Labour Standards in BCSCD 401 – Social Enterprise for Sustainable

Community DevelopmentFebruary 22, 2011

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

Labour LawsWhat 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 )

Labour LawsEmployment 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.

HiringFair 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

HiringContract

• 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

HiringOutsourcing 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.

Hours of WorkMinimum 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 and must be paid for 4 hours of work if he or she was scheduled for 8 hours of work

Hours of WorkMaximum Hours Before Overtime

• If an employee works more than 8 hours a day or 40 hours a week, overtime wages apply

• An employee who works more than 12 consecutive hours is entitled to double the regular wages

Hours of WorkNo 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 of WorkHours 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

Hours of WorkOvertime

• Banking overtime wages:• A time bank may be created where overtime

wages are credited• The employee may request to be paid overtime

wages credited to the bank at any time• The employee may also request to take time off

with pay with the credited overtime wages• The employer must pay the employee all

overtime wages credited to the time bank on termination of employment

Hours of WorkMeal Breaks

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

Hours of WorkHolidays 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

Hours of WorkHolidays 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

•  

Hours of Work

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. 

Hours of WorkLeaves from Work

• Pregnancy Leave:• 17 consecutive weeks of unpaid leave that

may not begin any earlier than 11 weeks before the birth date

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

Hours of WorkLeaves 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

Hours of WorkLeaves 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.

Hours of WorkLeaves from Work (ctd.)

• Other leaves include the:• Reservist's leave: someone who is called to

duty as part of the Canadian forces reserves• Bereavement leave: 3 unpaid days if an

immediate family members dies.• Jury duty

Hours of WorkQuestions:

1. If an employee is scheduled for 8 hours of work, but doesn't have enough work to finish his shift, how many hours does the employee get paid for?

a) 2 hoursb) 3 hoursc) 4 hoursd) 5 hours

Hours of Work2. Which of the following is not a legitimate leave?

a) parental leaveb) bereavement leavec) jury dutyd) educational leave

Hours of Work3. How many hours of rest is an employee entitled

to after a shift of work? 

a) 5 hoursb) 8 hoursc) 9 hoursd) 12 hours

Hours of Work4. An employee is allowed 2 weeks vacation after

how many months of work?

a) 6 monthsb) 10 monthsc) 12 monthsd) 18 months

WagesWage 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.

WagesMinimum 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

WagesPay

• 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

WagesAssignment of Wages

• Written request of employee may require assignment of wages to be payable to: • Trade union • Charitable organization • Insurance company

WagesPayday• *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.

WagesPayday (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

WagesQuestions

1. Minimum wage in BC for first time employees is:

a) $6/hrb) $7/hrc) $8/hrd) $9/hr

Wages2. How many days does an employer have to pay

their employee after their pay period?

a) 5 Daysb) 6 Daysc) One Week d) Days

Wages3. True or False:

The minimum wage for all employees whom have worked for more than 500 hours is $8/hour. 

PayrollRegister 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

PayrollRequirements

• Ensure you have a Business Number (BN) – 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

PayrollRequirements (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

PayrollAuthorizing a Representative

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

• Employee, accountant, bookkeeper, lawyer, firm

PayrollKeeping 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.

PayrollKeeping 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

PayrollSIN 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 

PayrollPayroll Deductions

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

• CRA website has deduction tables that calculate amounts

PayrollWhen 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.

PayrollAmounts 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

PayrollEmployment 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.

PayrollEstablishing insurable hours

• Hours of work used to determine entitlement to benefits

• Employers have to keep records

PayrollEmployees 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

PayrollQuestions

1. What are the 3 required payroll deductions?

Payroll2. For how many years must an employer keep

payroll records?

a) 4 yearsb) 6 yearsc) 7 yearsd) 8 years

Payroll3. For how many years must an employer retain

payroll records after the employment terminates?

a) 1 yearb) 2 yearsc) 4 yearsd) 6 years

Payroll4. At what age are CPP contributions no longer

deducted?

a) 60 years?b) 65 years?c) 70 years?d) 75 years?

Termination of EmploymentTermination

• 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

Termination of Employment

Record of Employment (ROE)

• Provide within five days of last day• For any interruption of service: sick leave,

pregnancy etc.• Business status changes

Termination of Employment

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 

Workplace Safety

• 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 

Workplace SafetyWorkSafeBC 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 SafetyWorkplace 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

Other ConsiderationsClothing

• Employee may require special clothing to be worn 

• The employee must:• Provide the clothing • Clean and maintain• Composition

Other ConsiderationsEmployment of Children

• Guardian consent under 15• Director of Employment

Standards approval under 12 years

Other ConsiderationsRights 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??