| Labour Standards Frequently Asked Questions (FAQ's) | ||||||||||||||||||||||||||||||
The standard working hours per week may be prescribed in regulations by the Lieutenant-Governor in Council. The present regulation sets a 40 hour week. Time worked in excess of those hours must be paid at the minimum overtime rate of not less than $10.13 per hour - based on 1½ times the minimum wage of $6.75 per hour. This overtime rate will increase on January 1, 2007 to $10.50 per hour based - based on 1½ times the minimum wage of $7.00 per hour. Day of Rest Employees must be granted 24 consecutive hours off work in each week of employment. Where possible, the day off should be a Sunday. There are exceptions in the case of: (a) employees in undertakings excluded by regulation. (The present regulation provides for the exclusion of employees covered by collective agreements, employees employed in a remote area and crew members of ferry boats). (b) employees of employers exempted by the Minister of Labour, and (c) employees engaged in emergency work. Meal Break Except where regulation provides otherwise, employees are entitled to a one hour rest period immediately following each 5 consecutive working hours. (The present regulation provides for the exclusion of employees covered by collective agreements or written contracts of service as per Section 24(2)). Q. What is a work week? A. A work week is a period of 7 continuous days used by the employer or, if the employer doesn't designate a week, a period of 7 continuous days beginning after midnight on a Saturday. Q. What is the current minimum wage and who is entitled to it? A. Effective June 1, 2005 the minimum wage increased by $0.25 to $6.25 and will increase to $6.50 effective January 1, 2006, to $6.75 effective June 1, 2006 and to $7.00 effective January 1, 2007. Q. When is overtime to be paid and what is the overtime rate? A. Overtime is to be paid on any hours worked in excess of 40 per week. The minimum overtime rate is now $10.13 per hour - based on 1½ times the minimum wage of $6.75 per hour. Q. Can overtime be "banked"? A. An employee may receive 1.5 hours of paid time off work for each hour of overtime worked instead of overtime pay when an employee and employer agree to do so. The following conditions also apply:
If the employment ends before the time off is taken, the employer shall pay the employee for all overtime hours worked within seven days of termination. Q. If co-workers want to switch shifts, what impact may this have on overtime payments? A. If an employer approves a written request from one or more employees and this change results in affected employee(s) working more than 40 hours in a week, the employer is not required to pay overtime to the employees involved. Q. What happens if an employee is called in to work and isn't required to work at least 3 hours? A. The employer shall either let the employee work at least 3 hours or pay the employee for any unworked portion of the 3 hours at the minimum wage rate or the minimum overtime wage rate, whichever is appropriate. Q. What is an employee who is scheduled to work 2 hours a day entitled to in the form of wages? A. An employee scheduled to work 2 hours must be paid only for the 2 hours worked. Q. Can the employee be scheduled to work 3 separate two-hour shifts in the same day? A. Yes. That employee would be entitled to 6 hours pay for such scheduled shifts. Q. If an employee reports for a previously scheduled 8 - hour shift and finds the shift cancelled, what payment are they entitled to receive? A. If they report for any shift of 3 hours or more and it is cancelled, they must receive payment for 3 hours. Q. Is the employee entitled to receive a day off each week? A. Employees are entitled to receive at least 24 consecutive hours off during each week. Q. How many hours a day (24 hour period) can an employee be required to work? A. With some exceptions, 14 hours is maximum number of hours an employee may work in a day. Q. How many breaks or meal periods are the employees entitled to receive? A. After each consecutive 5 hours, an employee is entitled to an unpaid break of 1 hour. There is no entitlement to "coffee breaks". If the employer does provide for breaks and requires the employee to remain at his or her workplace during this break, then the employee must be paid for that time. Q. Are employees required to be paid for attending meetings or duties that cannot be completed during their "normal" work day? A. Employees are required to be paid for time they spend at the workplace at the employers request. Examples of when employees should be paid are:
The employer must pay employees not less frequently than half monthly. All wages owing must be paid within 7 days of the end of the pay period. The employer must pay the wages at the place of employment during regular working hours; or at the employee's normal residence by mail or personal delivery; or by deposit into the employee's bank account. These monies must be paid in lawful currency of Canada, or by cheque or money order, or, providing the employee is in agreement, by direct deposit into an account of a bank chosen by the employee. In the event that a business closes while wages remain outstanding, affected employees should contact the Labour Standards Division immediately. Q. Can deductions be made from employee's wages for cash shortages, bad cheques, charge cards, uniforms, etc.? A. The employer cannot deduct these charges from wages. Q. If an employee damages an employer's product, property, or has an outstanding account with the employer, can the employer recover his loss by deducting from the employee's wages. A. No, the employer can only deduct sums established at law. Therefore, if an employee owes the employer for any of the above, the employer will have to take alternate measures to recover the sums that are owed. Q. Should an employee receive a statement of earnings when they are paid? A. A statement of earnings (cheque stub) must be issued to the employee each payday. It should indicate the start and ending dates of the pay period; the rate(s) of pay; the number of hours worked at each rate of pay; the gross wages; the net wages paid; and the amount of vacation pay paid for that pay period. All deductions should be listed individually.
Q. Are employers required to issue a statement of earnings each pay day? A. Yes, and it should contain the following information:
Q. What can be deducted from wages? A. Income Tax, Canadian Pension Plan contributions, E.I. contributions, overpayment of wages, deductions for a group benefit plan that the employee is participating in, savings plan deductions, overpayment on unused portions of travel advances and rental charges when the employee occupies the employer’s premises, as well as sums established at law. Q. Record of Employment, T-4 Slips & Employment Insurance Questions. A. All questions concerning Record of Employment (separation slip/lay-off slip) should be directed to the nearest Employment Insurance Centre, Human Resources Development Canada. All questions about T-4 slips and Employment Insurance contributions should be directed to the nearest Canada Customs and Revenue Agency - CCRA. Q. What payroll records must be kept by an employer? A. Every employer must keep payroll records for each employee showing the following:
The employer is required to keep these records for a period of 4 years from the date of the last entry. To qualify for an annual vacation, an employee must have been employed with the employer for at least 12 months and have worked at least 90% of the available working hours. For employees with less than 15 years of consecutive service with the same employer, the vacation must be of at least 2 weeks duration and the employee may choose to take it in either 1 two-week period or 2 one-week periods. The employee must be permitted to take this vacation within 10 months of the time they qualify for it. The employer must give the employee at least two weeks written notice of when the vacation is to be taken. Vacation pay is calculated at 4% of the employee's gross wages for the period in respect of which the vacation is being given. This payment must be made at least one day before the vacation commences. If an employee does not qualify for an annual vacation, there is still an entitlement to vacation pay - provided the employee has been employed by the employer for at least 5 work days. An employee who qualifies for vacation pay must be paid the vacation pay within 1 week of the termination of employment. An employee who has been continuously employed with the same employer for 15 years is entitled to 3 weeks annual vacation. Vacation pay after 15 years continuous employment is calculated at 6 percent of the total wages for the period in respect of which the vacation is being given. Q. Who gets Vacation pay? A. Any employee who has been employed for 5 work days or more. Q. How many weeks of vacation does an employee receive? A. Two weeks, if the employee has worked at least 90% of the available working hours in a continuous 12 month period. After 15 years with the same employer, the vacation time is 3 weeks. Q. When must an employee receive vacation pay? A. At least one day before going on vacation or within 1 week of termination. Vacation pay may also be paid each pay period as long as the employee is advised and the amount of vacation pay is indicated in the employer's payroll. Q. How is vacation pay calculated? A. Vacation pay is calculated as 4% of gross wages, including commissions and overtime. Vacation pay is calculated as 6% of gross earnings for employees with 15 years continuous employment with the same employer. Q. Are there any deductions to be taken from vacation pay? A. Vacation pay is subject to all statutory deductions, i.e.; Employment Insurance premiums, Income Tax and Canada Pension Plan contributions. Q. Do employees, while on vacation, receive their regular wages plus their vacation pay? A. Employees are entitled to receive only their 4% (or 6%) vacation pay before going on vacation. Q. When can vacation be taken by employees? A. The employer shall give the employee at least 2 weeks written notice of when vacation is to commence and it can be taken in one unbroken 2 week period or 2 unbroken periods of 1 week. An employee entitled to 3 weeks vacation shall be permitted to take the vacation in one unbroken period of 3 weeks, in 2 unbroken periods of 2 weeks and 1 week respectively or in 3 unbroken periods of one week. Q. Can the employer cancel an employee’s vacation if it was previously agreed to? A. The employer may cancel an employee’s vacation but must compensate the employee for reasonable expenses that cannot be recovered by the employee as a result of the vacation being cancelled. Q. How many public holidays are there? A. There are 6 public holidays throughout the year. These are: New Years’ Day, Good Friday, Memorial Day (Canada Day), Labour Day, Remembrance Day, and Christmas Day. Additional days may be proclaimed by the Lieutenant Governor-in-Council. Different holidays may be set by collective agreements in substitution for those days designated under the Act. Q. If an employee works on a paid public holiday, what are they entitled to receive? A. Where an employee works on a paid public holiday, they are entitled to receive wages at twice their regular rate for the hours worked on the holiday or an additional day off with pay within 30 days or an additional vacation day. Employees do not have to meet any qualifiers to receive this benefit and the benefit they receive is one of their choice. Q. What if the employee works a lesser number of hours on the paid public holiday than they would normally have worked? A. If an employee is required to work less hours on the holiday than they would normally work, the employer is required to pay the employee at their regular rate of pay for the actual hours worked plus a regular days pay. Q. What entitlement to paid public holiday wages, if any, does the employee have who does not work on the paid holiday have? A. If the employee has:
he/she is entitled to a days pay for the paid public holiday even though no work was performed on the day. Q. How is an employee to be compensated if a public holiday falls on a day the employee would normally be scheduled off work? A. The employee shall not be required to work either on the first working day immediately after the public holiday or another day mutually agreed to by the employee and employer and this day shall be a paid day for the employee. Q. How is the employee who works shifts of varying hours and who does not work on the paid public holiday to be paid? A. First, establish whether or not the employee is eligible for paid public holiday benefits by finding out whether or not the employee has:
If these criteria are met, the employee has the right to be paid for the paid public holiday. To establish the rate at which the employee should be paid requires multiplying the employee’s hourly rate of pay by the average number of hours worked in a day by the employee in the 3 weeks immediately preceding the holiday. Q. Do the notice of termination provisions of The Labour Standards Act apply to collective agreements and written contracts of service? A. Yes, but only if the collective agreement or the written contract of service is silent on notice, or if the period in the agreement or contract that is required to be given is not the same for the employer and employee. Q. Does notice of termination of employment have to given in writing? A. Notice of termination has to be in writing. Q. May an employer terminate the employment of an employee without notice? A. Not ordinarily. An employer or employee may only terminate employment with written notice of termination subject to the exceptions noted in the next answer. Q. When may an employer terminate employment without giving notice? A. Notice of Termination is not required in the following circumstances:
Q. What is the period of written notice that has to be given by the employer and the employee? A. During the first 3 months of employment, no notice of termination is required to be given by either party. For employment from 3 months up to 2 years, 1 week’s written notice is required to be given by either party. After 2 years but less than 5 years employment, 2 weeks notice must be given by either party. After 5 years but less than 10 years employment, 3 weeks notice must be given by either party. After 10 years but less than 15 years employment, 4 weeks notice must be given by either party. After 15 years employment, 6 weeks notice must be given by either party. Q. May an employee quit without giving the required notice? A. There are circumstances when an employee may quit without giving notice but before an employee takes that action, he/she should contact the Labour Standards Division. Some examples of circumstances that would justify an employee terminating employment without notice are:
Q. May the employer hold back wages when an employee terminates employment without giving notice? A. Only if the employee gives consent to the employer allowing the employer to withhold the correct amount of wages in lieu of notice. If the employee does not agree, then the employer is required to deposit the amount of the wages in question into the Unpaid Wages Account and the Director of Labour Standards will determine the issue in accordance with the Labour Standards Act. Q. Is notice of termination required in the construction industry? A. No, notice is not required either by employee or employer. Q. Does notice have to be given if the employer is only temporarily laying off an employee? A. Yes, notice of temporary lay-off has to be given, either one to six weeks notice depending on the length of service of the employee. No notice is required, however, if the lay-off is for less than one week. Q. What is a temporary lay-off? A. It is a period of lay off up to 13 weeks in duration in any 20 consecutive week period. Q. If an employee is temporarily laid-off and the lay off exceeds 13 weeks in a consecutive 20 week period, what is the employees status under the Act? A. At the expiry of 13 weeks of "lay-off", the employment is terminated. Q. What additional notice or pay in lieu of notice is the employee entitled to in these circumstances? A. At the time of the original "lay-off" the employee should have received one to six weeks notice. The temporary lay-off provisions do not provide employees with additional notice periods. Q. What is a group termination of employment? A. A group termination is the termination of the employment of 50 or more employees in a four (4) week period. Q. Are notice requirements different in a group termination of employment situation? A. The Act requires written notice of intention to terminate be given to each employee. The periods of notice are:
Written notice must also be given to the Minister of Labour immediately after serving of notice on the employees. In that notice the Minister must be made aware of the number of employees involved, the period of notice involved and the reason for the mass termination of employment. If notice is not given to the Minister, no action can be taken by the employer to terminate the services of those employees. Although an employer provides a notice of intention to terminate to the employees, the employer must also give the written notice of termination within the specified time limits. Q. When must an employee whose employment has been terminated be paid any wages they are owed? A. Within 1 week from the date of termination, an employee must be paid:
Q. What is pay in lieu of notice? A. Pay in lieu of notice is the payment of the employee's normal wages if the appropriate written notice (depending on the employee’s years of service) is not given upon termination. Q. May the vacation period form part of the notice period? A. Unless both parties agree, the employer shall not require, nor shall the employee take, vacation as the notice period. Q. Who is eligible for Pregnancy Leave? A. A pregnant employee who has been employed by the same employer for at least 20 consecutive weeks. Q. How much notice of their intention to take Pregnancy Leave must an employee give to their employer? A. At least two weeks written notice must be given. As well, the employee must provide the employer with a certificate from a medical practitioner stating the estimated birth date. Q. How long can Pregnancy Leave last? A. Up to 17 weeks of unpaid leave. Q. When does it begin? A. Not earlier than 17 weeks before the expected birth date. Q. What if the employee is forced to stop work because of miscarriage or still birth? A. The employee is entitled to 6 weeks leave after still birth or miscarriage. Q. How much notice does an employee have to give their employer of their intention to return to work? A. The employee must give the employer four weeks notice of the date they intend to return to work. Q. What effect does my being off on unpaid leave have on my entitlement to vacation and other benefits under The Labour Standards Act? A. The periods of time spent on unpaid leave are "time out" when it comes to the accumulation of time for the purposes of vacation entitlement and notice of termination of employment, etc. Q. Does my employer have to hold my job for me? A. You should, upon your return to work, be placed in the same or similar position with the same duties, benefits and wages that you had prior to taking Pregnancy Leave. Q. Who is eligible for Parental Leave? A. An employee who has been employed by the same employer for at least 20 consecutive weeks before becoming the parent of a child or before having a child come into the employee’s care and custody for the first time. Q. When does Parental Leave have to be taken? A. Parental Leave must begin within 35 weeks of the birth of the child or when the child comes into the care and custody of the parent for the first time. Q. Can I take Pregnancy Leave, go back to work for a time and then take Parental Leave? A. No. Where an employee takes Pregnancy Leave the Parental Leave must begin when the Pregnancy Leave ends unless the child has not come into the care of the parent for the first time. Q. What is the maximum amount of Parental Leave? A. The maximum Parental Leave provided by the Act is 35 weeks of unpaid leave. Q. How much notice do I have to give my employer of my intention to take Parental Leave? A. At least 2 weeks written notice of the date the leave is to begin. Q. What if I wish to return to work before the end of the 35 weeks? A. You should give your employer at least 4 weeks written notice of the date you intend to return to work. Q. Does my employer have to hold my job for me? A. Upon your return to work, you should be placed in the same or similar position with the same duties, benefits and wages that you had prior to taking Parental Leave. Q. What effect does my being off on parental leave have on my entitlement to vacation and other benefits under the Labour Standards Act? A. The period of time spent on parental leave is "time out" when it comes to the accumulation of time for the purposes of vacation entitlement, notice of termination of employment and other benefits under the Act. Q. Who is entitled to Adoption Leave? A. An employee who has been employed by the employer for at least 20 consecutive weeks. Q. How much notice of their intention to take Adoption Leave must an employee give? A. Two weeks notice in writing or if the child comes into their custody sooner than expected, written notice of having taken Adoption Leave within two weeks of having stopped work. Q. How long can Adoption Leave last? A. Up to 17 weeks of unpaid leave. Q. Are adoptive parents entitled to Parental Leave? A. Adoptive parents are entitled to 35 weeks Parental Leave. Q. What if I wish to return to work earlier? A. The employee must give his or her employer at least 4 weeks written notice of the date they will be returning to work. Q. What effect does my being off on adoption leave have on my entitlement to vacation and other benefits under The Labour Standards Act? A. The period of time spent on adoption leave is "time out" when it comes to the accumulation of time for the purposes of vacation entitlement, notice of termination of employment or other benefits under the Act. Q. Does my employer have to hold my job for me? A. Upon your return to work, you should be placed in the same or similar position with duties, benefits and wages that you had prior to taking Adoption Leave. Q. Who is entitled to Bereavement Leave? A. An employee who has been employed with the same employer for a continuous period of at least 30 days shall be given 3 days Bereavement Leave consisting of 1 day paid leave and 2 days unpaid leave. Bereavement Leave must be provided in the event of the death of the spouse, a child, a grandchild, the mother or father, a brother or sister, a grandparent or a mother-in-law, father-in-law, sister-in-law or brother-in-law, son-in-law or daughter-in-law, of the employee. If an employee has been employed for less than 30 days, then the employee is entitled to two days of unpaid leave. An employer shall not dismiss an employee or give a notice of dismissal to an employee because he/she is off on Bereavement Leave. The Labour Standards Act places some restriction on the employment of children under the age of 16. An employer is prohibited from employing a child who is under 16 in employment that is likely to be unwholesome or harmful to the child's health or normal development, or if it is going to hamper the child's attendance at school. Additionally, an employer shall not employ a child under 16 to work:
Before employing a person under the age of 16, an employer must obtain the written consent of the parent or guardian. This consent must be kept as part of the record of employment and the age shall be specified in the written consent.
Q. Who is entitled to sick/family responsibility leave? A. An employee who has been employed with the same employer for a continuous period of 30 days is entitled to 7 days unpaid Sick or Family Responsibility Leave in a year. An employer shall not dismiss an employee or give a notice of dismissal to an employee because they are off on Sick/Family Responsibility Leave. Q. Does the employee have to provide a note to the employer for sick leave? A. An employee must provide a note to his employer signed by a qualified medical practitioner if on sick leave for three consecutive days or more. Q. Does the employee have to provide a note to the employer for family responsibility leave? A. An employee must provide a written statement outlining the nature of the family responsibility leave where the employee is absent from work for 3 consecutive days or more. Q. What types of family responsibilities would be considered suitable in order to take family responsibility leave? A. Examples of when family responsibility leave can be used is when the employee has to:
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