SCD 401February 22, 2011

• Labour Laws• Hiring• Hours of Work• Payroll• Wages• Termination of Employment• Workplace Safety• Other Considerations

What labour laws will apply?

•Employees in Canada are covered by federal and/or provincial labour laws•Labour laws were created to set minimum requirements for employers.•Canada Labour Code  •BC Labour Code (Employment Standards Act )

Employment Standards Act

•Created to:• Ensure employees in BC receive fair treatment• Encourage communication between employee and

employer• Create a fair and efficient procedure for dealing

with labour disputes• Help employees meet both work and family

responsibilities

•The Act covers hiring, wages, hours of work, holidays, vacations and leaves, and investigating and resolving complaints.

Fair Hiring

-Under the Human Rights Code of Canada

- A person may not publish an advertisement that indicates a limitation or preference as to the race, colour, political belief, religion, marital status, mental or physical disability, sex, sexual orientation or age, unless the limitation or preference is based on a legitimate requirement of the position

Hiring Permanent Employees

•Determine who you need by understanding the position•Create job descriptions and expectations

Tools you need

•Analyze the job(s) •Create some interview questions – Fit & Skill •Include others in the interview process •Personality/Skill Assessment •Employment Agreement/Mini Handbook (vacation, sick time etc.) •New Employee Orientation

Alternatives to permanent staff

•Working with contract freelancers for temporary and/or skill specific projects•Hiring temporary workers

Recruiting Options

•The Internet (Craig’s List is Free)•Newspapers•Campus/school recruiting•Job fairs•Recruitment open houses•Networking, recommendations and referrals – do you have an employee referral program?

Recruiting Options (ctd.)

•Demographics, aging population •Immigrants •Job hotlines•Walk-ins and unsolicited resumes

Contract

•Cannot charge for the hiring process•When hiring, a contract must be provided stating:

• Duties the domestic is to performs• Hours of work• Wages• Charges for room and board• If there are any alterations to the working hours laid

out in the contract, the employer must edit the contract accordingly

Outsourcing Considerations

•When positions are hired through another agency, it is illegal:

• For the applicant to pay or to be asked to pay for help looking for a job, receiving job information, receive contact information for a job, or for being hired for a job.

Minimum and Maximum Hours

•Minimum daily hours:• If an employee shows up to work, he must be

paid 2 hours at the regular wage unless unfit to work

• If an employee is scheduled for 8 hours of work, he must be paid a minimum of 4 hours at the regular rate

Maximum Hours Before Overtime

•If an employee works more than 8 hours a day or 40 hours a week, the employer must pay the employee overtime wages an employee will receive double the regular wage if they work over 12 hours

Agreements to Average Hours of Work•A written and documented agreement between the employee and the employer can be made, averaging out an employees hours of 1 to 4 weeks to determine the entitlement of an employees over time wages•Comes with concessions

• No excessive hours: An employer must not force or allow an employee to work excessive hours that will be damaging to the employee's safety and health.

Hours free from Work

•Employees have the right to 32 consecutive hours free from work each week or;•Receive a pay of 1 ½ times their regular wage for any time worked in those ''32 hours free from work.'‘;•Employees must receive 8 consecutive hours of rest after working a shift

Overtime

•Banking overtime wages:• An employee may submit a written request to create a time bank

where overtime wages will be credited rather then being paid in the otherwise required time frame.

• If the time bank is created, the employee may at any time request to be paid all or part of the overtime wages credited to the bank

• The employee may also request to take time off with pay with the credited overtime wages

• The employee may request the closing of the time bank at any time whereby the employer will shut it down in 1 months time from the notice date.

• The employer must pay the employee all overtime wages credit to the time bank on termination of employment.

Meal Breaks

•An employee gets a half hour meal break for every 5 hours of work

Holidays and Vacation

•Entitlement to statutory holidays:• An employee must be employed for a

minimum of 30 days before being entitled to a statutory holiday

• The employee must have earned wages for 15 of those 30 days prior to the statutory holiday

Holidays and Vacation (ctd.)• Statutory holiday pay:

• If an employee is given the day off, they must be paid a day's wage and is determined by the formula: amount paid divided by days worked

• If the employee works on the statutory holiday they must be paid 1 ½ times the wage for a days work up to 12 hours

• The employee must be paid double the regular wage for working more then 12 hours

• An employee and and employer can make an agreement in taking off a different day off rather then the statutory holiday 

Holidays and Vacation (Ctd.)•Annual Vacation

• An employee is entitled to 2 weeks vacation after 12 consecutive months of employment and 3 weeks after 5 years of employment.

•Vacation pay:• After 5 days of employment, 4% of employee wages during the

year goes towards vacation pay. The percentage increases to 6% after 5 years of employment. 

• An employee may receive their vacation pay either 7 days before their vacation or on their pay checks as requested by the employee.

Leaves from Work

•Pregnancy Leave:• A pregnant employee who asks for a leave is entitled to 17

consecutive weeks of unpaid leave that may not begin any earlier than 11 weeks before before the birth date

• The unpaid leave may not end until 6 weeks after the birth date unless a shorter time period is requested.

• An employee who requests leave after the birth of a child or the termination of a pregnancy is granted a 6 weeks unpaid leave.

• An employee will be granted an additional 6 consecutive weeks leave for any health reasons regarding the pregnancy or termination that have occurred after the 17 consecutive weeks.

Leaves from Work (ctd.)

•Parental Leave:• A birth mother that takes pregnancy leave may ask for parental leave for

up 35 consecutive weeks of unpaid leave in affect immediately after the pregnancy leave is finished

• A birth mother that does not take pregnancy leave may take up to 37 consecutive weeks of unpaid leave between the child's birth and 52 weeks after that date

• The same goes for a birth father• Same goes for an adoptive parent though the beginning date is

considered to be the placement date• An additional 5 weeks consecutive leave will be granted for

parents of children with disabilities

Leaves from Work (ctd.)

•Family Responsibility Leave:• An employee is entitled 5 days unpaid leave a year

when concerning the care of their child or immediate family member 

•Compassionate Care Leave:• An employee may take up to 8 weeks consecutive

leave to care for an ill family member. There must be a medical certificate to demonstrate the seriousness of the illness, and that the family member is at risk of death within the next 26 weeks.

Leaves from Work (ctd.)

•Other leaves include the reservist's leave, someone who is called to duty as part of the Canadian forces reserves, as well as the bereavement leave: 3 unpaid days if an immediate family members dies.

Leaves from Work (ctd.)

•Jury duty:• The employer may not terminate

employment because of a leave or change the conditions of employment of the employee who leaves for jury duty or any or leave of absence.

Register for Payroll if you:

•pay salaries or wages;•pay tips and gratuities;•pay bonuses and vacation pay;•provide benefits and allowances to employees; or•need to report, deduct and remit amounts from other types of remuneration

Requirements

•Ensure you have a Business Number – must request if new businessRegister and maintain a Payroll Deductions account•Ask each employee for his/her social insurance number (SIN)•Have each employee complete a TD1 Form: Personal Tax Credits Return

Requirements (ctd.)

•Calculate and deduct CPP contributions, EI premiums and income tax•Remit payroll deductions on T4 or T4A slip by end of February each year•Complete a Record of Employment (ROE) upon employee departure•Keep all records

Authorizing a Representative

•Can deal with payroll on your behalf:•Options:

• Employee, accountant, bookkeeper, lawyer, firm

Responsibilities

•Deducting, remitting and reporting payroll deductions•When hiring an employee•When an employee leaves•If business ceases operation

Keeping Records

•Keep paper and electronic copies for 6 years•Payroll records must:

• be in English,• be kept at the employer's principal place of business

in British Columbia• be retained by the employer for 2 years after the

employment terminates.

Keeping Records (ctd.)

•Employer must keep records of the following information for each employee: 

• name, date of birth, occupation, contact info• date employment began• wage rate and gross and net wages• hours worked• benefits paid and deductions• Statutory holidays, annual vacation days• time bank money

SIN Cards

•Have to request SINs from each employee•Under the Canada Pension Plan Regulations, you have to tell your employees how to get a SIN•Refer them to their closest Service Canada Centre 

Payroll Deductions

•CPP contributions•EI Premiums•Federal, provincial and territorial tax

•CRA website has deduction tables that calculate amounts

When to deduct CPP contributions

•When employee:• is 18 or older, but younger than 70;• is in pensionable employment during the

year; and• does not receive a CPP or QPP retirement or

disability pension.

Amounts and benefits subject to CPP contributions

•Salary, wages, bonuses, commissions, or other remuneration (including payroll advances or earnings advances), wages in lieu of termination notice;•Most cash/non-cash taxable benefits and allowances

Employment Insurance Premiums

•Deduct from each dollar of insurable earnings up to the yearly maximum.•Have to deduct from an employee's insurable earnings if employee in insurable employment during the year.

Establishing insurable hours

•Hours of work used to determine entitlement to benefits•Employers have to keep records

Employees profit sharing plan (EPSP)

•An EPSP allows an employer to share profits with employees•Amounts are paid to a trustee to be held and invested for beneficiaries

Wage discrimination

•Under the Human Rights Code (Canada)• Employer may not discriminate or employee an

employee at a rate of pay that is less than the rate of pay for another employee of the opposite sex for work that is similar.

• Employer is required to recover the difference in pay.

Minimum Wage•B.C.’s general minimum wage is $8 per hour•The First Job/Entry Level minimum wage is $6 per hour

• Only applies to employees with no paid work experience before November 15, 2001

•Wage in other fields:• Live-in home support is $80• Resident caretakers is $480/month

•Cannot deduct from wage the employees' expenses more than minimum wage•

Pay

•Have 8 days to pay employee after pay period •Must pay in Canadian Currency •Must pay by cheque, draft, money order, payable on demand or deposited to the employee's banking account

Assignment of Wages

•Written request of employee may require assignment of wages to be payable to: 

• Trade union • Charitable organization • Insurance company

Payday•*See Resource List –Employment Standards Act•Wage statements on agreed upon payday must be given with the following:

• the employer's name and address;• the hours worked by the employee;• the employee's wage rate, whether paid hourly, on a salary basis or on a

flat rate, piece rate, commission or other incentive basis;• the employee's overtime wage rate;• the hours worked by the employee at the overtime wage rate;• any money, allowance or other payment the employee is entitled to;• the amount of each deduction from the employee's wages and the

purpose of each deduction;• if the employee is paid other than by the hour or by salary, how the

wages were calculated for the work the employee is paid for;• the employee's gross and net wages;• how much money the employee has taken from the employee's time

bank and how much remains.

Payday (ctd.)•This may be given electronically in a confidential manner •If the above is the same as the previous wage statement, a copy is not needed to be made •Wages must be given within 8 days of every pay period (semi monthly)•A pay period is 16 consecutive days of employment •Overtime hours and vacation pay is not required to be paid within this period

Payroll Records (ctd.)

•Payroll records must:• be in English• be kept at the employer's principal place of

business in British Columbia• be retained by the employer for 2 years after

the employment terminates

Termination

•Employer must pay wages in 48 hours if employer terminated •If employee terminates, 6 days to pay all wages•If the employee unreachable, wage

goes to Director of Employment Standards

Record of Employment (ROE)

•Provide within five days of last day•For any interruption of service: sick leave, pregnancy etc.•Business status changes

Employers liability•After 3 consecutive months of employment, the employer is required to give a 1 week notice and is responsible for paying an employee one week's worth of wages•Consecutive months of employment equals 2 weeks wages and 2 weeks notice•3 consecutive years of employment equals 3 weeks wages and 3 weeks notice. Every additional year means an additional weeks wages and a weeks notice.•Group terminations require notices to each individual who will be affected prior to the termination taking place.•The termination policy has exceptions including contracts with a definite term of employment, and seasonal layoffs•A minister can require an employer to create an adjustment committee to help the laid off employees transition to other employment 

WorkSafeBC

•As an employer you must:• Register with WorkSafeBC, pay premiums,

and maintain a safe workplace.• Understand claims process• Comply with the Workers Compensation

Act, Occupational Health and Safety Regulation, and First Aid Regulation 

WorkSafeBC Website•Various articles and informational videos•Small Business Safety Calculator

• Allows you to calculate how much an accident really costs

• Gives real life scenarios and a breakdown of costs •Employer and Small Business Centre

• Has links to register for coverage, pay premiums, maintain a safe workplace and what to do if a workplace incident or injury occurs 

Workplace First Aid Requirements•As an employer you must:

• Have a qualified first aid attendant• Provide each workplace with adequate and

appropriate equipment, supplies, facilities, first aid attendance and services

• Keep up-to-date written procedures for providing first aid at worksite

• Keep first aid records

Clothing

•Employee may require special clothing to be worn •The employee must:

• Provide the clothing • Clean and maintain• Composition

Employment of Children

•Guardian consent under 15•Director of Employment Standards approval under 12 years

Rights of Workers Abroad• Canadian labour laws are not enforced in other

nations• In most cases, Canadians working abroad are not

covered by the Canadian Labour Code unless supervised directly by managers within Canada.

• Canada has signed on to the North American Agreement on Labor Cooperation (NAALC). • The purpose of the agreement is to ensure that local

labour laws are enforced. • Canada has also created agreements with other

countries.

Questions??