On October 29, 2024, Ontario passed the fifth Working for Workers Act. The Act is latest in the government’s series of sweeping changes to employment standards in Canada’s largest province.
Previous iterations of the Working for Workers Act focused on the right to disconnect, AI hiring, salary transparency, and health and safety. Five, however, introduces new job post requirements, bans sick notes for minor illnesses, and increases penalties for employers breaking the law. It also adds new support for women in trades and reduces the service requirement for emergency responders to qualify for WSIB.
In this blog we will explain the changes, how they impact employers, and how Employers of Record can help!
What’s New? Understanding Ontario’s Working for Workers Five Act
Sick Notes Banned for Minor Illnesses
Ontario will prohibit employers from requiring a sick note as proof for employees to use their three unpaid sick days. The move is designed to save time and money in the province’s overburdened healthcare system – but it also simplifies things for employers. Instead of having managers or HR chase down doctor’s notes for every cold and flu, Ontario ESA now says to take your employees’ word for it and move on.
Increased Penalties for ESA Violations
The province has doubled the penalty for Employment Standards violations from $50,000 to $100,000 and increased the additional penalty for repeat violations from $1,000 to $5,000. The changes make Ontario’s penalties the highest in the country. ESA violations include payroll matters such as withholding wages, overtime, holiday and vacation pay, and employee relations matters such as retaliation, harassment, unequal pay, and lack of promotion opportunities.
Even More Hiring Transparency
Ontario is moving to expand hiring transparency even more with Five, requiring employers to state that all job posts are related to actual openings in the company. Employers can no longer post jobs simply to build up their talent pool – instead they can only post when they intend to fill the role. Employers will also be required to respond to all job applicants once the job has been filled – albeit automated replies are encouraged.
Expansion of OHSA
The province has also made significant changes to the Occupational Health and Safety Act (OHSA), in acknowledgement of the growth of remote work in Ontario. Remote workers are now formally covered by the OHSA, no matter where they work. Employers should share their health and safety policy documents electronically and health and safety committees can hold their meetings outside of the workplace – even electronically. Finally, the definition of workplace harassment has been expanded to cover that which occurs “virtually through the use of information and communications technology.”
Support for Women in Trades
Employers in the trades will be required to make the industry safer for women by providing menstrual products on large job sites, ensure separate bathrooms are available and cleaned regularly.
Reduced Service Requirement for Emergency Workers
Finally, the act will reduce the service requirement of emergency workers to be able to qualify for presumptive WSIB coverage of PTSD and primary-site skin cancer.
When Will the Changes Come into Effect?
While the Act was passed by the provincial legislature on October 29, 2024, detailed regulations to support some aspects are still to come. The ban on sick notes, increase in ESA violation fines, and inclusion of remote workers in OSHA come into effective immediately.
How an Employer of Record Can Help
Employers of Record (EOR) like Canadian Payroll Services hire workers on behalf of US and other international employers that don’t have a local presence. We hire, onboard, and payroll your Canadian team members and ensure compliance throughout the whole employee life cycle. As your EOR partner, we stay on top of changes to employment law and ensure that your team is always being treated the right way. If you have any questions about provincial Employment Standards or need EOR support, get in touch!
