SCD 401 – Social Enterprise for Sustainable Community Development February 22, 2011

Labour Laws Hiring Hours of Work Wages Payroll 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

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

Maximum 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

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: 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

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

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.

Leaves 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.

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

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.

Leaves 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

Questions: 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 hours b) 3 hours c) 4 hours d) 5 hours

2. Which of the following is not a legitimate leave? a) parental leave b) bereavement leave c) jury duty d) educational leave

3. How many hours of rest is an employee entitled to after a shift of work? a) 5 hours b) 8 hours c) 9 hours d) 12 hours

4. An employee is allowed 2 weeks vacation after how many months of work? a) 6 months b) 10 months c) 12 months d) 18 months

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

Questions 1. Minimum wage in BC for first time employees is: a) $6/hr b) $7/hr c) $8/hr d) $9/hr

2. How many days does an employer have to pay their employee after their pay period? a) 5 Days b) 6 Days c) One Week d) Days

3. True or False: The minimum wage for all employees whom have worked for more than 500 hours is $8/hour.

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 (BN) – must request if new business Register 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

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

Questions 1. What are the 3 required payroll deductions?

2. For how many years must an employer keep payroll records? a) 4 years b) 6 years c) 7 years d) 8 years

3. For how many years must an employer retain payroll records after the employment terminates? a) 1 year b) 2 years c) 4 years d) 6 years

4. At what age are CPP contributions no longer deducted? a) 60 years? b) 65 years? c) 70 years? d) 75 years?

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

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??