Highlights of the new Fair Workplaces, Better Jobs Act, 2017 and what it means for employers and entrepreneurs. Part 1

on

The Fair Workplaces, Better Jobs Act, 2017 put in place in late 2017 is a far-reaching piece of legislation that makes important amendments to several laws such as the Employment Standard Act (ESA), the Labour Relations Act and the Occupational Health and Safety Act.

While most of the media focus on these changes has been to the increase in minimum wages, there are other changes to the ESA that can have considerable affects to your organization’s internal human resources policies, existing compensation structure and total payroll. The enforceability of some terms and conditions of employment contracts currently in place can also be affected.

A few practical tips for employers and entrepreneurs

Keeping in mind that several of these amendments were coming into force on January 1st, 2018, employers and entrepreneurs may wish to consider the following initiatives to ensure compliance with the new legislation.

· Employers should conduct a review of relevant internal human resources policies and codes of practice to ensure compliance with these new legal obligations. For example, amendments to an organization’s internal policies and procedures to encompass the new or extended leave entitlements may be required.

· In addition to assessing the enforceability of the terms and conditions included in existing employment contracts, employers will need to consider if their letter of offer and employment contract templates require updating to reflect these new legislative requirements.  It is important to reexamine any termination clause included in employment agreements since several recent court cases have reiterated that employers must respect ESA minimums including benefits entitlement during the statutory notice periods.

· The two significant changes to employee’s remuneration, namely the increased minimum wages and the concept of equal pay regardless of employment status, could be quite onerous for some employers.  In some instances, there may be a need to revisit the organization’s entire compensation scheme as these hikes in minimum wages could severely narrow or even eliminate any difference in pay between new employees and their counterparts who have more seniority.

· Employers who have a mixed workforce of employees and contractors may wish to engage in a broad review of their workers classification to identify any potential mischaracterization. An employer must therefore examine all relevant documents, including any written agreements, as well as day-to-day realities of their workers’ roles and responsibilities. 

· Finally, employers could consider providing training to ensure that their managers and supervisors are aware of, and comply with, the provisions of the new legislation.