Canadian Payroll Reporter

6 Canadian HR Reporter, a Thomson Reuters business 2017 News January 2017 | CPR Parliament. At the end of No- vember, the House of Com- mons passed Bill C-26, An Act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board and the In- come Tax Act. The Senate must still pass it. The bill would imple- ment an agreement in principle that the federal government and all provinces but Quebec signed last summer. The bill proposes to raise CPP retirement benefits from one- quarter of pensionable earnings to one-third. To fund the in- crease, Bill C-26 would gradually raise contribution rates on earn- ings up to the yearly maximum pensionable earnings (YMPE) between 2019 and 2023, with the rate eventually rising to one percentage point more than it is now (4.95 per cent). Beyond the CPP, the fed- eral government is considering changes to the Employment In- surance (EI) system and the Can- ada Labour Code to help parents and caregivers. While changes to the code would only affect feder- ally regulated workplaces, they could influence provinces and territories to amend their labour standards rules in a similar way. Last year, the government held consultations on issues such as flexible work arrangements and unpaid leaves for parents and caregivers. It also carried out consultations on EI service qual- ity, which could bring changes to the way employers complete Records of Employment. These changes to EI or the code may not occur this year. Alberta: While no payroll-related bills are currently before the legisla- ture, the provincial government is continuing with consultations into possible workers' compen- sation and employment stan- dards amendments. A review panel studying Al- berta's workers' compensation system released a progress re- port in November highlighting the input it has received so far from employers, workers, indus- try associations and others. The panel is looking at a number of workers' compensa- tion issues, including employer funding. In the progress re- port, the panel noted that some stakeholders want the Workers' Compensation Board (WCB) to be more open about how it sets premium rates. The panel is expected to sub- mit a final report and recom- mendations to the government in the spring. Amendments to the Employ- ment Standards Code to repeal a number of exemptions that apply to agriculture workers are still to be enacted. The provincial legis- lature passed the amendments in late 2015, but the government has delayed implementing them until it finishes consulting with industry stakeholders. Consul- tations began last summer and will continue into 2017. Once the amendments take effect, employees employed on a farm or ranch whose jobs are directly related to the primary production of eggs, milk, grain, seeds, fruit, vegetables, honey, livestock, bees, poultry, etc., would be protected by the code's standards for hours of work, overtime, statutory holidays, vacations and minimum wage, among other provisions. Manitoba: The provincial government has launched a review of Manitoba's Workers Compensation Act. By law, there must be a comprehen- sive review every 10 years. A committee reviewing the act released a discussion paper last fall, asking for feedback on a number of issues, including funding, the need for an employ- er advisor office, and whether there should be an assessable earnings ceiling for workers' earnings. Although employers pay premiums up to an annual maximum amount per worker, there is no yearly maximum for wage loss benefits that the Work- ers Compensation Board pays to workers injured after 2005. Comments on the discussion paper are due by Feb. 15. The committee says it plans to sub- mit a final report to the govern- ment by the end of June. The provincial government is also continuing to review Mani- toba's minimum wage rate. Last fall, it asked for feedback from provincial residents and its Labour Management Review Committee. The general mini- mum wage rate in Manitoba is $11.00 an hour. New Brunswick: Employers in New Brunswick may see changes to the Employ- ment Standards Act this year. Last fall, the government re- leased three discussion papers asking for feedback on mini- mum wage, youth employment and coverage. The government is review- ing the feedback and may table amendments this winter. One long-standing legisla- tive change that is expected to come into force this year is an overhaul of the province's judg- ment enforcement law. In 2013, the legislative assembly passed the Enforcement of Money Judg- ments Act, which sets out new rules for repaying debts, includ- ing allowing employees' wages to be garnished. Nova Scotia: The provincial legislature is con- sidering two private members' bills that would affect labour standards if passed. While most private members' bills never be- come law, it is important to be aware of them in case they get majority support and pass. One bill would increase the minimum amount of vacation time to which employees are en- titled. It proposes that employees have three weeks of vacation each year for the first 10 years of em- ployment and four weeks after 10 years. Currently, employees are entitled to two weeks' vacation in the first eight years, rising to three weeks after eight years. The second bill would require the government to gradually raise the general minimum wage rate to $15.00 an hour by 2019 and would eliminate a separate rate for employees with less than three months of experience. The minimum wage rate is currently $10.70 an hour ($10.20 for those with under three months' expe- rience). Ontario: This year, the Ontario govern- ment is expected to release a final report and recommenda- tions from its Changing Work- places Review advisors. In 2015, the government ap- pointed lawyer Michael Mitchell and former Justice John Murray to review the Employment Stan- dards Act, 2000 and Labour Re- lations Act, 1995 and make rec- ommendations on changes that would "better protect workers while supporting businesses in our changing economy." Last summer, the advisors released an interim report that put forward a number of pos- sible options for reforming the two laws. They asked for public feedback on a wide array of pro- visions, including the following for employment standards: • legislating the length of pay periods • increasing the minimum pe- riod for annual paid vacation from two weeks to three • simplifying the rules for calcu- lating statutory holiday pay • reducing the overtime pay threshold from 44 hours to 40 • adding new unpaid leaves • requiring paid sick days • changing the requirements that apply for personal emer - gency leave • changing the maximum num- ber of weeks of notice employ- ers must provide to employees for termination (currently eight weeks) • reducing or eliminating eli - gibility criteria for severance pay • eliminating some exemptions and special rules allowed un - der the act • adding a new category of employee, called a dependent contractor. Once the government releases the final report, it may provide details on what, if any, amend- ments it may make to the Em- ployment Standards Act, 2000. As the year progresses, these jurisdictions and others may announce more payroll-related legislative or regulatory changes. With numerous acts and reg- ulations governing the employ- ment relationship, it is likely that payroll professionals will be busy again this year keeping tabs on amendments and new requirements. Workers' comp, labour standards in crosshairs from ANOTHER on page 1

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