Canadian Lawyer InHouse

July/August 2018

Legal news and trends for Canadian in-house counsel and c-suite executives

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JULY/AUGUST 2018 42 INHOUSE O ntario's updated employment laws have dominated public discussion for most of the past year. But while many have focused on the increased minimum wage, restaurants and retailers are dealing with changes that are harder to calculate, like new calculations for holiday pay, equal pay for equal work requirements and changes to scheduling. They're concerned about more than just how to afford the increasing cost of business. Because the changes are so recent, it's hard to know how businesses will be impacted in the future, employment lawyers say. The Ontario government passed Bill 148, The Fair Workplaces, Better Jobs Act last No - vember. It contained sweeping reforms to the Employment Standards Act and also changed parts of the Labour Relations Act and the Occupational Health and Safety Act. This in- cluded raising the general minimum wage to $14 an hour from $11.60 an hour in January. It will climb to $15 an hour in 2019 and increasing each year based on inflation. It's not the only concern for restaurants and retailers. Increased automation, the preva- lence of online shopping and large retailers declaring bankruptcy has already disrupted the industry. Now, the new rules mandate that: part-time, seasonal and casual employees be paid the same for doing the same work as full-time employees; holiday pay calculations change and all employees are given two paid emergency leave days off, while saying employ- ers can't ask for a doctor's note to verify illnesses; and the amount of notice employers must give to employees about changes to their schedule be increased. Combined with the mini- mum wage increase, many employers are seeing a sudden hit to their bottom line. The new rules say employees who perform "substantially the same job" can't be paid less because they're part-time or were hired on a temporary, seasonal or casual basis. This makes retail and restaurant industries particularly vulnerable. Many rely on part-time and seasonal work, especially during the holidays. Students often work part-time or seasonal jobs to pay for their studies. These part-time jobs often don't lead to full-time careers. These rules came into effect on April 1, so it's too soon to say if they will cause businesses to hire fewer part-time or seasonal staff. But some employment lawyers say it could be a possibility. Andrea York, a partner with Blake Cassels & Graydon LLP in Toronto, says she wonders if these changes will reduce the number of jobs available for students or part-time workers. The law may have been written to reduce dependency on part-time workers, but if these changes cause "a reduction to employment overall," it may not be good for the province, she says. Retailers squeezed by new rules New pay and scheduling laws causing uncertainty for retailers and restaurants. BY MEAGAN GILLMORE I n d u s t r y S p o t l i g h t

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