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EI will rise by a lot!

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arrow-upSeveral media outlets have reported that Canada’s Parliamentary Budget Officer (PBO) announced a sharp rise in employment insurance rate. This stems from the recently tabled report: Projecting Employment Insurance Premium Revenues and Expenses made available on April 15, 2010.

The PBO projects that EI premium rates for employees will increase by the maximum allowable amount of $0.15 per year to $2.33 (per $100 of insurable earnings) by 2014 from $1.73 in 2010. This $0.60 increase in the premium rate is projected to raise the annual contribution per worker by $535, on average ($223 borne by the employee and $312 borne by the employer).

The combination of the increased premiums, more workers and higher wages means that Ottawa’s EI revenues would grow from $16.2 billion last year to $27.1 billion by 2014. Despite this increase, the budget officer estimates that even then the fund would still carry a $700-million deficit by 2014 after hitting a peak shortfall of $10.7 billion in 2011.

Currently, the government has frozen contribution premiums until 2011 as part of the two-year stimulus package dealing with the recession.

The report is quite informative and should be consulted.

Note: The Parliament of Canada Act mandates the Parliamentary Budget Officer to provide independent analysis to the Senate and House of Commons on the state of the nation’s finances, government estimates and trends in the national economy.

Yosie Saint-Cyr
Human Resources and Compliance Managing Editor


Ontario Ministry of Labour online severance tool

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severance-toolThe Ontario Ministry of Labour has a new online Severance Entitlement Tool to help employers and HR professionals determine when a terminated employee is entitled to statutory severance pay.

What is statutory severance pay under the Ontario Employment Standards Act?

Briefly, statutory severance pay for eligible employees is required to be paid in addition to termination pay or any other payments to which the employee is entitled. It is paid to empoyees whose employment has been severed to recognize loss of seniority and job-related benefits. It also recognizes an employee’s long service.

An employee qualifies for statutory severance pay when the employment is severed and the employee:

  • has worked for the employer for five or more years (including all the time spent by the employee in employment with the same employer, whether continuous or not and whether active or not),
  • and

  • the employer: has a payroll in Ontario of at least $2.5 million;orsevered the employment of 50 or more employees in a six-month period because all or part of the business closed

How to calculate statutory severance pay?

The maximum amount of statutory severance an employer is required to pay under Employment Standards is 26 week. To calculate the amount of statutory severance pay an employee is entitled to receive, the employer must multiply the employee’s regular wages for a regular workweek by the sum of:

  • the number of completed years of employment;
  • and

  • the number of completed months of employment divided by 12 for a year that is not completed.

Tool to help with calculation

The Ministry of Labour online severance tool will make this process much easier. It will take the user through a number of steps, including determining whether the employment relationship has been severed, understanding entitlement to service, and employer exemptions to severance pay. Once it’s been determined whether the employer owes severance, the severance calculator will determine the amount of severance pay that is owing.

To better help employers comply with their obligations under the Employment Standards Act, the Ministry of Labour already has a Public Holiday Pay Calculator available on their website and is working on additional tools such as: a Termination of Employment Tool; a Temporary-Lay-off Tool and Employer workbook.

The tools can be found at www.labour.gov.on.ca/english/es/tools/index.php

Yosie Saint-Cyr
Human Resources and Compliance Managing Editor

Happy tax freedom day!

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As indicated by the Fraser Institute, June 5, 2010 marks tax freedom day! Canadians start working for themselves, not the government. So what does that mean?

According to the Fraser Institute, Tax Freedom Day is a representation of the amount of tax the average Canadian family must pay to all levels of government. If Canadians were required to pay all of their taxes up front, they would have to pay each and every dollar they earned to governments prior to Tax Freedom Day.

However, Canadians work an additional three days in 2010 to pay all taxes. Detailed information on what Canada’s tax freedom day means to all employees can be found on the Fraser Institute website.

They also provide a link to a very humorous music video on the topic, see it on YouTube.

Happy Canada Day everyone! And look out for all the laws coming into force today

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cdn-flagFirst, we at First Reference would like to wish everybody a happy and safe Canada Day!

As you well know, employees get a day off with regular pay or public holiday pay (depending on the province or territory of employment). If the employee is required to work on the holiday, the employee must be paid regular wages and get a substituted day off with pay at a later date (depending on the jurisdiction). Canada Day is observed on July 1 (it is not a movable holiday under the Canada Holiday Act); the only exception is if July 1 falls on a Sunday, it is observed the following business day, which is Monday. (Newfoundland and Labrador has a different rule under the Shops’ Closing Act.) For specific requirements for your jurisdiction, consult the Library section of HRinfodesk.

On June 20, 1868, a proclamation signed by the Governor General, Lord Monck, called upon all Her Majesty’s loving subjects throughout Canada to join in the celebration of the anniversary of the formation of the union of the British North America provinces in a federation under the name of Canada on July 1st.

Second, several laws in various jurisdictions are coming into force today. They are as follows:

  • The minimum wage increases in Newfoundland and Labrador to $10 per hour on July 1, 2010.
  • All “sharps” including IVs, scalpels and hypodermic needles, must be replaced with alternative safety devices by all health care providers in Alberta as of July 1, 2010. The requirement is now specified in the Occupational Health and Safety Code. Individual employers are responsible for providing training for all of their employees.
  • Effective July 1, 2010, there are payroll related changes for Nova Scotia and Newfoundland and Labrador. The new Payroll Deductions Tables (T4032), new Payroll Deductions Supplementary Tables (T4008), new Tables on Diskette (TOD), new Payroll Deductions Online Calculator effective July 1, 2010 are now available on the CRA website.
  • As of July 1, 2010, the Ontario Needle Safety Regulation, 474/07 will apply in all workplaces where a hollow-bore needle is used for therapeutic, preventative, palliative, diagnostic or cosmetic purpose. In addition to hospitals and long-term care facilities which were already covered, the regulation will now apply to workplaces such as ambulance services, home care services, public health programs, and health care/first aid services in schools, industry and other workplaces.
  • Ontario Regulation 259/10 (Designated Substances) under the Occupational Health And Safety Act revokes and substitutes Regulations 490/09, which sets out new and revised Occupational Exposure Limits (OELs) that come into force on July 1, 2010. Eleven of twelve standalone designated substance regulations are being consolidated into one designated substances regulation. Regulation 278/05, Asbestos on Construction Projects and in Buildings and Repair Operations, was not consolidated. In addition, Regulation 833 has been revised to update occupational exposure limits or listings for several hazardous chemical substances in the Regulation respecting Control of Exposure to Biological or Chemical Agents.
  • The Ontario Long Term Care Homes Act and its accompanying Regulation comes into force on July 1, 2010. The Act establishes a new system of governance for long-term care homes in Ontario. It replaces the Nursing Homes Act, the Charitable Institutions Act and the Homes for the Aged and Rest Homes Act. The new Act and Regulation govern the requirements relating to long-term care home resident care, services, admissions, operations, funding, licensing, compliance and administrative matters in all long-term care homes in Ontario.
  • Changes to the Alberta Protection for Persons in Care Act, which builds upon the strengths of the current Act and will improve protection for Albertans by emphasizing the prevention of abuse and including enforcement mechanisms, comes into force on July 1, 2010. The Act promotes the prevention of abuse of adults who receive government-funded care or support services. There are several aspects of the Act of interest to employers and employees; among them, all service providers must require a criminal records check from every successful employment applicant, every new volunteer and any other individual engaged by the service provider to provide care or support services. For more, go to www.seniors.alberta.ca/CSS/persons_in_care.
  • The HST comes into force in Ontario and British Columbia on July 1, 2010. More can be found on the CRA website. the Nova Scotia HST increases from 13% to 15%, due to an increase of the provincial portion of the HST from 8% to 10%.
  • Changes to Saskatchewan’s construction labour laws take effect July 1. The amendments to the act, Bill 80, allow a trade union to organize a company on a multi-trade, or “all employee” basis, such as the Christian Labour Association of Canada or the Communications, Energy and Paperworkers unions, as well as on a single trade basis. Also, any trade union will be able to certify an employer and employers can choose the Representative Employers’ Organization that will represent them in collective bargaining. Employers will also be able to negotiate site-by-site collective agreements with a multi-trade union outside of the provincewide bargaining system, thereby avoiding the need for an REO. Bill 80 also allows an employer to file an abandonment complaint against a trade union that has been “inactive in promoting and enforcing its bargaining rights against the employer for a period of at least three years before the application.”
  • Starting July 1, Quebec companies will be imposed larger fines for non-compliance with safety rules. These increases will be implemented in two stages: the fines will double as of July 1, 2010 and will triple as of January 1, 2011.

Enjoy your day off and deal with it tomorrow!

Yosie Saint-Cyr
Human Resources and Compliance Managing Editor

The latest on employer health benefits and services

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sanofi-aventus

2009 survey cover

Last year I dropped the ball on Sanofi-Aventis’ annual health care survey—in fact, it’s still sitting on my desk under a pile of other things! So this year, I’m making it a priority, and getting this brief post on the report to you right away, before I file a more in-depth article for HRinfodesk.

This year, the report looks closely at “Taking Responsibility for Health”. Engaging employees is key to success in many areas of a business today, and health is one of the most important areas. Danny Peak, a senior manager at Sanofi-Aventis Canada, notes that when employers engage employees in health, employees begin to take greater interest in their well-being, which benefits everyone. Engagement means everything from making employees aware of the health benefits available to them and the costs of the benefit program, to active promotion of positive health outcomes, for example via internal fitness programs, fun days or other initiatives.

The 2010 Survey Highlights Video and Report contains far more information than I can fit into a blog post, but here are some highlights.

While the great majority of employees (95 percent) feel that the quality of their employers’ health benefits is good or better, workers with poor health or low incomes tend to feel less positive about their benefits. The survey asks, “What can or should employers do differently to reach those plan members?”

Well, it appears that the better employers communicate their plans to employees, the better employees feel about their benefits. And vice versa; employers that don’t communicate, or do so poorly, get bad health plan ratings from their plan members. In addition, the more employees actually participate in employer-provided health and wellness programs, the more likely they are to feel positively about the benefits available to them.

There’s also disparity between the actual and perceived costs of health benefits plans, and the value that the plans provide. Almost two-thirds of plan members (60 percent) guess that their employer spends less than $1,000 per employee on health care, and a further 19 percent feel their employer spends between $1,000 and $2,000. Despite broadly underestimating the actual costs of administering a health care plan, employees place great value on the health benefits their employers provide. And those benefits became even more valuable due to the recession and continuing weak economy.

It’s hard to draw firm conclusions from such a brief look at the data, but there are a few things to think about.

Employees appreciate their employers’ health plans, and they want to participate, but sometimes they don’t have the information to do so—either the employer isn’t communicating with them or they simply can’t access it. Certain groups of employees in particular—those most at risk of poor health—under-appreciate their health plans. Low income plan members and those in poor health need more attention when it comes to plan communications. Engaging them in the plan and in their own wellness might improve their health and their perceptions about their benefits plans—and also their work performance.

On the other hand, plan members don’t understand clearly the connection between the costs of their health plans and the value they offer. They don’t want to pay more, but they don’t want to lose their benefits. Clarifying the relationship between plan costs and benefits could encourage employees to focus their wellness efforts in ways that optimize health at the lowest cost—both to them and to their employer.

My complete analysis of the 2010 health care survey is available on HRinfodesk.com (requires subscription).

Let me know in the comments if you have any questions about the survey. And take a look at Christina’s recent post about workplace wellness programs.

Adam Gorley
Human Resources and Compliance Editor

The end of accommodation? Frustration of the employment contract as a last resort

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accommodationOne of the goals of legislation such as the Accessibility for Ontarians with Disabilities Act (“AODA”) and the Human Rights Code (the “Code”) is to promote accessibility and accommodation in various forums, including the workplace. However, when it b… Click here to read the rest of the article

Is it work-related? Novel workers’ compensation decisions deal with harassment and assault #learnthelatest

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harassmentIt may seem fairly obvious when a worker breaks her leg “in the course of employment”. However, injuries and illnesses related to bullying and harassment have drawn significant attention in recent years, and decisions from various workers’ compe… Click here to read the rest of the article

Three popular articles this week on HRinfodesk


Ontario considers big changes to Employment Standards Act and Labour Relations Act

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employment standardsFor the first time in over 20 years, the Province of Ontario has commissioned an independent report to review both the Employment Standards Act and the Labour Relations Act. The CBC reported on May 12, 2017, in an online article written by Mike… Click here to read the rest of the article

Victoria Day, public (statutory) holiday in Canada

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Victoria DayIn Canada, Monday, May 22, 2017 is recognized as a public (statutory) holiday known as Victoria Day, except in the Atlantic provinces (New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island). In Quebec, the public holiday is r… Click here to read the rest of the article

Health record snooping nets hefty fine

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healthIn a recent case out of Goderich, Ontario a $20,000 fine, the highest of its kind in Canada, was handed out for a health privacy violation.

Between September 9, 2014 and March 5, 2015, a Masters of Social Work student accessed the personal health… Click here to read the rest of the article

The “G” word: Brooks v. Total Credit Recovery Limited

Changing Workplaces Review final report: Sweeping changes to Ontario employment law coming

Update on Express Entry

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Express EntrySince Express Entry began on January 1, 2015, it has been necessary for prospective permanent residents to first receive an Invitation to Apply (“ITA”) before submitting an application for permanent residence under one of the following cat… Click here to read the rest of the article

Medical marijuana: A high cost to employers? #learnthelatest

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marijuanaA recent case from Nova Scotia illustrates that as laws and social attitudes concerning marijuana change, employers may be burdened with previously unexpected costs.

As Canada moves toward decriminalization by July 2018, the stigma associated with… Click here to read the rest of the article


People analytics at work: Achieving objectives and realizing outcomes

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analyticsIn this week’s blog, we’re taking a look at the first and most critical step in kickstarting your analytics journey to bring value to your business—identifying and prioritizing your business objectives.

We also look at the importance of starting smal… Click here to read the rest of the article

While there may be damages for employee’s lack of resignation notice, there is no reliable substitute for an enforceable restrictive covenant…

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resignationA 2016 decision of the BC Court of Appeal is a good reminder to BC employers of the purpose of an employee’s obligation to provide reasonable notice of resignation and, if breached, what an employer can expect to recover. It also underscores the val… Click here to read the rest of the article

Important corporate immigration updates

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immigrationThis update includes:

  • Cut-off age for dependent children raised
  • Traveling visa-free to Canada for eligible Bulgarians, Romanians, Brazilians
  • Conditional permanent residence for spouses and partners eliminated

IRCC raises the cut-off age for… Click here to read the rest of the article

Important decision regarding mitigation of damages following termination

Three popular articles this week on HRinfodesk

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