Implementing Ontario's Working for Workers Four Act, 2023: what employers need to know

In an ongoing effort to enhance worker protections and support newcomers, the Ontario government has introduced Bill 149, the Working for Workers Four Act, 2023. This legislation builds upon the measures of previous Working for Workers Acts and brings significant changes that employers must understand and implement. Here’s a comprehensive guide to help Ontario employers navigate these changes and ensure compliance.

Immediate Changes Effective March 21, 2024

The redefinition of "employee" under the ESA now includes individuals performing work during a trial period. This amendment requires employers to treat trial periods as paid training, recognizing these workers as employees. To comply, employers must review and amend their employment contracts and policies, eliminating any unpaid trial periods. Additionally, all training programs should now reflect this change, ensuring compliance from the outset.

Another critical immediate change pertains to wage deductions. Employers are now expressly prohibited from deducting wages for cash shortages or loss of property where another person had access, including situations like dine and dash or gas and dash incidents. It is imperative for employers to update their wage deduction policies and train managers and employees to prevent unlawful deductions, thereby protecting employees' earnings.

Changes Taking Effect June 21, 2024

Regarding tips and gratuities, employers must now comply with specific methods for paying tips, which include cash, cheque, direct deposit, or other prescribed methods. If tips are paid via direct deposit, the account must meet ESA requirements. Employers must develop written tip-sharing policies, post these in the workplace, and retain the records for three years after they cease to be in effect. This ensures transparency and adherence to the new rules.

The amendments to vacation pay arrangements necessitate that any alternate pay arrangements be documented in writing. Employers must ensure that all non-standard vacation pay agreements are formally agreed upon and accurately reflected in their payroll systems.

Direct deposit requirements have also been clarified. Employers must ensure that direct deposits are made to accounts selected by the employees, which are in the employees' names and accessible only by the employees or their authorized representatives. Clear communication with employees about their rights to select their direct deposit accounts is essential to meet these requirements.

Future Changes on Proclamation

Several important changes will come into force on a date to be proclaimed. Employers must start preparing for these now to ensure smooth compliance once they are enacted.

Job postings will need to include information about the expected compensation or a range of expected compensation. Additionally, employers will be required to disclose if artificial intelligence (AI) is used in the hiring process. Employers should begin reviewing and updating their job posting procedures to include these disclosures. Furthermore, all job postings and associated application forms must be retained for three years after public access is removed, necessitating updates to record-keeping practices.

The prohibition on requiring Canadian work experience in job postings or applications means employers must adjust their hiring criteria and processes. Reviewing and removing any Canadian work experience requirements from job postings and application materials is critical to ensure compliance.

For amendments to the Workplace Safety and Insurance Act (WSIA), employers should anticipate and budget for potential "super indexing" increases to WSIB benefits. Enhanced cancer coverage for firefighters also requires attention to policy updates to reflect these changes.

Other Legislative Amendments and Future Developments

The Digital Platform Workers’ Rights Act (DPWRA) will introduce regulations on pay periods and minimum wage compliance. Employers should ensure their payroll systems are adaptable to these forthcoming regulations. Similarly, the Fair Access to Regulated Professions and Compulsory Trades Act (FARPCTA) will impose new requirements for the assessment of qualifications, which will apply to both employers and third parties conducting assessments. It is essential to review and adjust assessment procedures to align with these requirements.

The Ontario government is also launching consultations on restricting Non-Disclosure Agreements (NDAs) in cases of workplace sexual harassment, misconduct, or violence, and creating a new job-protected leave for critical illnesses. Employers should participate in these consultations and prepare to adjust policies accordingly.

Conclusion

At Hosseini & Hosseini LLP, we are committed to helping employers navigate these legislative changes effectively. Staying informed and prepared is crucial to maintaining compliance and fostering a fair workplace. Regularly reviewing and updating employment policies, consulting with legal experts, and educating your management and HR teams on these new requirements will ensure your organization remains compliant and your workforce protected. Our team is here to provide the expertise and support you need during this transition.