Legislative Update for Ontario – Round-up of Recent and Pending Changes

In recent years, we have seen a flurry of legislative changes impacting Ontario's employment laws. As we head into the final calendar quarter of the year, now is an ideal time for employers to take a minute and ensure they are up to speed on any recent changes and pending updates.

In this blog post, we summarize some of the key proposed and implemented changes to Ontario's employment laws in 2024 so far.


1. Digital Platform Workers' Right Act ("DPWRA")

As some may recall, the DPWRA was first introduced in April 2022, as part of the Working for Workers Act, 2022. While passed as part of that legislative enactment, we have been awaiting further information on when the DPWRA would come into force.

On September 5, 2024, the Ontario government announced that the DPWRA will come into force on July 1, 2025. The Ontario government also filed O Reg 344/24 under the DPWRA which provides further clarification on the scope of some of the obligations under the legislation.

Scope:

  • The DPWRA defines key terms, including:
    • "Digital platform" means "subject to the regulations, an online platform that allows workers to choose to accept or decline digital platform work".
    • "Digital platform work" means "subject to the regulations, the provision of for payment ride share, delivery, courier or other prescribed services by workers who are offered work assignments by an operator through the use of a digital platform".
    • "Operator" means "subject to the regulations, a person that facilitates, through the use of a digital platform, the performance of digital platform work by workers, but does not include a temporary help agency within the meaning of the Employment Standards Act, 2000".
    • "Worker" means "subject to the regulations, an individual who performs digital platform work and includes a person who was a worker".
  • O Reg 344/22 has carved out that the provision of "taxicab or limousine services" will not qualify as digital platform work.

Key Provisions:

Key provisions under the DPWRA include:

Pay:

  • Operators are required to establish recurring pay periods and recurring pay days, and pay all amounts earned during each pay period and all tips or gratuities collected during the pay period by no later than the pay day for that period.
  • Digital platform workers need to be paid at least minimum wage for each work assignment, exclusive of tips or other gratuities or other truly discretionary bonuses.
  • Operators cannot make unauthorized withholdings or deductions from workers' pay.

Termination/Suspension:

  • Operators will need to provide written reasons for suspending or banning workers from the digital platform.
  • Permanent bans or suspensions longer than 24 hours will require two weeks' written notice, unless:
    • The worker is removed because of public safety concerns.
    • The worker is removed because the worker cannot legally perform the work or otherwise as required by law.
    • The worker is guilty of wilful misconduct that is not trivial and has not been condoned by the operator.

Other:

  • Dispute resolution must occur in Ontario.
  • Workers are entitled to receive specified information within certain timeframes. This includes, without limitation, within 24 hours of the worker signing up:
    • Information of how pay is calculated, collection and payment of tips and gratuities, the pay day and pay period.
    • Information on factors used to determine whether work assignments are offered and information on any performance rating system used and the consequences of same.
    • The worker is also entitled to work assignment specific information at the time of being offered the work assignment and within 24 hours of completion.
  • Parties cannot contract out of the DPWRA.
  • Reprisal for a worker enforcing their rights under the DPWRA will be prohibited.
  • Operators must record, retain, and keep readily available prescribed information relating to each worker who accesses the operator's digital platform.


2 .Employment Standards Act ("ESA")

Recent Changes:

In the past few months, several changes to the ESA came into force as a result of the Working for Workers Four Act, as follows:

  • Trial periods trainees are deemed to be employees, entitled to compensation.
  • Employers are prohibited from deducting wages from employees where customers do not pay for goods and services (e.g. dine and dash scenarios).
  • Written vacation pay agreements are required if employers pay vacation pay at any time other than a lump sum before the employee commence vacations.
  • If employers pay by direct deposit, the account must be selected by the employee and in the employee's name.
  • Employers who share in tips with employees must clearly post their tip-sharing policy in a conspicuous place in the workplace. The ESA further sets out how tips may be paid and where.

Pending Updates:

There are also several upcoming and pending changes to the ESA, as follows:

  • Working for Workers Fourt Act passed, pending proclamation into force:
    • Mandatory inclusion of expected compensation range in job postings.
    • Disclosure of use of AI to screen, assess, or select applicants.
    • Ban on Canadian work experience requirements in job postings.
    • Retention of job postings for three years.
  • Working for Workers Five Actnot passed, subject to change:
    • Enhanced disclosure requirements for job postings – must state whether posting is for existing vacancy or not.
    • Mandatory follow up with interviewees after an applicant interviews for a publicly advertised job vacancy.
    • Prohibition on doctor's note for sick leave under the ESA.
    • Increase in maximum fines for violations under the ESA from $50K to $100K.


3. Occupational Health and Safety Act ("OHSA")

Pending Updates:

The Working for Workers Five Act also proposes changes to OHSA as follows:

  • Extension of OHSA protections to private residences for telework.
  • Expansion of the workplace harassment definition to include virtual harassment.
  • Provision for electronic posting of OHSA information by employers provided workers are informed.
  • Joint health and safety committee meeting can occur remotely.
  • Employer to maintain cleanliness of any washroom facilities.


4. Minimum Wage Increase

Employers should also take note that the general minimum wage in Ontario increased to $17.20 per hour.


Takeaways:

Employment laws and legislation are constantly evolving. Employers are encouraged to periodically check in with their legal counsel and ensure they are up to speed on any recent changes which might impact their workplace or workforce.

If you have any questions about your legal obligations or entitlements, feel free to reach out to a member of the Lee Workplace Law team.