on the employer to provide reasonable notice of termination of employment or payment in lieu of notice, in the event of a termination without cause. Failure to provide an employee with reasonable notice gives rise to an action for damages for “wrongful dismissal”.

Reasonable notice at common law is usually significantly higher than statutory minimum entitlements to notice and severance pay. The determination of reasonable notice varies from case-to-case, and is dependent upon a number of factors, including the following:

• the employee’s age;

• the position and responsibilities held by the employee;

• the length of the employee’s service;

• the quantum of the employee’s remuneration; and

• the availability of replacement employment.

A rough rule of thumb in respect of reasonable notice is that a managerial or professional employee is entitled to one (1) month of notice, or pay in lieu of notice, for each year of service. This, however, is a very rough rule, and some courts have expressly disapproved of the use of such rules.

At the lower range of service, awards of notice for managerial and professional employees are generally greater than one (1) month per year of service, whereas at the higher range of service, the awards are often less than one (1) month per year.

When dealing with non-managerial or non-professional employees, the common law entitlement to notice may be in the range of two (2) to three (3) weeks per year of service, although it may vary from that range.

Is there a “maximum” notice entitlement at common law? A 24-month “cap” on notice has been tacitly acknowledged by some courts, and is rarely exceeded. This level of award is generally reserved for employees of very long service, who are at a professional or managerial level.

It is sometimes said that determining reasonable notice for employees is more of an “art” than a “science”. Employers are encouraged to avoid formulaic approaches to assessing notice obligations, but rather to obtain legal advice on a case-by-case basis.

A claim for damages for wrongful dismissal brought about by the failure to provide reasonable notice includes claims for all compensation which should have been provided during the period of notice, less any income from alternative employment (or self-employment) earned during the notice period. However, employees are entitled, at a minimum, to their ESA notice and severance pay entitlements, regardless of whether they earn income from other sources following termination.

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Reasonable notice of termination at common law is inclusive of minimum statutory notice entitlements under the ESA. Where pay in lieu of reasonable notice is given, rather than working notice, it may also be inclusive of severance pay under the ESA. Again, the common law notice entitlement can be satisfied by way of working notice, compensation in lieu of notice or a combination of both.

Courts in Ontario have also recognized that employers are held to a duty of good faith and fair dealing when terminating a person’s employment. At a minimum, employers are expected to be fair, candid and compassionate in the manner of dismissal and not, for example, to allege just cause for the termination without such cause. Failure to do so may result in an award of additional damages.

Contract

The parties to every employment relationship have an employment contract with one another, whether they realize it or not. An employment contract or agreement need not be in writing, but may in fact be oral or implied. The terms of the employment agreement may provide for such matters as the length of the employment relationship, and the obligations arising in connection with the termination of the relationship. Generally, however, the terms of the employment agreement relating to such matters must be reduced to writing in order to be enforceable.

It should be clear from the foregoing summary of common law entitlements that it is generally advisable, if possible, to enter into properly-drafted written agreements with employees, that define (and limit) employee entitlements upon termination of employment. Otherwise, a dismissal can be an uncertain and expensive exercise.

Provided the notice provisions of a contract are properly drafted and satisfy at least minimum statutory obligations for termination (including benefit continuation during the statutory notice period), the employment contract may generally be terminated in accordance with such provisions, notwithstanding what the employee may have been awarded at common law. In the absence of such provisions, however, the termination obligations of the parties may be determined at common law, by a third party such as a court or adjudicator.

Therefore, employers are advised to consult with employment law counsel when preparing employment agreements.

Unionized employees

It should be noted that the common law principle of reasonable notice does not apply to unionized employees. A unionized employee’s entitlements on termination are derived from two (2) sources: the ESA notice and severance requirements and any rights contained in an applicable collective agreement.

Labour Relations Act,1995The Ontario Labour Relations Act, 1995 (the “OLRA”) governs the relationship between employers and trade unions in unionized workplaces in the province (in federally regulated workplaces the Canada Labour Code governs the relationship between unions and employers).

The OLRA establishes an independent administrative tribunal, the Ontario Labour Relations Board (the “Board”), to administer the OLRA and to decide all matters arising under the OLRA. The Board has wide powers to remedy contraventions of the OLRA and to ensure that the purposes of the OLRA are met.

Right of employees to union representation

Under the OLRA every employee is free to be a member of a union and to participate in its lawful activities. The decision whether to be represented by a union is one which employees have the right to make, without coercion or intimidation by either a union or an employer. Employers or unions who seek to persuade employees to join or not to join a union through coercion or intimidation commit an unfair labour practice under the OLRA and are subject to legal sanctions. Employers do have the right under the OLRA to express their views on any matter including the representation of employees by a trade union provided the employer does not use intimidation, coercion, threats, promises or unduly influence the decisions of its employees.

Examples of employer conduct that would constitute an unfair labour practice include:

• interfering with a union, including contributing financial or other support;

• discharging, suspending, transferring, laying off or otherwise disciplining an employee for exercising the right to union membership;

• in a contract of employment, imposing any term or condition attempting to stop an employee from exercising the right to union representation; and

• threatening a sanction or promising an advantage or benefit for the purpose of forcing or persuading an employee not to become or to no longer be a member of a union.

Examples of union unfair labour practices, which are prohibited under the OLRA include:

• attempting to organize employees at the employer’s place of business during working hours except with the employer’s consent; and

• expelling, suspending or imposing a penalty on a person or member for refusing or failing to participate in activities prohibited under the OLRA.

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Union certification

A union may apply to the Board to be certified as the bargaining agent for a group of employees. Upon receiving an application, the Board will determine whether the union has the requisite membership support, and whether the proposed bargaining unit is appropriate for collective bargaining.

In determining whether a group of employees is appropriate for collective bargaining, the Board will consider a number of factors including:

• similarity in skills, interests, duties and working conditions;

• the physical and administrative structure of the employer;

• functional integration;

• geography;

• practice and history of the current collective bargaining relationship; and

• practice and history of collective bargaining in the industry or sector.

Only persons who meet the definition of an “employee” under the OLRA are entitled to join a union and to be included in a bargaining unit. Persons performing the duties of a manager or superintendent, or who are employed in a confidential capacity in matters relating to labour relations or personnel, are excluded from collective bargaining under the OLRA.

If the Board determines that the union has the requisite membership support, and has applied for an appropriate bargaining unit, the Board will direct a representation vote within five (5) days of the application. The Board will certify the union where at least 50% of the ballots cast in the representation vote are cast in favour of the trade union. The representation vote is conducted by secret ballot.

The OLRA prohibits employers from altering any term or condition of employment, without prior approval of the union, upon the employer being notified of a union application for certification. If the union is certified, and the union gives notice of desire to bargain, the employer must not increase or decrease the rate of pay or alter any other term or condition of employment until either a certain amount of time has elapsed after the Minister of Labour releases to parties the report of an appointed conciliation officer or mediator or declines to appoint a conciliation board, or until the right of the union to represent the employees has been terminated, whichever occurs first.

Effect of union certification

Once a union is certified for a group of employees it becomes the exclusive legal bargaining agent for all of the employees in the bargaining unit, and not just for those who joined the union and voted in favour of certification. The union has the legal duty to negotiate collective agreement terms and

conditions of employment, which will apply to all employees in the bargaining unit.

Following the certification of a union, the employer is no longer permitted to negotiate individual terms and conditions of employment with any of the employees in the bargaining unit. Because individual employees are no longer able to negotiate terms and conditions of employment directly with the employer, the union has a statutory duty of fair representation to all employees in the bargaining unit and must not act in a manner that is arbitrary, discriminatory or in bad faith in representing any of the employees in the bargaining unit.

First collective agreement

Although the terms and conditions of collective agreements are generally negotiated freely between employers and unions through the collective bargaining process, the Board does have the authority to impose the terms and conditions of a first collective agreement following the certification of a union, where the Board finds that the parties are unable to reach an agreement through the process of collective bargaining for prescribed reasons.

Strikes and lockouts

The OLRA regulates strikes and lockouts. A union is not entitled to strike and an employer is not entitled to lock out employees at any time when there is a collective agreement in force. Strikes or lockouts can only occur during the collective bargaining process, but only after the parties have engaged in good faith bargaining and have exchanged all of their respective negotiating positions.

Where no collective agreement is in operation, employees may not strike, and employers may not lock out employees until a certain amount of time has elapsed since the Minister of Labour appoints a conciliation officer or mediator and the Minister issues a report or declines to appoint a conciliation board. If a collective agreement is or has been in operation, prior to commencing strike action, a strike vote conducted by secret ballot must be taken in accordance with the OLRA and at least 50% of the employees in the bargaining unit must vote in favour of a strike.

Picketing

Following the commencement of a strike or lockout, employees are legally entitled to picket the workplace, where they normally perform work, but generally cannot picket at other locations. There are exceptions to this general rule, for example, where an employer attempts to move “struck work” to a different location, or where the employer uses a third party known as an “ally” to assist in resisting the strike.

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Replacement workers

During a strike or lockout, the employer has the right to continue its business operations in order to resist the strike or advance the lockout. The employer may hire “replacement workers” to continue its business during a strike or lockout, provided that it does so in good faith and preserves the jobs of the striking employees who may be properly reinstated in accordance with the OLRA.

Essential services

Certain employees, including police and firefighters, are not subject to the OLRA. In addition, Crown employees are subject to the Crown Employees Collective Bargaining Act, 1993 and must have an essential services agreement in place before commencing a lockout or strike.

Essential services are services that are necessary to enable the employer to prevent danger to life, health or safety, the destruction or serious deterioration of machinery, equipment or premises, serious environmental damage, or disruption of the administration of the courts or of legislative drafting. An essential services agreement serves to identify the employees who the employer and union have agreed will be required during a strike or lockout, or in an emergency, to work to the extent necessary to enable the employer to provide the essential services. These employees may not strike or be locked out.

Decertification

Just as employees are free to join a union and have that union become certified as their bargaining agent, employees are also free to apply for decertification within specific timelines. This can be accomplished where not less than 40% of the employees in the bargaining unit have expressed a wish not to be represented by the union. Where the Board is satisfied that there is no evidence of coercion or intimidation, the Board will direct a representation vote be conducted within five (5) days of the application. If at least 50% of employees vote in opposition to the union, the certification of the union will be cancelled.

There are certain restrictions on timeliness for making an application for cancellation of the certification. Where a collective agreement is for a term of less than three (3) years, the application may be made only in the last three (3) months of its operation. Where a collective agreement is for a term of more than three (3) years, the application may be made only between month 34 and month 37 of its operation, and in the three (3) month period immediately preceding the end of each year the agreement continues thereafter, or in the three (3) months immediately before the end of the term. Where a collective agreement contemplates renewal for successive terms if either party fails to give notice of termination or desire to bargain, an application may be made only in the three (3)

month period immediately preceding the end of each year the agreement continues to operate, or in the last three (3) months of its operation.

Employer successorship on sale of a business

Where a business or part of it is sold, the purchaser becomes the “successor” employer under the OLRA. The union certification transfers with the business being sold. The purchaser will be bound by the union certification and by the terms and conditions of any collective agreement, which may be in force between the union and the employer selling the business.

Human Rights CodePrior to the introduction of human rights legislation in Canada, freedom of contract reigned supreme. The notion of discrimination in contract, employment, housing or services was historically rebutted at common law. In response, comprehensive human rights statutes were introduced in Canadian jurisdictions as early as 1962.

In Ontario, employers subject to provincial law must abide by the provisions of the Ontario Human Rights Code (the “Code”). Employers operating out of other provinces or who are subject to federal law must abide by the provisions of the human rights legislation in those jurisdictions, which, for the most part, are based on the same principles as Ontario’s Code.

Purpose of the Code

The Code is a provincial law that confers equal rights and opportunities without discrimination in specific areas such as employment, housing and services.

Prohibited grounds of discrimination

Accordingly, the Code, subject to numerous exceptions and qualifications, prohibits numerous forms of discrimination which are known as “prohibited grounds of discrimination”. With respect to employment, prohibited grounds of discrimination include: race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, gender expression, age, record of offences, marital status, family status and disability, which includes perceived disabilities or an injury that was the subject of a claim under the Workplace Safety and Insurance Act, 1997. Harassment in the workplace based on any of the prohibited grounds of discrimination is also prohibited.

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The Code specifically prohibits workplace harassment on the basis of sex, sexual orientation, gender identity or gender expression by an employer or another employee.

The right to “equal treatment with respect to employment” covers things such as applying for a job, being recruited, training, transfers, promotions, terms of apprenticeship, dismissal and layoffs. It also covers rates of pay, overtime, hours of work, holidays, benefits, shift work, discipline and performance evaluations.

Direct and indirect discrimination

Both direct and indirect discrimination are prohibited under the Code. Direct discrimination arises where a requirement or qualification is on its face discriminatory. “ABC Co. looking for strong men for yard work” is a clear example of direct discrimination as it excludes women from the selection process, and thus constitutes discrimination based on sex.

Indirect discrimination arises when a requirement or qualification, although not discriminatory on its face, has an adverse effect on a person identified by any one of the prohibited grounds of discrimination. “ABC Employer seeks applicants for great position. Applicants must have perfect vision.” The requirement of “perfect vision” would have an adverse effect on the visually challenged, and therefore, could constitute discrimination on the basis of disability.

Bona fide occupational requirement and duty to accommodate

A discriminatory standard, requirement or qualification may be justified in certain circumstances, but only if it can be established that the discriminatory standard, requirement or qualification:

a) is rationally connected to the function being performed;

b) was adopted in an honest and good faith belief that it was necessary to the fulfilment of that purpose; and

c) the individual cannot be accommodated without causing undue hardship to the employer, taking into account factors such as cost, financial assistance, if any, and health and safety concerns, if any.

Complaint and adjudication process

An individual who has reason to believe that he/she has been discriminated against can file an application with the Human Rights Tribunal of Ontario (the “Tribunal”) setting out the particulars of the allegation. The Tribunal has exclusive jurisdiction over allegations of discrimination, save and except in the unionized environment where parties may proceed by way of grievance arbitration if they so elect. No court action lies solely for claims of discrimination.

Once the application is received by the Tribunal and the respondent has submitted a response, the parties will generally have an opportunity to enter into a voluntary mediation. If the complaint is not settled at mediation, the Tribunal will conduct a pre-hearing assessment followed by a hearing. The Tribunal will then make its decision on the merits of the application and provide written reasons to the parties.

Potential remedies/damages

If the Tribunal finds that there has been a breach of the Code, it may exercise its broad remedial powers. For instance, it can order:

• reinstatement in employment;

• compensation for past wage losses or compensation in lieu of reinstatement;

• compensation for other lost employment benefits, such as pension or medical benefits;

• compensation or restitution for injury to dignity, feelings and self-respect;

• implementation of an anti-discrimination policy, or the holding of educational workshops for the employer’s employees;

• monitoring of certain company actions, such as terminations of employment, for a fixed period of time;

• posting of copies of the Code at the workplace and training with respect to the Code; and

• other more general measures designed to prevent future discriminatory practices.

It is public policy in Ontario to preserve and recognize the inherent dignity and self-worth of every individual regardless of the individual’s colour, sex, etc. Employers are well advised to take human rights into consideration when defining and developing hiring, recruitment and promotional practices, and other employment policies.

Accessibility For Ontarians With Disabilities Act, 2005The Accessibility for Ontarians with Disabilities Act, 2005 (“AODA”) sets standards designed to eliminate barriers to accessibility for disabled persons in the areas of customer service, information and communication, employment, transportation, and the built environment. The Integrated Accessibility Standard, which incorporates the information and communication, employment, and transportation standards is in force to-date. The AODA does not limit or replace the requirements under the Code or any other legislation.

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Integrated Accessibility Standard

Application

All organizations that provide goods, services or facilities to the public or other third parties and have at least one (1) employee in Ontario are subject to this standard.

This standard requires most organizations to develop accessibility policies and plans in respect of how the organization will fulfill the standard’s requirements, prevent/remove barriers to accessibility, and provide training on the standards as well as the Code (as it relates to disabled persons).

Information and communication standard

This standard incorporates the information and communication, employment, transportation and the design of public spaces standards. Due to the narrow scope of the transportation standard, it will not be addressed.

Overview of obligations

The Information and Communication Standard imposes the following obligations on most organizations:

1. Feedback. If such process is in place, ensure it is available in accessible formats and communication supports (if requested) that take into account the person’s disability.

2. Accessible formats & communication supports. Except as otherwise provided, must be accessible, timely, take into account the person’s disability, and at regular cost.

3. Emergency procedure, plans or public safety information. If requested, must be available in accessible formats and with communication supports as soon as practicable.

4. Websites & web content. Most organizations must make websites and web content accessible.

Employment standard application

This standard applies to all organizations that are employers in respect of its employees (not volunteers or non-paid individuals).

Overview of obligations

The Employment standard imposes the following obligations on most organizations:

1. Recruitment. Advise employees and the public of the availability of accommodation for applicants with disabilities that takes into account the person’s disability.

2. Notice of policies & procedures. Notify prospective and current employees of policies to support employees with disabilities.

3. Accessible formats & communication supports. Provide job specific/workplace information in accessible formats and communication supports, if requested.

4. Workplace emergency response. Provide “individualized” workplace emergency response information/assistance for employees with disabilities as soon as practicable, if required.

5. Individual accommodation & return to work plans. Most employers must have documented processes to develop individual accommodation and return to work plans for persons with disabilities that address certain prescribed issues.

6. Performance management, career advancement/development & redeployment. Accessibility needs of employees and individualized accommodation plans must be considered.

Offences and penalties

While AODA is premised on a system of self-certification, due to significant financial penalties, non-compliance is not an option for most employers. Offences carry significant fines of up to $50,000 for an individual or unincorporated organization and $100,000 for a corporation, for every day or part-day that the offence occurs.

Workplace Safety And Insurance Act, 1997Most employers in Ontario are covered under the Workplace Safety and Insurance Act, 1997 (the “WSIA”), which is the provincial mandatory, no-fault compensation insurance scheme for worker injuries arising out of, or in the course of, employment.

As the product of historical bargaining between workers and employers, the WSIA provides for benefits to workers injured in the course of employment or who suffer from an occupational disease. In exchange, workers relinquish their rights to commence civil actions against employers for negligence causing bodily harm, if their WSIA claims are covered under the insurance plan.

Administration

Responsibility for administration of the WSIA rests with the Workplace Safety and Insurance Board (“Board”). The Board adjudicates claims, dispenses benefits, manages early and

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safe return to work programs and generally mediates and adjudicates disputes between employers and workers concerning workers’ compensation and their rights and obligations under the WSIA.

Employers or workers discontent with a final decision of the Board may have a right of appeal to the Workplace Safety and Insurance Appeals Tribunal. Appeals must be filed within prescribed time limits.

Who is covered?

As noted, the vast majority of employers in Ontario are covered under the WSIA. The WSIA mandates that industries such as mining, manufacturing, automotive, chemical and numerous other sectors are covered.

Although most industries are covered, there are a few industries that are not covered by the mandatory, no fault insurance plan. These include banks, trusts and insurance companies, private health care, trade unions, private day care, travel agencies, clubs (e.g. health club), photographers, barbers, hair salons, shoe shine stands, taxidermists and funeral directing and embalming.

Note, however, that employers operating in industries not subject to the WSIA may elect coverage under the WSIA. The WSIA sets out procedures and requirements (including costs) for doing so. Sole proprietors, partners and executive officers, who are generally not subject to the WSIA, may also voluntarily elect coverage.

Registration

Employers operating in industries subject to the WSIA must register their businesses with the Board within 10 days of hiring their first employee. Failure to do so could lead to prosecution under the WSIA and, if convicted, a substantial fine.

Premiums

Employers collectively fund the WSIA insurance program by way of premiums. An employer that comes within the scope of the WSIA is required to contribute, while others who are not may elect to do so. Different costs, rights and protections apply to those who do not come within the scope of the WSIA but nonetheless elect coverage.

For administrative purposes, employers are divided into industry classes and subclasses, depending on their hazard potential. Premiums are based on regular assessments, which take into account such factors as payroll, industry classification (i.e. hazards) and experience ratings. Thus, employers judged more likely to cause compensable injuries contribute a proportionally greater share to the accident fund.

Compensable injuries

Not all injuries, illnesses or accidents are compensable under the insurance plan. A worker (or his or her beneficiary, as the case may be) who is injured or dies as a result of a work-related accident, or suffers a work-related illness, generally qualifies for benefits. Entitlement, however, may be denied if the injury is due solely to wilful misconduct, unless it results in severe injury. In some instances, it may be difficult to determine whether an injury arises out of, or in, the course of employment. Therefore, the Board has developed policies on the issue in an effort to assist all parties concerned.

Claims

A worker who sustains an injury, or becomes ill as a result of being exposed to hazardous substances in the workplace, must notify his or her employer as soon as possible to begin the claim process. Upon learning of a workplace injury or illness, an employer has three (3) days to report the accident or illness to the Board in a prescribed form. In any event, workers must submit their claims for benefits within a period of six (6) months from the date of the accident or learning of their illness, which time frame may be extended by the Board in some circumstances.

Compensation benefits

If the Board approves a claim, the worker may be eligible for any of the following benefits depending on the circumstances and nature of the injury/illness:

1. Benefits for Loss of Earnings (LOE) Workplace insurance pays workers a percentage of their take home pay, up to a prescribed maximum amount. The Board regularly revises the threshold of insurable earnings.

2. Benefits for Non-Economic Loss (NEL) Workers who suffer permanent impairment may receive a non-economic loss benefit to compensate them for physical or psychological loss. Again, the WSIA sets out maximum amounts that workers may recover on account of permanent injuries.

3. Benefits for Future Economic Loss (FEL) Benefits to replace future income losses may be available to workers who were permanently injured after January 2, 1990 but before January 1, 1998.

4. Health care Costs for health care services may be paid by workplace insurance (i.e. doctor’s or chiropractor’s visits, prescription drugs, etc.).

5. Return to work assistance The Board assists workers and employers in facilitating

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workers’ early and safe return to work following injuries or illnesses. Employers are required to reinstate certain workers back into their employment. When an employer is incapable of re-employing a worker after an injury or illness, the Board may provide programs to help the worker to re-enter the workforce in another job or business. The Board may make a Work Reintegration Program available to provide assessments and retraining to workers.

6. Survivor benefits The Board provides the following five (5) types of benefits to the survivors of a worker who dies as a result of a workplace accident or injury:

i. survivor payments (lump sum and monthly payments);

ii. burial and transportation costs;

iii. bereavement counselling;

iv. crisis intervention counselling; and

v. assistance in entering the workforce, if applicable.

7. Retirement benefits The Board sets aside a percentage of all loss of earning benefits of workers 64 years of age and under who have received benefits for 12 consecutive months, to create a retirement fund for such persons.

Retaliation

A worker who has sustained a workplace injury or illness and is receiving or has received benefits as a result, is entitled to be free from retaliation from the worker’s employer.

Bar against civil actions

WSIA benefits replace and preclude a worker’s right to commence a civil action against the worker’s employer, save and except for prescribed exceptions (i.e. where a third party is involved and the worker elects to pursue a civil action). The WSIA provides an adjudicative mechanism process should an issue arise as to whether the WSIA bars a worker’s civil action against either the worker’s employer or a third party.

Finally, it should be noted that the WSIA confers various rights on workers and employers alike, and further prescribes numerous duties on all affected parties. Thus, reference should always be made to the statute in any given situation.

Offences and penalties

A person who contravenes or fails to comply with the WSIA is guilty of an offence and is liable to a fine not exceeding $25,000, or to imprisonment not exceeding six (6) months, or to both. If the person is not an individual, for example, a corporation, the person is liable to a fine not exceeding $500,000.

Occupational Health and Safety ActEmployers and employees both have a vested interest in workplace health and safety. Accordingly, occupational health and safety legislation across Canada generally places reciprocal rights and obligations on management and employees in an effort to ensure that Canadian workplaces are safe and healthy environments.

In Ontario, occupational health and safety is regulated by the Occupational Health and Safety Act (the “OHSA”). Like most other occupational health and safety legislation in Canada, the OHSA sets out a comprehensive code of conduct for both management and employees, all in the interest of health and safety in the workplace.

The OHSA sets out the rights and duties of management and workers generally, while the regulations enacted under the OHSA prescribe specific rights and obligations applicable to a variety of different workplaces, industries and a number of toxic substances. The OHSA may not apply to certain workplaces, and thus reference to the statute is always recommended.

Administration and enforcement

The Ontario Ministry of Labour administers the OHSA. Inspectors are nominated under the OHSA to enforce its provisions, to inspect workplaces for compliance and to investigate serious accidents or workplace fatalities.

Ontario workplaces are subject to routine compliance inspections and investigations. Inspectors possess extensive statutory powers, including, among others, the authority to: enter any workplace, question any individual, handle, use or test any equipment or machinery, inspect documents, take photographs, issue compliance orders and commence prosecutions.

General rights and duties

The OHSA attempts to balance the general right of management to direct its workforce and control its production process with workers’ legitimate concerns for health and

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safety. Aside from the multitude of specific duties imposed on employers in the regulations enacted under the authority of the OHSA, employers are guided in the OHSA by an all-encompassing duty to take all reasonable precautions to protect the health and safety of workers.

Safety policy

Employers are required by OHSA to prepare and review, at least annually, a health and safety policy, a workplace violence policy and workplace harassment policy, and post a copy of those policies in a conspicuous location in the workplace. Reference should be made to the OHSA and its regulations for any specific requirements of such safety policies.

Joint health and safety committees and worker representatives

The OHSA places a general duty on employers to cooperate with and assist joint health and safety committees or representatives to carry out their statutory obligations. However, not all workplaces are required to have joint health and safety committees or representatives. The OHSA sets out specific thresholds governing when a committee or representative is required, and further defines rules respecting eligibility for membership in joint health and safety committees.

Recognizing that responsibility for health and safety in the workplace does not solely rest with employers, the OHSA is guided by four (4) basic, two-pronged tenets: 1) the right to participate; 2) the right to know; 3) the right to refuse work and 4) the right to stop work.

Each of these tenets is discussed further below.

The right to participate

As noted above, employers and workers share mutual obligations and rights in respect of health and safety in the workplace. Thus, although liability for health and safety in the workplace may ultimately rest with employers (and owners, supervisors, corporate directors and officers, contractors and suppliers of equipment, etc.), workers also have an extensive role in ensuring safe and healthy workplaces.

Worker participation is generally accomplished through a joint health and safety committee or, for smaller employers, a health and safety representative. Such committee/representative works alongside the employer, supervisors, etc. to oversee and enforce health and safety in the workplace.

Specifically, some of their responsibilities include:

• identifying workplace hazards;

• obtaining information from the employer regarding existing or potential occupational hazards, among other things;

• making recommendations on ways to improve workplace health and safety;

• investigating work refusals; and

• investigating serious accidents.

The right to know

Workers have the right to know about any potential or real hazards to which they may be exposed. This extends to a right to be trained and to have access to information on machinery, equipment, working conditions, processes and hazardous substances.

As a corollary to this right, employers are required under the OHSA to, among other things:

• instruct, inform and supervise workers to protect their health and safety;

• appoint competent persons as supervisors;

• ensure committees and health and safety representatives carry out their duties;

• prepare and post written occupational health and safety and harassment policies; and

• comply with all prescribed duties, such as:

• provide and maintain in good condition any prescribed equipment, materials and protective devices;

• if required, establish and maintain an occupational health service for workers;

• maintain an inventory of biological, chemical or physical agents and substances, as well as records of the handling, use, storage and disposal of such agents and substances; and

• carry out prescribed training programs for workers, supervisors and committee members or health and safety representatives (i.e. Workplace Hazardous Material Information System course, forklift training, etc.).

In addition, supervisors are obliged, among other things, to: 1) ensure workers work in compliance with the OHSA; 2) ensure workers properly use or wear any protective clothing or devices required; and 3) take every precaution reasonable for the protection of workers. Finally, the OHSA also imposes various duties and obligations on owners, corporate officers and directors, contractors and suppliers who service equipment or machinery.

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The right to refuse work

Workers are entitled to refuse work, or to refuse work with certain machinery or equipment, if they believe it is dangerous to either their own health and safety, or the health and safety of another worker, without retaliation from their employer. If a worker refuses work, the worker must immediately inform the worker’s supervisor or employer.

The OHSA sets out specific procedures that must be followed in the event of a work refusal. In short, the OHSA mandates an internal investigation process, which involves the worker and any one of the following: a committee member, a health and safety representative or another worker who because of knowledge, experience and training is selected by a trade union that represents the worker, or if there is no trade union, is selected by the workers to represent them. If the investigation does not resolve the work refusal, then either the employer or the worker must notify an inspector to investigate and resolve the work refusal.

The OHSA spells out in great detail the worker’s and employer’s rights and obligations during a work refusal. Thus, reference should be made to the OHSA and its regulations should a work refusal arise.

The right to stop work

In exceptional circumstances, the OHSA allows certified committee members to direct an employer to stop dangerous work altogether. However, work can only be stopped if the following three circumstances are met:

1. the OHSA or the regulations are being violated;

2. the violation poses a danger or hazard to a worker; and

3. any delay in controlling the danger or hazard may seriously endanger a worker.

The OHSA provides important limitations on workers’ rights to stop dangerous work. Therefore, reference should be made to the OHSA and its regulations should the issue ever arise.

Reporting obligations

Employers are required to report workplace accidents or fatalities to an inspector, the committee, the health and safety representative, the trade union and the Director within prescribed time periods, which range from 48 hours to four (4) days depending on the nature and gravity of the accident.

Violence and harassment in the workplace

The OHSA also requires employers to implement specific measures designed to protect workers from violence, the threat of violence and harassment in the workplace.

Workplace violence includes the use, attempted use or threatened use of physical force by a person against an employee in a workplace that causes or could cause physical injury to the employee. Workplace violence includes, but is not limited to, acts of physical violence (i.e. hitting, punching, kicking, and intimidation) and threats of violence.

The OHSA defines “workplace harassment” as engaging in a course of vexatious comment or conduct against a worker in a workplace that is known or ought reasonably to be known to be unwelcome. This includes any action that is likely to cause discomfort, offence or humiliation to any employee, such as bullying or verbally abusive behaviour. Workplace harassment, which is contrary to OHSA, need not be based on one or more of the prohibited grounds of discrimination to be unlawful.

The definition of “workplace harassment” expressly includes “workplace sexual harassment.” “Workplace sexual harassment” means:

(a) engaging in a course of vexatious comment or conduct against a worker in a workplace because of sex, sexual orientation, gender identity or gender expression, where the course of comment or conduct is known or ought reasonably to be known to be unwelcome; or

(b) making a sexual solicitation or advance where the person making the solicitation or advance is in a position to confer, grant or deny a benefit or advancement to the worker and the person knows or ought reasonably to know that the solicitation or advance is unwelcome.

Employers are required to have the following:

• a workplace harassment policy that addresses workplace sexual harassment;

• procedures that enable workers to report workplace harassment incidents, including to a secondary individual if the employer or person to whom an incident would normally be reported is the alleged harasser;

• a procedure for investigating incidents and complaints of workplace harassment;

• a procedure for informing both complainants and alleged harassers of the results of any workplace harassment investigation, as well as any resulting corrective action required; and

• a procedure for ensuring that information about an incident or complaint is kept confidential unless required to conduct an investigation or by law.

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OHSA inspectors will also have the power to order an employer to hire, at its own expense, an impartial third party to conduct an investigation into an incident of workplace harassment.

Offences and penalties

The OHSA can be enforced against anyone who has any degree of control over a workplace, materials or equipment found in a workplace, or control over the direction of the workforce.

If the internal, self-enforcement mechanism of the OHSA fails to adequately address any health and safety issues in a workplace, or if the OHSA or its regulations are not complied with, the Ministry of Labour has the authority to enforce the law.

The Ministry of Labour may prosecute any person for a violation of the OHSA or its regulations, or for failing to comply with an order from an inspector, director or the Minister of Labour.

Presently, if prosecuted and convicted of an offence under the OHSA, an individual (i.e. supervisors, directors and officers) can be fined up to $100,000 and/or imprisoned for up to 12 months. The maximum fine for a corporation is currently $1,500,000.

In addition, Canada’s Criminal Code contains provisions which could expose supervisors and other employees to criminal liability in the case of a workplace accident. The Criminal Code provides that anyone who directs an individual to do work, or has the authority to do so, has a legal duty to take reasonable steps to prevent bodily harm. A supervisor could be charged criminally if that legal duty is not upheld, resulting in a criminal sentence of a fine, imprisonment, or both.

Reprisals

Reprisals are prohibited where a worker has acted in compliance with OHSA, has sought enforcement of OHSA or has given evidence in a proceeding under OHSA.

Mandatory occupational health and safety awareness training

The Ministry of Labour is tasked with enforcing occupational health and safety awareness training which is mandatory for all workers and supervisors in the province. The requirements are established in Ontario Regulation 297/13, Occupational Health and Safety Awareness and Training (the “Regulation”).

Under the Regulation, employers are responsible for ensuring that workers receive health and safety awareness training as soon as practicable. Supervisors are also required to obtain training within a week of performing work as a supervisor.

While the Ministry of Labour has published materials with which to conduct the required training, businesses remain free to use health and safety training programs that are already in place, so long as they satisfy the legislated requirements.

The Regulation is subject to the existing enforcement and penalty provisions included in the OHSA. Employers are required to maintain records of worker and supervisor training, including records of workers and supervisors that are exempt from the new requirements. Employers also have to obtain proof from those claiming an exemption that they have completed a satisfactory training program.

The Regulation’s training requirement does not replace other hazard-specific, sector-specific, or competency-specific training that may be required for supervisors or workers under the OHSA or its regulations.

Employers should review any health and safety training program which they already have in place, as well as anything provided to their workers in the past, to determine whether they satisfy the Ministry of Labour’s new requirements. If the content of the training does not meet the requirements outlined in the Regulation, the training program needs to be revised. Employers also need to be able to provide written proof that any required training (whether for new employees and supervisors or when being used to support an exemption) has been completed.

Employment Insurance ActMost Canadian workers and employers contribute to a statutory income replacement insurance program administered under the authority of the Employment Insurance Act (the “EIA”). The insurance scheme is entirely funded by employer and employee premiums, which are calculated based on “insurable earnings,” a defined term in the EIA. As a general rule, most employment in Canada is insurable unless specifically stated otherwise in the EIA.

Under the EIA, employers are required to contribute a certain percentage of employees’ insurable earnings into the fund, and withhold at source and remit their employees’ contributions, up to a prescribed maximum insurable amount.

The following highlights basic obligations imposed on employers. It is intended to assist managers and human resource professionals in responding to enquiries that are made from time to time from employees contemplating sick, maternity or parental leave.

Eligibility and types of benefits available

There are essentially five (5) types of benefits available under the EIA, each intended to provide temporary income support in different circumstances. They are:

1. Regular benefits An employee who has lost his/her job through no fault of his own (i.e. layoff, etc.) may be eligible for income replacement benefits known as regular benefits. If eligible, the claimant may be paid regular benefits for a period of

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14 to 45 weeks, depending on the employment rate in the claimant’s region at the time of filing the claim and the amount of insurable hours the claimant has banked. Eligible claimants must first observe a one (1) week unpaid waiting period before receiving benefits. To qualify for regular benefits a claimant must have been without work and without pay for at least seven (7) consecutive days and have worked the minimum prescribed number of insurable hours in the 52 weeks immediately prior to the claim. The minimum number of insurable hours required to qualify for regular benefits varies from region to region and from time to time, thus reference should be made to the EIA and its regulations. The number of weeks for which benefits are payable to eligible claimants is contingent on the amount of insurable hours worked and the unemployment rate in the claimant’s region, which, again, change from time to time.

2. Sick benefits An employee whose earnings are interrupted as a result of illness, injury, or quarantine, may apply for sick benefits. Sick benefits are payable to eligible claimants for a maximum period of 15 weeks, less a one (1) week unpaid waiting period, for a net total of 14 weeks. To qualify for sick benefits, the claimant must have accumulated at least 600 insurable hours in the previous 52 weeks or since the person’s last claim. Qualifying requirements are amended from time to time. Thus reference to the EIA is always recommended.

3. Maternity benefits Pregnant employees who have accumulated at least 600 insurable hours in the last 52 weeks (or since their last benefits claim) are eligible for maternity benefits. Maternity benefits are payable for a period of 15 weeks, less a one (1) week unpaid waiting period, for a net total of 14 weeks.

4. Parental benefits An individual who has accumulated at least 600 insurable hours in the last 52 weeks (or since the person’s last benefits claim, save and except a claim for maternity benefits), is entitled to parental benefits. Parental benefits are available to natural or adoptive parents who wish to remain at home to care for one (1) or more newborn children or one (1) or more adoptive children. Standard parental benefits are payable for a maximum period of 35 weeks, less a one (1) week unpaid waiting period, for a net period of 34 weeks at 55% of the parent’s weekly insurable earnings, to a maximum amount. Extended parental benefits are payable for a maximum period of 61 weeks at 33% of the parent’s weekly insurable earnings, to a maximum amount. The one (1) week waiting period

may be waived if a parent has already served a one (1) week waiting period while claiming pregnancy benefits.

5. Compassionate care benefits An individual who has accumulated at least 600 insurable hours in the last 52 weeks (or since their last benefits claim), and whose regular weekly earnings are decreased by at least 40%, can receive compassionate care benefits of up to a maximum of 15 (to care for an adult), 26 (compassionate care benefit), or 35 (to care for a child) weeks if the person has to be absent from work to provide care or support to a gravely ill family member at risk of dying within 26 weeks. Compassionate care benefits are available for the care of a prescribed list of individuals, and may be shared with other members of an individual’s family. A medical certificate must be provided to establish the entitlement.

The EIA sets out various rules, requirements, limitations and exceptions that may affect entitlement to income replacement benefits, which are frequently amended from time to time. Therefore, reference should always be made to the EIA and its regulations.

Benefits - quantum

At the time of drafting, the basic benefit rate under the EIA is 55% of a claimant’s average insured earnings up to the maximum amount set out in the legislation. The EIA sets out a specific formula for calculating “average insured earnings.” Moreover, benefit rates are often amended, so regular reference to the EIA is advised.

Benefits under the EIA are considered taxable income; therefore, provincial and federal taxes will be deducted.

Claimants are entitled to earn up to a certain allowable amount while receiving income replacement benefits under the EIA, without affecting their benefit entitlement. Any monies earned over and above the allowable amount will be deducted dollar for dollar from the benefits.

Employer obligations

The EIA sets out a number of obligations for employers. Particularly, employers are required to:

1. issue a Record of Employment (ROE) within five (5) calendar days after the later of: (a) the first day of the interruption of earnings; and (b) the day on which the employer becomes aware of the interruption of earnings;

2. keep records of insurable hours worked for each employee, for a period of six (6) years after the relevant year for which the records relate (since benefits are based on an hourly qualification system);

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3. deduct and remit employment insurance premiums for each dollar of insurable earnings up to the yearly maximum; and

4. report severance payments, if any, paid to dismissed employees.

In addition to the foregoing, the EIA sets out a number of other obligations and offences, breach of which could lead to penalties, fines and prosecution. Thus, reference should be made to the EIA and its regulations should issues arise.

Administration

The Employment Insurance Commission (the “Commission”) oversees the EIA and manages the insurance fund. Employment and Social Development Canada administers income replacement benefits to eligible employees.

If an employer or a claimant disagrees with the Commission’s decision to either deny or grant income replacement benefits, then either party can appeal the decision within prescribed time limits to the adjudicative bodies authorized under the EIA to hear the appeal(s).

A cautionary noteThe foregoing provides a summary of aspects of Canadian law that may interest companies considering doing business in Canada, specifically in Ontario. A group of McMillan lawyers prepared this information, which is accurate at the time of writing. Readers are cautioned against making decisions based on this material alone. Rather, any proposal to do business in Canada should most definitely be discussed with qualified professional advisers.

Information respecting the laws of Québec, Alberta and British Columbia is available through McMillan’s offices in Montréal, Calgary and Vancouver respectively. For any questions regarding this and our other publications, please contact a member of McMillan’s Employment & Labour Relations group.

The information in this brochure is current to December 2018, and includes legislative amendments taking effect January 1, 2019.

Copyright © 2019 McMillan LLP. Document updated: December 2018. 00-230-1218-11

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