The Employment Standards Act (ESA) uses to workers.
A staff member of an individual who:
- performs work for a company for incomes
- products services to an employer for salaries
- receives training from a company, if the ability in which the individual is being trained is an ability utilized by the employer's employees
- is a homeworker
- was a staff member
Effective March 21, 2024, an employee consists of a person who performs work during a trial duration for an employer, if the abilities being examined during the trial duration are skills used by the company's staff members or could be used by staff members if there are no other employees. For instance, where an employer of a dining establishment asks a job prospect to work a trial shift waiting tables to show their ability to carry out the task, employment even where no work deal has actually been made to that candidate, the individual is a worker under the ESA.
The ESA does not apply to independent professionals, employment volunteers or other people who are not covered under the ESA. An individual considered a worker may be entitled to rights such as:
- base pay
- overtime pay
- public vacations
- trip with pay
- notification of termination or termination pay
Under the ESA, employers are not permitted to treat employees covered by the Act as if they are not employees. If an employer misclassifies a staff member in this method, an employment requirements officer can release a notice of contravention that leads to a charge, a prosecution or both versus the employer.
Please note, the ESA provides minimum requirements only. Some staff members might have greater rights under an employment agreement, collective contract, the common law or other legislation.
Learn more about employee rights under the ESA.
How to inform who is an employee
The relationship between an individual and the business (or individual) they are working for identifies whether the individual is an employee and entitled to defenses under the ESA. A person may be considered a worker under the ESA when at least a few of the following explains the relationship:
- the work the specific carries out is a crucial part of the service
- the company chooses:- what the individual is to do
- just how much the person will be paid
- where and when the work is carried out
If you're unsure who is an employee under the ESA, call the Ministry of Labour, Immigration, Training and Skills Development's Employment Standards Information Centre at:
- 416-326-7160
- toll-free at 1-800-531-5551
TTY 1-866-567-8893
The Information Centre can assist callers in multiple languages. They can give basic information about who is a worker but can not supply guidance.
If you're still uncertain whether someone is an employee, please speak to an attorney.
How to tell who is an independent contractor
An independent contractor is somebody who stays in business for themselves. A person might be considered an independent contractor, and not covered by the ESA, when at least some of the following applies:
- business can end the person's contract for services, however can not discipline the person
- the individual:- has the opportunity to make a revenue and has a danger of losing money from the work
- determines how, when or where the work is carried out
- decides whether to subcontract some of the work
Example
Fariah works as a consumer service agent for a sales business. She should work Monday to Friday from 9:00 a.m. to 5:00 p.m. in business's workplace. She utilizes business's telephones and computer systems. She is paid $25.50 per hour. Her employment contract does not have an end date, although her company can fire or discipline her for poor efficiency. Her work agreement specifies that she is an independent contractor therefore she does not receive overtime pay, trip pay or public vacation pay.
Fariah thinks she may actually be a staff member and may be entitled to overtime pay, getaway pay and public vacation pay. She submits a claim with the Ministry of Labour, Immigration, Training and Skills Development.
An employment standards officer examines her claim. The officer looks at the relationship between Fariah and the sales service and discovers that she is a worker
It does not matter that Fariah signed the employment agreement specifying that she is an independent professional since the truths reveal she is a worker.
The employment requirements officer orders the sales company to:
- pay Fariah the overtime pay, trip pay and public holiday pay that she was entitled to as a staff member.
- orders the company to release wage statements and keep records
Employee or independent specialist: Common misunderstandings
A person might be considered a staff member even if:
- the individual and business agree (orally or in composing) that the individual is an independent contractor. It is the relationship in between the individual and business (or person) that matters, not the label that is given to it
- the individual:- charges the harmonized sales tax (HST).
- sends invoices to business.
- utilizes their own automobile for work functions.
Volunteers
Volunteers are not workers under the ESA. However, the fact that someone is called a "volunteer" does not identify whether that individual is a staff member and entitled to the defenses of the ESA.
The main elements that identify whether someone is a volunteer or an employee are how much:
- the service (or individual) take advantage of the person's services.
- the private views the plan as remaining in pursuit of a living.
In family-run services, the concern will often be whether the individual is providing services in pursuit of a living or in service of the household.
If the individual is supplying services to the family, instead of services in pursuit of a living, that person is more likely to be a volunteer.
The reality that no incomes were paid does not necessarily indicate that somebody is a volunteer. The fact that there was some kind of payment does not necessarily imply somebody is a staff member. For instance, an honorarium may have been paid, rather than salaries.
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5:00 P.m. in the Business's Office
Adan McLean edited this page 5 months ago