Changes in payroll laws and regulations from across Canada
Canada
Federal government consulting on workplace harassment, violence
Input is being sought on proposed rules to deal with harassment and violence in federally regulated and parliamentary workplaces.
The regulations are related to Bill C-65, An Act to amend the Canada Labour Code (harassment and violence), the Parliamentary Employment and Staff Relations Act and the Budget Implementation Act, 2017, No. 1.
The bill has passed third reading in the House of Commons and Senate and is awaiting royal assent. The government has said it plans to bring the act into force within two years of it receiving royal assent.
Once in effect, the act would require federally regulated employers to address all forms of harassment and violence in the workplace, including situations where the perpetrator is a third party.
The act would define harassment and violence as any action, conduct, or comment, including those of a sexual nature, that could reasonably be expected to offend, humiliate, or cause physical or psychological injury or illness to an employee.
Employers would be required to prevent such incidents, respond effectively if they do occur, and support victims and affected employees.
Employers would have to develop a comprehensive workplace harassment and violence prevention policy and provide mandatory education and training on harassment and prevention. Under the policy, harassment and violence would include a wide range of behaviours, such as incivilities, teasing, bullying, sexual harassment, verbal assault, and physical and sexual assaults.
The regulations would require employers to record and report on all instances of workplace harassment and violence.
The policy would also have to outline how the employer would handle situations of family violence and cases where a third-party, rather than an employee, is the perpetrator of the harassment or violence.
Consultations will run until Oct. 5.
Government publishes draft tax proposals
The federal finance department has published draft proposals to amend the Income Tax Act to provide a deduction for employee contributions to a new, enhanced portion of the Quebec Pension Plan (QPP), beginning in 2019.
The government first announced the measure in its Feb. 27 budget. The amendment is necessary because Quebec recently passed legislation that will raise the income replacement level for QPP retirement benefits.
To pay for the enhanced benefits, Quebec is increasing QPP contributions for both employers and employees. Between 2019 and 2023, it will gradually raise the contribution rate for earnings up to the yearly maximum pensionable earnings (YMPE).
Beginning in 2024, it will introduce a separate contribution rate of four per cent on earnings between the YMPE and a new upper earnings limit.
The federal government had already passed similar amendments to the Canada Pension Plan (CPP).
Under the changes, a non-refundable tax credit that currently exists for employee C/QPP contributions on earnings up to the YMPE will remain in place; however, it will not apply to the new four per cent contribution on earnings between the YMPE and the new upper earnings limit.
Instead, employees will be allowed to claim a tax deduction on these contributions. The federal government had already amended the Income Tax Act to provide the deduction for CPP contributions.
The proposed amendment to the QPP would ensure that CPP and QPP contributions are treated the same way under federal tax law.
Alberta
Minimum wage now $15
On Oct. 1, the Alberta government raised the general minimum wage rate from $13.60 an hour to $15.
Alberta is the first jurisdiction in Canada to reach a general minimum wage rate of $15, although British Columbia and Ontario have also announced plans to get to at least $15.
Ontario’s minimum wage is set to rise to $15 on Jan. 1, 2019 unless the new provincial government cancels or suspends the increase.
B.C. is gradually raising its base rate so that it will reach $15.20 an hour on June 1, 2021.
Also on Oct. 1, the rates for specified salespersons in Alberta increased from $542 per week to $598 and the rate for domestic employees who live in their employer’s residence rose from $2,582 a month to $2,848.
Specified salespersons include sales employees who sell automobiles, trucks, and buses; farm machinery; heavy duty construction equipment or road construction equipment; mobile homes; and residential homes (if they work for the home builder).
Also included are salespersons working for a commercial agent licensed under the Licensing of Trades and Businesses Act, and commission-based salespersons (excluding route salespersons) who generally work outside of their employer’s place of business to sell orders that will be delivered later.
Manitoba
Base wage rate now $11.35
On Oct. 1, the provincial government raised the general minimum wage rate from $11.15 an hour to $11.35.
The increase is based on Manitoba’s 2017 inflation rate of 1.6 per cent and rounding up to the nearest five cents.
Manitoba law requires the government to adjust the minimum wage rate on Oct. 1 each year to reflect changes in the province’s consumer price index.
New Brunswick
Employees allowed paid leave for domestic violence
As of Sept. 1, eligible employees in New Brunswick are entitled to take time off work if they or their child are the victims of domestic, intimate partner or sexual violence.
New regulations under the Employment Standards Act allow employees to take up to 10 days and up to 16 weeks off each calendar year to seek medical attention; obtain victim services from a qualified person or organization; obtain psychological or other counseling from a qualified person; temporarily or permanently relocate; or seek legal or law enforcement help.
Employees may take the 10 days intermittently or continuously, but they must take the 16-week leave in one period.
Employers must pay employees for the first five days off each year. The amount of pay must at least equal the amount of wages employees would have earned had they worked regular hours during the leave period.
If employees’ wages vary, employers must pay them at least their average daily earnings, excluding overtime, for the days worked in the 30 calendar days right before the leave.
To be eligible for the leave, employees must be employed by their employer for more than 90 days. They must also notify their employer in writing of their intention to take the leave and the purpose for which they are taking it. The notice must include the date they expect to begin the leave and how long they think it will last.
Employers must keep all documentation and other information related to the leave confidential. They are prohibited from disclosing it unless the employee gives written consent, the disclosure is authorized or required by law, or the documentation or information is disclosed to an officer, employee, or agent of the employer who needs it to do their job.
Saskatchewan
Minimum wage rises to $11.06
On Oct. 1, the Saskatchewan government increased the province’s minimum wage rate from $10.96 an hour to $11.06.
The government adjusts the minimum wage rate annually on Oct. 1, using an indexation formula based on percentage changes to both Saskatchewan’s consumer price index and the average hourly wage for the previous year.
