Ontario has made significant strides in modernizing its labor laws with the passing of Bill 149, the Working for Workers Four Act, 2023. This legislation, which received royal assent on March 21, 2024, brings about crucial changes aimed at protecting workers and ensuring fair employment practices across the province. Employers must now adapt to these changes to remain compliant with the law.
Immediate Changes
Effective immediately upon royal assent, certain amendments to the Employment Standards Act (ESA) have come into force. One notable change is the amendment to the definition of “employee” to include individuals undergoing trial periods. What this means is that now unpaid trial periods are prohibited. Additionally, employers are no longer able to withhold or deduct wages in situations where customers leave establishments without paying for goods or services.
Upcoming Amendments on June 21, 2024
Looking ahead to June 21, 2024, further amendments to the ESA will take effect. Employers have a window of time to prepare for these changes, which include clarifications regarding the timing of vacation pay and requirements for employers with policies on tip sharing to post and retain copies of these policies in conspicuous places within their establishments.
Future Changes
The Act also introduces forthcoming amendments, such as the requirement for employers to disclose salary ranges in job postings and the use of AI in the hiring process. While the exact implementation date for these changes remains unknown, employers are advised to begin planning for compliance as soon as possible.
Implications for Employers
With these changes, Ontario is prioritizing transparency, fairness, and accountability in the workplace. Employers must prioritize updating their policies and procedures to align with the new legislative requirements. Failure to comply with these regulations could result in legal consequences and reputational damage.
If you don’t have a business lawyer to guide you through these changes, feel free to reach out to see if we’re the right firm for you.
Robin K. Mann, Associate Lawyer