Last week, Ontario’s Bill 27, Working for Workers Act, 2021 received royal assent, which means it is now official law. As a result of this development, many areas of workplace law in Ontario will be impacted, most notably the Ontario Employment Standards Act, 2000. In this post, we will highlight some of the key changes that Ontario employers and employees should be aware of, as it will impact their respective rights and obligations. This includes requiring the following:
- employer policies permitting employees to “disconnect” from work after regular office hours
- prohibitions on employee non-compete agreements
- removing Canadian experience requirements
- requiring recruiters and temporary help (job) agencies to obtain
- requiring businesses to allow delivery workers washroom usage
- using Workplace Safety and Insurance Board (WSIB) premium surpluses to assist in COVID-19 recovery
- streamlining employer payroll remittances
In-Depth Look at New Ontario Legislative Changes in Bill 27
Disconnecting-from-Work Policy
The Ontario Employment Standards Act, 2000 will now require all employers with 25 or more employees as of January 1 of any year to have in place a written policy permitting employees to disconnect from work. To allow reasonable time for employers to comply with the new law, employers will have until June 2, 2022 to establish a disconnecting-from-work policy.
These purpose of the new workplace policies is to ensure employees are “disconnecting from work,” which is defined as “not engaging in work-related communications, including emails, telephone calls, video calls or the sending or reviewing of other messages, so as to be free from the performance of work.” At this point, the government is expected to pass a new regulation that will provide more clarity on what specific content will be required in this new workplace policy. Additionally, all employers must provide a copy of the disconnecting-from-work policy to:
- Each of its employees within 30 days of preparing it or, if an existing written policy is changed, within 30 days of the changes being made; and
- A new employee within 30 days of the day the employee becomes an employee of the employer.
No More Non-Compete Agreements with Employees – Unless for Executives or as Part of a Sale of a Business
Generally, under this new employment standards law, employers will not be allowed to include a non-compete agreement with employees, except in a narrow set of cases involving:
- the sale of a business – that is, where a purchaser and seller enter into an agreement that prohibits the seller from engaging in any business, work, occupation, profession, project or other activity that is in competition with the purchaser’s business after the sale and, immediately following the sale, the seller becomes an employee of the purchaser, the prohibition does not apply with respect to that agreement.
- Executives – generally considered high-ranking, C-level employees – that is, “any person who holds the office of chief executive officer, president, chief administrative officer, chief operating officer, chief financial officer, chief information officer, chief legal officer, chief human resources officer or chief corporate development officer, or holds any other chief executive position.
The amendment to the Ontario Employment Standards Act, 2000 defines a “non-compete agreement” as “an agreement, or any part of an agreement, between an employer and an employee that prohibits the employee from engaging in any business, work, occupation, profession, project or other activity that is in competition with the employer’s business after the employment relationship between the employee and the employer ends.” If an employer violates this prohibition, the non-compete agreement will be considered void (illegal) for not complying with employment standards law.
Prohibition Against Using Recruiters that Charge Fees
The amendment to the Ontario Employment Standards Act, 2000 will now establish a licensing system for recruiters and temporary help agencies, which includes the following prohibitions (among other requirements):
- No person is permitted to act as a recruiter unless the person holds a licence for that purpose; and
- No recruiter, employer or prospective employer is permitted to knowingly engage or use the services of a recruiter unless the recruiter holds a licence for that purpose.
Rights for Delivery Workers
A new amendment to the Ontario Occupational Health and Safety Act imposes an obligation on owners of workplaces to generally provide access to a washroom to workers making deliveries to or from that workplace.
Conclusion
The new workplace law changes significant. In fact, for many employers, it will require reviewing and modifying their employment contracts, and other workplace policies and procedures. As such, Ontario employers should consult with an experienced employment lawyer at Bune Law to understand the requirements imposed by Bill 27 and make the necessary modifications in their own workplaces to ensure they comply with the new legal standards.
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If you are an employer or employee, please contact Bune Law at 647-822-5492 arrange a consultation with an employment lawyer in the Toronto area, so that we can discuss your specific employment matter in detail, explain employment law as it applies to your situation, and then determine whether you need our assistance and how we can help.
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