On March 13, 2023, the Ontario government announced that in response to the rise of remote workers and a changing economy, it would be updating the Employment Standards Act (ESA) under Bill 79, the Working for Workers Act, 2023.

Bill 79 was tabled on March 20, 2023. Of particular interest are the proposed amendments to the ESA regarding mass terminations and the information employers are required to share with employees.

Mass Terminations

Under the ESA, mass terminations occur when an employer terminates the employment of 50 or more employees, at their establishment, within a four-week period. In those circumstances, the employer is required to give enhanced notice of at least eight (8) weeks if they are terminating 50 to 199 employees; at least 12 weeks if they are terminating 200 to 499 employees; and at least 16 weeks if they are terminating 500 or more employees. The ESA currently defines an establishment, “as a location at which the employer carries on business.”

The proposed changes to the ESA would broaden the definition of “establishment” to include an employee’s private residence. Thus, employees who work remotely or “solely from home” would be counted when calculating the number of impacted employees during a mass termination and would be entitled to the same enhanced notice requirements (or pay-in-lieu of notice) as “in office” employees. Each employee affected by the mass termination would also be entitled to a copy of the ESA’s Form 1 (Notice of Termination) which the employer provides to the Ministry of Labour.

Employee Information

At present, employers are only required to provide new employers with the current version of the employment standards poster. Under the proposed changes, employers would be required to provide new hires with information, in writing, about their job before their first shift. This information would include the pay, work, location, and hours of work for the position.

Other Amendments

Bill 79 will amend the ESA to allow employees in treatment, recovery, or rehabilitation for a physical or mental injury resulting from participation in certain operations, access to Reservist leave. Eligibility for Reservist Leave would require only two months of consecutive employment instead of three.

The Bill will also amend several other employment related statutes, including the Occupational Health and Safety Act (OHSA) and the Employment Protection for Foreign Nationals Act, 2009 (EPFNA). OHSA would be amended to increase fines from $1.5 million to $2 million for corporations convicted of an offence under OHSA. The EPFNA would also be amended to increase the maximum fine for individuals (up to $500,000) and corporations (up to $1 million) convicted of unlawfully retaining a foreign national’s passport or work permit.

As of March 23, 2023, Bill 79 is being debated at second reading. We will keep you updated on the Bill as it continues in the legislature.

Minimum Wage Increase

On March 31, 2023, the Ontario government announced that there will be a 6.8 per cent increase to the minimum wage to $16.55 an hour starting October 1, 2023.