December 8, 2015
New changes are being made to the Ontario Employment Standards Act, 2000 (“ESA”) with the intention of protecting some of the most vulnerable workers in Ontario. Bill 12, Once passed, Bill 12 – otherwise known as the Protecting Employees’ Tips Act, 2015,will amend the ESA with respect to tips and gratuities, and specifically addresses tip theft. Bill 12 will prohibit employers from withholding tips or other gratuities from employees, and will enable the Ministry of Labour to collect withheld tips with the purpose of returning these tips to employees.
Employers will still be permitted to withhold or make a deduction from an employee’s tips if the employer is ordered to do so by a court order or statute. Employers will also be entitled to withhold tips for the purpose of redistribution as part of a tip pool; however, will not be able to share in tips redistributed through a share scheme unless they regularly perform the same work as employees participating in the pool, or operate in an industry where it is common for employers to share tips with employees.
Unionized workplaces will be required to comply with Bill 12 upon the expiry of the collective agreement in place at the time Bill 12 comes into force, and should any provision of the collective agreement contravene Bill 12, that provision will prevail until the collective agreement is renewed.
Bill 12 passed the third reading on December 7, 2015, and will come into force six months after it receives Royal Assent.
If you have any questions about this topic or any other questions relating to workplace law, please do not hesitate to contact a Mathews Dinsdale lawyer
For more information on new developments in Workplace Law, please refer to our website at: http://www.mathewsdinsdale.com/news-events/in-a-flash
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