Most employers want to do the right thing and voluntarily comply when employment standards complaints are brought to their attention, says province
New legislation in Ontario will require employees, where appropriate, to notify their employer before an employment standards claim will be investigated.
Peter Fonseca, the province’s labour minister, said the legislation will help employers get claims off their books sooner and “is good for employers and employees.”
The changes are part of the Open for Business Act, 2010, which passed third reading on Oct. 21. Royal assent and proclamation are pending.
The province said most employers want to do the right thing and will often remedy the situation promptly and voluntarily once they are notified.
Employees will be able to contact their employer through regular mail, email, fax or phone. Face-to-face contact is not required. By settling disputes earlier, employers and employees will avoid unnecessary costs and shorten claimant wait times, the province said.
While employer notification is the preferred first step, the requirement to contact the employer can be waived for vulnerable employees through a simple process.
The amendments also allow the ministry’s employment standards officers to help employers and employees to reach a settlement. Neither party would have to participate in such a settlement unless they agree to it. It will be completely voluntary.
The legislation also affirms that employment standards officers can deal with undue delays by making a decision on the best information available. In the past, claims have been delayed if one party would not provide all the required information.
The changes to the ESA are part of the government's plan to eliminate a backlog of 14,000 claims in two years. However, workers' advocates worry these changes will increase the burden on workers.
“We need to make it easier for workers to make complaints – not more difficult,” said Sonia Singh of the Workers’ Action Centre. “The direction taken by Bill 68 will put more of a burden onto workers who are the most vulnerable and have the least resources when making a complaint.”
Other changes in the legislation
The law also aims to create a more competitive business climate in Ontario and reduce the regulatory burden on small businesses.
The Open for Business Act is a three-year initiative to create faster, smarter and streamlined government-to-business services to make Ontario more attractive for business development, according to the Ministry of Economic Development and Trade.
"Whenever the government can reduce the regulatory hoops and hurdles that a small business has to face, that is a good thing. We think the Open for Business Act is a step in the right direction and look forward to working with government to continue creating the right conditions for the job-creating small business sector to succeed," said Satinder Chera, Ontario vice-president of the Canadian Federation of Independent Business.
The act, which the Ontario legislature passed on Oct. 21, contains more than 100 amendments to help modernize services and government and improve relationships with business.
Modern services
Over the next three years, the government will make it easier for business to access services through a one-stop access for business and provide facilitator services to support business.
Modern government
The government will involve business in regulation development from the outset and change its approach to compliance while helping businesses to comply with regulatory requirements.
Regulatory proposals from all ministries will be posted centrally on the regulatory registry and businesses will have at least 45 days to review and provide comments on proposals that might impact business.
New relationship with business
Communication, consultation and collaboration are the cornerstones of Open for Business’ approach, and the government will actively seek out province-wide stakeholder input to better understand the needs of the business community.
To achieve this goal, the government will establish guidelines for engaging business and create new business feedback mechanisms.
The bill also contains changes to the Employment Standards Act (ESA) that would require workers to first confront their employers about any ESA violations before being allowed to bring a complaint to the Ministry of Labour. The changes also require workers to provide information about their case arguments before the Ministry will accept a claim and authorize employment standards officers to attempt settlements of complaints.
There is no timeline for when the changes to ESA will come into effect.
