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Ontario's employment policies


Minimum Wage

Minimum wage levels are established in Ontario under the Employment Standards Act.
  • general hourly rate - US$7.51
  • student hourly rate - US$7.04 (students under 18 working less than 28 hours a week or during a school holiday)

Source: Ontario Ministry of Labour, 2007 (2/2007)

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Hours of Work and Overtime

The daily limit is eight hours of work a day, or the number of hours in an established regular work day that is longer than eight hours. The weekly limit is 48 hours. Employees can agree, in writing, to work more than the longer daily and weekly limits, up to a maximum of 60 hours a week.

Most employees must receive overtime pay after 44 hours of work each week. The overtime rate is at least 1½ times the regular rate of pay. Employees can take time off at the rate of 1½ hours for each hour of overtime worked, instead of overtime pay, if they and their employers agree in writing. If an employee and employer agree in writing, the employee's hours of work can also be averaged over a period of time not to exceed four weeks for the purpose of determining whether overtime is due.


Source: Ontario Ministry of Labour, 2005 (2/2007)

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Vacation Time and Vacation Pay

Employees are entitled to four percent of their gross wages as vacation pay. Employees earn two weeks of vacation time each 12-month vacation entitlement year. Employers must generally schedule vacations in one- or two-week blocks, unless employees request their vacation time be scheduled in other ways. If an employee requests in writing, and an employer agrees in writing, vacation can be taken in periods as short as one day at a time.

Source: Ontario Ministry of Labour, 2005 (2/2007)

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Public Holidays

The Ontario Employment Standards Act provides for eight public holidays with pay:
  • New Year’s Day (January 1)

  • Good Friday

  • Victoria Day (3rd or 4th Monday in May)

  • Canada Day (July 1)

  • Labour Day (1st Monday in September)

  • Thanksgiving Day (2nd Monday in October)

  • Christmas Day (December 25)

  • Boxing Day (December 26)
Most employees are entitled to public holidays regardless of how long they've been working. Unless otherwise prescribed, public holiday pay is the regular wages earned plus vacation pay payable to an employee during the four work weeks prior to the holiday, divided by 20.

Source: Ontario Ministry of Labour, 2005 (2/2007)

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Termination and Severance

In most cases, when an employer ends the employment of someone who has been continuously employed for three months or more, the employer must provide either advance written notice of termination or termination pay or a combination of the two.

How much advance written notice or termination pay is required generally depends on how long someone has been working for an employer. The requirements may also be affected by the number of employees terminated in a four-week period.

Employers must continue to make the contributions required to maintain an employee's benefit plans during the notice period. This applies even if the employee has received termination pay instead of working part or all of the notice period.

For more information
Call the Employment Standards Information Centre at 416-326-7160 or toll- free at 1-800-531-5551.

Information on the ESA can also be found on the Ministry of Labour web site at http://www.labour.gov.on.ca/ and select "Employment Standards".


Source: Ontario Ministry of Labour, 2005 (2/2007)

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Pay Equity

Ontario's Pay Equity Act addresses the undervaluing and underpaying of work traditionally done by women. Pay Equity is equal pay for work of equal value. Pay equity compares the value of jobs usually done by women (female jobs) to the value of jobs usually done by men (male jobs) based on four factors: skill, effort, responsibility and working conditions. A female job which is approximately equal in value to a male job must be paid at least the same job rate. The Pay Equity Commission offers free seminars, workshops and info sessions for employers to understand the Pay Equity Act.

Pay Equity Commission:
400 University Ave. - 11th Floor,
Toronto, Ontario M7A 1T7
Telephone: 1-800-387-8813 or 416-314-1896
Fax: 416-314-8741
Email: pecinfo@mol.gov.on.ca
Website: www.payequity.gov.on.ca/


Source: Ontario Ministry of Labour, 2005 (2/2007)

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