Human Resource Update for Employers – A Review of new and proposed Ontario Employment Legislation

Keeping up with changing employment legislation and regulations can be challenging. Every year in Ontario there are new laws passed that impact the Ontario worker and the workplace. The employment legislation update 2017 summary below will help employers keep up to date and compliant. Links to learn more about these changes are available at the end of this post. If you have questions or need assistance implementing changes in your workplace, Fusion Career Services can help. 

New Legislation – Employment Legislation Update 2017

Pension Reform

This past year involved a lot of action on pension reform in Ontario and across Canada. In the end, the Ontario Government cancelled the Ontario pension plan and the Federal Government passed legislation to expand the Canada Pension Plan. 

CPP Expansion – An Act to amend the Canada Pension Plan – Bill C-26

Bill C-26 received Royal Assent on December 15, 2016. The new expanded CPP program will allow for an increase in retirement pension, based on additional contributions and number of years participating. The  program will be phased over seven years, with additional contributions beginning in 2019. The increase to maximum pensionable earnings will reach 14% by 2025. 

Employer Action:

Employers should budget for additional CPP contributions beginning in 2019, and gradually increasing each year until 2025. More specific details will be available in the coming months. 

ORPP Cancelled – Ontario Retirement Pension Plan

As a result of the Federal Government commitment to expand CPP for all Canadian workers, the Ontario Government has cancelled the Ontario Retirement Pension Plan (ORPP).

Voluntary Savings Tool – Ontario Pooled Registered Pension Plan Act – Bill 57

Bill 57 allows Ontario Businesses to offer pooled registered pension plans to their employees and provides self employed people the option to participate. PRPPs offer a voluntary, low cost, tax assisted option to increase retirement savings. 

Sexual Harassment in the Workplace – Bill 132

The Sexual Violence and Harassment Action Plan Act aims to make workplaces, campuses and communities safer and more responsive to complaints about sexual violence and harassment and the needs of survivors. For employers, Bill 132 amends the Occupational Health and Safety Act (OHSA) to include specific requirements for sexual harassment prevention programs in the workplace. The changes create employer duties to protect workers, including a duty to ensure that incidents and complaints of sexual harassment are appropriately investigated.

Employer Action:

Employers must review and update their Workplace Harassment Policy, develop a Program to implement the Policy, and train managers and employees on the new requirements.

Recent Legislation – Employment Legislation Update 2017

Accessibility – Accessibility for Ontarians with Disabilities (AODA)

In 2005, the provincial government passed the Accessibility for Ontarians with Disabilities Act with the goal of making Ontario accessible by 2025. Implementation began in 2012 and continues through 2025.  

Employer Action Required for Private Sector Companies in 2017:

January 2017 – Employers with 50 or more employees are required to create accessible public spaces such as waiting areas, service counters, walkways and parking. This only applies to new or major renovations to existing public spaces. Changes to other building spaces will be implemented through changes to the Ontario building code.

January 2017 – Employers with fewer than 50 employees are required to implement accessibility across all stages of the employment relationship (hiring, training, promotion, return to work after illness or injury, and more) and provide accessible formats and communication supports about goods, services or facilities, on request.

Employers with 20 or more employees must file an AODA compliance report by December 31, 2017.

WHMIS 2015 – New Regulation

All provinces and territories are in the process of amending their Workplace Hazardous Material Information System (WHMIS) requirements to reflect the federal changes towards the Global Harmonized System (GHS) or WHMIS 2015. 

Employer Action:

Ontario employers who use or distribute hazardous chemicals must begin implementing the new WHMIS 2015 regulation which includes new language on chemical labels and information sheets. The phase in period will be between February 2015 and December 2018. During the transition workers must be trained on both systems – WHMIS 1988 and WHMIS 2015. 

Police Record Checks – Bill 113

Bill 113, standardizes how police record checks are managed in Ontario. Implementation dates for the legislation have not yet been announced.

Employer Action:

Employers and volunteer organizations who use police record checks to screen potential candidates will need to be prepared to follow new procedures once the Act is proclaimed.  

ESA Poster and Annual Increase to Minimum Wage – Bill 18

The Stronger Workplaces for a Stronger Economy Act, 2014, Bill 18, introduced a number of key changes to Ontario workplace legislation designed to protect vulnerable workers.

Employer Action:

All new employees must receive a copy of the Employment Standards Act Poster – What You Need To Know. Each year increases to minimum wage will be announced in April and come into effect on October 1.

Temporary Workers – Bill 18

The Stronger Workplaces for a Stronger Economy Act, 2014, Bill 18, introduced changes that impact employers who use temporary workers. The most significant change involves a new shared liability between the employer and the temporary help agency for unpaid wages. This change introduces the risk of dual payments for temporary labour.

Employer Action:

Employers need to be diligent and ensure their temporary help agency is financially stable and following the law.

New JHSC Certified Training Standards

Most workplaces in Ontario with 20 or more workers are required to have a Joint Health & Safety Committee (JHSC) comprised of both workers and management. The Ministry of Labour has issued new standards for JHSC Certification Training.

Employer Action:

Employers must follow new training standards and ensure JHSC receives re-certification training every 3 years.

Consultations on Employment Related Laws – Ongoing

Gender Wage Gap

The most recent wage statistics show a 14% to 26% difference in wages earned by men and women. The Government held public consultations across the province and has now released a Final Report with recommendations for a plan to close the gap. The Government will lead many of the initiatives recommended in the report, including a plan to invest in child and elder care and development of “share and care” parental leave policies encouraging men and women to share responsibility for care-giving. However, in order for real change to occur employers must also participate.

Employer Action:

Actions employers can take immediately to address the gender wage gap: take corrective action to close gender wage gaps in their organizations; create respectful workplaces, free of violence and harassment; and promote pay transparency.

WSIB Rate Framework Modernization

In November 2016, the Workplace Safety and Insurance Board’s (WSIB) Board of Directors approved a new Rate Framework. The WSIB has introduced dramatic reforms that will change how the Board classifies employers, assigns annual premiums and measures employer’s performance from year to year. The WSIB will continue to engage stakeholders through education efforts to ensure employers are prepared for the target implementation date of January 1, 2019.

Employer Action:

Employers should look out for notices from the WSIB on the new Rate Framework or visit the WSIB Rate Framework Modernization webpage to learn more about how the changes will impact their organization.

Changing Workplaces Review

This review is considering how the Labour Relations Act, 1995 and Employment Standards Act, 2000 could be amended to best protect workers while supporting businesses in our changing economy. An Interim Report was published in July 2016 and additional public consultations were open until October 2016. A final report is expected in 2017.

More Information on Employment Legislation Update 2017

Need more information about the changes discussed above? Visit the Fusion Industry Resource Page and browse through our Manager Guides or visit the links below. 

CPP – Bill C-26

Pooled Registered Pension Plan Act – Bill 57

Sexual Violence and Harassment Action Plan Act – Bill 132

Accessibility for Ontarians with Disabilities Act, AODA

GHS – WHMIS 2015

Police Record Checks, Bill 113

Stronger Workplaces for a Stronger Economy, 2014, Bill 18

New Standards Joint Health and Safety Training

Gender Wage Gap Final Report

WSIB Rate Framework Modernization

Changing Workplaces Review Interim Report

AODA Accessible Standards – Effective January 2017, employers must meet additional obligations under the Accessibility for Ontarians with Disabilities Act (AODA).

What is the AODA?

In 2005, the provincial government passed the Accessibility for Ontarians with Disabilities Act with the goal of making Ontario accessible by 2025. People with disabilities face obstacles that make it difficult, sometimes impossible, to do the things most of us take for granted. Things like going shopping, working, or taking public transit; organizations can remove some of these barriers by doing things differently.

Ontario Employers must implement Accessible Standards

The purpose of the AODA is to involve Ontario employers in the development and implementation of accessibility standards in their workplaces in key areas that impact daily living. The AODA has 5 components:

• Customer Service
• Communication
• Employment
• Transportation
• Built Environment (public spaces)

Does the AODA apply to all Ontario Employers?

Employers with 1 or more employee must implement AODA standards. Accessible standards, requirements and implementation deadlines vary depending on the organization size and for private, non-profit or public sector organizations.

2017 Implementation Requirements for Private Sector Companies

January 2017 – Employers with 50 or more employees are required to create accessible public spaces such as waiting areas, service counters, walkways and parking. This only applies to new or major renovations to existing public spaces. Changes to other building spaces will be implemented through changes to the Ontario building code.

January 2017 – Employers with fewer than 50 employees are required to implement accessibility across all stages of the employment relationship (hiring, training, promotion, return to work after illness or injury, and more) and provide accessible formats and communication supports about goods, services or facilities, on request.

Compliance Report Due December 31, 2017

All employers with 20 or more employees must file an AODA compliance report by December 31, 2017.

Where can I learn more about AODA Accessible Standards?

A list of past implementation deadlines for private sector companies is available here:

Managers guide to accessibility large organizations

Managers guide to accessibility small organizations

Learn more about accessibility in Ontario and the AODA.

As we reach the last stretch of 2016, there is no time like the present to plan for success in 2017 and beyond. At Fusion, our goal is to help clients in any way we can to ensure their success when it comes to hiring and retaining talented employees. As a complement to our full service offering, Fusion has a library of valuable, free people management resources.

Our people management resources will help managers pave the way for the retention of happy and engaged employees. Below is an overview of the resources in our library, and how you can use them to help position your 2017 for success.

Build Your Team

This series of guides are the first step in creating a team that works for you and your business. From tips to get you started on workforce planning for 2017 to on-boarding new staff in a manner that is useful and constructive. This group of guides will give you actionable tools to create a team that is equipped with the knowledge needed to propel your company forward.

• Managers’ guide to workforce planning
• Managers’ guide to hiring
• Managers’ guide to on-boarding

Know about Workplace Legislation

Having a good understanding of Ontario workplace legislation is important for every manager, in every industry. The provincial government has set workplace regulations that cover the rights and obligations within an employee/employer relationship. Our checklists and worksheets help managers with issues involving compliance and accessibility, that are relatable to a variety of organizations and industries.

• Compliance checklist
• Managers’ guide to posting
• Managers’ guide to accessibility large organizations
• Managers’ guide to accessibility small organizations

Manage Your People

Once you’ve hired new staff, the next step is to prepare them for what’s to come and to give them an understanding of how things work in your organization. Preparing an employee handbook that documents everything such as your dress code, code of conduct, benefits and payday – will go a long way into making sure your new employee feels prepared and ready to perform their job well.

• Managers’ guide to handbook
• Managers’ guide to leaves
• Managers’ guide to accommodation

Manage Workplace Issues

Managing workplace issues such as investigations, discipline and possible termination are not top of mind when hiring a new employee, but guidelines and strategies to handle these setbacks should be prepared in advance. Our guides outline some of the key best practices for initiating an investigation, coaching, and measuring performance.

• Managers’ guide to workplace investigations
• Managers’ guide to performance
• Managers’ guide to discipline
• Managers’ guide to termination

Manage Safety in the Workplace

Safety in the workplace is a very important issue that some companies tend to gloss over – and they shouldn’t. Every people manager should have more than a general understanding of workplace safety and the process to undergo if someone is injured, harassed or placed in a violent situation while on the job. 

• Managers’ guide to Health & Safety at work
• Injury management
• Managers’ guide to workplace violence and harassment prevention

The information shared in these guides delivers a good overview that will help organizations develop unique strategies that fit their operations and corporate culture – for today, and to build for a successful 2017. You can access all the people management resources on the Fusion Career Services website under the Client – Industry Resources Page. 

On November 8, 2016 the Ontario Pooled Registered Pension Plan (PRPP) Act and the PRPP Regulations came into effect.

The Ontario Government passed the Pooled Registered Pension Plan (PRPP) Act in the spring of 2015. This legislation is now in force. The Ontario PRPP is modeled after the Federal Government plan introduced in 2012. The PRPP is a new voluntary retirement savings tool. The plan is designed to operate like a defined contribution pension plan where resources are pooled from employees and employers. The new PRPP Act allows Ontario Businesses to offer pooled registered pension plans to their employees and provides self employed people the option to participate.

PRPPs offer a voluntary, low cost, tax assisted option to increase retirement savings. Learn more about the Ontario Pooled Registered Pension Plan Act.

In October the Federal Government introduced legislation to expand the Canada Pension Plan, following discussions earlier this year with the Provinces and Territories.To pay for the new benefit, workers and employers will be required to pay higher premiums. The proposed changes will have the greatest benefit for young workers entering the workplace now and in the future.

CPP Expansion Update

On October 6, 2016 the Federal Government introduced legislation to expand the Canada Pension Plan (CPP) – Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act. The CPP is based on a worker’s earnings over their lifetime. If you earn more, you pay more premiums and receive a larger pension benefit when you retire. The current CPP program replaces approximately 25% of earnings up to a maximum limit. The proposed expansion will increase replacement income from 25% to 33% of earnings up to a new increased maximum limit.

Proposed Changes to CPP

• In order to give employers and workers time to adjust to the new proposed plan, the premiums will be phased in over a 7 year period from 2019 to 2025.
• Starting in 2019 contributions will gradually increase each year until they reach an additional contribution rate of 1% by 2023.  The CPP contribution will be raised for both employers and employees to 5.95 percent from the current 4.95 percent by 2023.
• The proposed legislation is also recommending increasing the CPP maximum limit from $54,900 to $82,700. Currently CPP contributions are not collected on earnings over $54,900. Additional contributions will need to be collected to adjust for this change.
• The legislation is proposing a second additional contribution which will be phased in over a 2 year period from 2024 to 2025. This second additional contribution will impact middle and high income earners, who earn more than the current CPP maximum limit of $54,900.

ORPP Cancelled

As a result of the Federal Government commitment to expand CPP, the Ontario Government has cancelled the Ontario Retirement Pension Plan (ORPP).

More Information on CPP Expansion Update

Additional reading can be found here: Bill C-26 and CPP expansion.