Ontario
Navigating Ontario's labor laws is hassle-free with TCWGlobal's Employer of Record (EOR) services. We handle all aspects of local employment, ensuring compliance and operational efficiency. From payroll management to employee benefits, our team provides comprehensive support for your business in Ontario. Expand into the Ontario market with assurance, knowing TCWGlobal is managing your employment needs.
Fixed-term contracts may only last for a total of 3 years before the Worker is transitioned to an indefinite contract.
Workers are not entitled to notice or pay in lieu of notice if they have been employed for less than three months.
In Ontario, Workers are entitled to 9 public holidays. Statutory holiday pay is calculated by taking all regular wages including vacation pay, earned in the 4 work weeks before the holiday, divided by 20. Workers must work on the regularly scheduled work day before after the holiday in order to be eligible for holiday pay. Workers are entitled to premium pay at 1.5 times their regular rate for working on a public holiday. Workers can receive a substitute holiday, which is another working day off that is designated to replace the public holiday.
Workers accrue two weeks of annual vacation time per year of service. After 5 years they are entitled of 3 weeks of annual vacation time per year of service. Workers earn 4% vacation pay, on wages earned. After 5 years of service, they are entitled to 6% vacation pay on wages earned. Vacation pay is calculated to include regular earnings, commissions, non-discretionary bonuses and gifts, overtime pay, holiday pay, termination pay (different from severance), any allowances for room and board, and domestic violence or sexual violence leave pay.
Workers must work for one year before they are entitled to vacation time, unless otherwise authorized in advance by the business. If agreed in writing, businesses can pay vacation in each check, but then the Worker will not receive additional vacation pay while they are off work. If a Worker opts to accrue vacation pay, it is generally to be paid to the Worker in a lump sum before they take vacation. If Vacation is being taken in periods of less than one week, the worker is paid on or before the pay day for the period in which the vacation falls. Workers must take their accrued vacation time within 10 months of it being earned.
Workers in Ontario receive 3 days of unpaid job-protected leave each calendar year after working for 2 consecutive weeks. Businesses can ask for a note with the expected duration of absence, the date the worker was seen by a health professional, and whether the worker was examined in person, but they cannot ask for a diagnosis.
Workers sign a written policy on "disconnecting from work", defined by the ESA to refrain from all work-related tasks, such as emails, phone calls, video calls, messages, and to be free from the performance of work. Workers must have a 30-minute meal period after working no more than a 5-hour period.
Overtime pay is 1.5 times the regular of pay for each hour worked beyond 44 hours per week. Managers and supervisors do not qualify for overtime even if they perform other tasks that are not managerial or supervisory on an irregular basis.
There are no mandatory bonuses in Ontario.
The amount of notice or pay in lieu of notice required is based on the Worker's length of service as follows: Less than 3 months - no notice; 3 months but less than 1 year - 1 week; 1 year but less than 3 years - 2 weeks; after 3 years - an additional week per year up to a maximum of 8 weeks. Notice of termination once given, cannot be withdrawn without the consent of the Worker. During the notice period, businesses cannot make any changes to the terms and conditions the engagement and must pay the Worker their regular wages for a regular work week.
Workers should give two weeks' notice of resignation unless otherwise agreed by the parties. There is no legal requirement under the ESA requiring them to provide a specific amount of notice before resigning.
Ontario has mandatory severance pay for Workers who have worked for the same business for 5+ years whether the work has been continuous or not. The business must have a global payroll of at least $2.5 million or terminated 50 or more Workers in a 6-month period.
The general minimum wage in Ontario is currently $16.55 CAD per hour, and will increase to $17.20 CAD on October 1, 2024. Homeworker's minimum wage is $18.20 CAD per hour. Homeworkers or remote workers are paid to work in their own homes. Ontario has a three-hour rule, and if a Worker who regularly works more than 3 hours and is sent home before working 3 hours, the business is required to pay at least a total of 3 hours at the Worker's regular rate of pay.
Ontario Health Insurance Plan (OHIP) is available to residents in Ontario and pays for many of the health services that Workers may need. For more information, please visit the OHIP website: https://www.ontario.ca/page/apply-ohip-and-get-health-card.
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