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Your guide to the Employment Standards

Act
Know your rights and obligations under the Employment Standards Act. This guide details
minimum wage, hours of work, termination of employment, public holidays, pregnancy and
parental leave, severance pay, vacation and more.

The Employment Standards Act, 2000 (ESA) provides the minimum standards for most
employees working in Ontario. It sets out the rights and responsibilities of employees and
employers in most Ontario workplaces.

This guide should not be used as or considered legal advice. You may have greater rights under
an employment contract, collective agreement, the common law or other legislation. If you’re
unsure about anything in this guide, please talk to a lawyer.

About Your guide to the ESA


This guide is a convenient source of information about key sections of the ESA. It is for your
information and assistance only. It is not a legal document. If you need details or exact
language, please refer to the ESA itself and the regulations.

What is covered by the ESA?


The ESA covers a wide range of employment standards including: minimum requirements for
employment; provisions to assist employees with family responsibilities; increased flexibility
in work arrangements; and mechanisms for compliance and enforcement.

The employment standards poster: posting and distributing requirements


Hours of work, eating periods and rest periods
Payment of wages
Overtime pay
Tips and gratuities
Minimum wage
Pregnancy and parental leave
Personal emergency leave
Family caregiver leave
Family medical leave
Critical illness leave
Crime-related child disappearance leave
Public holidays
Vacation
Termination of employment and temporary layoffs
Severance of employment
Equal pay for equal work
Temporary help agencies
Enforcement and compliance

Greater right or benefit


If a provision in an agreement gives an employee a greater right or benefit than a minimum
employment standard under the ESA then that provision applies to the employee instead of the
employment standard.

No waiving of rights
No employee can agree to waive or give up their rights under the ESA (for example, the right to
receive overtime pay or public holiday pay). Any such agreement is null and void.

Other workplace-related laws


The ESA contains only some of the rules affecting work in Ontario. Other provincial and
federal legislation governs issues such as workplace health and safety, human rights and
labour relations. Related Ontario laws include the Occupational Health and Safety Act, the
Workplace Safety and Insurance Act, 1997, the Labour Relations Act, 1995, the Pay Equity Act,
and the Human Rights Code. For more information about other Ontario laws, call
ServiceOntario at (416) 326-1234 in Toronto, and toll free in the rest of Ontario at 1-800-267-
8097 or visit Service Ontario.

Federal laws affecting workplaces include statutes on income tax, employment insurance and
the Canada Pension Plan. For more information about federal laws, call the Government of
Canada information line at 1-800-622-6232.

Who is not covered by the ESA?


Most employees and employers in Ontario are covered by the ESA. However, the ESA does not
apply to certain individuals and the persons or organizations they work for including:

Employees and employers in sectors that fall under federal employment law jurisdiction,
such as airlines, banks, the federal civil service, post offices, radio and television stations
and inter-provincial railways
Individuals performing work under a program approved by a college of applied arts and
technology or university
Individuals performing work under a program that is approved by a private career
college registered under the Private Career Colleges Act, 2005
A secondary school student who performs work under a work experience program
authorized by the school board that operates the school in which the student is enrolled
People who do community participation under the Ontario Works Act, 1997
Police officers (except for the Lie Detectors provisions of the ESA, which do apply)
Inmates taking part in work or rehabilitation programs, or young offenders who perform
work as part of a sentence or order of a court
People who hold political, judicial, religious or elected trade union offices.
For a complete listing of other individuals not governed by the ESA, please check the ESA and
its regulations.

Employers are prohibited from misclassifying employees as independent contractors, interns,


volunteers or any other type of worker not covered by the ESA. If an employer misclassifies an
employee, an employment standards officer can order the employer to comply with the ESA,
issue a notice of contravention and/or prosecute the employer.

Posting and distributing information: Rights and


obligations
To help ensure that employers understand their obligations and employees know their rights,
the Minister of Labour has prepared and published a poster entitled Employment Standards in
Ontario (also known as the employment standards poster). All employers covered by the
Employment Standards Act (ESA) in the province must display this poster in the employer’s
workplace. Employers must also provide all of their employees who are covered under the ESA
with a copy of the poster.

The poster contains a brief summary highlighting the main standards of the ESA, including:

hours of work
rest periods
overtime pay
minimum wage
vacation time and pay
public holidays
leaves of absence from work
termination notice and pay
reprisals

Posting requirements
The employer must display the poster in the workplace where it is likely to be seen by
employees. If the majority language in the workplace is something other than English and the
ministry has published a version in that language, the employer must post a translated version
next to the English version. All multilingual material is available on the Ministry of Labour’s
website.

Providing copies
Employers are required to provide any employees who are covered under the ESA with a copy
of the most recent version of the employment standards poster within 30 days of the date the
individual becomes an employee.

If an employee requests a copy of the poster in a language other than English and the ministry
has published a version in that language, the employer must provide the translated version in
addition to the English copy. All multilingual material is available on the Ministry of Labour’s
website.
An employer may provide the poster as a printed copy or as an attachment in an email to the
employee. In addition, an employer may provide the poster via a link to the document on an
internet database, but only if the employer ensures the employee has reasonable access to that
database (i.e. must ensure the employee has access to a computer and is able to access a
working link to the document) and ensures the employee has access to a printer and that the
employee knows how to use the computer and the printer.

Copies of the poster can be obtained:

free from the Ministry of Labour’s Employment Standards Poster page


and
for the cost of shipping and handling, from ServiceOntario Publications,

Record keeping
All employers in Ontario are required to keep written records about each person they hire.

These records must be kept by the employer, or by someone else on behalf of the employer, for
a certain period of time. The employer must also ensure that the records are readily available
for inspection.

Contents and retention of employee records


The employer must record and retain the following information for each employee.

The employee's name, address and starting date of employment

This must be kept for three years after the employee stopped working for the employer.

The employee's date of birth if the employee is a student under 18

This must be kept for either three years after the employee's 18th birthday or three years after
the employee stopped working for the employer, whichever happens first.

The hours worked by the employee each day and week

The employer must record and retain the date and time the employee worked.

This must be kept for three years after the day or week of work. If an employee receives a
fixed salary for each pay period and the salary does not change (except if the employee works
overtime) the employer is only required to record:

the employee's hours in excess of those hours in the employee's regular work week;
and
the number of hours in excess of eight per day (or in excess of the hours in the
employee's regular work day, if it is more than eight hours).

Employers are not required to record the hours of work for employees who are exempt from
overtime pay and the provisions for maximum hours of work.
The regular rate for each hour of overtime worked, where the employee has
two or more regular rates of pay

If the employee has two or more regular pay rates and in a work week, performed work for
the employer exceeding the overtime threshold, the employer must record the dates, times,
and regular rate for each overtime hour worked. These records must be kept for three years.

Retention of written agreements to work excess hours or average overtime


pay

An employer must retain copies of every agreement made with an employee to work excess
hours or to average overtime pay for three years after the last day on which work was
performed under the agreement.

Substituted day off for public holiday

If a day is substituted for a public holiday, the employer must provide the employee with a
written statement containing the public holiday which is being substituted. The statement
must also include the date of the substituted day, and the date on which the statement is
provided to the employee. The employer must retain a record of the information contained on
the statement for three years.

Retention of vacation time records

Employers are required to keep records of the vacation time earned since the date of hire but
not taken before the start of the vacation entitlement year, the vacation time earned during
the vacation entitlement year (or stub period), vacation time taken (if any) during the vacation
entitlement year (or stub period) and the amount of vacation time earned since the date of
hire but not taken as of the end of the vacation entitlement year (or stub period). The records
must be retained for five years after they are made.

Retention of vacation pay records

The employer must keep records of the vacation pay earned and paid to the employee during
the vacation entitlement year (or stub period, if any) and how that vacation pay was
calculated. These records must be made no later than seven days after the start of the next
vacation entitlement year (or first vacation entitlement year if the records relate to a stub
period) or the first payday after the next vacation entitlement year ends (or first vacation
entitlement year if the records relate to a stub period), whichever is later.

Generally, this information must be kept for five years after the record of vacation time and
pay was made.

Information contained in an employee's wage statement

This must be kept for three years after the information was given to the employee.

Information related to leaves


All the documents relating to an employee’s pregnancy, parental, personal emergency,
declared emergency, family caregiver, family medical, critical illness, organ donor,
reservist, domestic or sexual violence, child death and crime-related child
disappearance leave.

An employer must keep or arrange for some other person to keep all notices, certificates,
correspondence and other documents given to or produced by the employer that relate to an
employee taking a leave. This information must be kept for three years after the day on which
the leave expired.

Homeworker register

Employers who employ “homeworkers” are also required to keep a register containing the
name, address and the homeworker's rate of pay. This must be kept until three years after the
homeworker stopped being employed by the employer.

Payment of wages
Employers must establish a regular pay period and a regular pay day for employees.

An employer has to pay all the wages earned in each pay period, other than vacation pay that
is accruing, no later than the employee's regular pay day for the period.

Some employees earn commissions or “bonuses” based on sales made in a pay period. In these
situations, the employment contract or the practice of the employer often provide that the
commission or bonus is not “due and owing” or “earned” until some future event has
occurred. For example, this could be when goods or services have been delivered to the
customer and full payment has been received. In such cases, the commission or bonus is not
“earned” in the pay period in which the sales are actually made. Instead, in accordance with
the employer's accepted or agreed-on practice, it is “earned” and paid at a later date.

There are special rules about when employees must be paid their vacation pay. Refer to “When
to pay vacation pay” for more information.

How wages (including vacation pay) are paid


An employer may pay wages, including vacation pay, by:

cash;
cheque;
direct deposit into the employee's account at a bank or other financial institution.

If payment is by cash or cheque, the employee must be paid the wages at the workplace or at
some other place agreed to electronically or in writing by the employee.

If the wages are paid by direct deposit, the employee's account must be their name. Nobody
other than the employee can have access to the account unless the employee has authorized it.
The branch or facility of the employee's financial institution must be within a reasonable
distance from where the employee usually works, unless the employee agrees otherwise
electronically or in writing.
When employment ends
If an employee’s employment ends, the employer must pay their outstanding wages, including
vacation pay (plus any payments due to the employee because the employment has ended –
see “Termination of employment” and “Severance pay”) no later than:

seven days after the employment ends;


or
on what would ordinarily have been the employee's next regular pay day;
whichever is later.

Wage statements
On or before an employee's pay day, the employer must provide the employee with a wage
statement that sets out:

the pay period for which the wages are being paid;
the wage rate, if there is one;
the gross amount of wages and – unless the employee is given the information in some
other manner (such as in an employment contract) – how the gross wages were
calculated;
the amount and purpose of each deduction;
any amounts that were paid in respect of room or board;
the net amount of wages.

The wage statement must be:

in writing;
or
provided by e-mail if the employee has access to some means of making a paper copy.

The employee must be able to keep this information separate from their cheque.

Special statements regarding vacation pay


Employees may request (in writing) a statement containing the information in the employer's
vacation records. The employer is required to provide the information no later than:

seven days after the request,


or
the first pay day after the employee makes the request,
whichever is later, but subject to the following:

If the employee asks for information concerning the current stub period or vacation
entitlement year, the employer is required to provide the information no later than:
seven days after the stub period or vacation entitlement year ends,
or
the first pay day after the stub period or vacation entitlement year ends, whichever
is later.
The employer is required to provide the information with respect to each stub year or vacation
entitlement year only once.

If the employee has agreed that vacation pay will be paid on each pay cheque as it is earned,
the employer does not need to keep records and provide statements about vacation pay as
discussed above. Instead, the employer must report the vacation pay that is being paid
separately from the amount of other wages on each wage statement, or provide a separate
statement setting out the vacation pay that is being paid. The employer must also keep a record
of that information.

Deductions from wages


Only three kinds of deductions can be made from an employee's wages:

1. Statutory deductions

Certain statutes require an employer to withhold or make deductions from an employee’s


wages. For example, employers are required to make deductions for income taxes,
employment insurance premiums and Canada Pension Plan contributions.

An employer is not permitted to deduct more than the applicable statute allows and cannot
make deductions if the money is not remitted to the proper authority.

2. Court orders

A court order may indicate that an employee owes money either to the employer or to
someone else other than their employer, and that the employer can make a deduction from the
employee's wages to pay what is owed.

The court order must specifically state that the employer may make a deduction from the
employee’s wages in order for the employer to make the deduction.

If an employee owes money to someone other than their employer, a court order may direct an
employer to make a deduction from an employee’s wages and send the money to the court
clerk or other official, to be paid in turn to a third party. The employer is not allowed to make
this deduction if the money is not sent to the court clerk or other official specified in the order.

The Wages Act limits how much the employer is allowed to deduct at any one time.

3. Written authorization

An employer may also deduct money from an employee's wages if the employee has signed a
written statement authorizing the deduction. This is called a "written authorization."

An employee’s written authorization must state that the employer may make a deduction from
their wages. The authorization must also:

specify the amount of money to be deducted;


or
provide a method of calculating the specific amount of money to be deducted.
An employee’s oral authorization or a general statement (“blanket authorization”) that an
employee owes money to the employer under certain circumstances is not sufficient to allow a
deduction from wages.

Even with a signed authorization, an employer cannot make a deduction from wages if:

the purpose is to cover a loss due to “faulty work.” For example, “faulty work” could be a
mistake in a credit card transaction, work that is spoiled or rejected, or a situation where
tools are broken or employer vehicles damaged while on employer business;
or
the employer has a cash shortage or has had property lost or stolen when an employee
did not have sole access and total control over the cash or property that is lost or stolen. A
deduction can only be made when the employee was the only one to have access to the
cash or property, and has provided a written authorization to the employer to make the
deduction.

Tips and other gratuities


A “tip or other gratuity” is:

a payment voluntarily made or left by a customer to an employee


a payment voluntarily made by a customer to the employer for employees
a payment of a service or similar charge imposed by the employer

Where a reasonable person would believe that the payment would be kept by an employee or
shared among employees.

Whether a payment or service charge is a tip or other gratuity will depend on the
circumstances.

Examples of tips and other gratuities include:

money left on a table for a server


a tip added to a credit card or debit card payment for an employee
gratuity or service charges imposed by banquet halls or other establishments

Employers can decide if tipping is allowed in their businesses. If tipping is not accepted, the
employer should make it clear to the customers that tips and other gratuities will not be
accepted by employees or the employer.

There is no requirement under the Employment Standards Act, 2000 (ESA) for employers to
establish a regular period for distributing tips and other gratuities to employees. However, the
failure of an employer to distribute tips and other gratuities within a reasonable time frame
may constitute the withholding of those tips and other gratuities. Whether a delay in the
distribution of tips and other gratuities to employees is reasonable will depend on the
circumstances.

Employers should distribute tips and other gratuities to employees in cash, cheque or direct
deposit.

Tips and other gratuities are not considered wages for the purposes of the ESA. They are not
included when calculating minimum wage, termination pay, severance pay, vacation pay,
public holiday pay or the regular rate used for calculating overtime pay.

The right to keep tips and other gratuities


Before June 10, 2016, the ESA did not cover tips and other gratuities. This means that
employers were not prohibited from withholding, making deductions from, or making an
employee return their tips to the employer if the tips were earned and received before June
10, 2016.

As of June 10, 2016, an employer generally cannot withhold, make deductions from, or make
an employee return their tips and other gratuities except as permitted by the ESA.

An employer is also prohibited from making deductions, etc., from their employees’ tips and
other gratuities for such things as spillage, breakage, losses or damage.

If an employer is found to have violated the prohibition against taking an employee’s tips and
other gratuities, the amount wrongfully kept will be considered a debt owing by the employer
to the employee and is enforceable under the ESA as if it were wages owing to an employee.

An employee’s ability under the ESA to keep tips and other gratuities, except in limited
circumstances, is an employment standard. An employee cannot contract out of or waive this
employment standard, even if the employee agrees to do so in writing or verbally.

For example, an employee cannot agree to:

give the employer all of their tips and other gratuities in exchange for a higher rate of pay
waive the right to minimum wage in exchange for keeping all or a higher percentage of
their tips
give the employer a certain percentage of their tips other than for a tip pool (e.g. tipping
out to “the house” to cover things like spillage, breakage, losses or damage, etc. is not
allowed.)

Deductions from tips and other gratuities


Only three kinds of deductions can be made from an employee’s tips and other gratuities:

1. Statutory deductions

Certain statutes may require an employer to withhold or make deductions from an employee’s
tips or other gratuities. The most frequently encountered deductions authorized by statute
include income taxes, employment insurance premiums and Canada Pension Plan
contributions.

An employer is not permitted to deduct more than the applicable statute allows and cannot
make deductions if the money is not remitted to the proper authority (e.g., Canada Revenue
Agency).

2. Court orders

A court order may indicate that an employee owes money to the employer or to someone else,
and that the employer may make a deduction from the employee’s tips and other gratuities to
pay what is owed.

If an employee owes money to someone other than the employer, a court order may direct an
employer to make a deduction from an employee’s tips and other gratuities and send the
money to the court clerk or other official, to be paid in turn to a third party. The employer is
not allowed to make this deduction if the money is not sent to the court clerk or other official
specified in the order.

3. Pooling of tips and other gratuities

An employer may withhold, or make a deduction from an employee’s tips or other gratuities,
or require an employee to give them to the employer if the amount collected will be
redistributed among some, or all, of the employer’s employees. This practice is commonly
known as tip pooling.

A tip pool is a collection of employees’ tips that is redistributed by the employer among some
or all employees. Tip outs are payments from one employee to another employee, generally by
way of contributions to a tip pool and usually according to a formula established by the
employer. Examples would be an employer requiring a server to "tip out" a busser or kitchen
staff, one per cent of tips the server received or requiring a server to contribute the equivalent
of two per cent of sales to a tip pool. That money is then distributed among several staff
members.

Example

In a tip pooling scenario, an employer has three servers and their tip pool arrangement
requires servers to contribute five per cent of their sales into a tip pool to be distributed
among bussers, bartenders and hostesses. Server 1 has $1,000 in sales during their shift and
makes $150 in tips, their contribution to the tip pool (tip out) would be $50. Server 2 has $100
in sales on their shift and makes $20 in tips. Server 2’s contribution to the tip pool (tip out)
would be $5. Server 3 has $500 in sales during their shift, but receives $0 in tips. Server 3’s
contribution to the tip pool (tip out) would be $0 because tip pooling amounts cannot come
from any source other than tips. In this scenario, the tip pool amount that can be distributed
among the bussers and hostesses would be $55.

Employers can decide if there will be a tip pooling arrangement in the workplace, including
who will participate, and how it will be distributed. For example, the employer can determine:

How much each employee is entitled to, e.g., whether the amount received is based on
number of hours worked or the employee’s position;
When and how the tip pool shares will be distributed to employees, e.g., weekly or daily,
in cash or cheque
How and when tip pooling arrangements should be changed or varied, e.g., adding or
removing employees to and from the tip pool, changing the percentage received by
employees, or cancelling the tip pool, etc.

Tip pool arrangements may be written or oral. Under the ESA, employers do not need the
employees’ agreement to make deductions from their tips and other gratuities if the amount
will be redistributed among some or all of the employer’s employees as part of a tip pool. If an
employer has a tip pooling arrangement in its workplace, participating in a tip pool could be a
condition of employment.
Managers’ and employers’ participation in tip pooling arrangements

Managers are allowed to keep the tips and gratuities they receive themselves, and generally
may participate in tip pooling arrangements if their employers’ policy permits them to do so.

Employers are allowed to keep the tips and other gratuities that they receive themselves.

An employer cannot share in a tip pool unless:

They are a sole proprietor, partner, director or shareholder in the business;


and
They regularly perform to a substantial degree the same work as:
some or all of the employees who share in the redistribution,
or
employees of other employers in the same industry who commonly receive or share
tips and other gratuities.

Collective agreements
If a collective agreement that came into force before June 10, 2016, contains a provision that
addresses the treatment of tips and other gratuities, the provision of the collective agreement
prevails, even if it conflicts with the ESA. If a collective agreement expires but the provision
that addresses the treatment of tips and other gratuities remains in effect, it continues to
prevail until the collective agreement is renewed or a new agreement is ratified.

Collective agreements that come into effect or are renewed after June 10, 2016, must comply
with the tips and other gratuities provisions in the ESA.

Minimum wage
Minimum wage is the lowest wage rate an employer can pay an employee. Most employees are
eligible for minimum wage, whether they are full-time, part-time, casual employees, or are
paid an hourly rate, commission, piece rate, flat rate or salary. Some employees have jobs that
are exempt from the minimum wage provisions of the ESA. See “Industries and jobs with ESA
exemptions and/or special rules” for information on these job categories.

Compliance with the minimum wage requirements is determined on a pay period basis.

Minimum wage rates


Rates from Rates from Rates from
Rates from
Minimum October 1, 2016 October 1, 2017 January 1, 2018 to
January 1, 2019 to
wage rate to September 30, to December 31, December 31,
October 1, 2019
2017 2017 2018
General
minimum $11.40 per hour $11.60 per hour $14.00 per hour $15.00 per hour
wage
Rates from Rates from Rates from
Rates from
Minimum October 1, 2016 October 1, 2017 January 1, 2018 to
January 1, 2019 to
wage rate to September 30, to December 31, December 31,
October 1, 2019
2017 2017 2018
Student
minimum $10.70 per hour $10.90 per hour $13.15 per hour $14.10 per hour
wage
Liquor
servers
$9.90 per hour $10.10 per hour $12.20 per hour $13.05 per hour
minimum
wage
$56.95 $58.00 $70.00 $75.00
Rate for working Rate for working Rate for working Rate for working
less than five less than five less than five less than five
consecutive hours consecutive hours consecutive hours consecutive hours
in a day in a day in a day in a day
Hunting and
fishing guides
$113.95 $116.00 $140.00 $150.00
minimum
Rate for working Rate for working Rate for working Rate for working
wage
five or more five or more five or more five or more
hours in a day hours in a day hours in a day hours in a day
whether or not whether or not whether or not whether or not
the hours are the hours are the hours are the hours are
consecutive consecutive consecutive consecutive
Homeworkers
$12.55 $12.80 $15.40 per hour $16.50 per hour
wage

General minimum wage

This rate applies to most employees.

Example for calculating general minimum wage: One week, Julia works 37.5 hours. She is
paid on a weekly basis. The minimum wage applicable to Julia is $14.00 per hour. Since
compliance with the minimum wage requirements is based on pay periods, Julia
must be paid at least $525.00 (37.5 hours × $14.00 per hour = $525.00) in this work week
(prior to deductions). (Note that eating periods are not included when counting how
many hours an employee works in a week).

Student minimum wage


This rate applies to students under the age of 18 who work 28 hours a week or less when
school is in session, or work during a school break or summer holidays.
Liquor servers minimum wage
This hourly rate applies to employees who, as a regular part of their employment, serve
liquor directly to customers, guests, members or patrons in licensed premises and who
regularly receive tips or other gratuities as a part of their work.

"Licensed premises" are businesses for which a license or permit has been issued under
the Liquor Licence Act.
Hunting and fishing guides minimum wage
The minimum wage for hunting and fishing guides is based on blocks of time instead of
by the hour. They get a minimum amount for working less than five consecutive hours in
a day, and a different amount for working five hours or more in a day--whether or not the
hours are consecutive.
Homeworkers minimum wage
Homeworkers are employees who do paid work in their own homes. For example, they
may sew clothes for a clothing manufacturer, answer telephone calls for a call centre, or
write software for a high-tech company. Note that students of any age (including students
under the age of 18 years) who are employed as homeworkers must be paid the
homeworker's minimum wage.

Minimum wage calculation for employees who earn


commission
If an employee's pay is based completely or partly on commission, it must amount to at least
the minimum wage for each hour the employee has worked.

A typical case

Luba works on commission and has a weekly pay period. One week, she was paid $150.00 in
commission and worked 25 hours. The minimum wage applicable to Luba is $14.00 an hour.
The minimum wage ($14.00) multiplied by the number of hours worked in the pay period (25)
is $350.00. Luba is owed the difference between her commission pay ($150) and the required
minimum wage ($350.00). Luba’s employer owes her $200.00.

Note: Where overtime hours are worked, the calculation is more complicated.

Industry-specific and job-specific exemptions and special rules may apply to some salespeople
who earn commission. Please refer to the special rule tool.

How provision of room and board affects minimum wage


For the purposes of ensuring that the applicable minimum wage has been paid to an employee,
an employer can take into account the provision of room and board (meals). Room and board
will only be deemed to have been paid as wages if the employee has received the meals and
occupied the room.

The amounts that an employer is deemed to have paid to the employee as wages for room or
board or both is set out below:

Room (weekly)
private $31.70
non-private $15.85
non-private (domestic workers only) $0.00
Meals
each meal $2.55
weekly maximum $53.55
Rooms and meals (weekly)
with private room $85.25
with non-private $69.40
non-private (domestic workers only) $53.55
Harvest workers (only) weekly housing
serviced housing $99.35
unserviced housing $73.30

Employees sent home after working less than three hours:


the three-hour rule
When an employee who regularly works more than three hours a day is required to report to
work but works less than three hours, they must be paid whichever of the following amounts
is the highest:

three hours at the minimum wage,


or
the employee's regular wage for the time worked.

For example, if an employee who is a liquor server is paid $12.20 an hour and works only two
hours, they are entitled to three hours at minimum wage (i.e., $12.20, the liquor servers
minimum wage, × 3 = $36.60) instead of two hours at their regular wage ($12.20 × 2 = $24.40).

Note: The rule does not apply to:

students (including students over 18 years of age)


employees whose regular shift is three hours or less
in some cases where the cause of the employee not being able to work at least three
hours was beyond the employer's control.

When the minimum wage changes


The minimum wage rates will increase to set amounts on both January 1, 2018, and January 1,
2019. On October 1 of every year starting in 2019, the minimum wage rates may increase
annually. The new rates to come into effect on October 1 will be published on or before April 1
of every year, beginning in 2019.

If a change to the minimum wage rate comes into effect partway through an employee’s pay
period, the pay period will be treated as if it were two separate pay periods and the employee
will be entitled to at least the minimum wage that applies in each of those periods.

Hours of work
Certain industries and job categories are exempt from the hours of work rules set out in the
Employment Standards Act, 2000 (ESA). For more information please refer to the Guide to
employment standards special rules and exemptions.

Daily and weekly limits on hours of work


Interactive tools are available online; please refer to the “Daily and weekly hours of work”
section in the hours of work and overtime tool.
Daily limit

The maximum number of hours most employees can be required to work in a day is eight
hours or the number of hours in an established regular workday, if it is longer than eight
hours. The only way the daily maximum can be exceeded is by an electronic or written
agreement between the employee and employer.

Weekly limit

The maximum number of hours most employees can be required to work in a week is 48
hours. The weekly maximum can be exceeded only if there is an electronic or written
agreement between the employee and employer and the employer has received the approval
of the Director of Employment Standards. However, the ESA provides a limited exception
where an application for approval is pending. If, after 30 days after serving an application for
excess hours on the Director, the employer has not received an approval or notice of refusal,
the employer may require employees to start working more than 48 hours as long as certain
conditions are met including, the employee does not work more than 60 hours in a work week
or the number of hours the employee agreed to in electronically or writing, whichever is less. 

An agreement between an employee and an employer to work additional daily or weekly


hours, or an approval from the Director of Employment Standards for excess weekly hours,
does not relieve an employer from the requirement to pay overtime pay where overtime hours
are worked.

Work time
It is necessary to determine what counts as work time (hours of work) for the purposes of
determining compliance with certain standards under the Employment Standards Act (ESA),
including the minimum wage, overtime and hours of work (including rest entitlements)
provisions.

Generally, work is considered to be performed when the employee is actually working or the
employee is not working but is required to stay at the workplace. However, even if the
employee is required to stay, he or she is not considered to be working during the time that he
or she is entitled to take time off and does take time off for:

an eating period;
sleeping (provided that the employer provides the sleeping facilities and the employee is
entitled to at least six uninterrupted hours off work); or
engaging in private affairs or pursuits.

Note that an employee who is not at the workplace but is “on call” is not considered to be
working unless the on-call employee is called into work.

Travel time

Commuting time and travel during the workday are treated differently under the ESA.

Commuting time is the time it takes an employee to get to work from home and vice-versa.
This is not counted as work time for the purposes of the ESA.
However, there are a number of exceptions to this rule.

If the employee takes a work vehicle home in the evening for the convenience of the
employer, the work time begins when the employee leaves home in the morning and
ends when he or she arrives home in the evening.
If the employee is required to transport other staff or supplies to or from the workplace
or work site, time so spent must be counted as work time.
If the employee has a usual workplace but is required to travel to another location to
perform work, the time traveling to and from that other location is counted as work time.

Time spent travelling during the course of the workday is considered to be work time.

Training time

Time spent by an employee in training that is required by the employer or by law is counted as
work time. For example, where the training is required because the employee is a new
employee or where it is required as a condition of continued employment in a position, the
training time is considered to be work time.

Time spent in training that is not required by the employer or by law in order for an employee
to do his or her job is not counted as work time. For example, where an employee hoping for a
promotion with the employer takes training in order to qualify for it, time spent taking the
training is not considered to be work time.

Electronic and written agreement requirements for


exceeding limits on hours of work
An employer and an employee can agree electronically or in writing that the employee will
work more than:

eight hours a day or their established regular workday – if it is longer than eight hours;
48 hours a week.

These agreements are valid only if, prior to making the agreement, the employer gives the
employee the most recent information sheet for employees about hours of work and overtime
pay prepared by the Director of Employment Standards that describes the hours of work and
overtime pay rules in the ESA. In order to be valid, the agreement must include a statement in
which the employee acknowledges receipt of the information sheet.

In most cases, an employee can cancel an agreement to work more hours by giving the
employer two weeks’ notice in writing or electronically, while an employer can cancel the
agreement by providing reasonable notice. Once the agreement is revoked, an employee is not
permitted to work excess daily or weekly hours even if the employer has an approval from the
Director of Employment Standards for excess weekly hours.

Director approval required to exceed weekly limits on


hours of work
Employers who would like to make an application for approval for excess weekly hours are
required to make their application in a form provided by the Ministry of Labour on the
employment standards forms page. An employer who makes an application for excess weekly
hours must post a copy of the application in their workplace on the day the application is
submitted where it is likely to come to the attention of the employee(s) identified in the
application. When the approval or a notice of refusal of the application is received, this must
be posted in place of the application.

Hours free from work


Employees are entitled to a certain number of hours free from having to work.

Daily

Interactive tools are available online; please refer to the “Daily rest” section in the hours of
work and overtime tool.

In most cases, an employee must receive at least 11 consecutive hours off work each day.
Generally, an employee and an employer cannot agree to less than 11 consecutive hours off
work each day. The daily rest requirement applies even if:

the employer and the employee have agreed in electronically or writing that the
employee's hours of work will exceed the daily limit.
the employer and employee have agreed in electronically or writing that the employee's
hours of work will exceed the weekly limit and the employer has received an approval
from the Director of Employment Standards to exceed weekly limits on hours of work.

This rule does not apply to employees who are on call and called in to work during a period
when they would not normally be working.

This requirement cannot be altered by an electronic or written agreement between the


employer and employee.

Between shifts

Interactive tools are available online; please refer to the “Rest between shifts” section in the
hours of work and overtime tool.

Employees must receive at least eight hours off work between shifts.

This does not apply if the total time worked on both shifts is not more than 13 hours.

An employee and employer can also agree electronically or in writing that the employee will
receive less than eight hours off work between shifts.

Split shifts

Mabel works in a restaurant. She is on split shifts, working from 6 a.m. to 11 a.m. and then
from 2 p.m. to 7 p.m. The total time of her two shifts is 10 hours. Mabel does not have to have
eight hours off between the split shifts, because the hours she worked do not exceed 13 hours.

Weekly or bi-weekly
Interactive tools are available online; please refer to the “Weekly and bi-weekly rest” section in
the hours of work and overtime tool.

Employees must receive at least:

24 consecutive hours off work in each work week;


or
48 consecutive hours off work in every period of two consecutive work weeks.

Exceptional circumstances
In exceptional circumstances, and only so far as is necessary to avoid serious interference
with the ordinary working of the employer's establishment or operations, an employer
can require an employee to work:

more than the normal limit of eight hours a day, or the established regular work day if
that is longer;
more than the 48 hours per week (or the greater number of weekly hours agreed to and
which are the subject of an approval from the Director of Employment Standards);
during a required period free from work (see “Hours free from work”).

Exceptional circumstances exist when:

there is an emergency;
something unforeseen occurs that interrupts the continued delivery of essential public
services, regardless of who delivers these services (for example, hospital, public transit
or firefighting services, even if the employee only indirectly supports these services, such
as an employee of a company that is contracted to prepare and deliver patient meals to a
hospital);
something unforeseen occurs that would interrupt continuous processes;
something unforeseen occurs that would interrupt seasonal operations (that is,
operations that are limited to or dependent on specific conditions or events – such as
winter ski operations);
it is necessary to carry out urgent repair work to the employer's plant or equipment.

Here are some examples:

natural disasters (very extreme weather);


major equipment failures;
fire and floods;
an accident or breakdown in machinery that would prevent others in the workplace from
doing their jobs (for example, the shutdown of an assembly line in a manufacturing
plant).

Here are examples of situations that do not fall under the exceptional circumstances
exemption:

when rush orders are being filled;


during inventory taking;
when an employee does not show up for work;
when poor weather slows shipping or receiving;
during seasonal busy periods (such as Christmas);
during routine or scheduled maintenance.

Eating periods and breaks


Interactive tools are available online; please refer to the “Eating periods” section in the hours
of work and overtime tool.

Employers are required to provide eating periods to employees, but they are not required to
provide other types of breaks.

Eating periods

An employee must not work for more than five hours in a row without getting a 30-minute
eating period (meal break) free from work. However, if the employer and employee agree, the
eating period can be split into two eating periods within every five consecutive hours.
Together these must total at least 30 minutes. This agreement can be oral or in writing.

Meal breaks are unpaid unless the employee's employment contract requires payment. Even if
the employer pays for meal breaks, the employee must be free from work in order for the time
to be considered a meal break.

Note: Meal breaks, whether paid or unpaid, are not considered hours of work, and are not
counted toward overtime.

Coffee breaks and breaks other than eating periods

Employers are required to provide employees with eating periods as described above.
Employers do not have to give employees “coffee” breaks or any other kind of break.   

Employees who are required to remain at the workplace during a coffee break or breaks other
than eating periods must be paid at least the minimum wage for that time. If an employee is
free to leave the workplace, the employer does not have to pay for the time.

Night shifts

The ESA does not put restrictions on the timing of an employee’s shift other than the
requirements for daily rest and rest between shifts described earlier in this chapter. In
addition, the ESA does not require an employer to provide transportation to or from work if an
employee works late.

Overtime pay
Interactive tools are available online; please refer to the “Overtime and time off in lieu” section
in the hours of work and overtime tool.

For most employees, whether they work full-time, part-time, are students, temporary help
agency assignment employees, or casual workers, overtime begins after they have worked 44
hours in a work week. Their hours after 44 must be paid at the overtime pay rate.

Overtime pay
Overtime pay is 1½ times the employee's regular rate of pay. (This is often called "time and a
half.")

For example, an employee who has a regular rate of $17.00 an hour will have an overtime rate
of $25.50 an hour (17 × 1.5 = 25.50).  The employee must therefore be paid at a rate of $25.50 an
hour for every hour worked in excess of 44 in a week.

No overtime on a daily basis

Unless a contract of employment or a collective agreement states otherwise, an employee does


not earn overtime pay on a daily basis by working more than a set number of hours a day.
Overtime is calculated only:

on a weekly basis
or
over a longer period under an averaging agreement

Exceptions
Many employees have jobs that are exempt from the overtime provisions of the Employment
Standards Act, 2000 (ESA). Others work in jobs where the overtime threshold is more than 44
hours in a work week. For more information, please see the special rule tool.

Managers and supervisors

Managers and supervisors do not qualify for overtime if the work they do is managerial or
supervisory. Even if they perform other kinds of tasks that are not managerial or supervisory,
they are not entitled to get overtime pay if these tasks are performed only on an irregular or
exceptional basis.

Different kinds of work ("50 per cent rule")


Some employees have jobs where they are required to do more than one kind of work. Some of
the work might be specifically exempt from overtime pay, while other parts might be covered.
If at least 50 per cent of the hours the employee works are in a job category that is covered, the
employee qualifies for overtime pay.

When an employee does two kinds of work

Gerard works for a taxi company both as a cab driver and as a dispatcher in the office.
Working as a cab driver he is exempt from overtime pay, but working in the office as a
dispatcher he is not.

During a work week, Gerard worked 26 hours in the office and 24 hours driving a cab, for a
total of 50 hours. This is six hours over the overtime threshold of 44 hours.

Because Gerard spent at least 50 per cent of his working hours that week as a dispatcher (a job
category that is covered), he qualifies for six hours of overtime pay.
If the employee has more than one regular pay rate for overtime work
performed

An employee who is paid on an hourly basis may perform, in one work week, two types of
work, each of which attracts a different hourly rate. In that case, the employee has two regular
rates and, as a result, the overtime rate for each hour of overtime is based on the regular rate
that applies to the work performed in that hour. See example below.

An employee works as a punch press operator earning $17.00/hour and also as a shipping
logistics coordinator earning $20.00/hour for the same employer. The employee’s overtime
threshold is 44 hours and the overtime rate is 1.5 times the regular rate.

In one work week, the employee worked four hours of overtime. The 45th and 46th hours were
worked as punch press operator and the 47th and 48th hours were worked as a shipping
logistics coordinator. This employee’s overtime pay entitlement would be calculated as follows:

45th hour overtime rate is $17.00 x 1.5 = $25.50 per hour

46th hour overtime rate is $17.00 x 1.5 = $25.50 per hour

47th hour overtime rate is $20.00 x 1.5 = $30.00 per hour

48th hour overtime rate is $20.00 x 1.5 = $30.00 per hour

The total overtime pay due to the employee is $111.00 [$25.50 + $25.50 + $30.00 + $30.00]

Agreements for paid time off instead of overtime pay


Interactive tools are available online; please refer to the Overtime and Time Off in Lieu section
in the hours of work and overtime tool.

An employee and an employer can agree electronically or in writing that the employee will
receive paid time off work instead of overtime pay. This is sometimes called “banked” time or
“time off in lieu.”

If an employee has agreed to bank overtime hours, they must be given 1½ hours of paid time
off work, at the applicable overtime rate, for each hour of overtime worked.

Paid time off must be taken within three months of the week in which the overtime was
earned or, if the employee agrees electronically or in writing, it can be taken within
12 months.

If an employee’s job ends before they have taken the paid time off, the employee must receive
overtime pay. This must be paid no later than seven days after the date the employment ended
or on what would have been the employee’s next pay day.

Calculating overtime pay


The manner in which overtime pay is calculated varies depending on whether the employee is
paid on an hourly basis, on a fixed salary, or has a fluctuating salary. Overtime pay
calculations may also be affected by public holidays. The following are several examples of
how overtime pay is calculated in different cases.

Hourly paid employees

Example

Ravi’s regular pay is $17.00 an hour. His overtime rate (1½ X regular hourly pay) is $25.50 an
hour. This week Ravi worked the following hours:

Sunday: 0 hours
Monday: 8 hours
Tuesday: 12 hours
Wednesday: 9 hours
Thursday: 8 hours
Friday: 8 hours
Saturday: 8 hours
Total: 53 hours

Any hours worked over 44 in a week are overtime hours. Ravi worked nine hours of overtime
(53 − 44 = 9).

Ravi’s pay for the week is calculated as follows:

Regular pay: 44 X $17.00 = $748.00


Overtime pay: 9 X $25.50 = $229.50
Total pay: $748.00 + $229.50 = $977.50

Result: Ravi is entitled to total pay of $977.50.

Employees on a fixed salary

If an employee’s hours of work change from day to day but their weekly pay stays the same,
the employee is paid a fixed salary.

A fixed salary compensates an employee for all non-overtime hours up to and including 44
hours a week. After 44 hours, the employee is entitled to overtime pay.

Example

Sharon’s salary is $750.00 a week. She worked 50 hours this work week.

1. First, Sharon’s regular (non-overtime) hourly rate of pay is calculated:


$750.00 / 44 = $17.05
Sharon was paid a regular rate of $17.05 for each hour she worked up to and including 44
hours.
2. Next, her overtime rate is calculated:
$17.05 regular rate X 1½ = $25.58. Her overtime rate is $25.58.
3. Then the amount of overtime she worked is calculated:
50 hours - 44 hours = 6 hours of overtime
4. Her overtime pay is calculated:
6 hours X $25.58 an hour = $153.48
Sharon is entitled to $153.48 in overtime pay.
5. Finally, Sharon’s regular salary and overtime pay are added together:
Regular salary: $750.00
Overtime pay: $153.48
Total pay: $750.00 + $153.48 = $903.48

Result: Sharon is entitled to total pay of $903.48.

Employees on a fluctuating salary

If an employee has set hours and a salary that is adjusted for variations in the set hours, the
employee’s salary fluctuates.

Example

Suppose Ben is hired on the understanding that he will be paid $750.00 a week for a regular
work week of 40 hours. His salary is adjusted for weeks in which he works either more hours
or fewer hours. In this case, Ben is actually receiving a wage based on the number of hours he
works.

Ben’s salary is $750.00 in a regular work week of 40 hours (where the salary is not adjusted).
This week, he worked 50 hours.

1. First Ben’s regular (non-overtime) hourly rate of pay is calculated:


$750.00 ÷ 40 = $18.75
Ben’s regular rate of pay is $18.75 an hour.
2. Next his regular (non-overtime) earnings are calculated. He is entitled to $18.75 an hour
for all hours up to and including 44 hours a week:
$18.75 regular rate X 44 hours = $825.00
Ben’s regular earnings for the week are $825.00.
3. Then his hourly overtime rate is calculated:
$18.75 regular rate X 1½ = $28.13
His overtime rate is $28.13.
4. The amount of overtime Ben worked is calculated:
50 hours - 44 hours = 6 hours of overtime.
5. His overtime pay is calculated:
6 hours X $28.13 an hour = $168.78
Ben is entitled to $168.78 in overtime pay.
6. Finally, Ben’s regular pay and overtime pay are added together:
Regular pay: $825.00
Overtime pay: $168.78
Total pay: $825.00 + $168.78 = $993.78

Result: Ben is entitled to total pay of $993.78

Calculating overtime when there is a public holiday

Example: When an employee’s work week includes a public holiday


Antonio’s regular pay is $17.00 an hour. Antonio worked overtime in a week with a public
holiday, but he did not work on the holiday. Antonio’s public holiday pay for the Monday is
$136.00 (See “Public holiday pay” for information on how to calculate public holiday pay). This
week Antonio worked the following hours:

Sunday: 0 hours
Monday (public holiday): 0 hours
Tuesday: 12 hours
Wednesday: 9 hours
Thursday: 8 hours
Friday: 8 hours
Saturday: 8 hours
Total: 45 hours

Antonio worked one hour of overtime (45 − 44 = 1).

Antonio’s pay for the week is calculated as follows:

Regular pay: 44 X $17.00 = $748.00


Overtime pay: 1 X $25.50 = $25.50
Public holiday pay: $136.00
Total pay: $748.00 + $25.50 + $136.00 = $909.50

Result: Antonio is entitled to total pay of $909.50.

Example: When an employee works on a public holiday and gets premium pay

Etsuko’s regular hourly pay is $13.00/hour. Etsuko and her employer agreed in writing that she
would work on the public holiday and she would be paid premium pay for the hours she
worked on the holiday plus public holiday pay.

During the week of the public holiday, Etsuko worked the following hours:

Sunday: 0 hours
Monday (public holiday): 9 hours
Tuesday: 9 hours
Wednesday: 9 hours
Thursday: 9 hours
Friday: 9 hours
Saturday: 9 hours
Total: 54 hours

Since Etsuko received premium pay for working nine hours on the public holiday, these hours
are not included when the overtime pay is calculated:

54 hours − 9 hours at premium pay = 45 hours = 1 hour of overtime pay

Etsuko’s pay for the week is calculated as follows:

Regular pay: 44 X $17.00 = $748


Overtime pay: 1 X $25.50 = $25.50
Premium pay: $229.50
Public holiday pay: $153.00
Total pay: $748.00 + $25.50 + $229.50 + $153.00 = $1156.00

Result: Etsuko is entitled to total pay of $1156.00.

Example: When an employee works on a public holiday and gets a substitute day off

Kathleen’s regular hourly pay is $17.00. Kathleen and her employer agreed electronically that
she would work on the public holiday and she would receive a substitute day off work with
public holiday pay plus her regular rate for hours worked on the public holiday (rather than
be paid public holiday pay plus premium pay for the hours she worked on the holiday).

During the week of the public holiday, Kathleen worked the following hours:

Sunday: 0 hours
Monday: 9 hours
Tuesday: 9 hours
Wednesday: 8 hours
Thursday: 9 hours
Friday: 9 hours
Saturday: 6 hours
Total: 50 hours

Since Kathleen agreed not to receive premium pay for the nine hours she worked on the public
holiday, these hours are counted when the overtime pay is calculated:

50 hours − 44 hours = 6 hours of overtime

Kathleen’s pay for the week is calculated as follows:

Regular pay: 44 X $17.00 = $748.00


Overtime pay: 6 X $25.50 = $153.00
Total pay: $748.00 + $153.00 = $901.00

Result: Kathleen is entitled to total pay of $901.00 and a substitute day off work.

Kathleen will also get a substitute day off work with public holiday pay within three months of
the public holiday or, if Kathleen and her employer agree electronically or in writing, within
twelve months of the public holiday.

Employees who are paid wages that are not based on the hours worked

Some employees’ wages are not based on the number of hours they work in a week but instead
are based on the number of pieces they complete and/or by commission. These employees
must be paid at least the minimum wage for all the hours they work. They are also usually
entitled to overtime if they work more than 44 hours a week.

Example: Calculating the overtime for piecework or straight commission employees

Becka is paid on a piecework basis. Rhian earns straight commissions. They both worked 48
hours this work week and each received a total of $750.00.
1. First the regular (non-overtime) hourly rate of pay is calculated:
$750.00 ÷ 44 hours = $17.05
Their regular hourly rate of pay is $17.05.
2. Then the hourly overtime rate is calculated:
$17.05 regular rate X 1½ = $25.58
Their overtime rate is $25.58.
3. Next, the amount of overtime worked is calculated:
48 hours - 44 hours = 4 hours of overtime.
4. The overtime pay is calculated:
4 hours X $25.58 an hour = $102.32
They are each entitled to $102.32 in overtime pay.
5. Finally, the regular pay and overtime pay are added together:
Regular pay: $750.00
Overtime pay: $102.32
Total pay: $750.00 + $102.32 = $852.32

Result: Becka and Rhian are each entitled to total pay of $852.32.

Example: Calculating the overtime for hourly rate plus commission employees

Justine is paid $17.00 an hour plus commissions. In one work week, she worked 50 hours and
was paid $850.00 in hourly wages plus $200.00 in commissions.

1. First Justine’s regular rate is calculated:


$850.00 + $200.00 = $1050.00 total wages paid
$1050 / 44 hours = $23.86 an hour
Justine’s regular rate is $23.86 an hour.
2. Then her overtime rate is calculated:
$23.86 regular rate X 1½ = $35.79
Her overtime rate is $35.79.
3. Next her overtime entitlement is calculated:
6 hours X $35.79 an hour = $214.74
She earned $214.74 in overtime wages.
4. Because Justine was paid $17.00 per hour for all hours she worked, including her 6
overtime hours, she has already received $102.00 in respect of her overtime entitlement.

Result: Justine was entitled to $214.74 for overtime pay and was paid $102.00. Her employer
therefore owes her an additional $112.74.

Note: Some commission employees are exempt from the overtime provisions. For more
information, please see the special rule tool.

Averaging agreements
Interactive tools are available online; please refer to the “Averaging and time off in lieu”
section in the hours of work and overtime tool.

Sometimes employees need to work variable hours to meet family responsibilities. For
example, perhaps an employee needs to take a child once a month for a day of special medical
treatment, but cannot afford to lose a day's pay. Instead the employee would like to work extra
hours in the preceding weeks, to make up the time.
Likewise, employers may need employees to work extra hours during a peak period, in order
to fill customer orders.

An employer and an employee can agree in electronically or writing to average the employee's
hours of work over a specified period of two or more weeks for the purposes of calculating
overtime pay. Under such an agreement, an employee would only qualify for overtime pay if
the average hours worked per week during the averaging period exceed 44 hours.

For example, if the agreed period for averaging an employee's hours of work is four weeks, the
employee is entitled to overtime only after working 176 hours during the four work weeks (44
hours × 4 weeks = 176 hours). Note that averaging periods cannot overlap one another and
must follow one after the other without gaps or breaks.

Where a union does not represent employees, averaging agreements must contain an expiry
date that cannot be more than two years from the date the averaging agreement takes effect.
Where the agreement applies to unionized employees, the employer and union may agree to
any expiry date.

An averaging agreement cannot be revoked by either the employer or employee(s) before its
expiry date, unless both the employer and employee(s) agree in electronically or writing to
revoke it.

In addition to having agreements electronically or in writing, the employer must also obtain
an approval to average hours of work for overtime pay purposes from the Director of
Employment Standards.

If, however, an employer has not received either an approval or a notice of refusal from the
Director within 30 days of serving the application on the Director and has met all other
conditions as set out in the ESA, the employer may begin averaging employees' hours but only
over two-week periods.

An approval to average hours of work for overtime pay purposes expires on the date on which
the averaging agreement between the employer and employee expires, or on any earlier date
specified by the Director in the approval. The Director of Employment Standards may also
unilaterally revoke an approval to average hours of work by providing the employer with
reasonable notice.

Employers who would like to make an application for an approval to average hours of work
for overtime pay purposes are required to make their application in a form provided by the
Ministry of Labour. The application form is available on the Ministry’s employment standards
forms page.

An employer who receives an approval to average overtime pay must post a copy of the
approval in the workplace where it is likely to come to the attention of the employee(s)
identified in the approval and to keep it posted until it expires or is revoked and then remove
it.

Example: Calculating overtime pay when hours of work are being averaged over two
weeks

Myron and his employer agree in writing to average his hours for overtime purposes over a
period of two weeks and Myron's employer obtains an approval from the Director of
Employment Standards. Myron works 54 hours the first week and 36 hours the second week.
He earns $17.00 an hour and his overtime rate is $25.50 per hour (1½ × $17.00).

Myron's overtime entitlement is calculated as follows:

The total number of hours worked in the averaging period are added together and then
divided by the number of weeks in the averaging period to get the average number of
hours worked in each week of the averaging period.
54 + 36 = 90 hours
90 hours ÷ 2 weeks = 45 hours per week
The average number of hours worked per week minus 44 hours equals the average
number of overtime hours in each week of the averaging period.
45 hours per week - 44 hours per week = 1 overtime hour per week
The overtime entitlement in week one and two of the averaging period is calculated by
multiplying the average overtime hours per week by his overtime rate for that week.
Week 1: 1 hour × $25.50 per hour = $25.50
Week 2: 1 hour × $25.50 per hour = $25.50

Result: Myron is entitled to $51.00 of overtime pay in addition to his regular earnings.

What cannot be done


An employee can make an agreement to take time off in lieu of overtime pay or, with the
approval of the Director of Employment Standards, an agreement to average hours of work for
overtime pay purposes. However, an employer and an employee cannot agree that the
employee will give up their right to overtime pay under the ESA. Agreements such as these are
not allowed and the employee is still entitled to overtime pay.

An employer cannot lower an employee’s regular wage to avoid paying time and a half after 44
hours (or another overtime threshold that applies) in a work week. For example, if Josée’s
regular pay is $17.00 an hour, her employer cannot drop her regular rate in a week when
overtime was worked to $15.00 an hour and then pay her $22.50 (1½ × $15.00) for overtime
hours worked instead of $25.50 (1 ½ × $17.00).

Vacation
Vacation time and vacation pay
This employment standard has two parts: vacation time and vacation pay. Some employees
have jobs that are exempt from the vacation with pay provisions of the ESA. For more
information on these job categories, please see the special rule tool.

Employees with less than five years of employment are entitled to two weeks of vacation
time after each 12-month vacation entitlement year. Employees with five or more years of
employment are entitled to three weeks of vacation time. Ordinarily, a vacation entitlement
year is a recurring 12-month period beginning on the date of hire. Where the employer has
established an alternative vacation entitlement year that begins on a date other than the date
of hire, the employee is also entitled to a pro-rated amount of vacation time for the period
(called a “stub period”) that precedes the alternative vacation entitlement year..
Vacation pay must be at least four per cent of the gross wages (excluding any vacation pay)
earned in the 12-month vacation entitlement year or stub period (where that applies) for
employees with less than five years of employment. Employees with five or more years of
employment at the end of a 12-month vacation entitlement year or stub period (if any) are
entitled to at least six per cent of the gross wages earned in the 12-month vacation entitlement
year or stub period.

An employee’s contract of employment or a collective agreement may provide a greater right


or benefit with respect to vacation time and/or pay.

An employee who does not complete either the full vacation entitlement year or the stub
period (if any) does not qualify for vacation time under the ESA. However, employees earn
vacation pay as they earn wages. Therefore, if an employee works even just one hour, they are
still entitled to at least four per cent (or six per cent, depending on length of employment) of
the hour’s wages as vacation pay.

Key definitions

Example 1:

On March 1, 2017, Oakley had completed four years of employment with his employer. He has
an alternative vacation entitlement year that runs from November 1 to October 31. Oakley was
entitled to two weeks of vacation time and four per cent vacation pay (accrued on the wages
earned during the vacation entitlement year) upon completing the vacation entitlement year
that began November 1, 2016, and ended October 31, 2017.

However, for the vacation entitlement year that began on November 1, 2017, and ends on
October 31, 2018, Oakley is entitled to three weeks of vacation time and six per cent vacation
pay accrued on the wages earned during that vacation entitlement year. That’s because he had
five years of employment upon completing that vacation entitlement year, which ended on or
after December 31, 2017.

Oakley is entitled to three weeks of vacation time and six per cent vacation pay upon the
completion of each vacation entitlement year thereafter.

Example 2:

Jamieson was hired by his employer on June 1, 2001. He has a standard vacation entitlement
year that runs from June 1 to May 31. He earned two weeks of vacation time and four per cent
vacation pay (accrued on the wages earned during the vacation entitlement year) upon
completing each of those years between his date of hire and May 31, 2017. Despite the fact that
he had more than five years employment as of May 31, 2006, Jamieson was not entitled to the
increased vacation entitlements because those vacation entitlement years ended prior to
December 31, 2017.

However, for the vacation entitlement year that began on June 1, 2017, and ended May 31,
2018, Jamieson earns three weeks of vacation time and six per cent vacation pay (accrued on
the wages earned in that vacation entitlement year) because that year ends on or after
December 31, 2017.

Jamieson is entitled to three weeks of vacation time and six percent vacation pay upon the
completion of each vacation entitlement year thereafter.
Vacation time
The entitlement to two or three weeks of vacation time is determined by the employee’s period
of employment upon completion of each vacation entitlement year. If the employee has been
with the employer for less than five years at the end of the vacation entitlement year, the
employee is entitled to two weeks of vacation time for that year. Likewise, if the employee’s
period of employment is five years or more upon the completion of the vacation entitlement
year, the employee’s entitlement is three weeks of vacation time for that year.

For example, an employee who reaches the five-year employment threshold 10 months before
the end of the vacation entitlement year and an employee who reaches that threshold just one
day prior will both be entitled to three weeks of vacation for that vacation entitlement year.

An employment contract or collective agreement may provide a greater vacation time


entitlement.

Standard vacation entitlement year

If the vacation entitlement year is a standard one, 12 months after the date of hire, the
employee will be entitled to a minimum of two weeks of vacation time. The employee will also
be entitled to two weeks after completing each of the next four 12-month vacation entitlement
years. The employee will then be entitled to three weeks of vacation after completing the fifth
vacation entitlement year and for each vacation entitlement year thereafter.

Example: standard vacation entitlement year

Ava is hired on June 1, 2014. She has a standard vacation entitlement year that runs from June
1 of each year to May 31 of the following year: Ava earns two weeks of vacation upon
completing her first vacation entitlement year that runs June 1, 2014 to May 31, 2015. She also
then earns two weeks in each of the following three vacation entitlement years:

June 1, 2015, to May 31, 2016


June 1, 2016, to May 31, 2017
June 1, 2017, to May 31, 2018

On May 31, 2019, Ava has completed five years of employment and so will be entitled to three
weeks of vacation for the vacation entitlement year June 1, 2018 to May 31, 2019. Her vacation
time entitlement will be three weeks for each completed vacation entitlement year thereafter.

Alternative vacation entitlement year

If an employer sets an alternative vacation entitlement year, the employee will be entitled to a
pro-rated amount of two weeks’ vacation for the stub period preceding the start of the first
alternative vacation entitlement year. The employee will then be entitled to a minimum of two
weeks of vacation time after completing each alternative vacation entitlement year until the
employee reaches the five-year employment threshold. Upon completing the vacation
entitlement year in which the employee reaches five years, the employee will be entitled to
three weeks of vacation time for that vacation entitlement year and for each vacation
entitlement year thereafter.

Example: alternative vacation entitlement year


Jocelyn was hired on September 1, 2017. The employer has established an alternative vacation
entitlement year that runs from January 1 to December 31. That means that Jocelyn’s stub
period is from September 1, 2017, to December 31, 2017. She is entitled to a pro-rated vacation
based on two weeks for the stub period. (See how to calculate this entitlement in the section
“Calculating stub period vacation entitlements”). Her first vacation entitlement year will be
January 1, 2018, to December 31, 2018. Upon completing those 12 months, she will have earned
two weeks of vacation time for the vacation entitlement year because she has been employed
for less than 5 years. Jocelyn will have completed five years of employment on August 31, 2022.

Jocelyn will also be entitled to two weeks of vacation time upon completing each of the
following vacation entitlement years:

January 1 to December 31, 2019


January 1 to December 31, 2020
January 1 to December 31, 2021

Since Jocelyn will have reached the five-year employment threshold on August 31, 2022, she
will be entitled to three weeks of vacation time for the completed vacation entitlement year
ending December 31, 2022. She will then be entitled to three weeks of vacation time for each
completed vacation entitlement year thereafter.

Note: An employee who does not complete either the full vacation entitlement year or the stub
period (if any) does not qualify for vacation time under the ESA. However, employees earn
vacation pay as they earn wages. So if an employee who is paid by the hour works even just
one hour, they are still entitled to four per cent or six per cent of the hourly wage as vacation
pay.

Calculating stub period vacation entitlements


When the employee has a regular work week

The vacation time entitlement for a stub period is calculated as two or three weeks of vacation
(two weeks for employees with less than five years of employment and three weeks for
employees with 5 or more years) multiplied by the ratio (R) of the length of the stub period to
12 months.

Note: The calculation of the stub period entitlement will be based on three weeks of vacation
only if an employer converts from a standard vacation entitlement year to an alternative one
and the employee has five or more years of employment upon completion of the stub period
(see example 2 below).

Example 1:

An employee has a regular work week.


The employee was hired September 1 and the alternative vacation entitlement year
begins the following January 1.
Stub period is September 1 to December 31 (4 months)

Calculation of vacation entitlement for the stub period: 2 weeks × R (ratio of stub period to 12
months) where R = 4 months/12 months
2 weeks × 4/12 = 2/3 of a week.

Example 2:

Employee has a regular work week.


Employee hired September 1, 2014 and has a standard vacation entitlement year that
runs September 1 to August 31 each year.
The employer advises that at the end of the employee’s fifth year of employment (August
31, 2019) the employee will be switching to an alternative vacation entitlement year
beginning January 1, 2020. [Note: The employee had five years of employment upon
completion of the standard vacation entitlement year that ended August 31, 2019 and so
was entitled to three weeks’ vacation for the vacation entitlement year that began
September 1, 2018 and ended August 31, 2019.]
The employee’s stub period preceding the alternative vacation entitlement year runs
from September 1, 2019 to December 31, 2019.
The employee will have more than five years of employment upon completion of the stub
period so will be entitled to a pro-rated amount of three weeks in respect of that stub
period calculated as follows:

Calculation of vacation entitlement for stub period: 3 weeks X R (ratio of stub period to 12
months) where R = 4 months (September 1 to December 31) divided by 12 months.

3 weeks X 4/12 = one week

When the employee does not have a regular work week

In this scenario, the vacation entitlement for a stub period is calculated as two or three weeks
(two weeks for employees with less than five years of employment and three weeks for
employees with five or more years) times the average number of days worked per work week
during the stub period (A) multiplied by the ratio of the length of the stub period to 12 months
(R).

Note: The calculation of the stub period entitlement will be based on three weeks of vacation
only if an employer converts from a standard vacation entitlement year to an alternative one
and the employee has five or more years of employment upon completion of the stub period.

Example:

Employee does not have a regular work week.


Employee hired September 1 and alternative vacation entitlement year begins the
following January 1.
Stub period is September 1 to December 31 and there are 17 work weeks in the stub
period. The employee worked a total of 51 days in those 17 work weeks.

Calculation of vacation entitlement for stub period: 2 weeks X A X R where

A= 51days/17 work weeks and R = 4 months/12 months

2 weeks X 51/17 X 4/12 (or 2 weeks x 3 days/week X 1/3) = 2 days

Deadlines for taking vacation


The vacation time earned for a vacation entitlement year or a stub period must be taken
within 10 months after completing that year or stub period. The employer has the right to
schedule vacation as well as an obligation to ensure the vacation time is scheduled and taken
before the end of that 10-month period.

Example

Riley was hired on February 24, 2018. His employer established an alternative vacation
entitlement year of July 1 to June 30. The pro-rated amount of vacation time that Riley earned
for the stub period of February 24, 2018, to June 30, 2018, must be taken within 10 months of
the end of the stub period (that is, within 10 months of June 30, 2018). The vacation time Riley
earned for the entitlement year of July 1, 2018 to June 30, 2019, would have to be taken within
10 months of the end of the vacation entitlement year (that is, within 10 months of June 30,
2019).

If the deadline under the ESA for taking a vacation comes up when an employee is on
pregnancy, parental, personal emergency, declared emergency, family caregiver, family
medical, critical illness, organ donor, reservist, domestic or sexual violence, child death or
crime-related child disappearance leave, the vacation must be taken when the leave ends or at
a later date with the agreement (in writing) of the employer and the employee.

Likewise, if an employee’s contract requires that some or all of their vacation must be taken
within a specified period that comes up when the employee is on a leave and the employee
would otherwise have to give up some or all of their vacation entitlements under the contract,
the employee may defer taking the vacation until the leave ends or take it a later date with the
agreement (electronically or in writing) of the employer and employee.

How to schedule vacation time earned for a vacation entitlement year

For employees whose period of employment is less than five years, employers are required to
schedule the vacation time earned each vacation entitlement year in a block of two weeks or
in two one-week blocks. For employees whose period of employment is five years or more,
employers must schedule the vacation time earned each vacation entitlement year in a block
of:

three weeks
a two-week period and a one week period, or
three periods of one week

The exception in both cases is if the employee makes a written request and the employer
agrees electronically or in writing to shorter periods. In that case, it is necessary to calculate
the number of single vacation days to which the employee is entitled.

Calculating single vacation days earned for a vacation


entitlement year
Example: When the employee has a regular work week

The employer takes the number of days in the employee's work week and multiplies that
number by 2.
The employee regularly worked Monday, Wednesday and Friday or three days a week in
the preceding vacation entitlement year.
The employee is therefore entitled to 6 single vacation days in respect of that vacation
entitlement year.

Example: When the employee does not have a regular work week

The employer calculates the average number days worked in each week in the most recently
completed vacation entitlement year and then multiplies that number by 2.

The employee worked a total of 149 days in the preceding vacation entitlement year.
There are 52.14 weeks per year.
The average number of days worked per week in the year would be 149 days divided by
52.14 weeks per year = 2.86 days
The single vacation days the employee would be entitled to in respect of that year would
be 2 ×  2.86 days or 5.72 days of vacation.

Note: the above examples apply to an employee with less than 5 years of employment. Multiply
by 3 for employees with 5 or more years of employment upon completion of the vacation
entitlement year.

How to schedule vacation time earned for a stub period


The vacation time earned for a stub period is calculated as single days based on the formulas
set out in the section "Calculating stub period vacation entitlements.”

If the amount of vacation time earned is between two and five days inclusive, the vacation
days must be taken consecutively, unless the employee requests electronically or in writing
and the employer agrees electronically or in writing to shorter periods.

If the amount of vacation time earned with respect to the stub period is more than five days,
five days must be taken consecutively and any additional days may be taken together with
those five days or in a separate period of consecutive days. However, the employee may
request electronically or in writing and the employer may then agree to schedule the vacation
in shorter periods.

Foregoing vacation time

An employee can give up some or all of their earned vacation time with the employer’s
electronic or written agreement, and the approval of the Director of Employment Standards.
This approval does not affect an employer’s obligation to pay the employee vacation pay;
employees may give up vacation time, but not the right to vacation pay

Vacation pay
Employees must receive a minimum of either four per cent or six per cent of the gross wages
(excluding vacation pay) they earned for the 12-month vacation entitlement year or stub
period.
An employee whose period of employment is less than five years upon completion of a
vacation entitlement year or stub period is entitled to vacation pay calculated as four per
cent of all the wages (excluding vacation pay) earned in the vacation entitlement year or
stub period.
An employee whose period of employment is five years or more upon completion of a
vacation entitlement year or period is entitled to vacation pay calculated as six per cent
of all the wages (excluding vacation pay) earned during the vacation entitlement year or
stub period.
An employee who reaches the five-year employment threshold partway through the
vacation entitlement year or stub period is entitled to vacation pay calculated as six per
cent of all the wages (excluding vacation pay) earned in the vacation entitlement year or
stub period. (It doesn’t matter whether the employee’s period of employment was five
years or more when the vacation entitlement year or stub period began, or if the
employee reached that threshold partway through).

Example 1: An employee has less than five years’ employment on


completion of a vacation entitlement year

Janice works part-time and earned gross wages of $16,000.00 in her vacation entitlement year.
She is entitled to four per cent of $16,000.00 as vacation pay--$640.00.

Example 2: An employee has less than five years’ employment on


completion of a stub period

Jocelyn was hired on September 1 and her employer has established an alternative vacation
entitlement year that runs from January 1 to December 31. That means that Jocelyn’s stub
period is from September 1 to December 31. She earned $13,050 in the stub period. She is
entitled to four per cent of $13,050 as vacation pay, i.e. $522.00.

Note: Her first vacation entitlement year is January 1 to December 31. When she completes
that vacation entitlement year, she will have earned four per cent vacation pay on the wages
earned in that vacation entitlement year because she has been employed for less than 5 years.

Example 3: An employee has more than five years’ employment on


completion of a vacation entitlement year

Quinn, a part-time worker who has been employed for seven years with his employer, earned
gross wages of $16,000.00 in his vacation entitlement year. He is entitled to six per cent of
$16,000 as vacation pay, i.e. $960.00.

Example 4: An employee reaches five-year employment threshold partway


through a vacation entitlement year

Andrew has been employed for four years at the start of his current vacation entitlement year
but reaches the five-year employment threshold partway through that year. He earned gross
wages of $16,000.00 in this vacation entitlement year. He is entitled to six per cent of $16,000
as vacation pay, i.e. $960.00.

If an employee’s contract or collective agreement provides a better vacation benefit than the
minimum required, the employee may be entitled to a higher percentage of their gross
earnings for vacation pay. For example, an employee might be entitled under their contract to
four weeks’ vacation, with eight per cent of gross earnings for vacation pay.

The gross wages on which vacation pay is calculated include:

regular earnings, including commissions;


bonuses and gifts that are non-discretionary or are related to hours of work;
overtime pay;
public holiday pay;
termination pay;
allowances for room and board; and
personal emergency leave pay and domestic or sexual violence leave pay.

But do not include:

vacation pay paid out or earned but not yet paid;


tips and gratuities;
discretionary bonuses and gifts that are not related to hours of work, production or
efficiency (e.g. a Christmas bonus unrelated to performance);
expenses and traveling allowances;
living allowances;
contributions made by an employer to a benefit plan and payments from a benefit plan
(e.g. sick pay) that an employee is entitled to;
federal employment insurance benefits;
severance pay.

When to pay vacation pay


In most cases, the vacation pay earned during a completed vacation entitlement year or stub
period must be paid to an employee in a lump sum sometime before they take the vacation
time earned. There are four exceptions:

1. When the vacation time is being taken in periods of less than one week.
In this case, the employee must be paid vacation pay on or before the pay day for
the period in which the vacation falls.
For example, Alvaro is taking vacation from January 2 to January 8 inclusive, and
the normal pay day that covers this period is January 30. Alvaro must be given his
vacation pay on or before January 30.
2. When the employee has agreed electronically or in writing that their vacation pay will be
paid on each pay cheque as it accrues (accumulates).
In this case, the employee's wage statement may show clearly the amount of the
vacation pay being paid. This amount must also be shown separately from any other
amounts paid.
Alternatively, the employer must issue a separate statement for the vacation pay
being paid.

Note: An employee whose period of employment is less than five years and who is
paid accrued vacation pay on each pay day is entitled to four per cent of the wages
earned in each pay period as vacation pay. When the employee reaches the five-year
employment threshold, the employee’s entitlement increases to six per cent vacation
pay on all wages earned in the vacation entitlement period. As a result, the
employee is entitled to an additional two per cent of the wages earned in the
vacation entitlement period up to the date the five-year threshold was reached. The
employee is also entitled to six per cent vacation pay on the wages earned from that
date on.

Example: Payment of vacation pay on a pay period by pay period basis

Fraser’s vacation entitlement year is January 1 to December 31.


Fraser reached his five-year employment threshold on July 1.
Fraser was paid four per cent vacation pay each pay day on the wages earned
between January 1 and June 30.
On July 1, when Fraser reached his five-year employment threshold, his
vacation pay for that vacation entitlement year increased from four to six per
cent of all the wages earned in that vacation year.
Fraser’s employer must “top-up” the four per cent vacation pay on the wages
he earned between January 1 and June 30 with an additional two perc ent
vacation pay. This additional vacation pay is due on the pay day for the pay
period in which July 1 falls.
Fraser will then be paid six per cent vacation pay each pay day on the wages
earned from July 1 to December 31.
3. If the employee agrees electronically or in writing, the employer can pay the vacation pay
at any time agreed to by the employee.
4. If the employer pays the employee their wages by direct deposit into an account at a
financial institution.
In this case, the employee must be paid vacation pay on or before the pay day for
the period in which the vacation falls.

When employment ends


When employment ends (for example, where an employee quits or the employment is
terminated), an employee is entitled to vacation pay that they have earned and that has not yet
been paid. In some cases, this would include vacation pay earned during a previous vacation
entitlement year or stub period as well as the vacation pay earned during a current one.

An employee whose employment is terminated during a vacation entitlement period and


before the the five-year employment threshold will be entitled on termination to vacation pay
of four per cent of the wages earned during that last (partially completed) vacation entitlement
period (plus any outstanding vacation pay earned in previously completed vacation
entitlement periods).

An employee who reached five years with the employer prior to being terminated, and before
or during the last (partially completed) vacation entitlement period, would be entitled to six
per cent of all the wages earned in that (partially completed) vacation entitlement year (plus
any outstanding vacation pay earned in previously completed vacation entitlement periods).

Vacation pay is payable on termination pay but not on severance pay.

The unpaid vacation pay must be paid within seven days of the employment ending or on
what would have been the employee’s next pay day, whichever is later.
Example 1 – The employee’s period of employment is less than five years on
termination of employment

Jenna was hired on April 1, 2017, and had a standard vacation entitlement year. On March 31,
2018, she had earned two weeks of vacation time and four per cent of the wages earned in the
vacation entitlement year as vacation pay. Her employer scheduled her vacation for the two-
week period beginning June 1, 2018, and her vacation pay was to be paid prior to the
commencement of that vacation. However, Jenna quit her employment on May 15, 2018. When
she quit, her employer was required to pay her the vacation pay earned in the vacation
entitlement year April 1, 2017, to March 31, 2018, plus the vacation pay earned in her last
(incomplete) vacation entitlement year (being four per cent of the wages she earned between
April 1, 2018, and May 15, 2018).

Note: The vacation pay must be paid within seven days of the date Jenna quit or by what
would have been Jenna’s next pay day, whichever is later.

Example 2 – The employee’s period of employment is five years or more on


termination of employment

Dini was hired on June 1, 2013, and had an alternative vacation entitlement year that ran from
January 1 to December 31 each year. He reached his five-year employment threshold on May
31, 2018. His employment was terminated on August 1, 2018. He had no vacation pay
outstanding for any previously completed vacation entitlement years. Dini’s vacation pay for
his last partially completed vacation entitlement year is six per cent of the wages earned
between January 1, 2018 and August 1, 2018, because he had reached the five-year
employment threshold prior to the termination.

Note: The vacation pay must be paid within seven days of the date Dini’s employment was
terminated or by what would have been Dini’s next pay day, whichever is later.

Vacation and public holidays


A public holiday could fall during an employee's vacation period. In that case, the day remains
a vacation day for the employee, and if the employee qualifies for the public holiday, the
employee is entitled to one of the following:

the employee can have a substitute day off work with public holiday pay. This must be
taken within three months of the public holiday or, if the employee agrees electronically
or in writing, within 12 months of the public holiday;
or
the employer can pay public holiday pay for that day without giving the employee a
substitute day off work, if the employee agrees electronically or in writing.

Employees may also agree electronically or in writing to work on a public holiday that falls
while they are on vacation.

Vacation and leaves of absence


Because there is no break in the employment relationship during a period of pregnancy,
parental, personal emergency, declared emergency, family caregiver, family medical, critical
illness, domestic or sexual violence, organ donor, reservist, child death or crime-related child
disappearance leave, the time on leave counts toward the completion of a vacation entitlement
year or stub period. For example, an employee on leave for all or only part of a vacation
entitlement year would have earned a full two weeks of vacation time at the end of the
vacation entitlement year. The vacation pay earned during that vacation entitlement year
would be a minimum of four per cent or six per cent (depending on the employee’s length of
employment) of any wages actually earned during the year.

Where an employee’s contract provides that “paid vacation” is earned through active service
(e.g., 1.5 paid vacation days for each month of service or three weeks paid vacation for each
year of service) an employee on leave may not earn either vacation time and/or pay while on
leave. However, at the end of the vacation entitlement year or stub period, the employer must
ensure the employee receives the greater of what was in fact earned under the contract and
the minimum vacation time and vacation pay, they would have earned under the ESA.

Example: when a contract of employment provides a greater right to


vacation based on active service

Ingrid's contract of employment provides that she earns two paid vacation days for every
month of active service. In other words, vacation time and vacation pay are earned together
through active service. Ingrid is on a pregnancy/ parental leave for six months of her vacation
entitlement year.

Although Ingrid's length of service continues to accrue while she is on pregnancy and parental
leave, she is not credited with "active" service while on leave.

Ingrid’s period of employment at the end of the vacation entitlement year in which she took
her leave is three years. At the end of that vacation entitlement year, her employer determines
that she has earned 12 paid vacation days under her contract of employment. Because she
regularly works five days a week, she has earned enough vacation time under her contract to
exceed the two-week minimum required under the ESA for an employee whose period of
employment is less than five years. In addition, the employer is able to show that 12 days of
regular wages exceeds four per cent of the wages she had actually earned during the vacation
entitlement year.

Example: Employee must receive at least minimum vacation entitlements


under the ESA

Tony’s contract provides that he earns three weeks of paid vacation for every year of active
service. He is on a parental leave for eight months of his vacation entitlement year. At the end
of that vacation entitlement year, his period of employment is four years. Under his contract of
employment Tony earned 1/3 of the three weeks of paid vacation he would otherwise earn in a
year. In other words, he earned one week of paid vacation for the vacation entitlement year.
However, his employer must ensure that Tony receives at least the minimum ESA vacation
entitlements of two weeks of vacation time and four per cent vacation pay for an employee
whose period of employment is less than five years. The employer will therefore have to
provide Tony with another week of vacation time and ensure the week of vacation pay earned
under the contract is not less than four per cent of the gross wages he had actually earned in
the vacation entitlement year.
An employee who is on a pregnancy, parental, personal emergency, declared emergency,
family caregiver, family medical, critical illness, organ donor, reservist, domestic or sexual
violence, child death or crime-related child disappearance leave has the right to defer taking
her or his vacation entitlement until the leave of absence expires (or until some later date if
the employer and employee agree). This is the case even if the employee’s contract of
employment states that the employee is not allowed to defer taking vacation or restricts an
employee’s ability to do so.

This means that an employee who is on a leave of absence under the ESA will not lose any
vacation time or vacation pay because they are on a leave. It also ensures that an employee
does not have to choose between taking less than their full leave entitlement and losing some
or all of their vacation pay or vacation time.

An employee who has the right to defer vacation until the expiry of a leave of absence may
forego their right to take vacation time, with the agreement of the employer and the approval
of the Director of Employment Standards, Ministry of Labour. However, an employee cannot
forego their right to be paid vacation pay.

Requesting statements of vacation records


Employers are required to keep records:

of the vacation time earned since the date of hire but not taken before the start of the
vacation entitlement year
the vacation time earned and vacation time taken (if any) during the vacation entitlement
year (or stub period)
the balance of vacation time remaining at the end of the vacation entitlement year (or
stub period).

The employer must also keep records of the vacation pay earned and paid to the employee
during the vacation entitlement year (and stub period, if any) and how the amount was
calculated.

These records must be made no later than seven days after the start of the next vacation
entitlement year (or first vacation entitlement year if the records relate to a stub period) or the
first pay day after the stub period or vacation entitlement year ends, whichever is later.

Employees may request (in writing) a statement containing the information in the employer's
vacation records. The employer is required to provide the information no later than:

seven days after the request,


or
the first pay day after the employee makes the request,

whichever is later, but subject to the following:

If the employee asks for information concerning the current vacation entitlement year or stub
period, the employer is required to provide the information no later than:

seven days after the start of the next vacation entitlement year (or first vacation
entitlement year in the case of a stub period),
or
the first pay day after the stub period or vacation entitlement year ends,

whichever is later.

The employer is required to provide the information with respect to each vacation entitlement
year or stub period only once.

If the employee has agreed that vacation pay will be paid on each pay cheque as it is earned,
the employer does not need to keep records and provide statements about vacation pay as
discussed above. Instead, the employer must report the vacation pay that is being paid
separately from the amount of other wages on each wage statement, or provide a separate
statement setting out the vacation pay that is being paid. The employer must also keep a record
of that information.

Vacation entitlement year

The 12-month period over which employees earn vacation.

Standard vacation entitlement year

A recurring 12-month period beginning on the date of hire.

Alternative vacation entitlement year

A recurring 12-month period chosen by the employer to begin on a date other than the
employee’s date of hire (e.g. employee hired June 1 but employer establishes alternative
vacation entitlement year commencing January 1).

Stub period

Period between the date of hire and beginning of the first alternative vacation
entitlement year or, the period between the end of a standard vacation entitlement year
and the beginning of an alternative vacation entitlement year where the employer
switches from a standard vacation entitlement year to an alternative vacation
entitlement year (e.g. If an employer has chosen an alternative vacation entitlement year
that runs January 1 to December 31 and the employee is hired on September 1, the stub
period will be September 1 to December 31).

Vacation entitlement year and stub period will include time the employee spends away
from work because of:

layoff
sickness or injury
pregnancy, parental, personal emergency, declared emergency, family caregiver,
family medical, critical illness, organ donor, reservist, domestic or sexual violence,
child death, or crime-related child disappearance leaves
any other approved leaves (i.e. where there is no break in the employment
relationship).

Transitional rules

The increased entitlements to vacation time and vacation pay (three weeks’ vacation time
and six per cent vacation pay) for employees with five or more years of employment only
apply to vacation entitlement years or stub periods that end on or after December 31,
2017. Employers are not required to provide the increased entitlements if the vacation
entitlement year or stub period ended before December 31, 2017.

Public holidays
Ontario has nine public holidays:

1. New Year's Day


2. Family Day
3. Good Friday
4. Victoria Day
5. Canada Day
6. Labour Day
7. Thanksgiving Day
8. Christmas Day
9. Boxing Day (December 26)

Most employees who qualify are entitled to take these days off work and be paid public
holiday pay.

Alternatively, the employee can agree electronically or in writing to work on the holiday and
be paid:

public holiday pay plus premium pay for all hours worked on the public holiday and not
receive another day off (called a “substitute” holiday);
or
be paid their regular wages for all hours worked on the public holiday and receive
another substitute holiday for which they must be paid public holiday pay.

Some employees may be required to work on a public holiday. (See “Special rules for certain
industries” later in this chapter.) While most employees are eligible for the public holiday
entitlement, some employees work in jobs that are not covered by the public holiday
provisions of the ESA. To determine whether a job is covered, or if special rules apply, please
refer to the special rule tool.

The amount of public holiday pay to which an employee is entitled is all of the regular wages
earned by the employee in the pay period before the public holiday, divided by the number of
days the employee worked in that period.

Different pay periods are used if either:

a. the employee was on a personal emergency leave, on vacation or both for the entire pay
period before the public holiday, or
b. the employee was not employed during the pay period before the public holiday.

See “Public holiday pay” later in this chapter.

Regular wages does not include any overtime pay, vacation pay, public holiday pay, premium
pay, personal emergency leave pay, domestic or sexual violence leave pay, termination pay,
severance pay or termination of assignment pay payable to an employee.
While some employers give their employees a holiday on Easter Sunday, Easter Monday, the
first Monday in August, or Remembrance Day, the employer is not required to do so under the
Employment Standards Act, 2000 (ESA).

Performing both covered and exempt work


Some employees perform more than one kind of work for an employer. Some of this work
might be covered by the public holiday part of the ESA, while another kind of work might be
exempt from public holiday coverage.

If an employee performs both kinds of work, exempt and covered, they are eligible for the
public holiday entitlement with respect to a particular public holiday if at least half of the
work performed in the work week of the public holiday is work that is covered.

Example

Rupert works for a taxi company as both a taxi cab driver (work that is exempt from public
holiday coverage) and a dispatcher (work that is covered by the public holiday part of the ESA).
In the work week that Canada Day fell, at least half of Rupert's work was as a dispatcher.
Because this work is covered by the public holiday part of the ESA, he is eligible for the public
holiday entitlement for Canada Day.

Qualifying for public holiday entitlements


Generally, employees qualify for the public holiday entitlement unless they:

fail without reasonable cause to work all of their last regularly scheduled day of work
before the public holiday or all of their first regularly scheduled day of work after the
public holiday (this is called the “Last and First Rule”);
or
fail without reasonable cause to work their entire shift on the public holiday if they
agreed to or were required to work that day.

Note: Most employees who fail to qualify for the public holiday entitlement are still entitled to
be paid premium pay for every hour they work on the holiday.

Qualified employees can be full time, part time, permanent or on term contract. It does not
matter how recently they were hired, or how many days they worked before the public
holiday.

The “last and first rule”


The “last regularly scheduled day of work before the public holiday” and the “first regularly
scheduled day of work after the public holiday” do not have to be the days right before and
right after the holiday.

For example, an employee might not be scheduled to work the day right before or after the
holiday. As long as the employee works all of their last regularly scheduled shift before the
holiday and all of the first one after it, or has reasonable cause for not working either of those
days, they meet this qualifying criterion.
Reasonable cause

An employee is generally considered to have “reasonable cause” for missing work when
something beyond their control prevents the employee from working. Employees are
responsible for showing that they had reasonable cause for staying away from work. If they
can do so, they still qualify for public holiday entitlements.

How the last and first rule works

Example: A typical case

Rosie's regular work week runs from Monday to Thursday. A public holiday falls on a Monday,
and Rosie's workplace closes down for that day. If Rosie works the entire shift on the Thursday
before the holiday and the Tuesday after the holiday, or has reasonable cause for failing to
work either of those days, she qualifies to be paid for the holiday.

Example: When an employee takes a day off

A public holiday falls on a Monday, and Lev's workplace closes down for that day. Lev
regularly works Monday to Thursday. Lev has asked his employer for permission to take off
the Thursday before the public holiday because he has a personal appointment. His employer
agrees. Lev's last regularly scheduled work day before the holiday is now considered to be on
the Wednesday.

If Lev works his entire Wednesday shift before the holiday and his entire Tuesday shift after
the holiday, or has reasonable cause for not working either of those days, he qualifies for the
paid public holiday.

Example: When an employee leaves early

A public holiday falls on a Friday, and Doris's workplace is closed for the holiday. Doris
normally works from 9 a.m. to 5 p.m., Monday to Friday. However, she wants to leave at 3 p.m.
on the Thursday before the public holiday. The employer agrees. Doris's regularly scheduled
shift on the Thursday before the public holiday is now considered to be from 9 a.m. to 3 p.m.

If Doris works from 9 a.m. to 3 p.m. on the Thursday and 9 a.m. to 5 p.m. on the following
Monday, or has reasonable cause for failing to do so, she is entitled to the paid public holiday.

Example: When an employee is on vacation

Canada Day falls on July 1. George is on vacation from June 25 to July 9. If George works all of
his last regularly scheduled shift before his vacation and first regularly scheduled shift after
his vacation – on June 24 and July 10 – or has reasonable cause for failing to do so, he will
qualify for the paid public holiday.

Example: When an employee is on a leave or layoff

Lydia is on pregnancy leave when the Canada Day holiday occurs. If Lydia works her last
regularly scheduled day of work before her leave, and her first regularly scheduled day of
work after her leave, or has reasonable cause for failing to do so, she will be entitled to the
paid public holiday.

Example: When there is no reasonable cause

A public holiday falls on a Monday, and Ellen's workplace is closed for the holiday. Ellen does
not work on her last scheduled day before the holiday, and she does not have reasonable cause
for missing that day. She receives no pay for the holiday.

Public holiday pay


The amount of public holiday pay to which an employee is entitled is all of the regular wages
earned by the employee in the pay period before the public holiday, divided by the number
of days the employee worked in that period. The Ministry of Labour offers a public holiday
pay calculator for your convenience.

If the employee was on a personal emergency leave (see “Personal emergency leave” later in
this Guide) or on vacation or both for the entire pay period before the public holiday, the
regular wages earned by the employee in the pay period before the start of that leave or
vacation, divided by the number of days the employee worked in that period is used to
calculate the public holiday pay.

If the employee was not employed during the pay period before the public holiday, the
public holiday pay is calculated using the regular wages earned by the employee in the pay
period that includes the public holiday, divided by the number of days the employee worked in
that period.

Example

Christmas Day falls on a Tuesday. Suppose that an employer’s pay period is bi-weekly and runs
from Thursday to Wednesday. In this case, the pay period used to calculate public holiday pay
is the two weeks counting backwards from the first Wednesday (the last day of the employer’s
pay period) before the day on which the public holiday falls.

Bi-Weekly Pay Period before the public holiday: December 6 – December 19

Week 1: Thursday, December 6 – Wednesday, December 12


Week 2: Thursday, December 13 – Wednesday, December 19

Bi-Weekly Pay Period that includes the public holiday: December 20 – to January 2

Week 1: Thursday, December 20 – Wednesday, December 26


Public holiday: Tuesday, December 25
Week 2: Thursday, December 27 – Wednesday, January 2

In this example, the regular wages earned by the employee and the number of days the
employee worked with respect to the December 6 to December 19 pay period is used in the
calculation of public holiday pay.

If the employee was on a personal emergency leave or on vacation or both from December 6 to
19, the preceding pay period (that is the period before the start of the personal emergency
leave or vacation) would be used in the calculation of public holiday pay.

If the employee started employment on December 24, the employee was not employed during
the pay period preceding the public holiday. In this case, the pay period that includes the
public holiday – December 20 to January 2 – is used to calculate the public holiday pay.

Calculating public holiday pay


Example: A typical case

Iryna works five days a week and earns $100.00 a day. She has a bi-weekly pay period. She
worked her last regularly scheduled work day before the public holiday and her first regularly
scheduled day after the holiday. She was not on vacation or personal emergency leave during
the pay period leading up to the public holiday.

1. Iryna's total regular wages earned are calculated:


$100.00 per day X 5 days = $500.00 per week
$500.00 per week X 2 weeks in the pay period = $1,000.00
Iryna earned $1,000.00 of regular wages in the pay period before the public holiday.
2. Then her total wages earned is divided by 10 (the number of days she worked in the pay
period before the public holiday):
$1,000.00 ÷ 10 = $100.00

Result: Iryna is entitled to $100.00 public holiday pay.

Example: When there are no set hours

Bertie does not work a set number of hours per day or days per week. Her pay varies from
week to week, according to the time she has worked. She is paid $20.00/hour and has a bi-
weekly pay period.

1. Bertie’s regular wages earned during the pay period before the holiday are:
$1,500.00 regular wages (75 hours x $20.00/hour)
2. The number of days she worked in the pay period before the holiday are:
9 (5 days in the first week and 4 days in the second week)
3. Then her regular wages earned are divided by the number of days she worked:
$1,500.00 / 9 = $166.67

Result: Bertie is entitled to $166.67 public holiday pay.

Example: When an employee is on vacation (or personal emergency leave,


or both) for the entire pay period immediately preceding the public holiday

Justin works eight hours a day, five days a week and earns $200.00/day. He has a bi-weekly pay
period. Justin was on a vacation for all 10 working days in the pay period immediately
preceding the public holiday. Because Justin was on vacation for the entire pay period
immediately preceding the public holiday, his public holiday pay is to be calculated using the
pay period preceding the start of the vacation.

Assume Justin worked all 10 days in the pay period preceding the start of the vacation.
To calculate public holiday pay:

1. Regular wages earned by the employee in the pay period preceding the start of the
vacation = $2000.00 ($200.00 per day x 10 days worked).
2. Divided by 10 (the number of days the employee worked in the pay period preceding the
start of the vacation)

$2000.00 divided by 10 = $200.00 public holiday pay

Result: Justin is entitled to $200.00 public holiday pay.

Example: When an employee is not employed in the pay period before the
public holiday

Jackie starts work with a new employer on Monday, April 11. She is paid $17/hour and works
varying hours. The employer has a weekly pay period that runs from Monday to Sunday. Good
Friday falls on Friday, April 15. Jackie works:

three hours on Monday


five hours on Wednesday
eight hours on Saturday

Jackie is entitled to be paid public holiday pay for Good Friday. Because Jackie was not
employed in the pay period before the public holiday, the public holiday pay is calculated
using the pay period that includes the public holiday.

1. Jackie’s regular wages earned during the pay period that includes the holiday are:
$272.00 regular wages (16 hours x $17.00/hour)
2. The number of days she worked in the pay period that includes the holiday are:
three (Monday, Wednesday and Saturday)
3. Then her regular wages earned are divided by the number of days she worked:
$272.00 / 3 = $90.67

Result: Jackie is entitled to $90.67 public holiday pay.

Example: When an employee is on a layoff

Eugene usually works five days a week, earning $100.00 a day and has a bi-weekly pay period
that runs from Sunday to Saturday. He was placed on temporary layoff on November 17.
During his layoff, Eugen was not paid wages. He received employment insurance benefits
during this time, but these benefits are not considered “wages.”

Eugene was recalled to work on December 31. He is entitled to be paid public holiday pay for
New Year’s Day as long as he worked his last regularly scheduled day before the layoff and his
first regularly scheduled day after the layoff, or has reasonable cause for failing to do so.

However, because Eugene did not earn any wages in the pay period before the public holiday,
the amount of public holiday pay he is entitled to will be $0.

Premium pay
Premium pay is 1½ times an employee's regular rate of pay. If an employee is entitled to
receive premium pay for work on a public holiday, they must be paid 1½ times their regular
rate of pay for each hour worked.

For example, Nathan’s regular rate of pay is $17.00 an hour. This means that his premium pay
will be $25.50 an hour ($17.00 X 1½).

Substitute holiday
A substitute holiday is another working day off work that is designated to replace a public
holiday. Employees are entitled to be paid public holiday pay for a substitute holiday.

A substitute holiday must be scheduled for a day that is no later than three months after the
public holiday for which it was earned, or, if the employee has agreed electronically or in
writing, the substitute day off can be scheduled up to 12 months after the public holiday.

If an employee receives a substitute holiday, the employer must provide the employee with a
written statement that sets out the public holiday that is being substituted, the date of the
substitute holiday, and the date that the statement was given to the employee. This statement
must be provided to the employee before the public holiday.

Entitlements for public holidays


Entitlements for public holidays vary depending on such things as whether the holiday falls on
a working day or a non-working day and whether the employee works on the holiday. The
different entitlements are set out below.

When a public holiday falls on a working day but the employee does not
work

Most employees have the right to get the public holiday off and get paid public holiday pay.
(Some employees may be required to work on a public holiday. See “Special rules for certain
industries” later in this chapter.)

When a public holiday falls on an employee's non-working day or during an


employee's vacation

When a public holiday falls on a day that is not ordinarily a working day for an employee, or
during the employee's vacation, the employee is entitled to either:

a substitute holiday off with public holiday pay;


or
public holiday pay for the public holiday, if the employee agrees to this electronically or
in writing (in this case, the employee will not be given a substitute day off).

When an employee who qualifies for the day off has agreed electronically or
in writing to work on a public holiday

Most employees have the right to get the public holiday off and get paid public holiday pay.
However, if an employee agrees electronically or in writing to work on the public holiday,
there are two options:

the employee is entitled to receive regular wages for all hours worked on the public
holiday, plus a substitute day off work with public holiday pay;
or
if the employee agrees electronically or in writing, they are entitled to public holiday
pay for the public holiday plus premium pay for all hours worked on the public holiday.
In this case, the employee will not be given a substitute day off.

Example: Calculating public holiday pay plus premium pay

A public holiday falls on one of John-Duncan's normal working days. He and his employer
have agreed electronically or in writing that he will work on the public holiday and that,
instead of getting a substitute holiday, he will be paid public holiday pay plus premium pay for
all the hours he works on the holiday.

John-Duncan regularly works eight hours a day, five days a week. His regular hourly pay rate
is $17.00. He has a bi-weekly pay period. He has worked on all his scheduled work days in the
pay period before the public holiday. He works eight hours on the public holiday.

Public holiday pay calculation:

1. John-Duncan's total regular wages earned in the pay period before the public holiday are
calculated:

8 hours per day X $17.00 per hour = $136.00 per day

$136.00 per day X 5 days = $680.00 per week

$680.00 X 2 weeks in the pay period = $1360.00


John-Duncan earned $1360.00 in the pay period before the public holiday.
2. The number of days John-Duncan worked in the pay period before the public holiday is
calculated. He worked five days in each week of the bi-weekly pay period.
John-Duncan worked 10 days in the pay period before the public holiday.
3. His total wages earned is then divided by 10:

$1360.00 ÷ 10 = $136.00

John-Duncan’s public holiday pay entitlement is $136.00.

Premium pay calculation

4. Finally, the premium pay owing to John-Duncan for his work on the public holiday is
calculated:

$17.00 per hour X 1½ = $25.50

$25.50 per hour X 8 hours worked = $204.00

John-Duncan’s premium pay entitlement is $204.00.


Result: John-Duncan is entitled to public holiday pay of $136.00 and premium pay of $204.00,
for a total of $340.00.

When an employee agrees to work on a public holiday but fails to do so

If an employee has agreed electronically or in writing to work on the public holiday but does
not do so – and does not have reasonable cause for not having done so – the employee has no
right to public holiday pay or to a substitute day off with pay.

However, if the employee has reasonable cause for not working the public holiday, then
entitlements will depend on which of the two options below the employee chose in exchange
for agreeing to work on the public holiday:

if the employee had agreed electronically or in writing to work on the public holiday for
regular wages plus a substitute day off with public holiday pay, the employee is entitled
to a substitute day off work with public holiday pay;
or
if the employee had agreed electronically or in writing to work on the public holiday for
public holiday pay plus premium pay for each hour worked, they are entitled to be paid
public holiday pay for the holiday. The employee is not entitled to receive any premium
pay because they did not perform any work on the holiday.

When an employee works only some of the hours they agreed to work on a
public holiday

If an employee has agreed electronically or in writing to work on the public holiday but
works only some of the hours they agreed to work, and does not have reasonable cause for
failing to work all of the hours, the employee is only entitled to receive premium pay for each
hour worked on the holiday. The employee has no right to public holiday pay or a substitute
day off work.

Example: A typical case

Trudi had agreed in writing that she would work eight hours on Canada Day but she only
worked four hours and did not have reasonable cause for failing to work the other four hours.
Trudi is entitled only to premium pay for the four hours she worked on the holiday. She is not
entitled to public holiday pay or to a substitute day off work.

However, if the employee has reasonable cause for working only some of the hours they
agreed to work on the public holiday, then:

the employee is entitled to their regular rate for all the hours worked plus a substitute
day off work with public holiday pay;
or
if the employee had agreed electronically or in writing to work on the public holiday for
public holiday pay plus premium pay for each hour worked, they are entitled to be paid
public holiday pay plus premium pay for every hour worked on the holiday.

Special rules for certain industries


Special rules apply to employees who work in the following types of businesses:
hotels, motels and tourist resorts;
restaurants and taverns;
hospitals and nursing homes;
continuous operations (which are operations, or parts of operations, that do not stop or
close more than once a week – such as an oil refinery, alarm-monitoring company or the
games part of a casino if the games tables are open around the clock).

An employee who works in any of these businesses can be required to work on a public
holiday without their agreement, but only if the holiday falls on a day that the employee would
normally work and the employee is not on vacation.

If an employee is required to work, they are entitled to either:

their regular rate for the hours worked on the public holiday, plus a substitute day off
work with public holiday pay;
or
public holiday pay plus premium pay for each hour worked.

The employer chooses which of these options will apply.

Note that the employer's ability to require employees to work on a public holiday is subject to
the employee's right to take a day off for purposes of religious observance under the Ontario
Human Rights Code, and to the terms of the employee's employment contract. Note also that
certain retail workers who work in continuous operations (e.g., a 24-hour convenience store)
have the right to refuse to work on a public holiday because of the special rules that apply to
some retail workers. See the “Retail workers” chapter of this guide for more information.

An employee in the previously listed businesses who is required to work on a public holiday
that falls on their ordinary working day but fails to do so, with reasonable cause, is entitled to:

a substitute holiday with public holiday pay;


or
public holiday pay for the holiday.

The employer chooses which option will apply.

An employee in any of these businesses who is required to work on a public holiday that falls
on their ordinary working day but who fails, with reasonable cause, to work some of the
hours they were required to work on the holiday is entitled to either:

their regular rate for each hour worked on the holiday plus a substitute holiday with
public holiday pay;
or
public holiday pay for the holiday plus premium pay for each hour worked.

The employer chooses which option will apply.

An employee in any of these businesses who is required to work on a public holiday that falls
on their ordinary working day but who fails, without reasonable cause, to work part or all of
the public holiday is only entitled to receive premium pay for each hour worked on the holiday
(if any). The employee has no right to public holiday pay or a substitute day off work.
Overtime calculations when an employee receives
premium pay
Any hours worked on a public holiday that are compensated with premium pay are not
included when determining whether an employee has worked any overtime hours.

If employment ends
Sometimes an employee's job comes to an end before the employee can take a substitute
holiday with public holiday pay that they have earned. In this case, the employer must pay the
employee's public holiday pay at the same time it pays the employee's final wages. This is so
regardless of the reason the job came to an end, whether it is because the employee quit, was
fired for good reason, or for some other reason.

Retail workers
There are certain rights in the Employment Standards Act, 2000 (ESA) that apply only to
employees of most retail businesses (see "Exclusions"). A retail business is a business that sells
goods or services to the public.

The right to refuse to work on public holidays


Most employees of a retail business have the right to refuse to work on a public holiday even if
the employee does not qualify for the public holiday.

If an employee has agreed electronically or in writing to work on a public holiday, the


employee can later decline to work on that day by giving the employer at least 48 hours' notice
before the employee's work on the public holiday was to begin.

Where the public holiday falls on a day that would ordinarily be a working day, most retail
employees qualify for the public holiday off work with public holiday pay.

Where the public holiday falls on a day that would not ordinarily be a working day, or the
employee is on vacation, most retail employees qualify for a substitute day off with public
holiday pay.

The right to refuse to work on Sundays


There are two sets of rules for employees of retail businesses. The rule that applies depends on
whether the employee was hired before or after September 4, 2001.

Sunday rules for employees hired before September 4, 2001

An employee of a retail business who was hired before September 4, 2001 has the right to
refuse to work on Sundays.

If an employee has agreed to work on Sundays, whether or not the agreement was made when
they were hired, the employee can later decline to work on a Sunday by giving the employer at
least 48 hours' notice before the employee's work was to begin.

Sunday rules for employees hired on or after September 4, 2001

An employee of a retail business who was hired on or after September 4, 2001 does not have
the right to refuse to work on Sundays if they agreed electronically or in writing at the time of
being hired to work on Sundays, unless they are refusing to work on Sundays because of
religious belief or observance (in which case the employee must give the employer notice
before the Sunday at least 48 hours before the Sunday work was to begin). Note that if a
Sunday falls on a public holiday, the employee could refuse to work on the day, even if they
had agreed at the time of hire to work on Sundays. (This is because the refusal to work is
because the day is a public holiday, not because it is a Sunday.)

An employee who did not agree electronically or in writing at the time of being hired to work
on Sundays may agree at some later point to work on Sundays or on a particular Sunday. In
that case, the employee could subsequently decline to work the Sunday(s) by giving the
employer at least 48 hours’ notice before the employee’s work was to begin.

Note that an employer cannot make an agreement to work on Sundays a condition of hire if
doing so would violate the Human Rights Code. Contact the Ontario Human Rights Commission
for further information.

No reprisals
An employee must not be dismissed, intimidated or penalized in any other way because they
exercised their rights under this section.

Exclusions
Retail businesses are excluded from these provisions if their main business is to:

sell prepared meals (e.g., restaurants, cafeterias, cafés);


rent living accommodations (e.g., hotels, tourist resorts, camps, inns);
provide educational, recreational or amusement services to the public (e.g., museums, art
galleries, sports stadiums, theatres, bars, nightclubs);
sell goods and services that are secondary to the businesses described above and are
located on the same premises (e.g., museum gift shops, souvenir shops in sports
stadiums).

Benefit plans
Employers are not required to provide employee benefit plans. However, if an employer does
decide to provide them, the rules against discrimination under the ESA must be complied with.

The anti-discrimination rule


The ESA prohibits discrimination between employees or their dependants, beneficiaries or
survivors because of the age, sex or marital status of the employee.
There are some exceptions to the anti-discrimination rules. They are complex. If you require
further information, please contact the Employment Standards Information Centre at
1-800-531-5551.

Plans affected
The anti-discrimination rule applies to benefit plans including:

superannuation, retirement and pension benefits;


termination benefits;
death benefits (including life insurance plans);
disability benefits (including short-term and long-term disability plans);
sickness benefits;
accident benefits; and
medical, hospital, nursing, drug or dental benefits.

The rule against discrimination applies to both the plan’s contribution requirements and its
benefit payments (though as noted, there are some exceptions).

Grounds on which discrimination is not allowed


Employees and their dependants, beneficiaries or survivors must not be treated differently
because of the employee’s age, sex or marital status.

Age

An employer cannot discriminate because of the age of an employee if the employee is 18 or


over but under 65.

Sex

An employer cannot discriminate between male and female employees, or against pregnant
employees. Also, there cannot be a distinction between employees because they are, or are not,
the head of a household or the primary wage earner.

Marital status

An employer cannot discriminate between single and married (whether same or opposite-sex
couples) employees, including those who live in common-law marriages (whether same or
opposite-sex couples), or against unmarried employees supporting dependent children.

While an employee is on a leave of absence: Certain benefit plans

An employee who is on pregnancy, parental, personal emergency, declared emergency, family


caregiver, family medical, critical illness, organ donor, domestic or sexual violence, child death
or crime-related child disappearance leave has the right to continue to participate in pension
plans, life insurance plans, accidental death plans, extended health plans and dental plans
during their leave.
An employee who is on a reservist leave does not have the right to continue to participate in
these plans during their leave. However, if the employer postpones the employee's
reinstatement, the employer is required to pay the employer's share of premiums for certain
benefit plans related to their employment and allow the employee to participate in such plans
for the period during which the return date is postponed.

A female employee may be entitled to disability benefits during that part of the leave during
which she would not have been able to work for health reasons related to her pregnancy or
childbirth.

Other benefit plans may allow employees on other types of leave that are not provided for in
the ESA to continue to participate in the plan while they are on leave. In that case, employees
on pregnancy, parental, personal emergency, declared emergency, family caregiver, family
medical, critical illness, organ donor, reservist, domestic or sexual violence, child death or
crime-related child disappearance leave are also allowed to continue to participate in such
plans while they are on leave (this includes any leave negotiated between an employee or
union and an employer that is longer than the ESA provides).

Pregnancy and parental leave


Pregnant employees have the right to take pregnancy leave of up to 17 weeks of unpaid time
off work. In some cases the leave may be longer. Employers do not have to pay wages to
someone who is on pregnancy leave.

New parents have the right to take parental leave – unpaid time off work when a baby or child
is born or first comes into their care. Birth mothers who take pregnancy leave are entitled to
up to 61 weeks’ leave. Birth mothers who do not take pregnancy leave and all other new
parents are entitled to up to 63 weeks’ parental leave.

Parental leave is not part of pregnancy leave and so a birth mother may take both pregnancy
and parental leave. In addition, the right to a parental leave is independent of the right to
pregnancy leave. For example, a birth father could be on parental leave at the same time the
birth mother is on either her pregnancy leave or parental leave.

Employees on leave have the right to continue participation in certain benefit plans and
continue to earn credit for length of employment, length of service, and seniority. In most
cases, employees must be given their old job back at the end of their pregnancy or parental
leave.

An employer cannot penalize an employee in any way because the employee is or will be
eligible to take a pregnancy or parental leave, or for taking or planning to take a pregnancy or
parental leave.

Ontario's ESA and the federal Employment Insurance Act


The Employment Standards Act, 2000 (ESA) provides eligible employees who are pregnant or
are new parents with the right to take unpaid time off work.

In contrast, the federal Employment Insurance Act provides eligible employees with maternity
and/or parental benefits that may be payable to the employee during the period they are off on
an ESA pregnancy or parental leave.
The rules governing the right to take time off work for pregnancy and parental leave under the
ESA are different from the rules regarding the payment of maternity benefits and parental
benefits under the federal Employment Insurance Act. For example, a new father may choose to
commence a parental leave under the ESA up to 78 weeks after the child is born. However,
there may be restrictions on accessing the employment insurance parental benefits at that
time. It is extremely important that employees obtain information about their rights to EI
benefits if they are considering taking a pregnancy or parental leave under the ESA. For
information about maternity and parental benefits, contact Service Canada's Employment
Insurance Automated Telephone Information Service at 1-800-206-7218.

Pregnancy leave
Pregnant employees have the right to take pregnancy leave of up to 17 weeks, or longer in
certain circumstances, of unpaid time off work.

Qualifying for pregnancy leave

A pregnant employee is entitled to pregnancy leave whether she is a full-time, part-time,


permanent or term contract employee provided that:

she is employed by an employer that is covered by the ESA,


and
she started her employment at least 13 weeks before the date her baby is expected to be
born (the "due date").

Note that an employee does not have to actively work the 13 weeks prior to the due date to be
eligible for pregnancy leave. It is only necessary that she have commenced employment at
least 13 weeks before the baby is expected to be born.

Example: A typical case

Aurélie began her employment 15 weeks before her due date. She is eligible to begin her
pregnancy leave at any time after starting her employment, because there are at least 13
weeks between the date her employment began and her due date.

Example: When an employee is off sick

Fatima began her employment 15 weeks before her due date. Soon after starting her new job,
she was off sick for five weeks. Fatima is eligible for pregnancy leave because there are at least
13 weeks between the date her employment began and her due date. The fact that she did not
actually work 13 weeks is irrelevant.

Example: When a baby is born before the due date

Meredith began her employment 15 weeks before her due date. However, 11 weeks after
starting her new job, her baby was born. Meredith is eligible for pregnancy leave to begin on
the date the baby was born, because there were at least 13 weeks between the date she began
her employment and her due date. The fact that her baby was born less than 13 weeks after
she began her employment is irrelevant.
When a pregnancy leave can begin

Usually, the earliest a pregnancy leave can begin is 17 weeks before the employee's due date.
However, when an employee has a live birth more than 17 weeks before the due date, she will
be able to begin her pregnancy leave on the date of the birth.

Ordinarily, the latest a pregnancy leave can begin is on the baby's due date. However, if the
baby is born earlier than the due date, the latest the leave can begin is the day the baby is
born.

Within these restrictions, an employee can start her pregnancy leave any time within the 17
weeks up to and including her due date. The employer cannot decide when the employee will
begin her leave even if the employee is off sick or if her pregnancy limits the type of work she
can do.

Length of a pregnancy leave

A pregnancy leave can last a maximum of 17 weeks for most employees. However, if an
employee has taken a full 17 weeks of leave but is still pregnant, she may continue on the
pregnancy leave until the birth of the child. If she has a live birth, the pregnancy leave will end
on the date of the birth and then, in most cases, she will be able to commence her parental
leave.

An employee may decide to take a shorter leave if she wishes. However, once an employee has
started her pregnancy leave, she must take it all at once. She cannot use up part of the 17
weeks, return to work and then go back on pregnancy leave for the unused portion. If she
returns to work for the employer from whom she took the leave, even if it is only part-time,
under the ESA she gives up the right to take the rest of her leave.

(Note that under the federal Employment Insurance Program, employees are able to return to
work and earn a certain amount of wages without having their employment insurance
benefits reduced. However, under the ESA, a return to work, even on a part-time basis, would
end the pregnancy leave.)

Miscarriages and stillbirths

An employee who has a miscarriage or stillbirth more than 17 weeks before her due date is
not entitled to a pregnancy leave.

However, if an employee has a miscarriage or stillbirth within the 17- week period preceding
the due date, she is eligible for pregnancy leave. The latest date for commencing the leave in
that case is the date of the miscarriage or stillbirth.

The pregnancy leave of an employee who has a miscarriage or stillbirth ends on the date that
is the later of:

17 weeks after the leave began;


or
12 weeks after the stillbirth or miscarriage.

This means that the pregnancy leave of an employee who has a stillbirth or miscarriage will be
at least 17 weeks long. In some cases it may be longer.
Example: When an employee has a stillbirth

Wai began her pregnancy leave 15 weeks before her baby was due. On her due date she had a
stillbirth. The ESA provides that the pregnancy leave ends on the date that is the later of 17
weeks after the leave began or 12 weeks after the stillbirth.

In this case, the later date is 12 weeks after the stillbirth. Wai can stay off work for up to 12
more weeks after the stillbirth, for a total of 27 weeks of pregnancy leave.

Example: When an employee has a miscarriage

Hélène began her pregnancy leave 15 weeks before her baby was due. One week later (one
week into her pregnancy leave) she had a miscarriage. The law indicates that her pregnancy
leave ends on the date that is the later of either 17 weeks after the leave began or 12 weeks
after the miscarriage.

In Hélène's case, the later date is 17 weeks after the leave began. She will get a total of 17
weeks of pregnancy leave.

Notice requirements for pregnancy leave

Giving notice about starting a pregnancy leave

An employee must give her employer at least two weeks’ written notice before beginning her
pregnancy leave. Also, if the employer requests it, she must provide a certificate from a
medical practitioner (which may include a medical doctor, a midwife or a nurse practitioner)
stating the baby’s due date.

Retroactive notice

Sometimes an employee has to stop working earlier than expected (for example, because of
complications caused by the pregnancy). In that case, the employee has two weeks after she
stops working to give the employer written notice of the day the pregnancy leave began or
will begin.

An employee does not have to start her pregnancy leave at the time she stops working if she
has stopped work due to illness or a complication caused by her pregnancy. She may choose
instead to treat the time off as sick time and plan to commence the pregnancy leave later (but
no later than the earlier of the birth date or due date). In that case, she has two weeks after she
stops working to give the employer written notice of the day the leave will begin. If the
employer requests it, the employee has to provide a medical certificate issued by a medical
doctor, a midwife or a nurse practitioner stating the baby’s due date and stating that she was
unable to perform the duties of her position because of the complication.

If an employee stops working earlier than expected because of a birth, stillbirth or


miscarriage, she has two weeks after she stops working to give the employer written notice of
the day the leave began. The pregnancy leave begins no later than the date of the birth,
stillbirth or miscarriage. If the employer requests it, the employee has to provide a medical
certificate issued by a medical doctor, a midwife or a nurse practitioner stating the due date
and the date of birth, stillbirth or miscarriage
Changing the date a pregnancy leave starts

Suppose an employee has given notice to begin a pregnancy leave. She can begin the leave
earlier than she originally told her employer if she gives her employer new written notice at
least two weeks before the new, earlier date.

Example: Changing the start of a pregnancy leave to an earlier date

Barbara gave her employer written notice that she would begin her pregnancy leave on
September 10. Now Barbara wants to start her leave on August 27. She must give her employer
new written notice by August 13 (two weeks before August 27).

An employee can also change the date she will begin her leave to a later date than she
originally told her employer. To do this, she must give her employer new written notice at
least two weeks before the original date she said she would begin her leave.

Example: Changing the start of a pregnancy leave to a later date

Mairead gave her employer written notice that she would start her pregnancy leave on
September 10. Now Mairead wants to start her leave on September 15. She must give her
employer new written notice by August 27 (two weeks before September 10).

Failing to give notice

An employee who fails to give the required notice does not lose her right to a pregnancy leave.

Giving notice about ending a pregnancy leave

An employee can tell her employer when she will be returning to work, but she is not required
to do so. If the employee does not specify a return date, the employer is to assume that she will
take her full 17 weeks of leave (or any longer period that she may be entitled to).

An employer cannot require an employee to return from her leave early. Also, an employer
has no right under the ESA to require an employee to prove, through medical documentation,
that she is fit to return to work. The decision to return to work is the employee’s.

Changing the date a pregnancy leave ends

An employee may want to change the date her leave was scheduled to end to an earlier date.
If so, she must give the employer a new written notice at least four weeks before the new,
earlier day.

An employee may want to change the date her leave was scheduled to end to a later date. In
this case, she must give the employer a new written notice at least four weeks before the date
the leave was originally going to end. Unless the employer agrees, she cannot schedule a new
end date to her pregnancy leave that would result in her taking a longer leave than she is
entitled to under the ESA.

When an employee decides not to return to work


Suppose an employee wants to resign before the end of her pregnancy leave, or at the end of
the leave. She must give her employer at least four weeks’ written notice of her resignation.
This notice requirement does not apply if the employer constructively dismisses the employee.
(See “Termination of employment” chapter for information about constructive dismissal.)

Parental leave
Both new parents have the right to take parental leave of up to 61 or 63 weeks of unpaid time
off work.

Qualifying for parental leave

A new parent is entitled to parental leave whether they are a full-time, part-time, permanent
or term contract employee provided that the employee:

is employed by an employer that is covered by the ESA,


and
was employed for at least 13 weeks before commencing the parental leave.

An employee does not have to actively work in the 13- week period preceding the start of the
parental leave. For example, the employee could be on layoff, vacation, sick leave or
pregnancy leave for all or part of the 13-week qualifying period and still be entitled to parental
leave. The ESA only requires the employee to have been employed by the employer for 13
weeks before they may commence a parental leave.

A "parent" includes:

a birth parent;
an adoptive parent (whether or not the adoption has been legally finalized); or
a person who is in a relationship of some permanence with a parent of the child and who
plans on treating the child as their own. This includes same-sex couples.

When a parental leave can begin

A birth mother who takes pregnancy leave must ordinarily begin her parental leave as soon as
her pregnancy leave ends. However, an employee's baby may not yet have come into her care
for the first time when the pregnancy leave ends. For example, perhaps her baby has been
hospitalized since birth and is still in the hospital's care when the pregnancy leave ends.

In this case, the employee can either commence her leave when the pregnancy leave ends or
choose to return to work and start her parental leave later. If she chooses to return to work,
she will be able to start her parental leave anytime within 78 weeks of the birth or the date the
baby first came home from the hospital.

All other parents must begin their parental leave no later than 78 weeks after:

the date their baby is born;


or
the date their child first came into their care, custody and control.

The parental leave does not have to be completed within this 78-week period. It just has to be
started.
Length of a parental leave

Birth mothers who take pregnancy leave are entitled to take up to 61 weeks of parental leave.
All other new parents are entitled to take up to 63 weeks of parental leave.

Employees may decide to take a shorter leave if they wish. However, once an employee has
started parental leave, they must take it all at one time. The employee cannot use up part of
the leave, return to work for the employer and then go back on parental leave for the unused
portion.

(Note that under the federal Employment Insurance Program, employees are able to return to
work and earn a certain amount of wages without having their employment insurance
benefits reduced. However, under the ESA, a return to work, even on a part-time basis, would
end the parental leave.)

Miscarriages and stillbirths

An employee who has a miscarriage or stillbirth, or whose spouse or same-sex partner has a
miscarriage or stillbirth, is not eligible for parental leave.

Notice requirements for parental leave

Giving notice about starting a parental leave

An employee must give their employer at least two weeks’ written notice before beginning a
parental leave. Because EI benefits can be taken over a shorter period or longer period, it is
strongly advised that employees tell the employer exactly how many weeks they plan to take
as parental leave when they give notice (for example, 37 or 63). If an employee does not tell an
employer how much leave they plan to take, the employer is to assume that the employee will
be on leave for the full 61 or 63 weeks (see “giving notice about ending a parental leave” and
“changing the date a parental leave ends,” below). In that case, the employee is required to
give four weeks’ written notice if they want to return to work before using 61 or 63 weeks of
leave. If an employee is also taking a pregnancy leave, she may, but is not required to, give her
employer notice of the parental leave when she gives notice of her pregnancy leave.

Retroactive notice

Sometimes, an employee may stop working earlier than expected because a child is born or
comes into the employee's custody, care and control for the first time earlier than expected. In
this case, the employee has two weeks after stopping work to give the employer written notice
that they are taking parental leave. The parental leave begins on the day the employee stops
working.

Changing the start of a parental leave to an earlier date

Suppose an employee has given notice to begin a parental leave. The employee can begin the
leave earlier than they have told the employer by giving the employer new written notice at
least two weeks before the new, earlier date. If the employee intends to use less than 61 or 63
weeks of leave, it is advised that the employee clearly state the number of weeks they plan to
take in the new written notice. See “giving notice about starting a parental leave,” above.
Example

Leroy gave his employer written notice that he would begin his parental leave on September
10. Now he wants to start his leave on August 27. Leroy must give his employer new written
notice by August 13 (two weeks before August 27).

Changing the start of a parental leave to a later date

An employee can also change the starting date of the leave to a later date than they originally
told the employer. To do this, the employee must give the employer new written notice at
least two weeks before the original date the leave was going to begin. If the employee intends
to use less than 61 or 63 weeks of leave, it is advised that the employee clearly state the
number of weeks they plan to take in the new written notice. See “giving notice about starting
a parental leave,” above.

Example

Wendy gave her employer written notice that she would start her parental leave on September
10. Now Wendy wants to start her leave on September 15. She must give her employer new
written notice by August 27 (two weeks before September 10).

Failing to give notice

An employee who fails to give the required notice does not lose their right to a parental leave.

Giving notice about ending a parental leave

An employee can tell the employer when they will be returning to work, but is not required to
do so. If the employee does not specify a return date, or did not specify a return date when the
original notice that the employee was planning to take the leave was given, the employer is to
assume that the employee will take their full 61 or 63 weeks of leave. For example, if an
employee did not specify that in the original notice that they planned to take 35 or 37 weeks of
leave, the employer will assume that the employee will take the full 61 or 63 weeks of leave. If
the employee wants to return to work after 35 or 37 weeks of leave, they must provide four
weeks’ of written notice prior to their return to work unless the employer allows the employee
to return. An employer cannot require an employee to return from leave early.

Changing the date a parental leave ends

An employee may want to return to work earlier than the date they were scheduled to return.
If so, the employee must give the employer written notice at least four weeks before the new,
earlier day.

An employee may want to return to work later than they were scheduled to return. In this
case, the employee must give the employer new written notice at least four weeks before the
date the employee was originally going to return. However, unless the employer agrees, the
employee cannot schedule a new return date that would result in the employee taking a longer
leave than they are entitled to under the ESA.

When an employee decides not to return to work


Suppose an employee decides to resign before the end of their parental leave, or at the end of
the leave. The employee must give the employer at least four weeks’ written notice of the
resignation. This notice requirement does not apply if the employer constructively dismisses
the employee. (See “Termination of employment” chapter for information about constructive
dismissal).

Rights for employees taking pregnancy and parental leaves


Employees on pregnancy or parental leave have several rights.

The right to reinstatement

In most cases, an employee who takes a pregnancy or parental leave is entitled to:

the same job the employee had before the leave began;
or
a comparable job, if the employee's old job no longer exists.

In either case, the employee must be paid at least as much as they were earning before the
leave. Also, if the wages for the job went up while the employee was on leave, or would have
gone up if they hadn't been on leave, the employer must pay the higher wage when the
employee returns from leave.

If an employer has dismissed an employee for legitimate reasons that are totally unrelated to
the fact that the employee took a leave, the employer does not have to reinstate the employee.

The right to be free from penalty

Employers cannot penalize an employee in any way because the employee:

took a pregnancy or parental leave;


plans to take a pregnancy or parental leave;
is eligible to take a pregnancy or parental leave; or
will become eligible to take a pregnancy or parental leave.

The right to continue to participate in benefit plans

Employees on pregnancy or parental leave have a right to continue to take part in certain
benefit plans that their employer may offer. These include:

pension plans;
life insurance plans;
accidental death plans;
extended health plans; and
dental plans.

The employer must continue to pay its share of the premiums for any of these plans that were
offered before the leave, unless the employee tells the employer in writing that they will not
continue to pay their own share of the premiums.
In most cases, employees must continue to pay their share of the premiums in order to
continue to participate in these plans.

Employees who are on pregnancy or parental leave can also continue to participate in other
benefit plans if employees who are on other types of leave are able to continue to participate
in those plans.

In addition, a female employee may be entitled to disability benefits during that part of the
leave during which she would not have been able to work for health reasons related to her
pregnancy or childbirth.

The right to earn credits for length of employment, length of service and
seniority

Employees continue to earn credits toward length of employment, length of service, and
seniority during periods of leave.

Example: Length of service

Trina's employment contract states that she earns 1 paid vacation day for each month of active
service and that after five years (length) of service she will begin to earn 1½ paid vacation days
for each month of active service. She is on pregnancy and parental leave for her entire fifth
year of employment.

Because her leave will count towards "length of service" the year on leave will count to
complete her 5 years length of service and she will be then be entitled to earn 1½ paid
vacation days for each month of active service when she returns from her leave.

However, while she was on the leave she was not earning credit for active service and so
under her contract she was not earning paid vacation days during the leave itself. At the end of
the leave she would not have earned any paid vacation under contract but the employer would
be required to ensure that she received at least the minimum vacation entitlement for that
year (two weeks of vacation time off plus four per cent of any wages earned in that year).

Example: Seniority

Karen is a member of a union that has bargaining rights at her workplace. Under the collective
agreement, an employee's seniority determines such things as order of layoff and recall, job
promotions and annual vacation entitlements. Karen continues to accrue seniority for all
purposes during her pregnancy and parental leaves, just as if she had been actively employed.

Probation

The period of a leave is not included when determining whether an employee has completed a
probationary period. If an employee was on probation at the start of a leave, they must
complete the probationary period after returning to work.

Personal emergency leave


Watch a Ministry of Labour expert explain the new rules on personal emergency leave.

Most employees have the right to take up to 10 days of job-protected leave each calendar year
due to illness, injury, death and certain emergencies and urgent matters. This is known as
personal emergency leave (PEL). Special rules apply to some occupations.

Employees are entitled to up to 10 personal emergency leave days per year as soon as they
start working for an employer. The first two days of the leave in each calendar year are paid if
the employee has been employed for one week or longer. An employee who missed part of a
day to take the leave would be entitled to any wages they actually earned while working, in
addition to personal emergency leave pay for any leave taken.

Reasons a personal emergency leave may be taken


An employee who is entitled to personal emergency leave can take up to 10 days of leave each
calendar year due to:

personal illness, injury or medical emergency


or
death, illness, injury, medical emergency or urgent matter relating to the following family
members:
spouse (includes both married and unmarried couples, of the same or opposite
genders)
parent, step-parent, foster parent, child, step-child, foster child, grandparent, step-
grandparent, grandchild or step-grandchild of the employee or the employee's
spouse
spouse of the employee's child
brother or sister of the employee
relative of the employee who is dependent on the employee for care or assistance

Illness, injury or medical emergency


An employee can take personal emergency leave for illnesses, injuries and medical
emergencies for themselves or a specified family member listed above. It does not matter
whether the illness, injury or medical emergency was caused by the employee or by external
factors beyond their control. For example, an employee who sprained their knee while
showing off to friends when waterskiing would still be entitled to personal emergency leave,
even though the injury was a result of their own carelessness.

Generally, employees are entitled to take the leave for pre-planned (elective) surgery if it is for
an illness or injury, even though it is scheduled ahead of time and not a medical “emergency.”

Employees cannot take the leave for cosmetic surgery that isn’t medically necessary or is
unrelated to an illness or injury.

Urgent matter
An employee can also take personal emergency leave because of an “urgent matter”
concerning any of the family members listed above. An urgent matter is an event that is
unplanned or out of the employee’s control, and can cause serious negative consequences,
including emotional harm, if not responded to.

Examples of an “urgent matter”

The employee’s babysitter calls in sick.


The house of the employee’s elderly parent is broken into, and the parent is very upset
and needs the employee’s help to deal with the situation.
The employee has an appointment to meet with their child’s counsellor to discuss
behavioural problems at school. The appointment could not be scheduled outside the
employee’s working hours.

Examples of events that do not qualify as an urgent matter

An employee wants to leave work early to watch his daughter’s soccer game.
An employee wants the day off to attend her sister’s wedding as a bridesmaid.

Personal emergency leave and contracts that provide paid


sick or bereavement leave
If an employment contract, including a collective agreement, provides a greater right or
benefit than the personal emergency leave standard under the Employment Standards Act
(ESA), then the terms of the contract apply instead of the standard.

If the contract does not provide a greater right or benefit, then the personal emergency leave
standard in the ESA applies to the employee.

Example:

A contract only provides three paid personal sick days and three paid bereavement leave days
per year. It does not include job-protected time off for any other reason. This contract does not
provide a greater right or benefit than the personal emergency leave provisions. This means
that the employee is entitled to 10 days of job protected personal emergency leave per
calendar year.

There is nothing in the ESA that would prohibit an employer from subtracting any personal
emergency leave (PEL) days that are taken from the paid days under the contract. For example,
if the employee takes three days of PEL for personal illness in a calendar year, the ESA does
not prohibit the employer from counting those days against both the employment contract
entitlements and against the employee’s PEL entitlement. While this is not prohibited under
the ESA, an employment contract may address whether any PEL days count against any
contractual leave entitlements.

On the other hand, if an employer offers a benefit plan for sick days, bereavement days, or for
any other event that any leave under the ESA can be taken, and the employee chooses to claim
benefits under the plan, the employee has in effect designated the absence as a day of statutory
leave and it will reduce the employee’s ESA entitlement. For example, if an employer offers
three paid bereavement days under a benefits plan and the employee is absent three days
because of the death of a parent and claims benefits under the plan, the employee is
considered to have used three of their PEL days.

Interaction between personal emergency leave and other


leaves
PEL, family caregiver leave, family medical leave, domestic or sexual violence leave, critical
illness leave, child death leave and crime-related child disappearance leave are different types
of leaves. The purposes of the leaves, their length and eligibility criteria are different. See the
other chapters of this Guide for more information on each leave.

An employee may be entitled to more than one leave for the same event. Each leave is separate
and the right to each leave is independent of any right an employee may have to the other
leave(s). This means that a single absence can only count against one statutory leave, even if
the event that triggered it is a qualifying event under more than one leave.

Length of personal emergency leave


Employees are entitled to up to 10 full days of job protected personal emergency leave every
calendar year, whether they are employed on a full or part-time basis.

There is no pro-rating of the 10-day entitlement. An employee who begins work partway
through a calendar year is still entitled to 10 days of leave for the rest of that year.

Employees cannot carry over unused personal emergency leave days to the next calendar
year. The 10 days of leave do not have to be taken consecutively. Employees can take the leave
in part days, full days or in periods of more than one day. If an employee takes only part of a
day as personal emergency leave, the employer can count it as a full day of leave.

Example: Part-day personal emergency leave

Kevin’s daughter is sick, and her doctor has scheduled some tests at the hospital. Kevin tells his
employer that he has to be away from work in the morning to take his daughter for tests.

Kevin has the right to be on personal emergency leave for the half-day needed to take his
daughter for the tests. His employer does not have to count the absence as a full day of leave,
but can if they want. Kevin does not have the right to take the entire day off as leave – even if
his employer counted it as such – as he only needs half the day for the leave.

The employer is only allowed to count the half-day absence as a full day of leave when
determining if Kevin’s 10-day entitlement has been used up. The employer, for example, still
must pay Kevin for the half day that he worked, and has to include the hours worked to
determine whether he worked overtime, or reached his daily or weekly limit on hours of
work.

Eligibility for personal emergency leave pay


An employee who has been employed for at least a week with an employer is entitled to be
paid for the first two days of personal emergency leave taken in a calendar year.
A new employee employed for less than a week may take unpaid days of leave. However, the
first and second days of leave taken after that first week must be paid if they are taken in the
same calendar year.

Example:

Tessa starts a new job on Monday, August 1, but on her second day of work, her mother is
injured in a car accident. Tessa gives notice to her employer and takes Tuesday afternoon and
all day Wednesday off as personal emergency leave. She is not entitled to personal emergency
leave pay for those days.

On Monday, August 8, Tessa gets the flu and takes two days of personal emergency leave. She is
entitled to personal emergency leave pay for the two days of leave taken on August 8 and 9,
although they are not the first and second days of leave she has taken in the calendar year. She
has six days of leave left for the remainder of the calendar year.

Calculating personal emergency leave pay


There are different ways to calculate personal emergency leave (PEL) pay, depending on how
the employee is paid, and whether the employee took a full or part day of leave. Personal
emergency leave pay is only payable for the first two days of leave taken in a calendar year.

Example: Employees paid by an hourly rate

PEL pay is the hourly rate multiplied by the number of hours the employee did not work
because they took the leave.

Scenario 1: If the took leave for a full day

Jamie is paid $16.00/hour and missed a full day of work to take personal emergency
leave. He was scheduled to work nine hours.
PEL pay: $16.00 x 9 = $144.00

Scenario 2: If the employee took leave for part of the day

Oakley is paid $17.50/hour and missed the first 2.5 hours of his shift to take personal
emergency leave. He normally works eight hours in a day.
PEL pay: $17.50 x 2.5 = $43.75 (in addition to regular earnings for the hours he worked
during the rest of the day)

Example: Employees paid by salary

PEL pay is generally equal to salary continuance.

Scenario 1: If the employee took leave for a full day

PEL pay would be the employee’s salary divided by the number of days in a pay period.

Theresa is paid $1,500.00 per bi-weekly pay period and works five days a week.
PEL for one day: $1,500.00 ÷ 10 = $150.00.
Scenario 2: If the employee took leave for part of the day

PEL pay would be the employee’s hourly rate (salary divided by the number of hours the
employee normally works in a pay period) multiplied by number of hours taken as personal
emergency leave.

Theresa is paid $1,500.00 per bi-weekly pay period and works a 40-hour week. She takes
four hours of leave.
Hourly rate: $1,500.00 ÷ 80 = $18.75/hour.
Personal emergency leave: $18.75 x 4 = $75.00 (in addition to any regular wages earned
for the part of the day that she worked).

Example: Performance-related wages

The calculation of PEL pay for employees who are paid fully or partly based on performance
would use either the employee’s hourly rate (if any) or the applicable minimum wage –
whichever is greater.

Performance-related wages can include commission-only employees, employees who earn


commission plus an hourly wage, an employee paid by piecework, or a flat-rate mechanic.

Scenario 1: Employee earns an hourly rate plus commission

Athan earns $16.00/hour plus 2% commission on sales


Athan takes 6.5 hours of PEL
PEL pay: $16.00 x 6.5 = $104.00 (plus hourly wage for any hours worked + commission
earned while the employee worked, if any)

Scenario 2: Employee paid entirely by commission

Francesca earns 10% commission on all sales


Francesca is scheduled to work eight hours, makes sales of $5,000 and takes three hours
of personal emergency leave
PEL pay: applicable minimum wage rate x 3 (in addition to the $500.00 commission
earned while the employee worked)

Scenario 3: Employee is a homeworker paid by piecework

Yael earns $3.50 per phone call answered


Yael is scheduled to work 8.5 hours, works two hours, answers nine phone calls and takes
6.5 hours of personal emergency leave
PEL pay: applicable minimum wage x 6.5 (in addition to regular wages earned on the day
based on piecework, which is $3.50 x 9)

Scenario 4: Employee is a flat-rate mechanic

Matt is scheduled to work nine hours


Matt is paid a flat “book” rate of $16.00/hour for tune ups (calculated to take two hours to
complete)
Employee completes two tune ups in three hours and takes the rest of the shift as
personal emergency leave
PEL pay: applicable minimum wage x 6 (in addition to regular wages earned on the day)

Example: Employees scheduled to work overtime hours

If an employee is scheduled to work a shift that includes overtime hours, and they miss all or
part of the shift to take paid personal emergency leave, the employee will be entitled to the
regular hourly rate only for any leave taken, not the overtime rate.

Ramiro is paid $15.00/hour and was scheduled to work a Saturday shift of eight hours. He
had already worked 44 hours in the same week. He missed his entire shift to take paid
personal emergency leave.
PEL pay: $15.00 x 8 = $120.00

Example: Employees scheduled to work hours when a shift premium is paid

If an employee is scheduled to work a shift that would attract a shift premium, and they miss
all or part of the shift to take paid personal emergency leave, the employee will be entitled to
the regular hourly rate only for any leave taken, not the shift premium.

Minh is paid $16.00/hour and an additional $2.50/hour for working night shifts. She is
scheduled to work a night shift of nine hours and leaves after working two hours to take
paid personal emergency leave.
PEL pay: $16.00 x 7 = $112.00 (plus regular wages and shift premium of [$16.00 + $2.50] x
2 for the hours that she worked)

Example: Paid PEL is taken when an employee was scheduled to work on a


public holiday

In some situations, employees can either be required to work on a public holiday because of
the type of work that they do, or may agree to work on a public holiday.

Generally, the employee will be entitled to either:

regular wages for the hours worked on the public holiday, plus a substitute day off with
public holiday pay
or
“premium pay” which is 1.5 times their regular rate for all hours worked on the public
holiday, plus public holiday pay (and no substitute day off).

To receive this entitlement, the employee must work all the hours agreed to or required to on
the public holiday – unless they had reasonable cause not to – and follow the “first and last”
rule. That rule says that the employee must work all of the last scheduled shift before the
public holiday and the first one after the holiday or have reasonable cause for failing to do so.

If an employee misses work because of one of the reasons personal emergency leave may be
taken, this will also generally constitute “reasonable cause” for the purposes of public holiday
entitlements.

If an employee agrees, or is required, to work on a public holiday and misses some or all of the
shift to take paid personal emergency leave, PEL pay will not include the “premium pay” that
the employee would have earned had they not taken the leave.

Tabitha works in a restaurant and is required to work on Victoria Day. She is paid the
liquor server’s minimum wage.
She is scheduled to work 10 hours on the public holiday, and the employer has decided to
give her premium pay for all hours worked on that day, plus public holiday pay (but no
substitute day off).
Tabitha works six hours of the shift and takes the rest off as paid personal emergency
leave.
Entitlements:
Public holiday pay
Premium pay for hours worked (liquor server’s minimum wage x 1.5 x 6 hours).
Note: the employee is not entitled to premium pay for any leave taken.

Notice requirements
Generally, an employee must inform the employer before starting the leave that he or she will
be taking a personal emergency leave of absence.

If an employee has to begin the leave before notifying the employer, the employee must
inform the employer as soon as possible after starting it. Notice does not have to be given in
writing. Oral notice is sufficient.

While an employee is required to tell the employer in advance before starting a leave (or, if
this is not feasible, as soon as possible after starting the leave), the employee will not lose the
right to take the leave if they fail to do so.

Proof of entitlement
An employer may require an employee to provide evidence “reasonable in the circumstances”
that they are eligible for personal emergency leave. However, employers cannot require
employees to provide a medical note from a physician, registered nurse or psychologist (see
discussion below).

What will be reasonable in the circumstances will depend on all of the facts of the situation,
such as the duration of the leave, whether there is a pattern of absences, whether any evidence
is available and the cost of the evidence. For example, if an employee takes the leave because
of the death of a person included in the group of family members covered by personal
emergency leave, it would be reasonable for an employer to request a copy of an obituary or a
death certificate.

The prohibition in the ESA against requiring a note from a physician, registered nurse or
psychologist applies only with respect to providing evidence that the employee is entitled to
personal emergency leave. There may be some situations outside of the scope of personal
emergency leave where an employer may need medical documentation in order to, for
example, accommodate an employee, satisfy return to work obligations. The ESA does not
prohibit employers from requiring a note for these sorts of other purposes.

Medical notes because of personal illness, injury or


medical emergency or the illness, injury or medical
emergency of a specified relative
An employer cannot require an employee to provide a medical note from a qualified health
practitioner when the employee is taking the leave because of personal illness, injury or
medical emergency or the illness, injury or medical emergency of a specified relative.

A “qualified health practitioner” means a physician, a registered nurse or a psychologist


qualified to practice in Ontario or in another jurisdiction in which care or treatment is
provided to the employee or specified family member.

An employer can ask an employee for a note from other types of health practitioners, such as a
dentist, physiotherapist, Chinese medicine practitioner, naturopath or registered massage
therapist, if it is “reasonable in the circumstances.”

If it is reasonable in the circumstances for the employer to require the employee who took
leave for their own illness, injury or medical emergency to provide a note from an individual
who is not a physician, registered nurse or psychologist, the employer can ask only for the
following information:

the duration or expected duration of the absence


the date the employee was seen by a health care professional
whether the patient was examined in person by the health care professional issuing the
note

Employers cannot ask for information about the diagnosis or treatment of the employee’s
medical condition.

In addition to being prohibited from requiring the employee to provide a medical note with
respect to a leave taken because of the illness, injury or medical emergency of a relative, the
employer cannot require the employee to give details of the relative’s medical condition. The
employer may only require the employee to disclose the name of the relative, and their
relationship to the employee, and a statement that the absence was required because of the
relative’s injury, illness or medical emergency.

Rights during leave


Employees who take personal emergency leave are entitled to the same rights as employees
who take pregnancy or parental leave. For example, employers cannot threaten, fire or
penalize in any way an employee who takes or plans on taking a personal emergency leave.
See “Rights for employees taking pregnancy and parental leaves” in the “Pregnancy and
parental leave” chapter of this guide.

Special rules regarding personal emergency leave


Professional employees

Certain professionals may not take PEL where it would constitute an act of professional
misconduct or a dereliction of professional duty (e.g. health practitioners). For a list of
professions to which this special rule applies, please refer to the special rule tool.
Automobile manufacturing/parts warehousing/marshalling employees

Employees who work in automobile manufacturing, automobile parts manufacturing or


warehousing, or automobile marshalling have special rules for PEL. These rules apply whether
the workplace is unionized or not unionized. These employees are entitled to take up to seven
days of leave within a calendar year in relation to their own illness, injury or medical
emergency, or the illness, injury, medical emergency or urgent matter of a specified family
member. In addition, these employees may take up to three days of PEL because of the death of
a specified family member (per family member); there is no limit on the number of instances
the employee may qualify for bereavement leave of up to three days.

An employee will not be entitled to PEL pay (although they will still be entitled to take unpaid
leave) if the employee, as part of their employment contract, is entitled to receive two or more
paid days off work per year that are:

Vacation, in excess of what the employee already gets under the ESA
Holidays (including non-ESA public holidays like the August Civic holiday, or company
holidays), in excess of what the employee already gets under the ESA, or
For personal illness or for personal medical appointments.

Construction employees

If a construction employee receives at least 0.8% of their regular wages or hourly rate as
personal emergency pay on each pay cheque, the employee is not entitled to PEL pay.
However, they will still be entitled to take unpaid PEL.

Family caregiver leave


Family caregiver leave is unpaid, job-protected leave of up to eight weeks per calendar year
per specified family member.

Family caregiver leave may be taken to provide care or support to certain family members for
whom a qualified health practitioner has issued a certificate stating that they have a a serious
medical condition.

Family medical leave is another job-protected leave available under the Employment Standards
Act, 2000 (ESA) for employees with certain relatives who have a serious medical condition. One
of the main differences between family caregiver leave and family medical leave is that an
employee is only eligible for the latter if the family member who has a serious medical
condition has a significant risk of death occurring within a period of 26 weeks. Employees may
also be entitled to take critical illness leave to provide care or support to a minor child or adult
who is a family member, whose baseline state of health has changed significantly and whose
life is at risk from an illness or injury. Critical illness leave may be taken for up to 17 weeks to
care for an adult, and up to 37 weeks to care for a minor child.

Eligibility
All employees, whether full-time, part-time, permanent, or term contract, who are covered by
the ESA, may be entitled to family caregiver leave.
There is no requirement that an employee be employed for a particular length of time, or that
the employer employ a specific number of employees for the employee to qualify for family
caregiver leave.

Care or support includes, but is not limited to: providing psychological or emotional support;
arranging for care by a third-party provider; or directly providing or participating in the care
of the family member.

The specified family members for whom a family caregiver leave may be taken are:

the employee’s spouse (including same-sex spouse)


a parent, step-parent or foster parent of the employee or the employee’s spouse
a child, step-child or foster child of the employee or the employee’s spouse
a grandparent or step-grandparent of the employee or the employee’s spouse
a grandchild or step-grandchild of the employee or the employee’s spouse
a spouse of a child of the employee
a brother or sister of the employee
a relative of the employee who is dependent on the employee for care or assistance.

The specified family members do not have to live in Ontario for the employee to be eligible for
family caregiver leave.

Qualified health practitioner


For family caregiver leave purposes, a qualified health practitioner is a person who is qualified
to practice as a physician, registered nurse or psychologist under the laws of the jurisdiction in
which care or treatment is being provided. In Ontario, this includes psychiatrists and nurse
practitioners.

Different types of health practitioners may be able to issue certificates in different


jurisdictions; it will depend on the laws of the jurisdiction.

The medical certificate


The employee does not have to have the medical certificate before they can start the leave, but
a certificate must eventually be obtained. If a certificate is never issued, the employee will not
be entitled to the leave. This means that the employee would not be entitled to any of the
protections afforded to employees on family caregiver leave.

The certificate from the qualified health practitioner must name the individual and state that
the individual has a serious medical condition. There is no requirement that the note specify
what the medical condition is; it need only state that it is “serious.” This can include conditions
that are chronic or episodic.

If a medical certificate sets out a period during which the individual will have a serious
medical condition, the certificate will support absences as family caregiver leave during that
period. If no period is set out, the certificate will support absences as family caregiver leave
from the date it is issued until the end of the calendar year in which it is issued.

An employer is entitled to ask an employee for a copy of the certificate to provide proof that
they are eligible for a family caregiver leave. The employee is required to provide the copy as
soon as possible after the request.

The employee may wish to provide the health practitioner with a copy of the “Medical
certificate to support entitlement to family caregiver leave, family medical leave, and/or
critical illness leave” form to fill out. The health practitioner is not required to use this
particular form; any certificate stating that the patient has a serious medical condition can be
used.

The employee is responsible for obtaining and paying the costs (if any) of obtaining the
certificate. The Ministry of Labour cannot assist the employee in obtaining the certificate.

Interaction among different leaves


Family caregiver, personal emergency, declared emergency family medical, critical illness,
domestic or sexual violence, child death, and crime-related child disappearance are different
types of leaves. The purposes of the leaves, their length, the individuals with respect to whom
they can be taken and the eligibility criteria vary.

See the respective chapters of this guide for more information on each leave.

An employee may be entitled to more than one leave for the same event. Each leave is separate
and the right to each leave is independent of any right an employee may have to the other
leave(s).

Length of family caregiver leave


A family caregiver leave can last up to eight weeks per calendar year for each specified family
member. A “week” is defined as running from Sunday to Saturday.

The eight weeks can be taken consecutively or separately.

The employee may take leave for periods less than a full week (for example, single days, at the
beginning, middle or end of a week), but if they do, they are considered to have used up one
week of their eight-week entitlement. If the employee is on leave for two or more periods
within the same week (for example, on leave on Monday and Thursday of the same week),
only one week of the eight-week entitlement is used up.

The employee is entitled to be on leave only when the employee is providing care or support to
a specified family member.

The employer cannot require the employee to take an entire week of leave if the employee
only wants to take leave for a single day(s), cannot prevent the employee from working prior
to taking a single day(s) of leave during a week, and cannot prevent the employee from
returning to work after a single day(s) of leave during the week.

Notice requirements
An employee must inform the employer in writing that they will be taking a family caregiver
leave of absence.
If an employee has to begin a family caregiver leave before notifying the employer, they must
inform the employer in writing as soon as possible after starting the leave.

If the employee does not take the eight-week leave all at once, the employee is required to
provide notice to the employer with respect to each part of the leave.

Example

Bella is going to take leave on eight consecutive Wednesdays. Bella is required to provide
written notice to her employer of all eight days. She can do this by providing a single written
notice that sets out all of the dates of leave, or she can provide separate notices.

While an employee is required to tell the employer in advance that they are taking a leave (or,
if this is not possible, as soon as possible after starting the leave), the employee will not lose
the right to take family caregiver leave if the employee fails to do so.

An employer may discipline an employee who does not properly inform the employer, but
only if the reason for the discipline is the failure to properly notify the employer and not in
ANY way because the employee took the leave.

Rights during and at the end of a family caregiver leave


Employers do not have to pay wages when an employee is on family caregiver leave.

Employees who take family caregiver leave are entitled to the same rights as employees who
take pregnancy or parental leave. For example, an employer cannot threaten, fire or penalize
in any other way an employee for taking, planning on taking, being eligible or being in a
position to become eligible to take a family caregiver leave. See “Rights during pregnancy and
parental leaves.”

Family medical leave


Family medical leave is unpaid, job-protected leave of up to 28 weeks in a 52-week period.

Family medical leave may be taken to provide care or support to certain family members and
people who consider the employee to be like a family member in respect of whom a qualified
health practitioner has issued a certificate indicating that they have a serious medical
condition with a significant risk of death occurring within a period of 26 weeks. Family
caregiver leave is another job-protected leave available under the Employment Standards Act,
2000 (ESA) for employees with certain relatives who have a serious medical condition. One of
the main differences between family medical leave and family caregiver leave is that an
employee may be eligible for family caregiver leave even if the family member who has a
serious medical condition does not have a significant risk of death occurring within a period of
26 weeks. Employees may also be entitled to take critical illness leave to provide care or
support to a minor child or adult who is a family member, whose baseline state of health has
changed significantly and whose life is at risk from an illness or injury. Critical illness leave
may be taken for up to 17 weeks to care for an adult, and up to 37 weeks to care for a minor
child.

Eligibility
All employees, whether full-time, part-time, permanent, or term contract, who are covered by
the ESA are entitled to family medical leave.

There is no requirement that an employee be employed for a particular length of time, or that
the employer employ a specified number of employees in order for the employee to qualify for
family medical leave.

Care or support includes, but is not limited to: providing psychological or emotional
support; arranging for care by a third party provider; or directly providing or participating in
the care of the family member.

The specified family members for whom a family medical leave may be taken are:

the employee's spouse (including same-sex spouse)


a parent, step-parent or foster parent of the employee or the employee's spouse
a child, step-child or foster child of the employee or the employee's spouse
a brother, step-brother, sister, or step-sister of the employee
a grandparent or step-grandparent of the employee or of the employee's spouse
a grandchild or step-grandchild of the employee or of the employee's spouse
a brother-in-law, step-brother-in-law, sister-in-law or step-sister-in-law of the employee
a son-in-law or daughter-in-law of the employee or of the employee's spouse
an uncle or aunt of the employee or of the employee's spouse
a nephew or niece of the employee or of the employee's spouse
the spouse of the employee's grandchild, uncle, aunt, nephew or niece
family medical leave may also be taken for a person who considers the employee to be
like a family member. Employees wishing to take a family medical leave for a person in
this category must provide their employer, if requested, with a completed copy of the
compassionate care benefits attestation form, available from Employment and Social
Development Canada, whether or not they are making an application for EI
Compassionate Care Benefits or are required to complete the form to obtain such
benefits.

The specified family members do not have to live in Ontario in order for the employee to be
eligible for family medical leave.

Employment insurance benefits


Under the federal Employment Insurance Act, 26 weeks of employment insurance benefits
(called "compassionate care benefits") may be paid to EI eligible employees who have to be
away from work temporarily to provide care to a family member who has a serious medical
condition with a significant risk of death within 26 weeks and who requires care or support
from one or more family members. For information about EI visit Service Canada’s website, or
contact Service Canada’s Employment Insurance Automated Telephone Information Service at
1-800-206-7218.

The right to take time off work under the family medical leave provisions of the ESA is not
the same as the right to the payment of compassionate care benefits under the federal
Employment Insurance Act. An employee may be entitled to family medical leave whether
or not they have applied for or is qualified for the compassionate care benefits.
Interaction between family medical and personal
emergency, family caregiver, critical illness, domestic or
sexual violence, child death, and crime-related child
disappearance leave
Family medical , personal emergency , declared emergency, family caregiver , critical illness,
domestic or sexual violence, child death, and crime-related child disappearance are different
types of leaves. For example, the purposes of the leaves, their length, the individuals with
respect to whom they can be taken, and eligibility criteria are different.

See the respective chapters of this Guide for more information on each leave.

An employee may be entitled to more than one leave for the same event. Each leave is separate
and the right to each leave is independent of any right an employee may have to the other
leave(s).

Length of family medical leave


A family medical leave can last up to 28 weeks within a specified 52-week period.

"Week" is defined for family medical leave purposes as a period of seven consecutive days
beginning on a Sunday and ending on a Saturday.

The 52-week period starts on the first day of the week in which the 26-week period specified in
the medical certificate begins.

Example

A certificate stating that a family member of the employee has a serious medical
condition with a significant risk of death within 26 weeks, starting Tuesday, January 3.
The certificate is issued on Friday, January 6.
The 52-week period within which family medical leave must be taken starts on the first
day of the week of the 26-week period: Sunday, January 1. The 52-week period runs from
January 1 to December 31.
The employee can take up to 28 weeks of leave between January 1 and December 31.

The 28 weeks of a family medical leave do not have to be taken consecutively. An employee
may therefore take a single week of leave at a time. However, if an employee only takes part of
a week off work as family medical leave, it is still counted as a full week of leave.

That is because "week" is defined for family medical leave purposes as a period of seven
consecutive days beginning on a Sunday and ending on a Saturday. Week is defined in this way
to correspond with the beginning and end of the week set for EI entitlement purposes.

Where an employee provides care or support for only part


of a week
Employees will not always need or want to take an entire week off to provide care or support
to the individual.

In any week (which is defined as running from Sunday to Saturday), an employee’s right to
take family medical leave only begins on the first day the employee is providing care or
support.

If the employee stops providing care or support before the end of that week, the employee is
entitled to be on leave until the end of the week, and they can return to work only if the
employer agrees. (The agreement does not have to be in writing.)

Even if an employee only takes part of a week off work as family medical leave, it is still
counted as one week of the eight-week entitlement.

Note: Prior to the amendments to the ESA that came into force on October 29, 2014, employees
had the right to be on family medical leave only on days on which they provided care or
support, and employers could not prevent an employee from returning to work during a week
in which leave was taken.

Example

Felicia works weekdays. She provides care or support to her dying mother on Wednesday and
takes family medical leave to do it. The first day of the week that she is entitled to be on family
medical leave is Wednesday. She is also entitled to be on family medical leave on Thursday and
Friday even though she is not providing care or support on those days. She is able to return to
work on Thursday and Friday only if she wants to and her employer agrees to let her. Felicia is
considered to have used up one of her 28 weeks of family medical leave even though she was
on leave for only part of the week.

Sharing family medical leave


The 28 weeks of family medical leave must be shared by all employees in Ontario who take a
family medical leave under the ESA to provide care or support to a specified family member.
For example, if one spouse took 18 weeks of family medical leave to care for their dying father,
the other spouse would be able to take only 10 weeks of family medical leave. The spouses
could take leave at the same time, or at different times.

Taking more than 28 weeks of family medical leave


If an employee qualifies for family medical leave, the employee may take up to 28 weeks
within the 52-week period running from the beginning of the 26-week period stated in the
certificate. If the family member does not pass away by the point that the 26-week period ends,
the employee can remain on leave until all 28 weeks have been used up, and another medical
certificate does not have to be issued with the 52-week period set by the certificate.

Example

On Sunday, January 1, a qualified health practitioner issues a certificate stating that Jean’s
mother has a serious medical condition with a significant risk of death within a period of 26
weeks. Jean takes 26 weeks of leave (ending July 1). Jean’s mother is still alive on July 1: Jean
can take a further two weeks of leave before December 31 and will not have to get a second
medical certificate to be entitled to take the full 28 weeks of leave.

If an employee has taken a family medical leave to care for a family member who has not
passed away within the 52-week period starting on the first day of the week in the 26-week
period specified in the medical certificate, and a health practitioner issues another certificate
stating that the family member has a serious medical condition with a significant risk of death
within 26 weeks, the employee would be entitled to an additional 28-weeks of family medical
leave.

Example

On Sunday, January 1, a qualified health practitioner issues a certificate stating that Jean’s
mother has a serious medical condition with a significant risk of death within a period of 26
weeks. The 52-week period during which family medical leave must be taken runs from
January 1 to December 31. Jean takes 28 weeks of leave (ending July 15). Jean’s mother is still
alive on January 1 of the following year: Jean can take a further 28 weeks of leave if another
certificate is issued on January 1 or later.

As long as a health practitioner continues to issue additional certificates, an employee will be


entitled to additional leaves with respect to the same family member.

Whether or not this employee would be eligible for any or further EI benefits would be a
matter to be determined by the federal Employment Insurance Commission.

Family medical leave for additional family members


If an employee has more than one specified family member who has a serious illness with a
significant risk of death within a period of 26 weeks, the employee will be entitled to an 28 -
week family medical leave for each of the specified family members.

Timing of family medical leave


If a qualified health practitioner issues a certificate stating that a specified family member has
a serious medical condition and there is significant risk of death occurring within a period of
26 weeks, an employee must take the family medical leave within the 52-week period starting
on the first day of the week the 26-week period begins.

Where two or more certificates are obtained by two or more employees wishing to take leave
with respect to the same family member, the 52-week period within which the family medical
leave must be taken is determined by whichever certificate was issued first.

Earliest date a family medical leave can begin


The earliest an employee may start the leave is the first day of the week in which the 26-week
period identified on the medical certificate begins.

"Week" is defined for the purposes of family medical leave as a period of seven consecutive
days, beginning on a Sunday and ending on a Saturday. If the date indicated on the certificate
is a day other than a Sunday, the 26 week period will run from the preceding Sunday. Likewise,
regardless of what day of the week the employee actually begins the leave, the week of family
medical leave would be considered to have begun on the preceding Sunday.

Example

On Wednesday, June 13, a qualified health practitioner issues a certificate stating that
Mohammed's spouse has a serious medical condition with a significant risk of death within a
period of 26 weeks. Because a week is defined as a period of 7 consecutive days beginning on
Sunday and ending on Saturday under the family medical leave provisions, the 26-week period
is considered to begin Sunday June 10. Assuming Mohammed wished to commence the leave
on the day the certificate was issued, the first week of the leave would be considered to have
begun on Sunday June 10.

Last date of a family medical leave


There are three important periods of time relating to family medical leave:

the 26-week period specified in the medical certificate within which the family member
has a significant risk of death
the 52-week period that starts on the first day of the week in which the 26-week period
specified in the medical certificate begins.
the 28 weeks of family medical leave.

The latest day an employee can remain on leave is:

the last day of the week in which the family member dies,
the last day of the week in which the 52-week period expires
the last day of the 28 weeks of family medical leave,

whichever is earlier.

Based on the definition of “week” for family medical leave, the last day an employee can be on
leave will always be a Saturday.

Medical certificate
The employee does not have to have the medical certificate before they can start the leave, but
a certificate must eventually be obtained. If a certificate is never issued, the employee will not
be entitled to the leave. This means that the employee would not be entitled to any of the
protections afforded to employees on family medical leave.

An employer is entitled to ask an employee for a copy of the certificate of the qualified health
practitioner to provide proof that they are eligible for a family medical leave. The employee is
required to provide the copy as soon as possible after the employer requests it. The certificate
must name the family member and state that the family member has a serious medical
condition with a significant risk of death occurring within a specified 26-week period. There is
no requirement that the notice specify what the medical condition is; it need only state that it
is serious and that there is a significant risk of death occurring within a 26-week period.

The employee may wish to use the Ministry’s “Medical certificate to support entitlement to
family caregiver leave, family medical leave, and/or critical illness leave” form when obtaining
the medical certificate. It is available on the ministry’s website on the employment standards
forms page.

The employee is responsible for obtaining and paying the costs (if any) of obtaining the
certificate. The Ministry of Labour cannot assist the employee in obtaining the certificate.

If an employee is applying for Employment Insurance (EI) compassionate care benefits, a copy
of the medical certificate submitted to Employment and Social Development Canada may also
be used for the purposes of supporting an entitlement to family medical leave.

Qualified health practitioner


For the purposes of family medical leave, a qualified health practitioner is a person who is
qualified to practice medicine under the laws of the jurisdiction in which care or treatment of
the family member is being provided. A qualified health practitioner can also be a nurse
practitioner (a holder of an extended certificate of registration under the Nursing Act, 1991).

In Ontario, only a medical doctor or a nurse practitioner can issue a certificate. Different types
of health practitioners with equivalent qualifications may be able to issue certificates in
different jurisdictions - it will depend on the laws of that jurisdiction.

Notice requirements
An employee must inform the employer in writing that they will be taking a family medical
leave of absence.

If an employee has to begin a family medical leave before notifying the employer, they must
inform the employer in writing as soon as possible after starting the leave.

If the employee does not take the 28-week leave all at once, the employee is required to
provide notice to the employer each time the employee begins a new part of the leave.

For example

Boris is going to take 14 weeks of leave from January 30 to May 6, and another 14 weeks from
August 28 to December 2. Boris is required to provide written notice to his employer of both
periods of leave. He can do this by providing a single written notice that sets out the start dates
of both periods of leave, or he can provide two separate notices, at the same or different times.

An employee who does not give notice does not lose their right to a family medical leave.

While an employee is required to tell the employer in advance that they are taking a leave (or,
if this is not possible, as soon as possible after starting the leave), the employee will not lose
the right to take family medical leave if the employee fails to do so. An employer may
discipline an employee who does not properly inform the employer, but only if the reason for
the discipline is the failure to properly notify the employer and not in any way because the
employee took the leave.

Rights during and at the end of a family medical leave


Employers do not have to pay wages when an employee is on family medical leave.

Employees who take family medical leave are entitled to the same rights as employees who
take pregnancy or parental leave. For example, An employer cannot threaten, fire or penalize
in any other way an employee for taking, planning on taking, being eligible or being in a
position to become eligible to take a family medical leave. See "Rights during pregnancy and
parental leaves."

Critical illness leave


Critical illness leave is unpaid job-protected leave of absence of up to 37 weeks in relation to a
critically ill minor child, or 17 weeks in relation to a critically ill adult within a 52-week period.

Eligibility
Critical illness leave may be taken to provide care or support to a critically ill minor child or
adult who is a family member of the employee for whom a qualified health practitioner has
issued a certificate stating:

1. that the minor child is a critically ill minor child, or the adult is a critically ill adult who
requires the care or support of one or more family members, and
2. sets out the period during which the minor child or adult requires the care or support.

A “minor child” means a child, step-child, foster child or child who is under legal guardianship,
and who is under 18 years of age.

An “adult” means a person who is 18 years of age or older.

“Critically ill” means that a person’s baseline state of health has significantly changed and their
life is at risk as a result of an illness or injury. It does not include chronic conditions.

A “family member” means:

the employee’s spouse (including same-sex spouse)


a parent, step-parent or foster parent of the employee or the employee’s spouse
a child, step-child or foster child of the employee or the employee’s spouse
a brother, step-brother, sister, or step-sister of the employee
a grandparent or step-grandparent of the employee or of the employee’s spouse
a grandchild or step-grandchild of the employee or of the employee’s spouse
a brother-in-law, step-brother-in-law, sister-in-law or step-sister-in-law of the employee
a son-in-law or daughter-in-law of the employee or of the employee’s spouse
an uncle or aunt of the employee or of the employee’s spouse
a nephew or niece of the employee or of the employee’s spouse
the spouse of the employee’s grandchild, uncle, aunt, nephew or niece
critical illness leave may also be taken for a person who considers the employee to be like
a family member. Employees wishing to take a critical illness leave for a person in this
category must provide their employer, if requested, with a completed copy of the
compassionate care benefits attestation form, available from Employment and Social
Development Canada, whether or not they are making an application for EI
Compassionate Care Benefits or are required to complete the form to obtain such
benefits.
The specified family members do not have to live in Ontario in order for the employee to be
eligible for critical illness leave.

An employee can take critical illness leave to care to a minor child who is their own child, or a
minor child who is a family member from the list above (for example, a nephew, niece or
grandchild).

The specified family members do not have to live in Ontario in order for the employee to be
eligible for critical illness leave.

An employee can take critical illness leave to care to a minor child who is their own child, or a
minor child who is a family member from the list above (for example, a nephew, niece or
grandchild).

All employees who have been employed by their employer for at least six consecutive months
and who are covered by the Employment Standards Act, 2000 (ESA) may be entitled to critical
illness leave, whether they are full-time, part-time, permanent or term contract.

Qualified health practitioner


For critical illness leave purposes, a qualified health practitioner is a person who is qualified to
practice as a physician, registered nurse, or psychologist under the laws of the jurisdiction in
which care or treatment is being provided. In Ontario, this includes psychiatrists and nurse
practitioners.

Different types of health practitioners may be able to issue certificates in different


jurisdictions; it will depend on the laws of that jurisdiction.

The medical certificate


The employee does not have to have the medical certificate before they can start the leave, but
a certificate must eventually be obtained. If a certificate is never issued, the employee will not
be entitled to the leave. This means that the employee would not be entitled to any of the
protections afforded to employees on critical illness leave.

The certificate must:

name the minor child or adult


state that the minor child or adult is critically ill or has been critically injured (there is no
requirement that the certificate specify what illness or injury the person has; it need only
state that the person is critically ill or critically injured)
state that the minor child or adult requires the care or support of at least one family
member, and
set out the period during which the minor child or adult requires the care or support.

An employer is entitled to ask an employee for a copy of the certificate of the qualified health
practitioner to provide proof that they are eligible for a critical illness leave. The employee is
required to provide the copy as soon as possible after the employer requests it.

The employee may wish to provide the health practitioner with the “Medical certificate to
support entitlement to family caregiver leave, family medical leave, and/or critical illness
leave” form for him or her to fill out. It is available on the ministry’s website on the
employment standards forms page. There is no requirement that the health practitioner use
this particular form. Any certificate that states that a minor child is a critically ill or injured
minor child or that an adult is a critically ill adult needing the care or support of one or more
family members, and indicating the period during which the care or support will be required
can be used.

The employee is responsible for obtaining and paying the costs (if any) of obtaining the
certificate. The Ministry of Labour cannot assist the employee in obtaining the certificate.

If an employee is applying for Employment Insurance (EI) benefits for caregivers of critically
ill minor children or adults who are family members, a copy of the medical certificate
submitted to Employment and Social Development Canada may also be used for the purposes
of supporting an entitlement to critical illness leave.

Employment Insurance benefits


Family members who take leave from work to provide care or support to a critically ill child
may be eligible to receive Employment Insurance (EI) special benefits for caregivers of
critically ill minor children who are family members for up to 35 weeks. There is a similar
benefit for family members who take leave from work to care to critically ill adults for up to 15
weeks. For information about EI, visit Service Canada’s website, or contact Service Canada’s
Employment Insurance Automated Telephone Information Service at 1-800-206-7218.

The right to take time off work under the critical illness leave provisions of the ESA is not the
same as the right to the payment of EI benefits under the federal Employment Insurance Act.
An employee may be entitled to a critical illness leave whether or not they have applied for, or
qualified for, the new EI benefits for caregivers of critically ill minor children or adults who
are family members.

Interaction among different leaves


Critical illness, personal emergency, declared emergency, family caregiver, family medical,
domestic or sexual violence, child death and crime-related child disappearance are different
types of leaves. The purposes of the leaves, their length, the individuals with respect to whom
they can be taken, and eligibility criteria vary

See the respective chapters of this guide for more information on each leave.

An employee may be entitled to more than one leave for the same event. Each leave is separate
and the right to each leave is independent of any right an employee may have to the other
leave(s).

Length and timing of critical illness leave


A critical illness leave taken to care for a minor child can last up to 37 weeks within a 52 week
period. A critical illness leave taken to care for an adult can last up to 17 weeks.

If a medical certificate issued by a qualified health practitioner sets out a period during which
the person requires care or support of a family member that is less than 37 weeks (in the
case of a critically ill minor child) or less than 17 weeks (in the case of a critically ill adult),
the employee is entitled to take a leave only for the period set out in the certificate.

If the certificate states that a minor child or adult is critically ill and requires the care or
support of one or more family members for a period of 52 weeks or longer, the 37 or 17 weeks
of leave may end no later than the last day of the 52-week period that begins on the first day of
the week in which that minor child or adult became critically ill. (The employee may, however,
be entitled to an “additional” leave at the end of the 52-week period – see the heading
“Additional leaves” later in this chapter.)

A “week” is defined as running from Sunday to Saturday.

The weeks in which critical illness leave is taken can be consecutive, or they can be separated.

The employee may take leave for periods less than a full week (for example, single days, at the
beginning, middle or end of a week) but if they do, they are considered to have used up one
week of their entitlement. If the employee is on leave for two or more periods within the same
week (for example, on leave on Monday and Thursday of the same week) only one week of the
entitlement is used up.

The employee is entitled to be on leave only when the employee is providing care or support to
the critically ill minor child or adult.

The employer cannot require the employee to take an entire week of leave if the employee
only wants to take leave for a single day(s), cannot prevent the employee from working prior
to taking a single day(s) of leave during a week, and cannot prevent the employee from
returning to work after a single day(s) of leave during the week.

Death of a minor child or adult


If a critically ill minor child or adult dies while an employee is on a critical illness leave, the
employee’s entitlement to be on leave ends at the end of the week (which is defined as being a
Saturday) in which the person dies.

Sharing critical illness leave


The total amount of critical illness leave that may be taken under the ESA by one or more
employees in respect of the same minor child who is critically ill is 37 weeks. For a critically ill
adult, the same rule applies but the total amount of leave that may be taken is 17 weeks.

For example, a critically ill minor child requires the care or support of a family member for 40
weeks. If one family member took critical illness leave pursuant to the ESA for 35 weeks, the
other family member can only take critical illness leave pursuant to the ESA for 2 weeks. The
family members could take the leave at the same time or at different times.

Further leave
A qualified health practitioner might underestimate the period of time a minor child or adult
will require the care or support of a family member. If the practitioner estimated the period to
be less than 52 weeks but the minor child or adult is still critically ill at the end of the period
set out in the certificate, a second medical certificate can be issued to allow an employee to
extend their leave.

Example

Mark’s minor child Jason became critically ill on January 1. The certificate issued on January 1
stated that Jason requires the care or support of a family member for four weeks (until
January 28).  Jason is still critically ill on January 28. Another certificate is issued on January
29, stating that Jason will require care or support of a family member for another three weeks
(until February 18). Mark is entitled to four weeks of leave during the period January 1 to
January 28 and to a “further” leave of three weeks during the period January 29 to February 1,
for a total of seven weeks of leave.

Note, however, that the original leave and the extension(s) cannot be longer than 37 weeks in a
52-week period.

Example

Gail’s minor child Maggie became critically ill on January 1. The certificate issued on January 1
stated that Maggie requires the care or support of a family member for 30 weeks (until July
29). Maggie was still critically ill on July 29. Another certificate was issued on July 30 stating
that Maggie will require care or support for another ten weeks (until October 6).  Although Gail
was entitled to take leave during the 30-week period from January 1 to July 29, and to take a
“further” leave during the 10-week period from July 10 to October 6, the total amount of leave
she is entitled to is 37 weeks during the 52-week period that began on January 1.

Example

Deljeet’s adult brother Balbir became critically ill on January 1. The certificate issued on
January 1 stated that Balbir requires the care or support of a family member for 10 weeks
(until March 11). Balbir is still critically ill on March 11. Another certificate was issued on
March 12 stating that Balbir will require care or support for another 10 weeks (until May 20).
Deljeet can take a further leave during the 10-week period between March 12 and May 20, but
she can take no more than seven further weeks and her leave will end on April 29. The total
amount of leave Deljeet is entitled to is 17 weeks within the 52-week period running from
January 1, the date of the first certificate. She may be eligible for an additional leave after that
period is over: see “additional leaves”, below.

Minor child turns 18 while employee is on critical illness


leave
Employees do not lose eligibility for critical illness leave if their child turns 18 after starting
the leave. If a child turns 18 after a 37 week leave has already been started, the employee
would be able to complete the leave and apply for further leave if necessary. However, in
order to take additional critical illness leave for a critically ill adult (up to 17 weeks), the
employee would need to wait until the end of the 52-week period related to the last 37 week
leave taken in relation for a minor child.

Example
Tina’s minor child Cathy became critically ill on January 1, 2017. The certificate issued on
January 1 stated that Cathy requires the care or support of a family member until July 1 (26
weeks). Cathy turns 18 on March 1, and is still critically ill on July 1. A second certificate is
issued on June 2, stating that Cathy requires care until October 7 (a further 14 weeks). Tina can
stay on leave for a total of 37 weeks, so the leave will end on September 16 (after 37 weeks). If
Cathy remains critically ill, then Tina can start a new 17 week leave no earlier than January 1,
2018 if a certificate is issued.

Additional leaves
If a minor child or adult remains critically ill after the 52-week period has expired, the
employee is entitled to take another leave if the requirements for eligibility are met.

Example

A qualified health practitioner issued a certificate on January 1 2017, stating that Frank’s
minor child Rooney is critically ill and requires the care or support of a family member for 52
weeks. Frank is entitled to up to 37 weeks of critical illness leave during that 52-week period.
Rooney remains critically ill on December 31. Another certificate is issued on January 12018,
stating that Rooney remains critically ill and requires the care or support of a family member
for another 40 weeks. Frank is entitled to a new, “additional” leave of 37 weeks in the 52-week
period starting January 1, 2018.

Notice requirements: advance notice and written plan


An employee who intends to take critical illness leave must inform the employer in writing
that they will be taking such leave and provide the employer with a written plan that indicates
the weeks in which they will take the leave.

If an employee has to begin a critical illness leave before notifying the employer, they must
inform the employer in writing and provide a written plan as soon as possible after starting
the leave.

Change in employee’s plan

An employee may take a leave at a time other than that indicated in their original plan
provided to their employer so long as the new dates fall within the dates the ESA allows, and:

1. the employee requests permission from the employer to do so in writing and the
employer grants permission in writing; or
2. the employee provides the employer with reasonable advance notice of the change in
writing.

There is no limit on the number of times the employee can change their plan, so long as the
requirements described above are met each time.

Rights during and at the end of a critical illness leave


Employers do not have to pay wages when an employee is on critical illness leave.
Employees who take critical illness leave are entitled to the same rights as employees who take
pregnancy or parental leave. For example, an employer cannot threaten, fire or penalize in
any other way an employee for taking, planning on taking, being eligible or being in a position
to become eligible to take a critical illness leave. See “Rights during pregnancy and parental
leaves.”

Organ donor leave


Organ donor leave is unpaid, job-protected leave of up to 13 weeks, for the purpose of
undergoing surgery to donate all or part of certain organs to a person. In some cases, organ
donor leave can be extended for up to an additional 13 weeks.

Qualifying for organ donor leave


An employee is entitled to organ donor leave whether they are a full-time, part-time,
permanent, or term contract employee.

To qualify for organ donor leave, the employee must:

Be covered by the ESA;


Have been employed by their employer for at least 13 weeks;
Undergo surgery to donate all or part of one of the following organs to another person:
Kidney
Liver
Lung
Pancreas
Small bowel

When an organ donor leave can begin


Generally, organ donor leave begins on the date of the surgery. It may begin on an earlier date,
as specified in a certificate issued by a legally qualified medical practitioner.

Length of an organ donor leave


The employee may take leave for up to 13 weeks. The employee may extend the leave if a
legally qualified medical practitioner issues a certificate stating that the employee is not yet
able to perform the duties of their position because of the organ donation, and will not be able
to do so for a specified period of time. The employee is entitled to extend the leave for the
specified period of time.

The leave may be extended more than once, but the total period of extension must not be more
than 13 weeks. Therefore, where the leave is extended, the maximum amount of time allowed
for organ donor leave is 26 weeks in total.  Employees may also have the right to personal
emergency leave. 

Example
Gabriel began an organ donor leave on September 1, the day that he had surgery to donate
part of his liver to his daughter.  Upon the employer’s request, he provided a medical
certificate from his doctor in advance of the surgery.  After 13 weeks of organ donor leave,
Gabriel was planning to return to work, but he had complications from the surgery that has
hampered his recovery.  His doctor recommended extending Gabriel’s organ donor leave for
another six weeks. Gabriel provided his employer with a medical certificate from his doctor
stating this and extended his leave for an additional period of six weeks.

Notice requirements
An employee who wishes to take organ donor leave must provide the employer with at least
two weeks’ written notice both before beginning or extending the leave, if possible. If this is
not possible, the employee must provide written notice as soon as possible after beginning or
extending the leave. However, if the employee does not provide notice to begin the leave,
provided the employee meets the requisite criteria, the employee still has the right to take the
leave.

The employee may end the leave early by giving the employer at least two weeks’ advance
written notice.

Medical certificate
The employer may ask the employee to provide a medical certificate for the following reasons:

Confirming that the employee has undergone or will undergo surgery to donate an organ;
When the employee is to begin the leave if it is before the day of the organ donation
surgery; and/or
To extend a leave for a period of time because the employee is not yet able to perform the
duties of their position.

The employee must provide the certificate to the employer as soon as possible after the
employer’s request.

Rights during leave


Employees who take organ donor leave are entitled to the same rights as employees who take
pregnancy or parental leave. For example, employers cannot threaten, fire or penalize in any
way an employee who takes or plans on taking an organ donor leave. See “Rights during
pregnancy and parental leaves.”

The employee’s entitlement to organ donor leave is in addition to any personal emergency
leave entitlement the employee may have.

Reservist leave
Employees who are reservists and who are deployed to an international operation or to an
operation within Canada that is or will be providing assistance in dealing with an emergency
or its aftermath (including search and rescue operations, recovery from national disasters
such as flood relief, military aid following ice storms, and aircraft crash recovery) are entitled
under the ESA to unpaid leave for the time necessary to engage in that operation. In the case of
an operation outside Canada, the leave would include pre-deployment and post-deployment
activities that are required by the Canadian Forces in connection with that operation.

In order to be eligible for reservist leave, you must have worked for your employer for at least
six consecutive months. Generally, reservists must provide their employer with reasonable
written notice of the day on which they will begin and end the leave.

Employees on a reservist leave are entitled to be reinstated to the same position if it still exists
or to a comparable position if it does not. Seniority and length of service credits continue to
accumulate during the leave.

Unlike the case with other types of leave, an employer is entitled to postpone the employee's
reinstatement for two weeks after the day on which the leave ends or one pay period,
whichever is later. Also, the employer is not required to continue any benefit plans during the
employee's leave. However, if the employer postpones the employee's reinstatement, the
employer is required to pay the employer's share of premiums for certain benefit plans related
to their employment and allow the employee to participate in such plans for the period the
return date is postponed.

Child death leave


Child death leave is an unpaid, job-protected leave of absence. It provides up to 104 weeks
with respect to the death of a child.

Eligibility
Employees who have been employed by their employer for at least six consecutive months and
who are covered by the Employment Standards Act, 2000 (ESA) are entitled to child death leave
if a child of the employee dies.

An employee is not entitled to this leave if the child died as a result of a crime and the
employee is charged with the crime, or if it is probable, considering the circumstances, that the
child was a party to the crime.

“Child” means a child, step-child, child under the legal guardianship of the employee or foster
child who is under 18 years of age.

Generally speaking, crime means an offence under the Criminal Code of Canada.

Federal income support grant


An employee who takes time away from work because of the crime-related death of their child
may be eligible for the Federal Income Support for Parents of Murdered or Missing Children
grant. For information about this grant, visit Service Canada’s website or contact them at 1-
877-842-5601.

Time of a child death leave


A leave for the death of a child must be taken within the 105-week period that begins in the
week the child died. The leave must be taken in a single period.

Sharing child death leave


The total amount of child death leave taken by one or more employees for the same death (or
deaths that are the result of the same event) is 104 weeks.

The employees can take the leave at the same time or at different times. The sharing
requirement applies whether or not the employees work for the same employer.

Notice requirements: Advance notice and a written plan


An employee must inform the employer in writing that they will be taking a child death leave
and must provide the employer with a written plan that indicates the weeks in which they will
take the leave.

If an employee has to begin such a leave before notifying the employer, they must inform the
employer in writing and provide the employer with a written plan as soon as possible after
beginning the leave.

An employee who does not give notice does not lose their right to the leave.

Change in employee’s plan

An employee may take a leave at a time other than that indicated in their original plan
provided to their employer so long as the new dates meets the restrictions of the ESA and,

1. the employee requests permission from the employer to do so in writing and the
employer grants permission in writing,
or
2. the employee provides the employer with four weeks’ written notice before the change
takes place.

Evidence
An employer may require an employee who takes a child death leave to provide reasonable
evidence of the employee’s entitlement to the leave.

Rights during and at the end of child death leave


Employers do not have to pay wages when an employee is on a child death leave.

Employees who take child death leave are entitled to the same rights as employees who take
pregnancy or parental leave. For example, an employer cannot threaten, fire or penalize in
any other way an employee for taking, planning on taking, being eligible or being in a position
to become eligible to take a child death leave. See “Rights during pregnancy and parental
leaves.”
Crime-related child disappearance leave
Crime-related child death or disappearance leave is an unpaid job-protected leave of absence.
It provides up to 104 weeks with respect to the crime-related disappearance of a child.

Eligibility
Employees who have been employed by their employer for at least six consecutive months and
who are covered by the Employment Standards Act, 2000 (ESA) are entitled to crime-related
child disappearance leave if it is probable, considering the circumstances, that a child of the
employee disappeared as a result of a crime.

An employee is not entitled to this leave if the employee is charged with the crime or if it is
probable, considering the circumstances, that the child was a party to the crime.

“Child” means a child, step-child or foster child who is under 18 years of age.

Generally speaking, crime means an offence under the Criminal Code of Canada.

Federal income support grant


An employee who takes time away from work because of the crime-related death or
disappearance of their child may be eligible for the Federal Income Support for Parents of
Murdered or Missing Children grant. For information about this grant, visit Service Canada’s
website or contact them at 1-877-842-5601.

Timing of a crime-related child disappearance leave


A leave for the crime-related disappearance of a child must be taken within the 105-week
period that begins in the week the child disappeared.

An employee must take the leave in a single period.

Change in circumstances

If an employee takes such a leave and the circumstances change and it no longer seems
probable that the child disappeared as a result of a crime, the employee’s entitlement to a
leave ends on the day on which it no longer seems probable.

If an employee takes a leave relating to the disappearance of their child, and the child is found
within the 104-week period that begins in the week the child disappears, the employee is
entitled to remain on leave for 14 days after the day the child is found, if the child is found
alive.

If the child is found dead, the employee, is entitled to remain on leave until the end of the
week in which the child is found. However, the employee has a separate entitlement to child
death leave of up to 104 weeks.

Sharing crime-related child disappearance leave


The total amount of crime-related child disappearance leave taken by one or more employees
under the ESA in respect of the same disappearance (or disappearances that are the result of
the same event) is 104 weeks.

The employees who are sharing the leave can be on leave at the same time, or at different
times; the ESA does not impose any restrictions in this regard. The sharing requirement
applies whether or not the employees work for the same employer.

Notice requirements: Advance notice and a written plan


An employee must inform the employer in writing that they will be taking a crime-related
child disappearance leave and must provide the employer with a written plan that indicates
the weeks in which they will take the leave.

If an employee has to begin such a leave before notifying the employer,they must inform the
employer in writing and provide the employer with a written plan as soon as possible after
beginning the leave.

An employee who does not give notice does not lose their right to the leave.

Change in employee's plan

An employee may take a leave at a time other than that indicated in their original plan
provided to their employer so long as the new dates meets the restrictions of the ESA and,

a. the employee requests permission from the employer to do so in writing and the
employer grants permission in writing;
or
b. the employee provides the employer with four weeks written notice before the change
takes place.

Evidence
An employer may require an employee who takes a crime-related child disappearance leave to
provide reasonable evidence of the employee’s entitlement to the leave.

Rights during and at the end of crime-related child


disappearance leave
Employers do not have to pay wages when an employee is on a crime-related child
disappearance leave.

Employees who take crime-related child disappearance leave are entitled to the same rights as
employees who take pregnancy or parental leave. For example, an employer cannot threaten,
fire or penalize in any other way an employee for taking, planning on taking, being eligible or
being in a position to become eligible to take a crime-related child disappearance leave. See
“Rights during pregnancy and parental leaves.”

Domestic or sexual violence leave


Domestic or sexual violence leave is a job-protected leave of absence. It provides up to 10 days
and 15 weeks in a calendar year of time off to be taken for specific purposes when an
employee or an employee’s child has experienced or been threatened with domestic or sexual
violence. The first five days of leave taken in a calendar year are paid, and the rest are unpaid.

Eligibility
Employees who have been employed by their employer for at least 13 consecutive weeks are
entitled to domestic or sexual violence leave if the employee or the employee’s child has
experienced or been threatened with domestic or sexual violence, and the leave is taken for
any of the following purposes:

To seek medical attention for the employee or the child of the employee because of a
physical or psychological injury or disability caused by the domestic or sexual violence
To access services from a victim services organization for the employee or the child of the
employee
To have psychological or other professional counselling for the employee or the child of
the employee
To move temporarily or permanently
To seek legal or law enforcement assistance, including making a police report or getting
ready for or participating in a family court, civil or criminal trial related to or resulting
from the domestic or sexual violence

An employee is not entitled to this leave if the employee committed the domestic or sexual
violence.

“Child” means a child, step-child, child under legal guardianship or foster child who is under
18 years of age.

Length of domestic or sexual violence leave


Employees are entitled to up to 10 full days of domestic or sexual violence leave every
calendar year, whether they are employed on a full- or part-time basis.

There is no pro-rating of the 10-day entitlement. An employee who begins work partway
through a calendar year is still entitled to 10 days during the remainder of that year.

Employees cannot carry over unused domestic or sexual violence leave days to the next
calendar year. The 10 days of domestic or sexual violence leave do not have to be taken
consecutively.

Employees can take domestic or sexual violence leave in part days, full days, or in periods of
more than one day. If an employee takes only part of a day as domestic or sexual violence
leave, the employer can count it as a full day of leave.

In cases where the employee takes part of a day, the employer still has to pay the employee for
any part of the day that the employee worked, and has to include the hours worked for the
purpose of determining whether overtime was worked or a daily or weekly limit on hours of
work was reached.
Employees are also entitled to take up to 15 weeks of domestic or sexual violence leave within
a calendar year for the purposes set out above. A “week” is defined as running from Sunday
to Saturday.

The 15 weeks can be taken consecutively or separately.

The employee may take leave for periods less than a full week (for example, single days, at the
beginning, middle or end of a week), but if they do, they are considered to have used up one
week of their 15-week entitlement. If the employee is on leave for two or more periods within
the same week (for example, on leave on Monday and Thursday of the same week), only one
week of the 15-week entitlement is used up.

The employer cannot require the employee to take an entire week of leave if the employee
only wants to take leave for a single day(s), cannot prevent the employee from working prior
to taking a single day(s) of leave during a week, and cannot prevent the employee from
returning to work after a single day(s) of leave during the week.

Domestic or sexual violence leave pay


The first five days of domestic or sexual violence leave taken in a calendar year must be paid.
The rest are unpaid. The first five days are to be paid whether the employee takes leave from
the 15-week entitlement, or the 10-day entitlement.

Domestic or sexual violence pay – what is it and when is it


payable?
For domestic or sexual violence leave pay, an employee is generally entitled to be paid what
they would have earned had they been at work and not taken the leave. If the employee is paid
fully or partly by a performance-related method (like commission only, commission plus
salary, commission plus hourly rate, or piece work) then they must be paid the greater of their
hourly rate, or the applicable minimum wage for the time at work they missed because they
were on personal emergency leave.

If the employee missed part of a day to take the leave, the employee would be entitled to be
paid any wages they actually earned during the time they were at work in addition to domestic
or sexual violence leave pay.

Example:

Chantelle usually works eight hours a day from 9:00am to 5:00pm. If she takes two hours off as
domestic or sexual violence leave to attend a medical appointment, she will be entitled to two
hours of domestic or sexual violence leave pay, and six hours of regular earnings for the time
she spent at work. The employer may count the two hours of leave as an entire day of domestic
or sexual violence leave and deduct it from Chantelle’s entitlement to domestic or sexual
violence leave for the year.

Calculating domestic or sexual violence pay


There are different ways to calculate domestic or sexual violence pay, depending on how the
employee is paid, and whether the employee took a full day or part of a day of leave.

Employees who are paid by an hourly rate

Domestic or sexual violence pay is the hourly rate x the number of hours the employee did not
work because they took the leave

Example 1:

Naila is paid $16.00/hour and missed a full day of work to take domestic or sexual violence
leave. She was scheduled to work nine hours. Domestic or sexual violence leave pay: $16.00 x.
9 = $144.00

Example 2:

Paulo is paid $17.50/hour and missed the first 2.5 hours of his shift to take domestic or sexual
violence leave. He normally works 8 hours in a day.

Domestic or sexual violence leave pay: $17.50 x 2.5 = $43.75 (in addition to regular earnings for
the hours he worked during the rest of the day).

Employees who are paid a salary

For an employee paid by salary, paying personal emergency leave pay is generally equal to
salary continuance.

If the employee took leave for a full day: salary ÷ number of days in pay period

Example:

Theresa is paid $1500.00 per bi-weekly pay period and works a five day week. Domestic or
sexual violence leave pay for one day = $1500.00 ÷ 10 = $150.00.

If the employee took leave for part of the day: hourly rate (salary ÷ number of hours the
employee normally works in a pay period) x number of hours taken as domestic or sexual
violence leave.

Example:

Theresa is paid $1500.00 per bi-weekly pay period and works a 40-hour week. She takes four
hours of leave. Hourly rate: $1500.00 ÷ 80 = $18.75/hour. Domestic or sexual violence leave
pay: $18.75 x 4 = $75.00 (in addition to any regular wages earned for the part of the day that
she worked).

Performance related wages

Domestic or sexual violence leave pay for an employee paid fully or partly based on their
performance is the greater of the employee’s “hourly rate, if any” and minimum wage for the
time the employee took for paid domestic or sexual violence leave. “Performance-related
wages” can include commission, commission plus an hourly wage, piece work, or a flat-rate.

Example 1: Employee earns an hourly rate + commission

Raquel earns $16.00/hour plus two per cent commission on sales,


Raquel takes 6.5 hours of domestic or sexual violence leave
Domestic or sexual violence leave pay: $16.00 x 6.5 = $104.00 (plus hourly wage for any
hours worked + commission earned while the employee worked, if any)

Example 2: Employee paid entirely by commission

Francesca earns 10 per cent commission on all sales, plus expenses and a car allowance
Francesca is scheduled to work eight hours, makes sales of $5000 and takes three hours of
domestic or sexual violence leave
Domestic or sexual violence leave pay: applicable minimum wage rate x 3 (in addition
to $500.00 commission earned while the employee worked, if any)

Example 3: Employee is a homeworker paid by piece work

Paula earns $3.50 per phone call answered


Paula is scheduled to work 8.5 hours, works two hours, answers nine phone calls, and
takes 6.5 hours of domestic or sexual violence leave
Domestic or sexual violence leave pay: applicable minimum wage x 6.5 (in addition to
regular wages earned on the day - $3.50 x 9)

Employees who are scheduled to work overtime hours

If an employee is scheduled to work a shift which will include overtime hours, and they miss
all or part of the shift to take paid domestic or sexual violence leave, the employee will be
entitled to the regular hourly rate only, not the overtime rate.

Example:

Pat is paid $15.00/hour and was scheduled to work a Saturday shift of eight hours. She had
already worked 44 hours in the same week. She missed her entire shift to take paid domestic
or sexual violence leave.

Domestic or sexual violence leave pay: $15.00 x 8 = $120.00

Employees who are scheduled to work hours when a shift premium is paid

If an employee is scheduled to work a shift which will normally be paid at a higher rate due to
a shift premium, and the employee misses all or part of the shift to take paid domestic or
sexual violence leave, the employee will be entitled to the regular hourly rate only, not the
regular hourly rate plus the shift premium.

Example:
Minh is paid $16.00/hour and is paid an additional $2.50/hour for working weekend shifts. She
is scheduled to work a Saturday shift of nine hours and leaves after working two hours to take
paid domestic or sexual violence leave.

Domestic or sexual violence leave pay: $16.00 x 7 = $112.00 (plus regular wages of
$16.00+$2.50 x 2 for the hours that she worked).

If paid domestic or sexual violence leave pay is taken when


an employee was scheduled to work on a public holiday
If an employee qualifies to take domestic or sexual violence leave, this will also generally
constitute “reasonable cause” for the purposes of public holiday entitlements. See the public
holiday chapter for more information.

If an employee agrees to work (or is required to work) on a public holiday and misses some or
all of the shift to take paid domestic or sexual violence leave, domestic or sexual violence leave
pay will not include “premium pay” if the employee would have earned it had they worked
instead of taking the leave.

Example:

Celina works in a restaurant and is required to work on Victoria Day. She is paid the liquor
server’s minimum wage. She is scheduled to work 10 hours on the public holiday, and the
employer has decided to give her premium pay for all hours worked on that day, plus public
holiday pay (but no substitute day off in the future).

Celina works 6 hours of the shift and takes the rest off as paid domestic or sexual violence
leave.

Entitlements

Public holiday pay + premium pay for hours worked (liquor server’s minimum wage x 1.5 x 6
hours)

Domestic or sexual violence leave pay: $0 because she is already receiving a full day’s pay (6
hours at 1.5 = 9 hours).

Notice requirements: Advance notice


There are two lengths of domestic and sexual violence leave that can be taken within a
calendar year: a 10-day period which can be taken as either individual days or in any
combination up to 10 days, and a 15-week period which can be taken continuously or not.

If an employee plans to take one or more days from the 10-day period, the employee must tell
the employer that they will be doing so in advance. If the employee can’t give notice, notice
must be given to the employer as soon as possible after starting the leave. Notice doesn’t have
to be in writing.

If an employee plans to take one or more weeks or part weeks from the 15-week entitlement,
the employee must tell the employer that they will be doing so in writing before the leave is
taken. If the employee can’t give notice, notice must be given to the employer in writing as
soon as possible after starting the leave.

The employee does not have to use the 10-day leave first.

For both types of leave, the employee has to give notice to the employer that they are taking
the leave every time the leave is taken.

An employee who does not give notice does not lose their right to the leave

Example:

Maggie wants to take domestic or sexual violence leave for one week in March to relocate
herself and her children to a new apartment. She has also been called as a witness at a
criminal trial in October that is scheduled to take one week.

Maggie must give notice to her employer before she takes the leave in March, and again when
she takes the leave in October, unless she is able to give notice for both leaves at the same time.

Interaction among different leaves


Domestic or sexual violence, personal emergency, declared emergency, family caregiver,
family medical, critical illness, child death and crime-related child disappearance are different
types of leaves. The purposes of the leaves, their length, the individuals for whom they can be
taken and eligibility criteria vary.

See the respective chapters of this Guide for more information on each leave.

An employee may be entitled to more than one leave for the same event. Each leave is separate
and the right to each leave is independent of any right an employee may have to the other
leave(s).

Evidence
An employer may require an employee to provide evidence reasonable in the circumstances
that they is eligible to take domestic or sexual violence leave. What will be reasonable in the
circumstances will depend on all of the facts of any given situation, such as the duration of the
leave, whether there is a pattern of absences, whether any evidence is available, and the cost
of the evidence.

Rights during and at the end of domestic or sexual violence


leave
Employees who take domestic or sexual violence leave are entitled to the same rights as
employees who take pregnancy or parental leave. For example, an employer cannot threaten,
fire or penalize in any other way an employee for taking, planning on taking, being eligible or
being in a position to become eligible to take a domestic or sexual violence leave. See "Rights
during pregnancy and parental leaves."
Termination of employment
Termination of employment defined
A number of expressions are commonly used to describe situations when employment is
terminated. These include "let go," "discharged," "dismissed," "fired" and "permanently laid
off."

Under the Employment Standards Act, 2000 (ESA) a person's employment is terminated if the
employer:

dismisses or stops employing an employee, including where an employee is no longer


employed due to the bankruptcy or insolvency of the employer;
"constructively" dismisses an employee and the employee resigns, in response, within a
reasonable time;
lays an employee off for a period that is longer than a "temporary layoff".

In most cases, when an employer ends the employment of an employee who has been
continuously employed for three months, the employer must provide the employee with
either written notice of termination, termination pay or a combination (as long as the
notice and the number of weeks of termination pay together equal the length of notice the
employee is entitled to receive).

The ESA does not require an employer to give an employee a reason why their employment is
being terminated. There are, however, some situations where an employer cannot terminate
an employee's employment even if the employer is prepared to give proper written notice or
termination pay. For example, an employer cannot end someone's employment, or penalize
them in any other way, if any part of the reason for the termination of employment is based on
the employee asking questions about the ESA or exercising a right under the ESA, such as
refusing to work in excess of the daily or weekly hours of work maximums, or taking a leave
of absence specified in the ESA. Please see the chapter on reprisals.

Qualifying for termination notice or pay in lieu


Certain employees are not entitled to notice of termination or termination pay under the ESA.
Examples include: employees who are guilty of wilful misconduct, disobedience, or wilful
neglect of duty that is not trivial and has not been condoned by the employer. Other examples
include construction employees, employees on temporary layoff, employees who refuse an
offer of reasonable alternative employment and employees who have been employed less than
three months.

There are a number of other exemptions to the termination of employment provisions of the
ESA. See “Exemptions to notice of termination or termination pay.” Please also refer to the
special rule tool.

The termination-of-employment rules are entirely separate from any entitlements an


employee may have to be paid severance pay under the ESA.

Constructive dismissal
A constructive dismissal may occur when an employer makes a significant change to a
fundamental term or condition of an employee's employment without the employee's actual or
implied consent.

For example, an employee may be constructively dismissed if the employer makes changes to
the employee's terms and conditions of employment that result in a significant reduction in
salary or a significant negative change in such things as the employee's work location, hours of
work, authority, or position. Constructive dismissal may also include situations where an
employer harasses or abuses an employee, or an employer gives an employee an ultimatum to
"quit or be fired" and the employee resigns in response.

The employee would have to resign in response to the change within a reasonable period of
time in order for the employer's actions to be considered a termination of employment for
purposes of the ESA.

Constructive dismissal is a complex and difficult subject. For more information on constructive
dismissal please contact the Employment Standards Information Centre, .

Temporary layoff
An employee is on temporary layoff when an employer cuts back or stops the employee’s work
without ending their employment (e.g., laying someone off at times when there is not enough
work to do). The mere fact that the employer does not specify a recall date when laying the
employee off does not necessarily mean that the lay-off is not temporary. Note, however, that a
lay-off, even if intended to be temporary, may result in constructive dismissal if it is not
allowed by the employment contract.

For the purposes of the termination provisions of the ESA, a "week of layoff" is a week in
which the employee earned less than half of what they would ordinarily earn (or earns on
average) in a week.

A week of layoff does not include any week in which the employee did not work for one or
more days because the employee was not able or available to work, was subject to disciplinary
suspension, or was not provided with work because of a strike or lockout at their place of
employment or elsewhere.

Employers are not required under the ESA to provide employees with a written notice of a
temporary layoff, nor do they have to provide a reason for the lay-off. (They may, however, be
required to do these things under a collective agreement or an employment contract.)

Under the ESA, a “temporary layoff” can last:

not more than 13 weeks of layoff in any period of 20 consecutive weeks;


or
more than 13 weeks in any period of 20 consecutive weeks, but less than 35 weeks of
layoff in any period of 52 consecutive weeks, where:
the employee continues to receive substantial payments from the employer;
or
the employer continues to make payments for the benefit of the employee under a
legitimate group or employee insurance plan (such as a medical or drug insurance
plan) or a legitimate retirement or pension plan;
or
the employee receives supplementary unemployment benefits;
or
the employee would be entitled to receive supplementary unemployment benefits
but isn't receiving them because they are employed elsewhere;
or
the employer recalls the employee to work within the time frame approved by the
Director of Employment Standards;
or
the employer recalls the employee within the time frame set out in an agreement
with an employee who is not represented by a trade union;
or
a layoff longer than a layoff described in 'B' where the employer recalls an employee who
is represented by a trade union within the time set out in an agreement between the
union and the employer.

If an employee is laid off for a period longer than a temporary layoff as set out above, the
employer is considered to have terminated the employee's employment. Generally, the
employee will then be entitled to termination pay.

Written notice of termination and termination pay


Under the ESA:

an employer can terminate the employment of an employee who has been employed
continuously for three months or more if the employer has given the employee proper
written notice of termination and the notice period has expired;
or
an employer can terminate the employment of an employee without written notice or
with less notice than is required if the employer pays termination pay to the employee.

Written notice of termination


An employee is entitled to notice of termination (or termination pay instead of notice) if they
have been continuously employed for at least three months. A person is considered
“employed” not only while they are actively working, but also during any time in which they
are not working but the employment relationship still exists (for example, time in which the
employee is off sick or on leave or on lay-off).

The amount of notice to which an employee is entitled depends on their “period of


employment”. An employee’s period of employment includes not only all time while the
employee is actively working but also any time that they are not working but the employment
relationship still exists, with the following exceptions:

if a lay-off goes on longer than a temporary lay-off, the employee’s employment is


deemed to have been terminated on the first day of the lay-off—any time after that does
not count as part of the employee’s period of employment, even though the employee
might still be employed for purposes of the “continuously employed for three months”
qualification;
if two separate periods of employment are separated by more than 13 weeks, only the
most recent period counts for purposes of notice of termination.
It is possible, in some circumstances, for a person to have been “continuously employed” for
three months or more and yet have a period of employment of less than three months. In such
circumstances, the employee would be entitled to notice because an employee who has been
continuously employed for at least three months is entitled to notice, and the minimum notice
entitlement of one week applies to an employee with a period of employment of any length
less than one year.

The following chart specifies the amount of notice required:

Amount of notice required if an employee has


been continuously employed for at least three
months
Period of employment Notice required
Less than 1 year 1 week
1 year but less than 3 years 2 weeks
3 years but less than 4 years 3 weeks
4 years but less than 5 years 4 weeks
5 years but less than 6 years 5 weeks
6 years but less than 7 years 6 weeks
7 years but less than 8 years 7 weeks
8 years or more 8 weeks

Note: Special rules determine the amount of notice required in the case of mass terminations –
where the employment of 50 or more employees is terminated at an employer’s establishment
within a four-week period.

Requirements during the statutory notice period


During the statutory notice period, an employer must:

not reduce the employee's wage rate or alter any other term or condition of employment;
continue to make whatever contributions would be required to maintain the employee's
benefits plans; and
pay the employee the wages they are entitled to, which cannot be less than the
employee's regular wages for a regular work week each week.

Regular rate

This is an employee's rate of pay for each non-overtime hour of work in the employee's work
week.

Regular wages

These are wages other than overtime pay, vacation pay, public holiday pay, premium pay,
personal emergency leave pay, domestic or sexual violence leave pay, termination of
assignment pay, termination pay and severance pay and certain contractual entitlements.
Regular work week

For an employee who usually works the same number of hours every week, a regular work
week is a week of that many hours, not including overtime hours.

Some employees do not have a regular work week. That is, they do not work the same number
of hours every week or they are paid on a basis other than time. For these employees, the
“regular wages” for a “regular work week” is the average amount of the regular wages earned
by the employee in the weeks in which the employee worked during the period of 12 weeks
immediately preceding the date the notice was given.

An employer is not allowed to schedule an employee’s vacation time during the statutory
notice period unless the employee—after receiving written notice of termination of
employment—agrees to take their vacation time during the notice period.

If an employer provides longer notice than is required, the statutory part of the notice period
is the last part of the period that ends on the date of termination.

How to provide written notice


In most cases, written notice of termination of employment must be addressed to the
employee. It can be provided in person or by mail, fax or e-mail, as long as delivery can be
verified.

There are special rules for providing notice of termination if an employee has a contract of
employment or a collective agreement that provides seniority rights that allow an employee
who is to be laid off or whose employment is to be terminated to displace (“bump”) other
employees.

In that case, the employer must post a notice in the workplace (where it will be seen by the
employees) setting out the names, seniority and job classification of those employees the
employer intends to terminate and the date of the proposed termination. The posting of the
notice is considered to be notice of termination, as of the date of the posting, to an employee
who is “bumped” by an employee named in the notice. However, this notice of termination
must still meet the length requirements set out in the ESA.

There are also special rules regarding how notice is provided when there is a mass
termination.

Termination pay
An employee who does not receive the written notice required under the ESA must be given
termination pay in lieu of notice. Termination pay is a lump sum payment equal to the regular
wages for a regular work week that an employee would otherwise have been entitled to
during the written notice period. An employee earns vacation pay on their termination pay.
Employers must also continue to make whatever contributions would be required to maintain
the benefits the employee would have been entitled to had they continued to be employed
through the notice period.

Example: Regular work week


Sarah has worked for three and a half years. Now her job has been eliminated and her
employment has been terminated. Sarah was not given any written notice of termination.

Sarah worked 40 hours a week every week and was paid $17.00 an hour. She also received
four per cent vacation pay. Because she worked for more than three years but less than four
years, she is entitled to three weeks’ pay in lieu of notice.

1. Sarah’s regular wages for a regular work week are calculated:

$17.00 an hour X 40 hours a week = $680.00 a week

2. Her termination pay is calculated:

$680.00 X 3 weeks = $2040.00

3. Then her vacation pay on her termination pay is calculated:

4% of $2040.00 = $81.60

4. Finally, her vacation pay is added to her termination pay:

$2040.00 + $81.60 = $2121.60

Result: Sarah is entitled to $2121.60. The employer must also ensure continued coverage for
any benefit or pension plans that applied to her for three weeks.

Example: No regular work week

Gerry has worked at a nursing home for four years. He works every week, but his hours vary
from week to week. His rate of pay is $17.00 an hour, and he is paid 6 per cent vacation pay.

Gerry's employer eliminated his position and did not give Gerry any written notice of
termination. Gerry was ill and off work for two of the 12 weeks immediately preceding the day
his employment was terminated. Gerry earned $1,800.00 in the 12 weeks before the day on
which his employment ended.

Gerry is entitled to four weeks of termination pay.

1. Gerry's average earnings per week are calculated:

$1,800.00 for 12 weeks / 10 weeks (Gerry was off sick for two weeks therefore these weeks
are not included in the calculation of average earnings) = $180.00 a week

2. His termination pay is calculated:

$180.00 × 4 weeks = $720.00

3. Then his vacation pay on his termination pay is calculated:

6% of $720.00 = $43.20

4. Finally, his vacation pay is added to his termination pay:

$720.00 + $43.20 = $763.20
Result: Gerry is entitled to $763.20. The employer must also ensure continued coverage for any
benefit or pension plans that applied to him for four weeks.

When to pay termination pay


Termination pay must be paid to an employee either seven days after the employee's
employment is terminated or on the employee's next regular pay date, whichever is later.

Mass termination
Special rules for notice of termination may apply when the employment of 50 or more
employees is terminated at an employer's establishment within a four-week period. This is
often referred to as mass termination. (Note: an "establishment" can, in some circumstances,
include more than one location.)

When a mass termination occurs, the employer must submit Form 1 (Notice of termination of
employment) to the Director of Employment Standards. Any notice to the affected employees
would not be considered to have been given until the Form 1 was received by the Director, i.e.
notice of mass termination is not considered to be effective until the Director of Employment
Standards receives the Form 1.

In addition to providing employees with individual notices of termination, the employer must
post a copy of the Form 1 provided to the Director of Employment Standards in the workplace
where it will come to the attention of the employees it affects on the first day of the notice
period.

The amount of notice employees must receive in a mass termination is not based on the
employees' length of employment, but on the number of employees who have been
terminated. An employer must give:

Eight weeks' notice if the employment of 50 to 199 employees is to be terminated


12 weeks' notice if the employment of 200 to 499 employees is to be terminated
16 weeks' notice if the employment of 500 or more employees is to be terminated

Exception to the mass-termination rules


The mass-termination rules do not apply if:

1. The number of employees whose employment is being terminated represents not more
than 10 per cent of the employees who have been employed for at least three months at
the establishment,
and
2. None of the terminations are caused by the permanent discontinuance of all or part of
the employer's business at the establishment.

Mass termination: Resignation by an employee


An employee who has received termination notice under the mass termination rules who
wants to resign before the termination date provided in the employer’s notice must give the
employer at least one week’s written notice of resignation if the employee has been employed
for less than two years. If the employment period has been two years or more, the employee
must give at least two weeks’ written notice of resignation. However, the employee does not
have to give notice of resignation if the employer constructively dismisses the employee or
breaches a term of the contract.

Temporary work after termination date in notice


An employer can provide work to an employee who has been given notice of termination on a
temporary basis in the 13-week period after the termination date set out in the notice without
affecting the original date of the termination and without being required to provide any
further notice of termination to the employee when the temporary work ends.

If an employee works beyond the 13-week period after the termination date and then has
their employment terminated, the employee will be entitled to a new written notice of
termination as if the previous notice had never been given. The employee’s period of
employment will then also include the period of temporary work.

Recall rights
A "recall right" is the right of an employee on a layoff to be called back to work by their
employer under a term or condition of employment. This right is commonly found in collective
agreements.

An employee who has recall rights and who is entitled to termination pay because of a layoff
of 35 weeks or more may choose to:

keep their recall rights and not be paid termination pay (or severance pay, if they were
entitled to severance pay) at that time;
or
give up their recall rights and receive termination pay (and severance pay, if they were
entitled to severance pay).

If an employee is entitled to both termination pay and severance pay, they must make the
same choice for both.

If an employee who is not represented by a trade union elects to keep their recall rights or
fails to make a choice, the employer must send the amount of the termination pay (and
severance pay, if any) to the Director of Employment Standards, who holds the money in trust.

If an employee who is represented by a trade union elects to keep their recall rights or fails to
make a choice, the employer and the trade union must try to come to an arrangement to hold
the termination pay (and severance pay, if any) in trust for the employee. If they cannot come
to an arrangement, and the trade union advises the employer and the Director of Employment
Standards in writing that efforts have failed, the employer must send the termination pay (and
severance pay, if any) to the Director of Employment Standards, who holds the money in trust.

If an employee chooses to give up their recall rights or if the recall rights expire, the money
that is held in trust must be sent to the employee.

If the employee accepts a recall back to work, the money that is held in trust will be returned
to the employer.
Exemptions to notice of termination or termination pay
Many of these exemptions are complex. Please contact the Employment Standards Information
Centre, , if you need more information. Please also refer to the special rule tool.

The notice of termination and termination pay requirements of the ESA do not apply to an
employee who:

is guilty of wilful misconduct, disobedience or wilful neglect of duty that is not trivial and
has not been condoned by the employer. Note: “wilful” includes when an employee
intended the resulting consequence or acted recklessly if they knew or should have
known the effects their conduct would have. Poor work conduct that is accidental or
unintentional is generally not considered wilful;
was hired for a specific length of time or until the completion of a specific task. However,
such an employee will be entitled to notice of termination or termination pay if:
the employment ends before the term expires or the task is completed; or
the term expires or the task is not completed more than 12 months after the
employment started; or
the employment continues for three months or more after the term expires or the
task is completed;
is employed in construction. This includes employees who are doing off-site work in
whole or in part who are commonly associated in work or collective bargaining with
employees who work at the construction site;
builds, alters or repairs certain types of ships
has their employment terminated when they reach the age of retirement in accordance
with the employer’s established practice, but only if the termination would not
contravene the Human Rights Code.
has refused an offer of reasonable alternative employment with the employer;
has refused to exercise their right to another position that is available under a seniority
system.
is on a temporary lay-off
does not return to work within a reasonable time after being recalled to work from a
temporary layoff;
is terminated during or as a result of a strike or lockout at the workplace;
has lost their employment because the contract of employment is impossible to perform
or has been frustrated by an unexpected or unforeseen event or circumstance, such as a
fire or flood, that makes it impossible for the employer to keep the employee working.
(This does not include bankruptcy or insolvency or when the contract is frustrated or
impossible to perform as the result of an injury or illness suffered by an employee.)

See also: Termination tool

Wrongful dismissal
Rights greater than ESA notice of termination, termination pay, severance
pay

The rules under the ESA about termination and severance of employment are minimum
requirements. Some employees may have rights under the common law or other legislation
that give them greater rights than notice of termination (or termination pay) and severance
pay under the ESA; because such rights generally cannot be enforced under the ESA, some
employees may want to sue their former employer in court for “wrongful dismissal” or pursue
other options. Employees should be aware that they cannot sue an employer for wrongful
dismissal and file a claim for termination pay or severance pay with the ministry for the same
termination or severance of employment, an employee must choose one or the other.
Employees may wish to obtain legal advice concerning their rights.

Severance pay
“Severance pay” is compensation that is paid to a qualified employee who has their
employment “severed.” It compensates an employee for losses (such as loss of seniority) that
occur when a long-term employee loses their job.

Severance pay is not the same as termination pay, which is given in place of the required
notice of termination of employment.

When severance occurs


A person's employment is “severed” when their employer:

dismisses or stops employing the employee, including where an employee is no longer


employed due to the bankruptcy or insolvency of their employer;
“constructively” dismisses (please refer to “constructive dismissal”) the employee and the
employee resigns in response within a reasonable time;
lays the employee off for 35 or more weeks in a period of 52 consecutive weeks;

For the purposes of the Severance provision, an employee who receives less than one
quarter of the wages they would have earned at the regular rate for a regular work week
is considered to have been on a week of layoff. A week of layoff does not include a week
when the employee is unavailable for work, unable to work, suspended for disciplinary
reasons, or not provided with work because of a strike or lockout at their place of
employment or elsewhere. Although the 52 weeks are consecutive, the 35 weeks do not
have to be consecutive.

lays the employee off because all of the business at an establishment closes permanently
(an “establishment” can, in some circumstances, include more than one location); or
gives the employee written notice of termination and the employee resigns after giving
two weeks' written notice, and the resignation takes effect during the statutory notice
period.

Employee resigns after receiving notice of termination


An employee who has been given a written notice of termination can resign and continue to
keep the right to severance pay. To keep this right, the employee must give the employer two
weeks' written notice of their resignation. The resignation must also take effect during the
statutory notice period–the period of written notice that is required to be given by the
employer.

If an employer provides longer notice than is required, the statutory part of the notice period
is the last part of the period that ends on the date of termination.
Example

Heather has worked for seven years, and is entitled to seven weeks' notice of termination
under the ESA. Heather's employer gives her 10 weeks' notice. Heather must give her employer
at least two weeks' written notice of her resignation. As long as Heather's resignation takes
effect during the statutory notice period, in this case the last seven weeks of the 10-week notice
period, she continues to be entitled to severance pay.

Qualifying for severance pay


An employee qualifies for severance pay if their employment is severed and they:

have worked for the employer for five or more years (including all the time spent by the
employee in employment with the employer, whether continuous or not and whether
active or not)
and
their employer:
has a payroll in Ontario of at least $2.5 million;
or
severed the employment of 50 or more employees in a six-month period because all
or part of the business permanently closed.

Amount of severance pay


To calculate the amount of severance pay an employee is entitled to receive, multiply the
employee's regular wages for a regular work week by the sum of:

the number of completed years of employment;


and
the number of completed months of employment divided by 12 for a year that is not
completed.

The maximum amount of severance pay required to be paid under the ESA is 26 weeks.

Calculating severance pay


Example: A regular work week

Susan regularly works 40 hours a week and is paid $17.00 an hour. Her employer has a payroll
of more than $2.5 million. Her employer gives Susan seven weeks' notice of termination, and
Susan works for the notice period. At the end of the notice period, Susan's employment is
severed. On that date, Susan has been employed for seven years, nine months and two weeks.

Here's how to calculate Susan's severance pay entitlement.

1. Calculate Susan's regular wages for a regular work week.


Susan usually works 40 hours a week × $17.00 = $680.00
2. Number of Susan's completed years = 7
3. Divide the number of complete months Susan was employed in the incomplete year by
12.
Susan worked 9 complete months ÷ 12 = 0.75
4. Add the number arrived at in Step 2 (7) to the number arrived at in Step 3 (0.75),
7 + 0.75 = 7.75
5. Multiply Susan's regular wages for a regular work week ($680.00) by the number arrived
at in Step 4 (7.75).
$680.00 × 7.75 = $5270.00.

Result: Susan is entitled to $5270.00 in severance pay.

A special method of calculating severance pay is used for employees who are paid on a basis
other than time worked.

Example: Employee paid on a basis other than time worked

Kwesi works as a commission salesperson at his employer’s high-tech retail store. He is paid
commissions on sales made and not on the basis of time worked.

Kwesi's employer decides to downsize and Kwesi is given eight weeks' written notice of
termination of employment. He works the notice period and his employment is severed. On
the date his employment is severed, he has been employed for nine years, six months and
three weeks.

Kwesi's employer has a payroll of more than $2.5 million. In the last 12 weeks of his
employment, Kwesi has received $7,723.00.

To calculate Kwesi's severance pay entitlement.

1. Calculate Kwesi's "regular wages for a regular work week"-the average of the regular
wages he received in the weeks he worked during his last 12 weeks of employment.

$7,723.00 ÷ 12 = $643.58

2. Number of completed years = 9

3. Divide the number of complete months Kwesi was employed in the incomplete year by 12

Kwesi worked 6 complete months ÷ 12 = 0.5

4. Add the number arrived at in Step 2 (9) and the number arrived at in Step 3 (0.5)
9 + 0.5 = 9.5

5. Multiply Kwesi's regular wages for a regular work week ($643.58) by the number arrived
at in Step 4 (9.5) $643.58 × 9.5 = $6,114.01.

Result: Kwesi is entitled to $6,114.01 in severance pay.

When to pay severance pay


An employee must receive severance pay either seven days after the employee's employment
is severed or on what would have been the employee's next regular pay day, whichever is
later.
However, an employer may pay severance pay in installments with the electronic or written
agreement of the employee or the approval of the Director of Employment Standards, Ministry
of Labour. An installment plan cannot be for more than three years. If an employer fails to
make a scheduled payment, all of the employee's severance pay becomes due immediately.

Exemptions from severance pay


Many of these exemptions are complex. Please contact the Employment Standards Information
Centre, 1-800-531-5551, if you need help with these exemptions. Please also refer to the special
rule tool.

An employee is not entitled to severance pay if they:

has refused an offer of “reasonable alternative employment” with the employer;


has refused “reasonable alternative employment” that is available to the employee
through a seniority system;
has their employment severed and retires on a full pension recognizing all years of
service that would have been worked in the normal course. (Canada Pension Plan
benefits do not qualify.);
has their employment severed because of a permanent closure of all or part of the
employer’s business that the employer can show was caused bythe economic effects of a
strike;
is employed in construction, including employees who are working off-site and who are
commonly associated in work or collective bargaining with employees who work at the
construction site;
is employed in the on-site maintenance of buildings, structures, roads, sewers, pipelines,
mains, tunnels or other works;
is guilty of wilful misconduct, disobedience or wilful neglect of duty that is not trivial and
was not condoned by the employer; or
has lost their employment because the contract of employment is impossible to perform
or has been frustrated by an unexpected or unforeseen event or circumstance. This does
not include bankruptcy or insolvency or when the contract is frustrated or impossible to
perform as the result of an injury or illness suffered by an employee.

Recall rights
A "recall right" is the right of an employee on layoff to be called back to work by their
employer under a term or condition of employment. If an employee is entitled to both
termination pay--because of a layoff of 35 weeks or more--and severance pay, they must make
the same choice for both. Please refer to “Recall rights” in the “Termination of employment”
chapter.

Wrongful dismissal
Rights greater than ESA notice of termination, termination pay, severance
pay

The rules under the ESA about termination and severance of employment are minimum
requirements. Some employees may have rights under the common law or other legislation
that give them greater rights than notice of termination (or termination pay) and severance
pay under the ESA; because such rights generally cannot be enforced under the ESA, some
employees may choose to sue an employer in a court for “wrongful dismissal” or pursue other
options. Employees should be aware that they cannot sue an employer for wrongful dismissal
and file a claim for termination pay or severance pay with the ministry for the same
termination or severance of employment; an employee must choose one or the other.
Employees may wish to obtain legal advice concerning their rights.

Continuity of employment
The purpose of the continuity of employment provisions of the Employment Standards Act,
2000 (ESA) is to ensure that an employee's past employment is recognized when:

the business the employee works for is sold or transferred in any other way to a new
owner;
and
the employee continues to work in the business for the new owner.

It also applies to an employee of a building services provider when:

the employer no longer holds the contract at the building where the employee works;
and
the employee is hired to work for the new provider at the same location.

Building services provider


This is a person or company that provides cleaning, security, or food services for a premises. A
building services provider can also provide property management, parking garage, parking lot
and concession stand services related only to the building, its occupants and visitors. A
building services provider includes the owner or manager of a building if that owner or
manager provides these services to a building that they own or manage.

The ESA also has specific provisions that apply only to building services providers and their
employees. (See the “Building services providers” chapter for more information.)

Determining entitlements
Most employees are entitled to vacations, pregnancy leave, parental leave, personal
emergency leave, critical illness leave, organ donor leave, domestic or sexual violence leave,
child death leave or crime-related child disappearance leave, notice of termination or
termination pay and severance pay. However, in the case of some of these entitlements an
employee would not be eligible for them until they have been employed by the employer for a
certain minimum time, while in the case of other rights, such as notice of termination or
severance pay, the amount of an employee’s entitlement varies according to the length of
employment with the employer. The continuity of employment provisions provide that a
person’s length of employment with the seller of a business or a previous building services
provider is attributed, or “flows through” to the purchaser of the business or to the new
building services provider. This means that where there is a sale of a business or a change in
building service providers and an employee of the seller or previous provider is hired by the
purchaser or new provider, they do not start as a “new employee” for purposes of these ESA
entitlements but instead gets “credit” for their past employment.

When a person's length of employment is attributed to a new employer, the new employer has
to recognize the time the person worked for the previous employer. This "earned" time must
be credited toward any rights the employee has that are based on their length of employment.

Example: When a business is sold

Richard has worked for 10 years as a mechanic. His employer, Kim, decides to retire and sell
the garage to her son, who chooses to continue to employ Richard. Richard wants to carry on
working in the business, and he accepts the job with the new owner.

Because Richard’s employment does not end with the transfer of the business, the length of
time he worked for Kim must be recognized for any rights he has that are based on his length
of employment. For example, since Richard has five or more years of employment, he earns
three weeks of vacation time after completion of each vacation entitlement year. He also earns
six per cent vacation pay. If the son terminates Richard’s employment one year after the
transfer, Richard will be entitled to eight weeks’ notice rather than just one week, because his
time with Kim is treated as if it was employment with the son.

Example: When part of a business is sold

Talia works for a dairy that produces milk and ice cream. The dairy sells the ice cream division
so that it can concentrate on milk production. The buyer offers to continue to employ Talia,
and she agrees to work for the new owner.

Talia's employment does not end with the sale. The total time Talia was employed by the
business must be taken into account when determining any rights Talia may have with the
new employer.

Example: When a building services provider is replaced

Xiu has worked for two years for ABC Cleaning. Her employer has a contract with a building
owner to provide cleaning services in the owner's building. The contract is for a specific period
of time, and when it expires the owner contracts with a new company, DEF Cleaning.

Xiu is hired by DEF Cleaning and continues to work in this building. In hiring her, DEF
Cleaning must recognize Xiu's length of employment with ABC Cleaning for any rights she has
that are based on her length of employment.

Example: When a service is contracted to a building services provider

Jim has worked for MNO Insurance for six years as a cleaner. His job is to keep MNO's office
building clean. MNO decides to contract this service to a cleaning company, GHI Cleaning. GHI
Cleaning chooses to hire Jim, and he continues working in the building.

Jim's length of employment with MNO is included when determining his length of employment
with GHI.
Continuity of employment and entitlements to vacation
time and pay
Under the ESA, an employee whose period of employment is less than five years earns two
weeks of vacation upon completion of a 12-month vacation entitlement year. Four per cent of
their gross wages earned in that entitlement year are then accrued as vacation pay.

An employee with five or more years of employment earns three weeks of vacation once
theyhas completed a 12-month vacation entitlement year. In this case, six per cent of the gross
wages earned in that entitlement year are accrued as vacation pay.

The employer must ensure the vacation is taken no later than 10 months after the vacation
entitlement year ends and, generally, the vacation pay accrued in respect of that vacation
entitlement year is due at that time. (See "When to pay vacation pay").

Example: When a business is sold

Roman has worked for a business for 16 months when the business is sold. He has not taken
any vacation at the time of the sale. Roman continues to work for the new owner, and his
previous employment with the seller must be recognized by the new owner. The new owner
must give Roman the vacation he earned in his first 12 months of employment with the seller
within six months of hiring him. In addition, the purchaser must pay Roman the vacation pay
accrued in respect of that vacation entitlement year (if it has not yet been paid). The purchaser
will also be liable for the vacation pay Roman accrued in the last four months of employment
with the seller.

As Roman’s total employment time is less than five years, his entitlement will be based on two
weeks’ vacation after each completed vacation entitlement year and four per cent vacation
pay per vacation entitlement year.

However, if Roman had already been employed by the business for eight years prior to the
sale, he would be entitled to three weeks’ vacation after each completed vacation entitlement
year and six per cent vacation pay per vacation entitlement year. Roman is not required to
work for the new owner for an additional five years to be eligible for the greater vacation time
and pay entitlements.

Example: When a building services provider is replaced

Matti has worked as a cleaner with a company for 38 months when the company loses its
cleaning contract. He is immediately hired by the company that won the contract. The new
provider must recognize Matti's employment with his former employer.

Matti has already taken two weeks of vacation for each of his first two vacation entitlement
years with his former employer. His new employer must therefore give him the two weeks of
vacation earned in respect of his third vacation entitlement year (and the years that follow, so
long as Matti stays with the new employer). The vacation must be taken within 10 months of
the completion of the third vacation entitlement year (8 months after he was hired by the new
building services provider).

Note: A building service provider who stops providing services at a premises and who stops
employing an employee has to pay the employee the amount of any accrued (accumulated)
vacation pay:

within seven days of the date the provider stops providing services to the premises;
or
on the employee's next pay day;

whichever is later.

Example: When a business is sold

Amy has worked for an accounting firm for three years. The firm is sold and Amy starts
working for the new owner. The sale occurred four weeks before Amy's due date, and she will
have started her employment with the new owner only four weeks before her baby is due.

Amy's employment with the old business is deemed to have been employment with the new
owner. She is considered to have started her employment three years and four weeks before
her baby is due, and so she qualifies for pregnancy leave.

Example: When a building services provider is replaced

Hannah has worked for five years in a hospital cafeteria for 123 Foods. Hannah is eight
months pregnant, and she intends to begin her pregnancy leave in one month's time on the
date her baby is due. However, 123 Foods is replaced by a new services provider, 456 Foods,
which hires Hannah.

Because 456 Foods must recognize Hannah's years of employment with the previous provider,
she is considered to have started her employment five years and one month before her due
date. Hannah is therefore entitled to pregnancy leave.

To qualify for a parental leave, an employee who is a new parent must have been employed by
their employer for at least 13 weeks before the leave begins.

Example: When a business is sold

Marilyn, Leigh's same-sex partner, has worked for a printing company for 13 years. Leigh gave
birth six months ago. The printing company was sold when the baby was five months old and
Marilyn continues to work for the new owner.

Marilyn planned to take a parental leave when the baby was seven months old. Her total
length of employment with the business is attributed to the new owner. Therefore, her total
length of employment is more than 13 weeks, and so she is qualified for the parental leave.

Example: When a building services provider is replaced

Raph has worked for a security services company as a security guard for three years. His
employer provides security services at a local credit union. Raph and his wife Janet have a
three-month-old son.

Raph planned on taking a parental leave when his son was five months old. The security
services company was replaced by another company at the end of its contract, one month
before Raph was planning to begin his parental leave.
Raph is hired by the new security services company. He qualifies for parental leave because
the new services provider must recognize his total length of employment at the credit union
premises, which is more than the 13 weeks he needs to qualify under the ESA.

To qualify for a critically ill child care leave, the parent of a critically ill child must have been
employed by their employer for at least six consecutive months.

Example: When a business is sold

Caitlin has worked as a paleontologist with a research company for one year. The company’s
owner retired and the company is purchased by another company. Caitlin starts working for
the new company. Two months after starting with the new company, her child becomes
critically ill.

Caitlin’s employment with the old company is deemed to have been employment with the new
company. She is considered to have one year and two months of employment with the new
company and so she qualifies for critically ill child care leave.

Example: When a building services provider is replaced

Wayne has worked as a cleaner for a building cleaning company, ABC Cleaning for one year;
he worked at the same building throughout this time. ABC Cleaning’s contract expires and it is
taken over by a new provider, DEF Cleaning. Wayne is hired by DEF Cleaning. One month after
starting with the new provider, Wayne’s child becomes critically ill.

Wayne’s employment with the former provider ABC Cleaning is deemed to have been
employment with the new provider. He is considered to have been employed by DEF Cleaning
for one year and one month and so he qualifies for critically ill child care leave.

To qualify for a crime-related child disappearance leave or a child death leave, the parent of
the child must have been employed by theiremployer for at least six consecutive months.

Example: When a business is sold

Anna has worked at a retail store for one year. The store was sold to another company, which
Anna started to work for. Three months after starting with the new company, her child
disappeared and it was probable that it was the result of a crime.

Anna’s employment with the old company is deemed to have been employment with the new
company. She is considered to have been employed by the new company for one year and
three months and so she qualifies for crime-related child disappearance leave.

Example: When a building services provider is replaced

Bob has worked as a security guard for a security services company for three years. The
company’s contract to provide security services at the premises where Bob worked expires and
it is taken over by a new provider. Bob is hired by the new provider. One month after starting
with the new provider, Bob’s child dies.

Bob’s employment with the former provider is deemed to have been employment with the new
provider. He is considered to have one year and one month of employment with the new
provider and so he qualifies for child death leave.
Continuity of employment and entitlements to termination
of employment and severance of employment
In most cases, when a person's employment is going to be ended by an employer, the employee
is usually entitled to receive either written notice of termination, termination pay, or a
combination of both. Some employees are also entitled to receive severance pay. The length of
the notice or the amount of termination pay or severance pay depends on how long the person
has been employed.

Example: When a business is sold

Janie Marie has worked for a retail chain of stores for 10 years. All of the stores have been sold
to a new owner, and the new owner continues to employ Janie Marie. Six months after buying
the business, the new owner decides to downsize, and Janie Marie's employment is ended.

Janie Marie’s length of employment with the business is attributed to the new owner. Since she
is considered to have been employed with the business for 10½ years, she is entitled to receive
the maximum period of written notice or pay in lieu of notice required under the ESA, in this
case eight weeks.

Because Janie Marie is considered to have been employed with the business for more than five
years and her new employer’s payroll is greater than $2.5 million annually, she is also entitled
to 10½ weeks of severance pay.

Example: When a building services provider is replaced

Arnold has worked as a site supervisor at a premises for a building cleaning company, ABC
Cleaning, for four years. ABC Cleaning’s contract expires and it is taken over by a new services
provider, DEF Cleaning. Arnold is hired by DEF Cleaning to continue as site supervisor at the
premises and works for them for another four years before DEF terminates his employment.

Arnold is entitled to either eight weeks’ written notice of termination of employment or eight
weeks’ pay in lieu of notice from DEF Cleaning. This is because DEF Cleaning must recognize
his length of employment with the previous employer as if it had been employment with DEF.

Arnold may also be entitled to severance pay if DEF Cleaning's payroll is more than $2.5
million or more than 50 employees have their employment ended within a six-month period as
a result of a permanent discontinuance of all or part of DEF Cleaning's business at an
establishment.

Exception: 13-week gap in employment when there is a sale


of business
Where there has been a sale of a business, an exception to the continuity of employment
provision occurs if there is a 13-week gap in employment.

A person's employment with a previous employer is not deemed to have been employment
with the new owner if the employee is hired by the new owner more than 13 weeks after the
employee's last day of employment with the seller or the day of the sale, whichever is earlier.
Example: When an employee is hired more than 13 weeks after stopping
work with the seller

John works for Rick & Fred Taxis which is having financial difficulties. His employment is
ended by the owners and, 10 weeks later, the business is sold to a new owner, Tamarack Taxis.
Tamarack Taxis does not immediately offer to hire John.

After eight weeks, the new owner realizes that he needs more staff. He calls John and asks him
to return to his old job. John does, but his employment with the previous owner is not
attributed to Tamarack Taxis because he was hired more than 13 weeks after his last day of
employment with the previous owner.

Example: When an employee is hired more than 13 weeks after the day of
the sale

Trevor works as the manager at Jeff's Restaurant. Jeff decides to sell the business, and Trevor
works until the date the restaurant is sold. The new owner decides to manage the restaurant
himself and does not hire Trevor.

After 16 weeks, the new owner realizes that he is not able to manage the restaurant as well as
Trevor did, and he asks him to return to his job as manager. Trevor agrees, and he starts
working again in the business.

Trevor's employment with the previous owner is not deemed to have been employment with
the new owner because he was hired more than 13 weeks after the date of the sale of the
business.

Exception: 13-week gap in employment when there is a


change of building services providers
Where there has been a change of building services providers, an exception to the continuity
of employment provision occurs if there is a 13-week gap in employment.

A person's employment with a previous services provider is not deemed to have been
employment with the new provider if the employee is hired by the new provider more than 13
weeks after the employee's last day of employment with the previous provider or the day the
new provider began to provide the services, whichever is earlier.

Example: When an employee is hired more than 13 weeks after employment


was ended

Maggie has worked for four years as a parking garage attendant for RST, a building services
provider. RST cuts back on its staff and terminates Maggie's employment. Three weeks after
her termination, a new building services provider takes over the operation of the parking
garage. Three months later, the new provider hires Maggie to work as an attendant at the
same parking garage.

Maggie's employment with RST is not deemed to have been employment with the new services
provider because there was a gap of more than 13 weeks between the date her employment
was terminated by RST and the date she was hired by the new provider.
Example: When an employee is hired more than 13 weeks after a new
provider takes over

Al works as a car jockey at a parking lot operated by the owner of an office building. Because
the owner provides parking lot services to the building that it owns, it is considered to be a
building services provider.

The owner decides that it wants to contract the operation of the parking lot to TUV, a building
services provider. Al has been employed by the building owner for three years.

Al's employment is terminated and his last day of work coincides with the last day the lot is
operated by the building owner. The next day the new building services provider, TUV, takes
over the operation.

TUV does not immediately offer to hire Al. However, six months later, it hires him to work as a
car jockey.

Al's employment with the building owner is not attributed to TUV because he was hired more
than 13 weeks after his last day of employment with the owner of the office building (who was
the previous building services provider).

Special circumstances
Please contact the Employment Standards Information Centre, 1-800-531-5551 for further
information about any of the following circumstances:

when a business has been taken over by a landlord due to non-payment of rent;
when a business has been taken over by a trustee or receiver due to a bankruptcy or
receivership; and
when a business is a franchise operation.

Building services providers


As well as the continuity of employment provisions already discussed, additional provisions of
the Employment Standards Act, 2000 (ESA) apply only to employers and employees in the
building services provider sector.

A building services provider is a person or company that provides cleaning, security, or food
services for a premise. A provider can also offer property management, parking garage,
parking lot and concession stand services related only to a building, its occupants and visitors.

The owner or manager of a building is considered a building services provider if that owner or
manager provides these services to the building that they own or manage.

Termination and severance of employment


If a building services provider is replaced by a new provider, the new provider may choose not
to hire the employees of the former provider. However, the new provider must then, in most
cases, comply with the Termination and Severance of Employment sections (Part XV) of the
ESA as if these employees had been terminated and/or severed by the new provider.
Example

Jan has worked for ABC Foods for 10 years as a cook in a cafeteria. The company has a contract
to provide food services in an office building. When the contract expires, ABC ends their
employment relationship with Jan. DEF Foods is contracted to provide the food services, but
because DEF Foods has its own staff it does not hire Jan.

DEF Foods is responsible for paying Jan's termination pay and her severance pay (if
applicable), even though she was never employed by DEF Foods. Jan is entitled to eight weeks'
pay in lieu of notice and, if she is entitled to severance pay, 10 weeks of severance pay. These
payments are based on the length of time she was employed with ABC Foods.

A new building services provider does not have to provide termination or severance pay to an
employee:

1. who continues to be employed by the previous provider;


2. whose work with the previous provider included providing services at the premises but
who did not perform their job primarily at those premises during the 13 weeks before
the date the new provider began to provide services;
3. whose work included providing services at the premises but who:
was not actively at work immediately before the date the new provider began to
provide services; and
did not perform their job primarily at the premises during the most recent 13 weeks
they were actively employed;
4. who did not perform their job at the premises for at least 13 weeks during the 26-week
period before the new provider began to provide services (this does not include any time
the employee was on pregnancy, parental, personal emergency, declared emergency,
family caregiver, family medical, critically ill child care, organ donor, reservist, domestic
or sexual violence, child death, or crime-related child disappearance leave, or time the
building services were temporarily not being provided);
5. who refuses an offer of employment with the new provider that is reasonable in the
circumstances.

If exemptions 2, 3, 4 or 5 apply, the employee is still entitled to termination and/or


severance pay from the previous provider.

Providing information
When a building services provider is considering seeking a contract to become the new
provider of services at a building, it can ask the building’s owner or manager for certain
information about the employees who are working at the building for the current services
provider. This information can help the potential new provider decide whether, and on what
terms, to make a bid to take over the provision of the services, and the number of employees, if
any, it will retain if it wins the contract.

A potential new provider can ask for information on:

each employee's job classification or job description;


the wage rate actually paid to each employee;
a description of any benefits provided to each employee, including the cost of each
benefit and the benefit period to which the cost relates;
the number of hours each employee works in a regular work day and in a regular work
week or, if the employee's hours of work vary from week to week, the number of non-
overtime hours for each week worked by the employee during the 13 weeks prior to the
date the request for information was made;
the date each employee was hired by the provider;
any period of employment attributed to the current provider because of the continuity of
employment provisions of the ESA;
the number of weeks each employee worked at the premises in the 26 weeks before the
request for information was made. (The 26 weeks would not include any period during
which the provision of services was temporarily discontinued or during which the
employee was on a pregnancy, parental, family medical, family caregiver, critically ill
child care, crime-related child disappearance, child death, domestic or sexual violence,
personal emergency, organ donor, declared emergency or reservist leave);
a statement indicating whether either of the following paragraphs applies to each
employee:
the employee's work, before the date of the request date, included providing
services at the premises, but the employee did not perform their job primarily at
those premises during the 13 weeks before the request was made;
the employee's work included providing services at the premises, but the employee
was not actively at work immediately before the date the request was made, and
the employee did not perform their job primarily at the premises during the most
recent 13 weeks of active employment.

If a company becomes the new provider of the services at a building, it has the right to ask for
the name, residential address, and telephone number of each employee.

If a building owner or manager receives a request for information from a new or potential
new services provider, it has the right to get the necessary information from the current or
former services provider.

Anyone who receives information about employees under this provision must use it only for
the purposes of complying with the building services providers provisions of the ESA and
determining their obligations or potential obligations under those provisions and shall not
disclose the information except as required by those provisions.

Equal pay for equal work

On November 27, 2017, the Fair Workplaces, Better Jobs Act became law, resulting in a
number of changes to the Employment Standards Act (ESA). This page has been updated to
reflect the new rules in force as of April 1, 2018. Read a complete summary of the
changes to the ESA.

Under the Employment Standards Act, 2000 (ESA), subject to certain exceptions, an employer
cannot pay an employee at a rate of pay less than another employee on the basis of:

sex
employment status

when they perform substantially the same kind of work in the same establishment, their work
requires substantially the same skill, effort and responsibility and their work is performed
under similar working conditions.

This standard is commonly referred to as “equal pay for equal work.”  Employers cannot lower
employees’ rates of pay to create equal pay for equal work.

If you are a temporary help agency or an assignment employee, there are also additional equal
pay for equal work obligations for assignment employees.  For more information, visit the
Temporary Help Agencies chapter.

Protections under the Ontario Human Rights Code


Ontario’s Human Rights Code protects people in Ontario from employment discrimination
because of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual
orientation, gender identity, gender expression, disability, age, marital status, family status and
record of offences. If an employee believes that a difference in their rate of pay may be related
to discrimination on any of these grounds, they may wish to contact the Human Rights Legal
Support Centre.  It can be reached at: , (TTY) or toll-free at or (TTY). 

What is equal work?


Equal pay for equal work applies when there is “equal work” meaning the employees perform
substantially the same kind of work in the same establishment, the work requires
substantially the same skill, effort and responsibility and is performed under similar
working conditions. All of these conditions must be met for equal pay for equal work to be
required. There are some exceptions (set out below).

Substantially the same kind of work

“Substantially the same kind of work” means the work does not have to be exactly the same. 
What matters is the actual work performed by the employees, not the stated conditions of their
job offer or their job description.

Same establishment

An establishment is a location where an employer carries on business. For example, an


employer owns a hardware store. The hardware store is the employer’s establishment.

Two or more locations are considered a single establishment if:

they are in the same municipality

or

there are common “bumping rights” for at least one employee across municipal borders

“Bumping rights” are the contractual right of an employee being laid off to replace an
employee with less seniority who is not being laid off.

Example
An employer owns two hardware stores in the same city. The two hardware stores are
considered a single establishment because they are in the same municipality.

The employer owns a third hardware store in a different municipality. The three locations
would not be considered a single establishment unless one or more employees could bump
other employees in a different municipality.

Substantially the same skill, effort and responsibility

Skill means the amount of knowledge, physical skill or motor skills needed to perform a job.
This includes:

education, like post-secondary degrees and diplomas


training, like apprenticeships
experience, like the number of years required to master a skill or gain expertise
manual dexterity, like hand-eye coordination

Effort is the physical or mental effort regularly needed to perform a job. An example of
physical effort is the physical strength a labourer needs to lift boxes. An example of mental
effort is the amount of concentration and thinking a lawyer needs to do legal research.

Responsibility includes the number and nature of an employee’s job responsibilities, and how
much accountability and authority the employee has for those responsibilities.

This includes:

the ability to make decisions and take action


responsibility for the safety of others
supervising other employees
handling cash
the amount of supervision over the employee

“Substantially the same skill, effort and responsibility” does not mean the skill, effort and
responsibility must be exactly the same for equal pay for equal work to apply. What matters is
skill, effort, and responsibility needed for the actual work performed by the employees, not the
stated conditions of their job offer or their job descriptions.

Similar working conditions

Working conditions include:

the working environment, like an office or outdoors


exposure to the weather, like rain or snowstorms
health and safety hazards, like exposure to chemicals or heights

Example

Jane and Lucy are library assistants who work in the same library. Jane works full-time while
Lucy works part-time. They both have undergraduate degrees, but they did not need a degree
to qualify for their jobs. They help people with checking books in and out of the library. They
also sort books and organize book shelves. They make decisions following library policy. Jane
and Lucy perform work that is substantially the same kind of work in the same establishment.
Their work requires substantially the same skill, effort, responsibility and is performed under
similar working conditions.

Norman is a librarian at the same library. He has a graduate degree in library science, which is
a requirement for his job. He helps people with checking books in and out of the library, as
well as research. He also supervises library assistants, opens and closes the library and
handles any complaints. Norman, Jane and Lucy work under similar working conditions,
however Norman’s work requires different skill, effort and responsibility.

Example

Andy and Kyra both work as labourers on a production line in a warehouse. Kyra packs plastic
spoons into small boxes, and Andy packs plastic plates into boxes. Andy and Kyra are doing
substantially the same kind of work in the same establishment. Their work requires
substantially the same skill, effort and responsibility and is performed under similar working
conditions.

Jackson is also a labourer in the same warehouse as Andy and Kyra. He drives a forklift that
lifts boxes of spoons in and out of the warehouse, which means he spends part of his working
time outdoors, even when the weather is bad. Jackson needed specialized training to be able to
drive the forklift, and he is responsible for driving it safely. Jackson’s work requires the same
effort as Andy and Kyra’s work, but it requires different skill, responsibility and working
conditions.

What is a difference in rate of pay?


Generally, a difference in rate of pay includes a difference in:

hourly pay rate


salary
overtime pay rate
commission rate

A difference in rate of pay does not include a difference in benefit plans.

Equal pay for equal work on the basis of sex


The ESA generally requires that employers pay men and women equal pay for equal work.
That means that a woman cannot be paid less than a man if she is doing “equal work” to him.
A man also cannot be paid less than a woman if he is doing “equal work” to her. The ESA does
not prevent employers from paying employees of the same sex different rates of pay for equal
work as long as it is not due to a difference in employment status.

Note that other legislation, such as the Ontario Human Rights Code, may prohibit employers
from paying employees of the same sex different rates of pay for equal work on other grounds
not addressed in the ESA.

Equal pay on the basis of sex and pay equity: What’s the difference?
Ontario has legislation called the Pay Equity Act to ensure that employers pay women and men
equal pay for work of equal value. This means that men and women must receive equal pay
for performing jobs that may be very different but are of equal or comparable value. The
value of jobs is based on the levels of skill, effort, responsibility and working conditions
involved in doing the work.

For more information on pay equity, visit the Pay Equity Commission's website.

Equal pay for equal work on the basis of employment


status
Employers, subject to certain exceptions, must pay employees of different employment status
equal pay for equal work. This means that employers cannot pay an employee a lower rate of
pay than another employee who performs equal work because of a difference in employment
status.

A difference in employment status means:

a difference in the number of hours regularly worked (e.g.  25 hours compared to 35


hours)
a difference in their term of employment, such as permanent, temporary, seasonal or
casual status

Example

a part-time employee cannot be paid less than a full-time employee for equal work
a seasonal employee cannot be paid less than a permanent employee for equal work

Employers may pay employees of the same employment status different rates of pay for
performing equal work, as long as it is not due to a difference in sex.

Note that other legislation, such as the Ontario Human Rights Code, may prohibit employers
from paying employees of the same employment status different rates of pay for performing
equal work on other grounds not addressed in the ESA.

Exceptions
Even if employees of different sexes or employment status are doing equal work, they can be
paid different rates of pay if the difference is due to:

a seniority system
a merit system
a system that measures earnings by production quantity or quality

These systems should be transparent, meaning that they should be clear, documented and
communicated to employees as part of employer policies. These systems should be based on
objective and measurable criteria, meaning that the rules used to determine whether an
exception applies are unbiased and can be counted or otherwise measured (see Best Practices
below).  Exceptions as a whole should be applied equally to employees of both sexes and
employment status. Lastly, these systems cannot be based in any way on sex or employment
status.

Employees who perform equal work can also be paid different rates of pay if the difference is
based on any other factor other than sex or employment status.

Seniority system

A seniority system is generally one in which an employee receives rights based on their length
of service with their employer.  For example, an employer runs a grocery store and employs
cashiers who perform equal work. All cashiers receive a $1 per hour raise after their first year
of employment.

An employer may pay an employee with greater seniority a higher rate of pay than another
employee of different sex or employment status for equal work if the difference in pay rates is
based on a seniority system.

Merit system

A merit system is generally one in which employees receive compensation based on an


assessment of how well they perform their jobs. An employer may pay an employee a higher
rate of pay than another employee of a different sex or employment status for equal work if
the difference in pay rates is based on a merit system.

For example, an employer owns a furniture store and employs customer sales representatives
who perform equal work. All customer sales representatives are eligible for a salary increase
of 3 per cent if they meet their sales targets in a six month period.

System that measures earnings by quantity or quality of production

An employer may pay an employee a higher rate of pay than another employee of a different
sex or employment status for equal work if the difference in pay rates is based on a system
that measures earnings by production quantity or quality.

For example, an employer operates a widget factory and employs manufacturing employees
who perform equal work. All employees receive $1 per completed widget, and receive a pay
increase of .15 cents per widget after they complete 1,000 widgets.

Any other factor other than sex or employment status

An employer may pay an employee a higher rate of pay than another employee of a different
sex or employment status for equal work if the difference in pay rates is based on any other
factor other than sex or employment status.

Although it is not a requirement, employers may wish to ensure that the factor is transparent,
based on objective and measurable criteria, and applied equally to employees of all sexes and
employment status.  

The factor must not be connected in any way to sex or employment status.

Best practices for employers


As a best practice, employers who rely on a seniority system, merit system, a system that
measures earnings by quality or quantity of production, or any other factor to pay employees
different rates of pay for doing equal work, should document the system(s) and advise all
employees of how the system(s) apply.

Employers are also encouraged to:

review their pay structures to ensure that they are in compliance with the equal pay
rules in the ESA
develop a salary or wage rate grid that outlines the minimum and maximum rates of pay
for each job and advise employees of how they will progress through the grid
post wage rates or scales for advertised job vacancies
avoid asking job applicants about their prior compensation and benefits or looking for
that information through other means during the hiring process

Reviews of pay rates by employers


Employers have an ongoing obligation to ensure that they are in compliance with the equal
pay rules.  In addition, if an employee believes they are being paid less than another employee
who performs equal work because of a difference in sex or employment status, the employee
may request that their employer review their rate of pay. The employee may also file a claim
directly with the Ministry of Labour.

If the employee requests a review and the employer determines that they are not providing
equal pay for equal work on the basis of sex or employment status, the employer must adjust
the employee’s rate of pay to be equal. Employers cannot lower the rate of pay of the higher-
paid employee to create equal pay for equal work.

If the employer determines there is no equal pay for equal work violation, the employer must
provide a written response to the employee within a reasonable period of time that explains
the reasons why the employer does not agree with the employee’s belief. The response can be a
physical letter or in an email.

When can an employee request a review by the employer?

An employee can request that their employer review their rate of pay when they believe they
are paid less than employees of different sex or employment status for equal work.

As a best practice, when requesting a review of their rate of pay, it would be helpful if
employees can explain:

the positions or jobs that they are comparing their work to


why they think the work is equal
why they think their rate of pay is unequal

What should the employer’s written response include?

An employer’s written response must explain to the employee why they do not believe there is
a violation of equal pay for equal work under the ESA. For example:

there is no difference in the rate of pay


there is no difference in sex or employment status between the employees
the employees do not perform equal work
the difference in rate of pay, if any, is due to one of the following:
a seniority system
a merit system
a system based on production quantity or quality
any other factor other than sex or employment status

How does an employer determine if there is a violation of equal pay for


equal work?

The following questions can help an employer determine if there is a violation of the
equal pay for equal work requirements on the basis of sex or employment status.
Is there a difference in rate of pay?
If the answer is no, there is no violation of equal pay for equal work under the
ESA.
If the answer is yes, go to the next question.
Is there a difference in sex or employment status?
If the answer is no, there is no violation of equal pay for equal work under the
ESA.
If the answer is yes, go to the next question.
Are the employees required to:
perform substantially the same work?
work in the same establishment?
use substantially the same skills in performing their jobs?
use substantially the same effort in performing their jobs?
have substantially the same responsibilities in their jobs?
If the answer to any of these questions is no, there is no violation of equal
pay for equal work under the ESA.
If the answer to all of these questions is yes, go to the next question.
Is the difference in rate of pay for substantially the same jobs due to:
a seniority system?
a merit system?
a system that is based on production quality or quantity?
any other factor other than a difference in sex or employment status?
If the answer to any of these questions is yes, there is no violation of equal
pay for equal work under the ESA.
If the answer to these questions is no, there may be a violation of the ESA.
The employer may need to adjust the employee’s rate of pay upwards to
comply with the equal pay for equal work provisions.

If you are a temporary help agency, you have additional equal pay for equal work obligations
for assignment employees.  For more information, visit the Temporary Help Agencies chapter.

What if an employee disagrees with their employer’s written response?

If an employee disagrees with their employer’s written response and still believes that their
employer is not complying with the equal pay for equal work provisions, or does not receive a
response from their employer, the employee may file a claim with the Ministry of Labour. 

Reprisals
Under the ESA, an employer cannot punish an employee in any way for requesting a review of
their rate of pay because they believe they are not receiving equal pay for equal work, or for
asking other employees about their rates of pay to find out if an employer is providing equal
pay for equal work.

Under the ESA, an employer also cannot punish an employee in any way for disclosing their
own rate of pay to another employee for the purpose of determining or assisting that employee
in determining whether they are receiving equal pay for equal work.

For more information, see the chapter on Reprisals.

Collective agreements
If a collective agreement that came into force before April 1, 2018, contains a provision that
permits differences in the rate of pay based on employment status, the provision of the
collective agreement prevails, even if it conflicts with the ESA. However, these provisions will
cease to prevail either the earlier of the date the collective agreement expires or January 1,
2020.

Lie detector tests


A "lie detector test" means an analysis, examination, interrogation or test that is taken or
performed by means of a machine and is used to assess a person's credibility.

For the purposes of the lie detector provisions of the Employment Standards Act, 2000 (ESA):

"Employer" also includes a prospective employer and a police governing body.

"Employee" also includes an applicant for employment, a police officer and a person who is
applying to be a police officer.

Prohibition of testing
It is against the law for an employer or anyone on behalf of an employer to directly or
indirectly require, request, enable or influence an employee to take a lie detector test.

An employee's right to refuse


An employee has the right:

not to take a lie detector test;


not to be asked to take a lie detector test; and
not to be required to take a lie detector test.

Disclosure
No one may disclose to an employer that an employee has taken a lie detector test, and no one
can disclose to an employer the results of a lie detector test taken by an employee.
Use of lie detectors by the police
Nothing in this part of the ESA prevents a person from:

being asked by a police officer to take a lie detector test;


consenting to take a lie detector test; and
taking a lie detector test;

if the test is administered on behalf of a police force in Ontario or by a member of a police


force in Ontario in the course of the investigation of an offence.

Reprisals
Employers are prohibited from penalizing or threatening to penalize employees in any way
for:

asking the employer to comply with the Employment Standards Act, 2000 (ESA) and the
regulations;
asking questions about rights under the ESA;
filing a complaint under the ESA;
exercising or trying to exercise a right under the ESA;
giving information to an employment standards officer;
asking about the rate of pay paid to another employee to determine if an employer is
providing equal pay for equal work;
disclosing their rate of pay to another employee to determine if an employer is providing
equal pay for equal work;
taking, planning on taking, being eligible or becoming eligible for a pregnancy, parental,
personal emergency, declared emergency, family caregiver, family medical, critical
illness, organ donor, reservist, domestic or sexual violence, crime-related child
disappearance or child death leave;
being subject to a garnishment order (i.e., a court order to have a certain amount
deducted from wages to satisfy a debt);
participating in a proceeding under the ESA;
participating in a proceeding under section 4 of the Retail Business Holidays Act
(regarding tourism exemptions that allow retail businesses to open on holidays).

An employer that does penalize an employee for any of these reasons can be ordered by an
employment standards officer to:

reinstate an employee to their job


compensate an employee for any loss incurred because of a violation of the ESA.

For information on additional reprisal protections that apply in the context of Part XVIII.1 –
Temporary Help Agencies, please see “Temporary help agencies”.

Temporary help agencies


Temporary help agencies employ people to assign them to perform work on a temporary basis
for clients of the agency. The duration of the assignment does not matter. Such employees are
called “assignment employees”.
Under the ESA, temporary help agency assignment employees generally have the same rights
as other employees. There are also rules in the ESA that apply specifically to assignment
employees, temporary help agencies and clients of temporary help agencies.

This chapter provides information about the rights and rules that apply only to assignment
employees, temporary help agencies, and clients of temporary help agencies. Information
about other rights and benefits under the ESA are found in other chapters within the Guide.

The employment relationship


Where a temporary help agency and person agree, verbally or in writing, that the agency will
assign (or try to assign) the person to perform work on a temporary basis for its clients, the
agency is the employer of that person and the person is an assignment employee of the agency.

Once there is an employment relationship between an agency and an assignment employee,


the relationship continues whether or not the employee is on an assignment (working) with a
client of the agency on a temporary basis. The fact that an assignment ends does not in itself
mean that the employment relationship ends.

Example

Joel and a temporary help agency agree on June 1st that the agency will try to find Joel
temporary work with one of its clients. Two months pass before the agency assigns Joel to
work for a client on August 1st. The client ends the assignment on September 1st. The agency
does not terminate Joel’s employment and he does not quit.

One month goes by before Joel is given a second assignment on October 1st. The assignment
ends on December 31st. The agency also gives Joel written notice that it is terminating his
employment with the agency on that date.

In this scenario, Joel was an assignment employee with the temporary help agency (i.e., had an
employment relationship with the agency) from June 1st to December 31st.

A work assignment
A work assignment begins on the first day the employee does work for, or receives training
from, a client of the agency. It ends when the term of the assignment ends, or when the
assignment is ended by the agency, the assignment employee, or the client.

Record keeping requirements


An agency must record the number of hours an assignment employee worked for each client
in each day and each week. The client(s) must also record the number of hours the assignment
employee worked for them in each day and each week.

The agency and client(s) must retain those records for three years after the day or week to
which the information relates. These records must be readily available for inspection by an
employment standards officer, even if the agency and/or client(s) has arranged for another
person to retain the records.
Information assignment employees must receive when
hired by an agency
A temporary help agency must provide the following written information to an assignment
employee as soon as possible after the person becomes an employee:

the legal name of the agency, as well as any operating or business name of the agency (if
it is different from the legal name);
contact information for the agency, including its address, telephone number and one or
more contact names; and,
a copy of the information sheet published by the Director of Employment Standards
entitled “Your employment standards rights: Temporary help agency assignment
employees”. If the language of the employee is one other than English, the temporary
help agency must provide this document to the employee in that language, if it is
available from the Ministry.

Information assignment employees must receive when


offered work assignments
A temporary help agency is also required to provide the following information to an
assignment employee when offering him or her a work assignment with a client:

the legal name of the client, as well as any operating or business name of the client (if it is
different from the legal name);
contact information for the client, including its address, telephone number and one or
more contact names;
the hourly or other wage rate or commission and benefits associated with the
assignment;
the hours of work;
a general description of the work;
the estimated term of the assignment (if known when the offer is made); and,
the pay period and pay day.

This information can be provided verbally when the work assignment is offered, but must be
provided in writing as soon as possible.

Prohibitions on charging fees to assignment employees and


restricting assignment employees from accepting
employment with clients
1. A temporary help agency is not allowed to charge a fee to an assignment employee, or
prospective assignment employee, for:
becoming an employee of the agency;
the agency assigning or trying to assign the employee to perform temporary work
for a client; or,
the agency providing the employee with help in preparing resumes or in preparing
for job interviews, even if the employee is told they can choose whether to take that
assistance or not.
2. An agency is prohibited from attempting to restrict an assignment employee from
accepting direct employment with an agency client. It also cannot charge the employee a
fee for accepting direct employment with a client of the agency.

Prohibitions on charging fees to clients and restricting


clients from hiring assignment employees
1. A temporary help agency is not allowed to charge a fee to a client of the agency for
entering into a direct employment relationship with an agency’s assignment employee
unless the agency charges the fee during the six months beginning on the first day the
assignment employee first begins working for that client through the agency;
2. An agency is not allowed to restrict a client from entering into a direct employment
relationship with an assignment employee.

Job references
A temporary help agency is not allowed to stop its client(s) from providing a job reference for
an assignment employee.

Terms of a contract or an agreement (whether or not in writing) that impose any of the
above fees or restrictions are void.

Equal pay for equal work


Under the ESA, subject to an exception described below, when an assignment employee is on
an assignment with a client, the temporary help agency cannot pay the assignment employee a
lower rate of pay than that paid to the client’s employee where the two individuals:

perform substantially the same kind of work in the same establishment,


their work requires substantially the same skill, effort and responsibility, and
their work is performed under similar working conditions.

This standard is commonly referred to as “equal pay for equal work”. A client cannot lower an
employee’s rate of pay to create equal pay for equal work as between the client’s employee and
an assignment employee.

Protections under the Ontario Human Rights Code


Ontario’s Human Rights Code protects people in Ontario from employment discrimination
because of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual
orientation, gender identity, gender expression, disability, age, marital status, family status and
record of offences. If an employee believes that a difference in their rate of pay may be related
to discrimination on any of these grounds, they may wish to contact the Human Rights Legal
Support Centre. It can be reached at: , (TTY) or toll-free at or (TTY).
What is equal work?
Equal pay for equal work applies when there is “equal work” meaning the assignment
employee and the employee(s) of the client perform substantially the same kind of work in
the same establishment, the work requires substantially the same skill, effort and
responsibility and is performed under similar working conditions. All of these conditions
must be met for equal pay for equal work to be required. There is an exception to this rule, set
out below.

Substantially the same kind of work

“Substantially the same kind of work” means the work does not have to be exactly the same.
What matters is the actual work performed by an assignment employee and an employee of
the client, not the stated conditions of their job/assignment offer or their job/assignment
description.

Same establishment

An establishment is a location where a client carries on business. For example, a client of a


temporary help agency operates a food processing factory. The factory is the client’s
establishment.

Two or more locations are considered a single establishment if:

they are in the same municipality


or
there are common “bumping rights” for at least one employee across municipal borders

“Bumping rights” are the contractual right of an employee being laid off to replace an
employee with less seniority who is not being laid off.

Example:

A client business owns two factories in the same city. The two factories are considered a single
establishment because they are in the same municipality.

The employer owns a third factory in a different municipality. The three locations would not
be considered a single establishment unless one or more of the client’s employees could bump
other employees in a different municipality.

Substantially the same skill, effort and responsibility

Skill means the amount of knowledge, physical skill or motor skill needed to perform a job.
This includes:

education, like post-secondary degrees and diplomas


training, like apprenticeships
experience, like the number of years required to master a skill or gain expertise
manual dexterity, like hand-eye coordination
Effort is the physical or mental effort regularly needed to perform a job. An example of
physical effort is the physical strength a labourer needs to lift boxes. An example of mental
effort is the amount of concentration and thinking a lawyer needs to do legal research.

Responsibility includes the number and nature of an employee’s job responsibilities, and how
much accountability and authority the employee has for those responsibilities.

This includes:

the ability to make decisions and take action


responsibility for the safety of others
supervising other employees
handling cash
the amount of supervision over the individual

“Substantially the same skill, effort and responsibility” does not mean the skill, effort and
responsibility must be exactly the same for equal pay for equal work to apply. What matters
when assessing whether the work is “equal work” is the actual skill, effort and responsibility
needed by an assignment employee and an employee of the client to perform their work, not
the stated conditions of their job/assignment offer or their job/assignment description.

Similar working conditions

Working conditions include:

the working environment, like an office or outdoors


exposure to the weather, like rain or snowstorms
health and safety hazards, like exposure to chemicals or heights

Examples:

Charlotte is an assignment employee assigned to work in an office for a client. Emily is an


employee of the client. They both work in the office as administrative assistants. Charlotte
answers phone calls and puts documents in file folders. Emily answers phone calls and puts
the file folders in filing cabinets. They are supervised by the same office supervisor and must
ask the office supervisor for approval before making decisions. Charlotte and Emily are doing
substantially the same work in the same establishment. Their work requires substantially the
same skill, effort, responsibility and occurs in the same working conditions.

Olivia is an employee of the client. Olivia works in the office as the office supervisor. She has a
diploma in business administration, which was a requirement for her job. She answers phone
calls and files documents. She also supervises the administrative assistants, manages shipping,
and orders office supplies. Olivia’s work takes place in the same working conditions as
Charlotte and Emily’s work, but it requires different skill, effort, and responsibility.

What is a difference in rate of pay?


Generally, a difference in rate of pay includes a difference in:

hourly pay rate


salary
overtime pay rate
commission rate

A difference in rate of pay does not include a difference in benefit plans.

Exception – Any factor other than sex, employment status


or assignment employee status
Even if an assignment employee and an employee of a client are doing equal work, the
assignment employee can be paid a lower rate of pay if the difference is due to any factor
other than sex, assignment employee status, or employment status.

In other words, an assignment employee who does work equal to that of a client employee
cannot be paid a lower rate of pay on the basis that the assignment employee is male or
female, or simply due to the fact that the assignment employee is an assignment employee. A
lower rate of pay also cannot be justified by a difference in employment status between the
assignment employee and client employee, meaning a difference in the number of hours
regularly worked or a difference in their term of employment such as permanent, temporary,
seasonal or casual status.

The factor must not be connected in any way to sex, employment status or assignment
employee status.

Although it is not a requirement, temporary help agencies may wish to ensure that any factor
they rely on as an exception to the equal pay for equal work requirement is transparent, based
on objective and measurable criteria, and applied equally to assignment employees of all sexes
and employment statuses.

Temporary help agencies are also encouraged to:

review the rate of pay for each assignment to ensure that they are in compliance with the
equal pay rules in the ESA, and
ask client businesses for a salary or wage rate grid that outlines the minimum and
maximum rates of pay for each job

Reviews of pay rates by temporary help agencies


Temporary help agencies have an ongoing obligation to ensure that they are in compliance
with the equal pay rules. In addition, if an assignment employee believes they are being paid
less than an employee of the client who performs equal work, and that this difference in pay is
due to their assignment employee status, the assignment employee may request that their
temporary help agency review their rate of pay. The assignment employee may also file a claim
directly with the Ministry of Labour.

If the assignment employee requests a review and the temporary help agency determines that
it is not providing equal pay for equal work on the basis of assignment employee status, the
temporary help agency must adjust the assignment employee’s rate of pay to be equal. Clients
cannot lower the rate of pay of their higher-paid employee to create equal pay for equal work
for an assignment employee.
If the temporary help agency determines there is no equal pay for equal work violation, the
temporary help agency must provide a written response to the assignment employee within a
reasonable period of time that explains the reasons why the temporary help agency does not
agree with the assignment employee’s belief. The response can be in a physical letter or in an
email.

When can an employee request a review by the employer?


An assignment employee can request that the temporary help agency review their rate of pay
when they believe they are receiving a lower rate of pay than employees of the client who
perform equal work.

As a best practice, when requesting a review of their rate of pay, it would be helpful if
assignment employees could explain:

the positions or jobs that they are comparing their work to


why they think the work is equal
why they think their rate of pay is unequal

What should the temporary help agency’s written response


include?
A temporary help agency’s written response must explain to the assignment employee why it
does not believe there is a violation of equal pay for equal work under the ESA. For example:

there is no difference in the rate of pay


there is no difference in assignment employee status between the employees
the employees do not perform equal work
the difference in rate of pay, if any, is due to a factor other than sex, employment status or
assignment employee status

How does a temporary help agency determine if there is a


violation of the equal pay for equal work provisions?
The following questions can help an employer determine if there is a violation of the equal pay
for equal work requirements on the basis of sex or employment status.

Is there a difference in rate of pay?

If the answer is no, there is no violation of equal pay for equal work under the ESA.
If the answer is yes, go to the next question.

Is there a difference in sex or employment status?

If the answer is no, there is no violation of equal pay for equal work under the ESA.
If the answer is yes, go to the next question.

Are the employees required to:

perform substantially the same work?


work in the same establishment?
use substantially the same skills in performing their jobs?
use substantially the same effort in performing their jobs?
have substantially the same responsibilities in their jobs?
If the answer to any of these questions is no, there is no violation of equal pay for
equal work under the ESA.
If the answer to all of these questions is yes, go to the next question.

Is the difference in rate of pay for substantially the same jobs due to:

a seniority system?
a merit system?
a system that is based on production quality or quantity?
any other factor other than a difference in sex or employment status?
If the answer to any of these questions is yes, there is no violation of equal pay for
equal work under the ESA.
If the answer to these questions is no, there may be a violation of the ESA. The
employer may need to adjust the employee’s rate of pay upwards to comply with the
equal pay for equal work provisions.

What if an assignment employee disagrees with the temporary help agency’s


written response?

If an assignment employee disagrees with the temporary help agency’s written response and
still believes that the temporary help agency is not complying with the equal pay for equal
work provisions, or does not receive a response from the temporary help agency, the
assignment employee may file a claim with the Ministry of Labour.

Reprisals

Under the ESA, a temporary help agency cannot punish an assignment employee in any way
for:

requesting that the agency review their rate of pay because they believe they are not
receiving equal pay for equal work.
asking an employee of a client about their rate of pay in order to determine, or to help
another person in determining, if the temporary help agency is providing equal pay for
equal work.
disclosing their rate of pay to another assignment employee or employee of the client for
the purpose of determining or helping another person in determining whether the
temporary help agency is providing equal pay for equal work.

A client cannot punish an assignment employee in any way for:

asking the client, client’s employee(s), or anyone else about the rate of pay of an employee
of the client in order to determine, or to help another person in determining, whether the
temporary help agency is providing equal pay for equal work.
disclosing the assignment employee’s rate of pay to an employee of the client for the
purpose of determining or helping another person in determining whether the
temporary help agency is providing equal pay for equal work.
disclosing the client employee’s rate of pay to the temporary help agency to determine, or
to help another person in determining, whether the agency is providing equal pay for
equal work.

A client also cannot punish its employees in any way for disclosing their rate of pay to an
assignment employee for the purpose of determining, or to help another person in
determining, whether a temporary help agency is providing equal pay for equal work.

For more information, see the chapter on Reprisals.

Collective agreements
If a collective agreement that came into force before April 1, 2018, contains a provision that
permits differences in the rate of pay between employees of a client and assignement
employees, the provision of the collective agreement prevails, even if it conflicts with the ESA.
However, these provisions will cease to prevail either the earlier of the date the collective
agreement expires or January 1, 2020.

Public holidays
Temporary help agency assignment employees generally have the same public holiday rights
as other employees. Please see "Public holidays" for more information. You may also wish to
refer to the public holiday pay calculator.

When employee is on assignment and a public holiday falls on a day that


would ordinarily be a working day

Generally, if a public holiday falls on a day when the employee is on an assignment and that
day would ordinarily be a working day under the terms of the assignment, the employee is
entitled to the day off with public holiday pay. Public holiday pay is all the regular wages
earned in the pay period before the holiday, divided by the number of days the employee
worked in that period. There are some situations in which a pay period other than the pay
period immediately preceding the public holiday is used to calculate public holiday pay.

The employee may also agree, electronically or in writing, to work on the holiday and in that
case will:

have a right to their regular pay for that day and a substitute day off with public holiday
pay;
or
get premium pay for every hour worked on the holiday plus public holiday pay.

Example

Two months after her last assignment, Munira is placed on a two-week assignment working
Monday through Thursday each week. She is paid $1000 per week and has a weekly pay period
that runs from Monday to Sunday. The current assignment begins one week prior to the week
Family Day occurs and ends the Thursday following the holiday. She would ordinarily have
worked on the day the holiday fell (pursuant to her assignment) so is entitled to Family Day as
a day off with public holiday pay.
Her public holiday pay is calculated as the regular wages she earned ($1,000) within the pay
period prior to the holiday, divided by four (the number of days she worked in that period).
Her public holiday pay for Family Day is $250.

When employee is on assignment and a public holiday falls on a day that


would not ordinarily be a working day

If the employee is on assignment but the holiday falls on a day that is not ordinarily a working
day for the employee, the employee will generally get a substitute day off with public holiday
pay. The employee may also agree (electronically or in writing) to public holiday pay only.

Example

Shana is on an assignment from March 1 to April 30 and is scheduled to work only Tuesdays
and Thursdays of each week. She earns $500 per week on this assignment. There is one public
holiday during this assignment - Good Friday – which falls on the first Friday in April. Since
Fridays are not days that she is ordinarily scheduled to work pursuant to her assignment,
Shana is entitled to a substitute day off for Good Friday with public holiday pay calculated as if
the substitute day was a public holiday.

The substitute day off must be scheduled within three months following the public holiday or
within 12 months if Shana and her employer agree electronically or in writing. The public
holiday pay is based on all the regular wages earned in the pay period prior to the substitute
day, divided by the number of days Shana works in that period.

The substitute day off is scheduled for Thursday, April 29. She worked four days and earned
$1,000 in regular wages in the pay period prior to the substitute day off, and is therefore
entitled to $250 in public holiday pay. Alternatively, Shana may agree (electronically or in
writing) to public holiday pay only for Good Friday (with no substitute day off

When a public holiday falls on a day when the employee is not on an


assignment

If the holiday falls on a day that the employee is not on assignment, the employee will
generally be entitled only to public holiday pay for the holiday.

Example

Willie ends a six-month assignment on Friday, February 12. He had been earning $800,
working 4 days a week while on that assignment. He has a weekly pay period that runs from
Sunday to Saturday. He is offered another assignment that begins on April 15, which he
accepts. Family Day falls on February 15, but because he is on a lay-off when the holiday
occurs, he is entitled only to public holiday pay for Family Day (no substitute day off).

The public holiday pay is calculated as the regular wages earned ($800) in the pay period prior
to the holiday, divided by four (the number of days he worked in that period). In this case,
Willie is entitled to $200 in public holiday pay.

Example
Shafayat ends a six-month assignment on May 30. Canada Day falls on July 1. He was available
and able to work, but was not offered another assignment between May 30 and July 1. Because
he is on a lay-off when the holiday falls, he is entitled only to public holiday pay for the day.
His public holiday pay is calculated as the regular wages earned in the pay period prior to the
holiday, divided by the number of days he worked in that period. Because he has no earnings
for that period, his public holiday pay for Canada Day is $0.

Termination of assignment
Termination of assignment – which differs from termination of employment – occurs when an
assignment employee has his/her assignment with a client terminated, yet remains employed
with the temporary help agency.

A temporary help agency is required to provide an assignment employee with either one
week’s written notice of termination of assignment, termination of assignment pay or a
combination of the two, if:

1. the assignment employee is assigned to perform work for a client;


2. the assignment had an estimated term of three months or more at the time it was offered
to the employee; and
3. the assignment is terminated before the end of its term.

The temporary help agency does not have to provide notice of termination of assignment if the
assignment employee is offered work with a client lasting one week or more during the notice
period that is reasonable under the circumstances.

Certain assignment employees are not entitled to notice of termination of assignment or


termination of assignment pay, e.g. employees who are guilty of wilful misconduct,
disobedience or wilful neglect of duty that is not trivial and has not been condoned by neither
the temporary help agency nor the client.

Pay in lieu of notice

Should the temporary help agency elect to provide the assignment employee with pay in lieu
of notice of termination of assignment, the amount shall be equal to the wages the assignment
employee would have earned had the one weeks’ notice been provided.

Termination of employment
Temporary help agency assignment employees generally have the same rights as other
employees to notice of termination. Please refer to “Termination of employment” for more
information. However, some termination rules apply only to assignment employees; they are
described below.

Requirements during notice period

During each week of notice, an assignment employee is entitled to be paid of the wages they
are entitled to receive, which cannot be less than,
1. In the case of a termination other than a termination that results from a lay-off going on
longer than a “temporary lay-off”, the total amount of wages earned by the assignment
employee in the 12 weeks ending on the employee’s last day of work for a client of the
agency, divided by 12;
or
2. In the case of a termination that results from a lay-off going on longer than a “temporary
lay-off”, the total amount of wages earned by the assignment employee in the 12 weeks
before the deemed termination date, divided by 12.The deemed termination date is the
first day of the lay-off.

Pay in lieu of notice

If the employee is being terminated without working notice, pay in lieu of notice is calculated
as the amount of wages earned in the 12 weeks ending on the employee’s last day of work for a
client of the agency or, in the 12 weeks before the deemed termination date, if the termination
is triggered by a lay-off going on longer than a “temporary lay-off”, divided by 12, and
multiplied by the number of weeks of notice to which the employee is entitled.

Termination resulting from a lay-off

Termination of employment may be triggered by a lay-off that lasts longer than a “temporary
lay-off” . An assignment employee is considered to be on a week of layoff if they are not
assigned by the agency to perform work for a client of the agency during that week. A week is
not counted as a week of layoff (i.e., is an “excluded” week) if, for one or more days, an
assignment employee

is not able to work;


is not available for work;
refuses an offer by the agency that would not constitute constructive dismissal;
is subject to a disciplinary suspension; or,
is not assigned to perform work for a client of an agency because of a strike or lock-out at
the agency.

For information on how a lay-off results in termination of employment, please refer to


temporary lay-off in the Termination of employment Chapter.

Mass termination

A temporary help agency assignment employee may also have a right to mass notice of
termination of eight, 12 or 16 weeks. Assignment employees may have a right to mass notice of
termination if 50 or more have their employment terminated by their agency in a single four-
week period because their assignments at a single client’s establishment ended.

Example

Christine is one of 100 assignment employees who are assigned by ABC Staffing Services, a
temporary help agency, for an anticipated ten-month period of work at one of its clients, DEF
Manufacturing.

After six months, DEF Manufacturing changes its production plans and ends the assignments
of the 100 ABC Staffing Services employees immediately. Because the assignments with DEF
end, and ABC does not anticipate being able to find other assignments for 70 of its affected
assignment employees, ABC terminates the employment of these 70 employees, including that
of Christine, without notice.

The agency tells the remaining 30 employees that it will try to place them in other
assignments, i.e., that it is maintaining its employment relationship with them.

The 70 employees that are being terminated are entitled to mass notice of termination.
Because the number of employees who have been terminated is between 50 and 199, Christine
and each of the other affected employees are entitled to eight weeks’ pay in lieu of notice.

Severance of employment
Temporary help agency assignment employees generally have the same rights as other
employees to severance pay. An employee is entitled to severance pay if their employment is
severed, they have been employed for at least five years and certain other conditions are met.
(The five-year threshold is based on the total time the employee is employed by the agency, not
the duration of any particular assignment.) Please refer to “Severance pay” for more
information. However, some severance pay some rules apply only to assignment employees;
they are described below.

Calculating severance pay

To calculate the amount of severance pay an assignment employee is entitled to receive:

1. Either 
a. in the case of a severance other than a severance that results from a lay-off going on
for 35 weeks or more in a 52-week period, take the total amount of wages earned by
the assignment employee for work done for clients of the agency during the 12-week
period ending on the last day the employee did work for a client of the agency; or
b. in the case of a severance that results from a lay-off going on for 35 weeks or more
in a 52-week period, take the total amount of wages earned by the assignment
employee for work done for clients of the agency in the 12 weeks before the first day
of the lay-off;
2. divide the amount in 1(a) or 1(b) by 12;
3. multiply the result in 2 above by the lesser of 26 and the sum of:
the number of years of employment the employee has completed; and
the number of completed months of employment in the incomplete year, divided by
12.

Severance resulting from a lay-off

One of the ways in which a severance of employment may be triggered is by a lay- off that lasts
for 35 weeks or more in a 52-week period. An assignment employee is considered to be on a
week of layoff if they are not assigned by the agency to perform work for a client of the agency
during that week. A week is not counted as a week of layoff (i.e., is an “excluded” week) if, for
one or more days, an employee:

is not able to work;


is not available for work;
refuses an offer by the agency that would not constitute constructive dismissal;
is subject to a disciplinary suspension; or,
is not assigned to perform work for a client of an agency because of a strike or lock-out at
the agency.

For information on how a lay-off results in the severance of employment, please refer to the
"Severance pay" chapter.

Reprisal by a client of an agency


As the employer of an assignment employee, a temporary help agency is not allowed to
penalize an assignment employee for doing things such as asking questions about their ESA
rights, filing a claim under the ESA or otherwise exercising their rights. Please refer to
“Reprisals” for more information.

In addition, a client of a temporary help agency is not allowed to penalize a temporary help
agency assignment employee because, for example, they have asked about their ESA rights,
asserted those rights, or asked the client or the agency to comply with the ESA. That means a
client is not allowed to:

intimidate the employee;


refuse to have the employee perform work;
refuse to allow the employee to start an assignment;
terminate the assignment of the employee; or,
otherwise penalize or threaten to penalize the employee

for any of the above stated reasons.

Enforcement of temporary help agency employment rules


Assignment or prospective assignment employees who believe their agency is not complying
with the ESA, and assignment employees who believe the agency or a client of the agency has
penalized them for, among other things, asking about or for their ESA rights, may file a claim
with the Ministry of Labour. Please see the chapter “Filing an employment standards claim”
for more information.

For information on how rights under the ESA are enforced, please refer to the Role of the
Ministry of Labour.

There are additional ways the Ministry of Labour can enforce the ESA when there are
violations of some of the rights specific to assignment employees:

If an agency has charged an assignment employee or a prospective assignment employee


a prohibited fee, an employment standards officer may issue an order to recover the fees
for the employee;
If an agency has interfered with the assignment employee getting direct employment
with a client of the agency or prevented a client from providing a job reference for an
assignment employee, and the assignment employee has suffered damages as a result, an
officer may order compensation for any loss incurred; and/or,
If a client of the agency has penalized an assignment employee, an officer may issue an
order for compensation for any loss incurred and/or reinstatement in the assignment
Agency and client jointly and severally liable for unpaid
wages
As the employer of the assignment employee, the agency is liable for all wages that are unpaid.
However, as of November 20, 2015, if an assignment employee performs work for a client and
the agency fails to pay the employee for some or all of the wages owed for that pay period, the
client(s) may be jointly and severally liable together with the agency for some or all of those
unpaid wages. Specifically, clients may be liable for unpaid regular wages, overtime pay, public
holiday pay and public holiday premium pay.

If an assignment employee performs work for more than one client in any pay period, each
client is liable for an amount that is proportional to the hours worked for the client, relative to
the total hours the employee worked for all clients of the agency, in that pay period.

Industries and jobs with <abbr title="Employment


Standards Act"><cite>ESA</cite></abbr> exemptions and/or
special rules
While most employees and employers in Ontario are covered by the Employment Standards
Act, 2000 (ESA), there are some types of occupations:

to which the ESA does not apply,


that are covered by the ESA generally but exempt from (not covered by) certain parts of
it,
that are covered by special rules that change how certain parts of the ESA apply.

The Ministry of Labour’s special rule tool can help you understand how the ESA applies to
these types of occupations.

Filing an employment standards claim


Most employees covered under the Employment Standards Act, 2000 (ESA) may file a claim
with the Ministry of Labour if they believe their employer is not complying with the law.

Employees can phone the Employment Standards Information Centre for assistance in
identifying and defining issues under the ESA and the Employment Protection for Foreign
Nationals Act, 2009 (EPFNA), and finding ways to resolve them at:

(416) 326-7160;
toll free in Ontario at 1-800-531-5551; or
TTY (for hearing impaired) 1-866-567-8893.

Please note, the Employment Protection for Foreign Nationals Act, 2009 is a different law from
the Employment Standards Act, 2000.

When an employee cannot file a claim


There are two situations in which an employee who is covered by the ESA cannot file a claim
with the Ministry of Labour:

1. When an employee is represented by a trade union

Generally speaking, employees represented by a union cannot file a claim. These


employees—if they are covered by a collective agreement and whether or not they are
actually members of the union—must use the grievance procedure contained in the
collective agreement between the employer and the trade union.

2. When an employee has filed a claim in a court of law

An employee cannot file a claim with the Ministry of Labour for a failure to pay wages or
discrimination in benefit plans if the employee has already started a court action against
the employer for the same matter.

In addition, an employee who has started a court action for wrongful dismissal cannot
file a claim for termination or severance pay under the ESA with respect to the same
termination/severance of employment.

An employee with questions about whether it is best to file a claim or to sue the employer in
court may wish to consult a lawyer before filing a claim.

Employees also need to be aware that if they have filed a claim with the Ministry of Labour for
unpaid wages, benefits, or termination or severance pay that they must withdraw the claim
within two weeks of the date of filing it with the Ministry if the employee intends to start a
court action with respect to those unpaid wages, benefits, or alleged wrongful dismissal.

Note that the restrictions on pursuing a claim through both the courts and with the Ministry of
Labour do not apply to claims filed with the Ministry of Labour for compensation or
reinstatement (for example, where a claim is filed for a violation of the pregnancy, parental,
emergency, family medical leave, or reprisal provisions of the ESA).

Filing a claim
If you are an employee and believe that your employment rights have been violated, you can
file a claim with the Ministry of Labour:

online for faster and fully accessible service


by filling in, printing out and faxing a PDF version of the form to 1-888-252-4684

It is important to fill in the claim form as best you can. Missing information may cause a delay
in processing your claim.

Step 1

Employees are encouraged to collect important documents about their work histories before
completing the claim form. Having these documents close at hand helps claimants fill out the
claim form, however the claimant does not have to have these documents in order to file a
claim.

Step 2
The Claim Form asks the claimant to give a lot of detailed information. It may take an hour or
more to complete it. It is important to read the important information contained in the Before
you start booklet before completing the claim form.

The basic information the ministry requires is marked by asterisks (*). Missing information
may cause a delay in processing a claim.

If the claimant does not know the answer to a question marked with an asterisk, they must
record "unknown." If the question does not apply to the claimant’s situation, they must record
"not applicable" or "n/a".

Providing complete and accurate information for all other fields ensures that the claim will
be processed in a timely manner.

The Ministry of Labour will try to contact the claimant if certain information is missing.

Step 3

It is recommended that an employee file their claim online. They will receive a claim number
immediately.

Employees may also file a claim:

By mail to:

Provincial Claims Centre


Ministry of Labour
70 Foster Drive, Suite 410
Roberta Bondar Place
Sault Ste. Marie, ON
P6A 6V4.

By fax: 1-888-252-4684.

Note: If an employee files a claim by fax or by mail, they will receive a letter in the mail with
the claim number. If the claim is missing required information, the employee will receive a
request to provide the information.

A claim should only be filed once. For example, if an employee filed their claim online, the
employee should not send another copy of the Claim Form to the Ministry of Labour.

If you are concerned about an Employment Protection for Foreign Nationals Act, 2009
violation, you must file an EPFNA claim using the correct claim form. You can access an
EPFNA claim form on the Ministry of Labour's website.

Investigation, enforcement and appeals


Once a claim has been filed, it is reviewed to ensure that all the required information has been
provided. If the Claim Form includes all required information, the claim is assigned to an
employment standards officer for investigation. If the claim is missing required information,
the employee will be contacted by the ministry and asked to provide the information within a
specified period of time.
During the investigation of a claim, the employee will be asked to provide some or all of the
following:

Copies of pay stubs or paycheques


Copies of T4 slips
A copy of their written notice of termination (if the employee's employment was
terminated and/or severed by the employer and written notice was given)
A copy of the employee's Record of Employment, if received
A copy of the written contract of employment, if there is one
Copies of any warning letters or notices received
A record of the hours worked if available (e.g., a calendar record, time sheets, attendance
records, diary or notes)

The documents must be provided in the time period set out by the employment standards
officer.

Please refer to the chapter entitled "Role of the Ministry of Labour" for information on topics
such as:

how an investigation is conducted;


the kinds of actions an employment standards officer or the ministry may take; and
how an employee may appeal an officer's decision.

Time limits regarding claims


An employment standards officer can issue an order for unpaid wages, including vacation pay,
if the employee has filed a claim within two years of when the wages were due.

When wages are due


Generally, wages, except vacation pay, become due on the employee's regular pay day.
However, if the employment relationship ends, all of the wages owed to the employee
(including any unpaid vacation pay as of the date the employment relationship ended) are due
either within seven days of that date, or on what would have been the employee's next regular
pay day, whichever is later.

Two-year time limit for filing a claim

Under the ESA, generally employees must file a claim within two years of the contravention in
order for the claim to be investigated by an employment standards officer.

Extending time limits

Despite the limitation on recovery of wages and filing a claim, it may be possible to make a
claim that would otherwise be outside the time limit if:

an employee has been told by the employer that they does not have an an entitlement
when the employer knew or could have taken steps to find out that the employee in fact
does have an entitlement; and
the employer’s untrue statement was the cause of the employee’s delay in filing their
claim.

Example

An employer tells John-Duncan, who is not at all familiar with the ESA, that no overtime is
payable under the ESA to an employee in his circumstances, even though the employer knew
or could have taken steps to find out that overtime pay in fact was payable in those
circumstances. Because John-Duncan believes the employer, he does not file a claim for
overtime pay. Later, after the time for filing a claim has passed, John-Duncan finds out from
his friends that overtime pay was payable in his circumstances. In such a case, an employment
standards officer might rule that the time limit that would otherwise not allow John-Duncan’s
claim should be extended because the delay in filing the claim was caused by the untruthful
statement of the employer about his ESA entitlements and because that was the cause of his
not having filed the claim within the normal time limit.

Role of the Ministry of Labour


The Ministry of Labour administers the Employment Standards Act, 2000 (ESA) and its
regulations by:

providing compliance support


conducting proactive inspections of payroll records and workplace practices to ensure
the ESA is being followed
investigating and resolving complaints
enforcing the ESA and its regulations

Compliance support
The ministry offers a wide range of publications and services to help employees and
employers understand their rights and comply with their obligations. These include an
employment standards poster, which employers are required to post in their workplaces; a
catalogue of fact sheets and information sheets covering a variety of topics; and a suite of
interactive online tools and calculators to assist employers and employees to understand
provisions of the ESA, such as the termination tool, the public holiday pay calculator and the
severance tool.

The ministry is also involved in outreach initiatives such as information seminars and
workshops for employer groups, employment counsellors, and professional associations.

Proactive inspections
Employment standards officers conduct proactive inspections of payroll and other records,
including a review of employment practices. An officer performing a proactive inspection will
usually visit the employer's business location. Officers may notify the employer in writing
before the inspection, but are not required to. A notice may set out a list of records and other
documents the employer must provide during the inspection. The employer is required to
produce the records requested and must answer questions that the officer thinks may be
relevant.
An officer is able to take away records or other information for review and copying. The
employer is welcome to ask questions, and to request further information.

Investigating complaints
When a claim is assigned for investigation, the employment standards officer may conduct
their investigation by telephone, through written correspondence, by visiting the employer's
premises or by requiring the employee and/or the employer to attend a meeting. During an
investigation, both parties have the opportunity to present the facts and arguments they
believe are important to their case. If a claim has been submitted against the client of a
temporary help agency regarding a possible reprisal or unpaid wages, employment standards
officers have the same powers of investigation with respect to the client as they do for an
employer. The officer will make a decision based on the best available evidence which may
include employer records, client records, employee records, and interviews.

During an investigation, there are strict timeframes that apply to requests for documents from
employees, employers and clients of temporary help agencies. If the information is not
provided in a timely manner, a decision may be made without consideration of those
materials. Similarly, if both parties were required to attend a meeting but one did not show up,
the employment standards officer may make a decision based solely on the evidence provided
to the officer before the meeting and the evidence provided by the other party at the meeting.

After investigating a claim, the employment standards officer makes a decision about whether
the employer has or has not followed the ESA.

If the officer finds that the employer has complied with the ESA:

the employee is notified in writing of this decision, and can apply for a review within 30
days.

If the officer finds that the employer has not complied with the ESA:

the officer may issue an order against the employer. (For more information, see
“Enforcement”, below.)
the officer may require an employer to post a notice containing specific information
about administration or enforcement of the ESA, and/or a copy of the report or part of the
report with the officer's findings.

Settlement
An employee and employer or the client of a temporary help agency can enter into a
settlement to resolve their dispute. A settlement is an agreement made between an employee
and their employer that will resolve the claim. The ESA allows this option in certain
circumstances after a claim has been filed.

In some cases, the investigation of a claim could take months; particularly where there are
multiple complex issues that require the review of a large number of documents and records.
A quick resolution to a claim may be important to some claimants and employers. If the
employer and the employee are willing to work together to find a mutually acceptable
solution, they may try to settle a claim.
If a settlement is made, the employee and their employer will have to inform the ministry in
writing of the terms of the settlement. If the employee and employer do what they agreed to
under the settlement, the claim is considered to be withdrawn and the investigation will come
to an end.

Claimants and employers are not required to resolve a claim by entering into a settlement.

If the employer or the claimant fails to do what they said they would do in the settlement, the
employer or the claimant can call the Employment Standards Officer that was assigned to the
claim. The name and telephone number of the Employment Standards Officer can be found on
the letter that they sent after the settlement was entered into. The Employment Standards
Officer will determine whether to resume the investigation of the claim.

If a claimant believes that the employer used fraud (lied to get the claimant to agree to the
settlement) or coercion (used force or intimidation to get the claimant to agree to the
settlement), the claimant can apply to the Ontario Labour Relations Board to have the
settlement set aside.

Enforcement
Once an employment standards officer has made a decision that a contravention of the ESA
has occurred, the officer can issue an order to pay direct – wages, an order to pay wages, a
compliance order, a ticket, a notice of contravention or, for certain violations, an order to
reinstate and/or compensate an employee.

These orders, tickets, and notice of contraventions are not mutually exclusive, and an officer
can issue one or more of these orders and/or a notice of contravention in the course of an
investigation or inspection.

In the case of a reprisal by a client of a temporary help agency, an officer can issue an order to
reinstate in the assignment and/or compensate an employee for any loss incurred as a result of
the contravention.  

Employers and clients of temporary help agencies have the right to appeal an officer's order or
a notice of contravention by making an application for review to the Ontario Labour Relations
Board. The employer also has a number of options if an officer has issued a ticket.

Employees who have filed a claim or for whom an order has been issued have the right to
appeal an order to pay wages or an order for compensation/reinstatement issued against their
employer or against a client of a temporary help agency.

Order to pay direct - wages


An order to pay direct - wages is issued and served on an employer for wages or tips and other
gratuitites owed to an employee or employees where the employer agreed to pay the employee
directly.

The employer must comply with the order according to its terms, including paying the wages
directly to the employee.

Order to pay wages


An order to pay wages is issued and served on an employer or a client of a temporary help
agency for wages or tips and other gratuities owed to an employee or employees.

The employer or the client of a temporary help agency must comply with the order according
to its terms, including paying the wages to the Director of Employment Standards in trust, or
appeal the order within 30 days of the date the order is served. The order also requires the
employer to pay an administrative cost of 10 per cent of the amount of the order, or $100.00,
whichever is greater.

Compliance order
An officer can issue a compliance order if the officer finds that the employer has contravened a
provision of the ESA. The officer can order an employer or other person to stop contravening
the provision, and to take certain steps or stop taking certain steps in order to comply with it.
The order must also specify a date by which the employer or other person must comply with
the order. These orders cannot require payment of wages or compensation.

Example of a compliance order in addition to order to pay wages

While investigating Lisa's claim for overtime pay, the employment standards officer discovered
the employer was not giving the five employees proper meal breaks of at least 30 minutes after
every five consecutive hours of work. Also, the employer had not posted the "What you should
know about the Ontario Employment Standards Act" poster as required under the ESA.

In addition to the order to pay wages, the officer issued and served on the employer a
compliance order directing it to: ensure that employees would receive their proper meal
breaks; post the material required by the ESA; and post a copy of the compliance order in a
conspicuous place at the workplace for six months.

Tickets
An offence notice (commonly called a “ticket”) can be issued under Part I of the Provincial
Offences Act. Typically, tickets are issued for less serious ESA violations. Tickets will be issued
to the employer responsible for the offence. Ticketable offences fall into three categories:

Administrative and enforcement offences (e.g. failure to retain records)


Contraventions of wage-based employment standards (e.g. failure to pay overtime pay)
Contraventions of non-wage-based employment standards (e.g. requiring employees to
work hours in excess of daily or weekly limits)

Tickets carry set fines of $295, with a victim fine surcharge added to each set fine plus court
costs. If issued a ticket, an employer can choose to pay the fine or appear in a provincial court
to dispute the charge set out in the ticket.

Notice of contravention
Employment standards officers have the power to issue notices of contravention with
prescribed penalties when they believe someone has contravened a provision of the ESA. The
penalty amount (payable to the "Minister of Finance") must either be paid or appealed within
30 days of the date the notice was served.
If the notice relates to a contravention of the poster requirements of the ESA or a failure to
keep proper payroll records or to keep these records readily available for inspection by an
employment standards officer, an officer can issue a notice of contravention with the following
prescribed penalties:

$350.00 for a first contravention;


$700.00 for a second contravention in a three-year period;
$1,500.00 for a third contravention in a three-year period.

If an officer has found a contravention of any other provision of the ESA, the penalties
prescribed are:

$350.00 for a first contravention multiplied by the number of employees affected;


$700.00 for a second contravention in a three-year period multiplied by the number of
employees affected;
$1,500.00 for a third contravention in a three-year period multiplied by the number of
employees affected.

Example of when there are further violations

Six weeks after serving the compliance order on Lisa's former employer, the officer visited the
employer and conducted a further audit. The officer found that the employer was now paying
overtime to all employees and had posted a copy of the compliance order. However, the
employer had not posted a copy of the ESA poster and had not ensured that its five employees
received proper meal breaks.

As a result, the officer issued and served a notice of contravention on the employer. This set
out the officer's belief that the employer had failed to post the ESA poster ($350.00 penalty) and
had failed to give proper meal breaks to five employees (five times the $350.00 penalty =
$1,750.00), for a total of $2,100.00 in penalties.

The officer also informed the employer that further violations could result in future notices of
contravention being issued and/or prosecution by the ministry.

Order to compensate and/or reinstate


In the case of some violations, an officer can make an order requiring an employer to reinstate
or compensate an employee–or both. The violations in question relate to the following
provisions of the ESA:

pregnancy, parental, personal emergency, family caregiver, family medical, critically ill
child care, organ donor, reservist, domestic or sexual violence, child death and crime-
related child disappearance leave;
lie detectors;
the right to refuse to work on a Sunday for certain retail employees;
reprisal against an employee for exercising their rights under the ESA.

The officer can order compensation for any reasonable, foreseeable loss the employee may
have incurred.

Review (appeal) of an officer's decision


Reviews are conducted by the Ontario Labour Relations Board, an independent, quasi-judicial
tribunal. If employees, employers or clients of temporary help agencies are not satisfied with
an officer's decision, they may have the right to apply for a review (appeal). They must
complete an Application for Review, setting out the facts and reasons for the application
within 30 days of service of the order or notice

To obtain an Application for Review form contact:

Ontario Labour Relations Board


505 University Avenue, 2nd Floor
Toronto, ON M5G 2P1
Tel: 416-326-7500
Fax: 416-326-7531

The Application for Review form must be submitted to:

The Registrar
Ontario Labour Relations Board
505 University Avenue, 2nd Floor
Toronto, ON M5G 2P1

Employee appeals
An employee who files a claim can appeal an officer's refusal to issue an Order to Pay Wages,
an Order to Pay Fees, an Order to Pay Compensation and/or Reinstate or a Compliance Order.

An employee for whom an order has been issued (whether or not they filed a claim) can
appeal the amount of an officer's Order to Pay Wages or an officer's Order to Pay
Compensation and/or Reinstate.

For employees, the Application for Review must be submitted within 30 days of the date the
letter advising the employee that an order has been issued against the employer or client of a
temporary help agency, or letter advising that the officer has refused to issue an order has
been served on the employee.

Employer appeals
For employers and clients of temporary help agencies, the Application for Review must be
submitted within 30 days of the date of being served with an order or notice.

Employers and clients of temporary help agencies can apply for a review of an Order to Pay
Wages (the employer and client of a temporary help agency must pay the full amount of the
order plus applicable administrative fees to the Director of Employment Standards in trust); an
Order to Pay Fees (and client of a temporary help agency must pay the full amount of the order
plus applicable administrative costs to the Director of Employment Standards in trust); a
Compliance Order (these orders do not require payment of wages or compensation); a Notice
of Contravention (the employer or client of a temporary help agency does not have to pay the
amount of the penalty before the review hearing can proceed)

In addition, employers and clients of temporary help agencies can apply for a review of an
Order to Pay Compensation and/or Reinstate an employee. The employer or the client of a
temporary help agency must pay the lesser of the amount owing under the order or $10,000,
whichever is lesser, to the Director of Employment Standards in trust.

Offence notice (“ticket”)


Employers who receive a ticket must, within 15 days of the receipt of the ticket, choose one of
the following:

Plead guilty by paying the amount owing on the ticket.


Plead guilty with an explanation to a Justice of the Peace. The employer must bring their
ticket to the Provincial Offences Court to provide explanations as to why the amount or
time of payment of the ticket should be reduced.
Plead not guilty and fill out the notice of intention to appear in court. The court will
schedule a trial.

An employer who does not elect one of the above options within 15 days of receiving the ticket,
will be deemed not to dispute the charge.

Delivering materials to the director of employment


standards
The copy of the Application for Review Form and other documents:

In order of preference:

1. email to [email protected] or fax to 1-855-251-5025


2. regular mail
3. courier or hand delivery

Payments
Payments must be made to the "Director of Employment Standards in trust" within 30 days of
service of the order. It is to be made by cheque, money order or letter of credit. A letter of
credit must be in a form that is acceptable to the Director of Employment Standards. While the
Director of Employment Standards may establish other criteria, generally speaking the
Director will find a letter of credit to be acceptable if:

It is irrevocable;
It contains a condition providing for its automatic renewal following the expiry date of
the letter of credit;
It contains no other conditions, i.e., conditions other than the automatic renewal
condition;
It permits "partial drawings", i.e., the Director can demand and receive payment of less
than the entire amount specified in the letter of credit. (This is in case the application for
review of the order is partially successful and the Ontario Labour Relations Board
reduces the amount of the order.);
It is issued by a bank or similar financial institution having an office in Ontario.

The payment is to be forwarded to:


Address for mail, courier or hand delivery:
Director of Employment Standards
Employment Practices Branch
Ministry of Labour
400 University Avenue
9th Floor
Toronto, ON M7A 1T7

The ministry will issue a proof of payment to the employer or client of a temporary help
agency, and will hold the payment in trust.

For more information on letters of credit, please refer to the Ministry of Labour website. There
is a link to "Letter of Credit" information under the "Topics" menu.

The review process


When a request for a review is received, an officer of the Ontario Labour Relations Board (the
"Board") will sometimes schedule a mediation meeting with the parties. No mediation meeting
takes place in the case of a notice of contravention. If the matter is settled at this meeting, the
minutes of the settlement are drawn up and signed off by the parties.

If the matter is not settled, or there has not been an attempt at mediation, a hearing is
scheduled. The parties have a right to appear at the hearing, present their information in full
and explain why they think the employment standards officer was right or wrong.

The Board can amend, overturn or uphold the employment standards officer's order or notice
of contravention. The Board can also issue a new order.

After reviewing an employment standards officer's refusal to issue an order, the Board may
issue an order or uphold the officer's refusal.

The Board’s decisions are final and binding, although an employee, employer, or client of a
temporary help agency may apply to Divisional Court for Judicial Review.

Collections
If an employer or client of a temporary help agency does not apply for a review within 30 days
of the date the order or Notice of Contravention was served, the order or notice is final and
binding. If the employer or client of a temporary help agency has not paid the required
amount, the Director of Employment Standards forwards the order or notice to a collector.

The Director may authorize the collector to collect a reasonable fee and/or costs from the
employer or client of a temporary help agency. The fees and costs are added to the amount of
the order.

Prosecution (other than by way of a ticket)


An employer or other person who is believed to have committed an offence under the ESA can
be prosecuted under Part III of the Provincial Offences Act. It is an offence for an employer or
other person to:
contravene the ESA or regulations
make or keep false records or other documents that must be kept under the ESA
provide false or misleading information under the ESA
fail to comply with an order, direction or other requirement under the ESA or regulations

If convicted, the employer or other person could be subject to a fine or a term of imprisonment
or both. Individuals, if convicted of an offence, can be fined up to $50,000, imprisoned for up to
12 months, or both.

A corporation can be fined up to $100,000 for a first conviction. If the corporation has already
been convicted of an offence under the ESA, it can be fined up to $250,000 for a second
conviction. For a third or subsequent conviction, the corporation can be fined up to $500,000.

In addition to the imposing a fine or term of imprisonment, a court could also order the
convicted person (including a corporation) to take whatever action is necessary to remedy the
violation, including paying wages and compensating and/or reinstating an employee.

Additional information
Employee discounts
Discounts are not covered by the Employment Standards Act, 2000 (ESA). The employer is
responsible for deciding whether employees get a discount on products the employer makes or
sells, or on services the employer provides. However, if there is a discount, the employer is the
one who determines how much the discount will be.

Dress codes
Generally, the employer is responsible for making decisions about dress codes, uniforms and
other clothing requirements--and about who pays for them.

An employer may make a deduction from wages to cover the cost of a uniform or other
clothing requirements with the signed, specific written authorization from the employee
permitting the deduction and setting out the amount of the deduction.

A dress code cannot violate a collective agreement at the workplace, the Human Rights Code or
the Occupational Health and Safety Act.

Paid sick leave and bereavement leave


Some employers have paid plans for sickness, bereavement and other leaves of absence. The
ESA requires the payment of two personal emergency leave days and five domestic and sexual
violence leave days. Whether additional leave is paid is a decision for the employer or a matter
for negotiation between the employer and the employee or, if the employee is represented by a
union, between the employer and the union. However, the rules about discrimination in
benefit plans will apply to paid leave plans. (See "Benefit plans” for details.)

Footnotes
[3] ^ A severance can also be triggered by just one week of lay-off if the reason for the lay-
off is because the employer is permanently discontinuing all of its business at an
establishment. For more information, see the "Severance pay" chapter of this guide.

© Queen’s Printer for Ontario, 2012‑18

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