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HIRING IN CANADA |
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Employment Legislations |
Employment Agencies |
Employment Agencies |
QUICK LINKS |
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Job Opportunities |
Job Opportunities
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Self-created Jobs |
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What is the Employment Standards Act?The Employment Standards Act is the law that contains Ontario's basic rules about employing people and working. Both employees and employers have rights and responsibilities under the Act. Does the Act cover all employees in Ontario?Most employees in Ontario are covered by this provincial law. But the Act does not apply to an employee or employer in an industry under federal labour jurisdiction. The Canada Labour Code applies instead. The Code covers employees in such industries as:
For information about the Canada Labour Code contact the nearest Human Resources Development Canada - Labour Programs office. The address and telephone number are in the blue pages of the telephone book under "Government of Canada". What is a temporary layoff? A temporary layoff lets an employer suspend, cut back or stop an employee's employment without permanently ending or terminating the employment. For example, an employer may layoff employees when there is not enough work to do. If a recall to work date is not given to the employee at the time of layoff, regardless of how long the lay off actually turns out to be, the layoff does not qualify as "temporary". A temporary layoff can last either:
Does an employee get notice of a layoff? An employer does not have to give notice or other advance warning if the layoff is temporary. Also, an employer does not have to tell an employee why he or she is being laid off. If the employer intends to bring the employee back to work, the employer is required to give the employee a recall to work date. If an employer does not give the employee a recall to work date, the employee is considered terminated and termination pay will be due and owing to the employee seven days after the employee's last day of work. Does seniority affect layoffs? Seniority may affect layoffs only if there is a collective agreement (union contract) at the workplace. The Act does not require employers consider length of service when laying off employees. Employee questions about seniority should be directed to the union or bargaining agents. Can an employer keep an employee on layoff indefinitely? Usually, no. The Act says that after certain periods of layoff, an employer may have to pay an employee termination pay, severance pay or both. If an employee has a collective agreement (union contract) at his or her workplace or an employment contract with his or her employer, it may have rules about how long a layoff may last. When does an employee get termination pay? If an employer advises an employee that he or she is laid off and does not give the employee a recall to work date, the employee is considered to have been terminated and termination pay is due and owing to the employee seven days after the employee's last day of work. If the employer gives the employee a recall to work date and later the employer finds that the original recall date must be extended, there may be no termination as long as the layoff remains temporary, e.g., the employee is called back to work before the 13- or 35-week periods (as described above) are over.For the purposes of establishing an employee's right to termination pay, a week of layoff is one when an employee gets less than one half (½) of the wages earned in a regular work week with no overtime. A week does not count as layoff if the employee was:
How much termination pay does an employee get? It depends on how long an employee worked for an employer, ending with the date the layoff began. The amount can be figured out using the chart below.
Special rules apply in cases of "mass terminations". This is when 50 or more employees receive notice of termination at one workplace within any four weeks or less. (If these employees are employed longer than three months, they are eligible for eight weeks' notice of termination or termination pay.) Termination pay must be the same as the employee's regular pay without overtime. It is equal to the wages the employee would be paid during the period of notice he or she is entitled to receive. The employee's benefits must be continued for the same period. The Act says termination pay should be paid no later than seven (7) days after termination. When does an employee qualify for severance pay? An employee may qualify for severance pay after 35 weeks of layoff in any period of 52 consecutive weeks. To establish an employee's right to severance pay, a week of layoff is one in which the employee gets less than one quarter (¼) of the wages earned in a regular work week that has no overtime. A week does not count if the employee was:
Under the Act, an employee can get severance pay only if:
If the above conditions are not met, an employee does not qualify for severance pay. If an employee has been laid-off because the employer has closed all of its business permanently, he or she may be entitled to severance pay after one week of layoff. Please refer to the "Severance Pay" Fact Sheet or contact the nearest Ministry of Labour office. How much severance does an employee get? If an employee qualifies for severance pay, the employer will give the employee a lump sum payment that is equal to one week's regular pay for each year the employee was employed. The employee also gets credit for full months of employment. For example, if he or she worked for 10½ years, the employer would pay the employee 10½ weeks' regular pay as the severance pay. A week's "regular pay" is an employee's normal weekly pay. Overtime is not included even if an employee regularly works overtime. There is a limit of 26 weeks' regular pay for severance pay. Even if an employee has worked longer than 26 years, 26 weeks is the most he or she can get under the Act. Are there reasons why an employee might not get termination and severance pay? Yes, there are reasons why an employee would not get severance pay, termination pay or both. The most common reasons are listed below: An employee doesn't get either termination pay or severance pay if he or she:
An employee doesn't get termination pay if he or she:
Note : If an employee's employment ended after working three (3) months or more and the employee did not finish the full term for which he or she was hired, the employee is entitled to termination pay;
Note: "unexpected event" does not include bankruptcy or insolvency. If an employer goes out of business suddenly aAn employee does not get severance pay if he or she:
Can an employee apply for employment insurance benefits when he or she is laid off? If an employee is laid off for a week or longer, the employer must give the employee a Record of Employment. This is an official Government of Canada form that the employer must fill out. The employee needs it for employment insurance (EI) purposes. Contact the Human Resources Development Canada with questions about employment insurance, or the Record of Employment. The telephone number to call is in the blue pages of the telephone directory. Look in the "Government of Canada" section, under "Employment Insurance Inquiries". Employment Insurance is not provided through Ontario Ministry of Labour offices. Can an employee work somewhere else when he or she is laid off? Yes, an employee may work somewhere else for another employer during a layoff. This does not mean the employee loses any of his or her rights to termination or severance pay. What if an employee is called back to work from a layoff? If an employee is called back while he or she is still on layoff, the employee must decide if he or she going back. If the employee decides to go back, he or she must do so within a reasonable period of time. If the employee refuses to return, he or she may lose the right to termination pay or severance pay:
What are recall rights? "Recall rights" is a term used in collective agreements (union contracts). It means being called back to work by the employer after being laid off. Note: If an employee has a collective agreement at his or her place of work, the employee should ask the union for details about recall rights. Do recall rights affect termination pay?
An employee can give up recall rights at any time. It is the employee's decision. If an employee gives up his or her recall rights or if they run out, the Ministry of Labour will pay the employee his or her termination pay from money the employer must send in to the ministry.
The employee keeps these even though the employer paid the termination pay after 13 weeks of layoff. Do recall rights affect severance pay? If an employee has recall rights and is eligible for severance pay because the layoff has exceeded 35 weeks in 52, he or she has to choose between:
OR The employee has to decide which he or she will do.
What if an employee is recalled to work? If an employee is recalled to work after termination or severance has been paid to the Ministry of Labour, the employee can either:
Where to get more information Visit the Ministry of Labour Web site at http://www.gov.on.ca/lab/es/ese.htm to see all of the Fact Sheets and "The Employer's Guide to the Employment Standards Act". All of the Fact Sheets can be accessed by the ministry's fax-on-demand system at (416) 326-6546. Check the blue pages of the local phone book or the Web site at http://www.gov.on.ca/lab/mol/contacte.htm for the nearest Ministry of Labour office. Employment
Standards Information Centre
Ministry of Labour |
Employment Standards Act
An Introduction to Hiring in Canada
Hiring in
Canada or Employment in Canada gives a vast description of Employment Legislation in Canada. It
covers Employment Standards Act and other General Employment Legislations
regarding jobs in Canada or employment in Canada.
Important issues like minimum wages, temporary layoff, termination of
employment, severance pay and vacation pay are covered under this section.
Hiring in
Canada or Employment in Canada provides sources for Employment Opportunities in Canada
available for general applicants as well as jobs in Canada for students.
Hiring in
Canada or Employment in Canada also gives reference to the Employment Agencies helping applicants
in finding jobs in Canada, both government
and private. The viewers can search for Employment Opportunities in Canada
through these agencies.
Self-created Jobs
is an other feature of Hiring in Canada or Employment in Canada. It is a good source of finding Jobs in Canada. |
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