Changes to Alberta’s Employment Standards Code

1. Changes to Alberta’s Employment Standards Code Fair and Family-friendly Workplaces Act (Bill 17) September 15, 2017

2. Fair and Family-friendly Workplaces Act • Bill 17, the Fair and Family-friendly Workplaces Act, passed in the Legislature and received Royal Assent on June 7, 2017. • The Act is enacted January 1, 2018 with a few exceptions. • Some Labour Relations changes have already come into effect. • Includes changes to bring waged, non family workers in the agriculture sector under protection of workplace laws

3. Consultation Summary • Consultation occurred in March/April 2017 • Over 5,000 organizations and individuals participated in the ES consultation process. • 120 stakeholders representing diverse organizations participated in the in-person group discussions. • Labour Relations • 93 submissions were received • Department engaged Mr. Sims for support/expertise • Technical Working Groups provided recommendations on rules for farms and ranches • Additional consultation on farm and ranch rules in Feb-March 2017

4. Employment Standards code changes

5. Employment Standards Code Overview • Provides minimum standards of employment for employers and employees. • Applies to most employees working in Alberta with some exceptions (e.g. federally regulated industries). • Establishes the framework for program administration and enforcement.

6. Aligning with EI Benefits – Existing Leaves • All Leaves • Eligibility period reduced to 90 days. • Compassionate Care Leave • Job protection extended from 8 to 27 weeks. • Notice to return to work reduced to one week. • Requirement for the employee to be the primary caregiver is removed. • Maternity/Parental Leave • Maternity leave extended from 15 weeks to 16 weeks. • If pregnancy ends other than with live birth within 16 weeks of due date, employee is eligible for maternity leave • Parental leave remains at 37 weeks but may be increased in the future to align with changes to the EI benefit.

7. Aligning with EI Benefits – New Leaves • Long-term illness and Injury Leave • 16 weeks for long-term illness and injury. • Medical certificate and reasonable notice required. • Death or disappearance of a Child • 52 weeks of job protection for employees whose child disappeared as a result of a crime, or up to 104 weeks if a child died as a result of a crime. • Critical Illness of a Child • 36 weeks of job protection for parents of critically ill or injured children. • Bill C-44 expands access to this benefit beyond just parents of critically ill or injured children.

8. New Leaves – Family Friendly Standards • Personal and Family Responsibility Leave • Five days per year to deal with personal sickness and family responsibilities. • Bereavement Leave • Three days per year for bereavement. • Domestic Violence Leave • Ten days per year to address a domestic violence situation. • Citizenship Ceremony Leave • Half day to attend a Citizenship Ceremony.

9. Youth Employment Standards Minimum Age of Employment • Minimum age raised from 12 to 13 years of age (youth 12 and under would only be allowed to work in artistic endeavours). • 13, 14 and 15 year olds • Only allowed to do ‘light work’. • Permit would be required for work not on the list. • Prohibition on ‘hazardous work’. • 16 and 17 year olds • 16 and 17 year olds can work in all occupations except those on ‘hazardous work’ list. • Permit would be required to perform hazardous work (with protections/conditions). • Labour is continuing refinement of light and hazardous work requirements in Sept/Oct

10. Simplifying Standards • Rest Periods • Minimum of a 30-minute break (paid or unpaid) for every five hours of consecutive employment. • May be taken in 15 minute installments. • Compressed Work Weeks • Expansion to other types of Averaging Agreements. • A group of employees (via collective agreement or majority consent) may agree with an employer to average hours of work over a period of one to 12 weeks to determine eligibility for overtime pay. • Agreement can have a start and end date that does not exceed 2 years (unless tied to Collective Agreement) • Overtime • Overtime can be banked for up to six months. • Banked overtime is calculated at 1.5x for all hours worked, rather than hour-for hour.

11. Simplifying Standards • Termination • Clarify the options for employers regarding termination pay when an employee provides more termination notice than required under the Code. • Employees cannot be forced to used entitlements (i.e. vacation, banked overtime) during the notice period, unless they agree. • Termination pay based off the previous 13 weeks the employee worked (when the employee’s wages vary from one pay period to another). • Group Termination Notice • For 50 – 100 employees: 8 weeks • For 101 – 300 employees: 12 weeks • For 301+ employees: 16 weeks • Notice must also go to unions and employees (but not for seasonal/defined work e.g. construction)

12. Simplifying Standards Temporary Layoffs • Limit the maximum length of temporary layoff to 60 days within a 120 day period (unless the employer extends the layoff by providing wages/benefits AND the employee agrees). • Length of temporary layoff notice matches termination notice. Notice can be waved for circumstances beyond an employer’s control. • Written notice required for temporary layoff and recall. Vacations and Vacation Pay • Clarified that employees must receive at least 4% of their total wages for vacation pay (and 2 weeks vacation leave) until they have been employed for five consecutive years, after which time they must receive at least 6% vacation pay (and 3 weeks vacation leave).

13. Simplifying Standards Deductions • Clarifies allowable deductions (e.g. judgement, court order, collective agreement) or those personally authorized in writing by employee, with the following exception: • Expressly prohibits deductions for faulty work and cash shortages (i.e. gas-and-dash, dine-and-dash) General Holiday and General Holiday Pay • Eligibility period removed-all employees eligible upon commencing employment. • The regular/irregular work day distinction is removed to simplify general holiday pay calculations. • “Average daily wage” changed to 5% of wages, vacation pay and general holiday pay earned in the four weeks preceding a general holiday.

14. Enforcement Provisions Strengthen enforcement and administration, including: • Enables creation of an administrative penalty system • With Director’s approval, allow for the publication of information regarding employers in relation non-compliance with the Code. • Enable a possible future shift to the Labour Relations Board to administer Employment Standards appeals. • Expand the time period from one to two years to begin a prosecution. • Group or industry permits to be replaced with Minister’s Variance or Regulation (for long term changes) • Streamline permitting system by establishing clear and enforceable criteria by which permits/variances are issued and by specifying time limits.

15. Enforcement Provisions Expand the authorities of Employment Standards Officers to improve compliance and to improve the recovery of earnings: • Officer authority to direct employers to conduct self-audits. • Expand the scope of the Director’s authority to third parties (i.e. banks) so that fees and costs may be recovered. • Authorize Director’s demand to collect outstanding wages or monies owed from a joint bank account. • Time period for the recovery of earnings will no longer be dependent on when an Order of Officer is issued and can capture a wider range of entitlements.

16. Employment Standards for Farm and Ranch • Family Farm Exemption • Family members employed on their family’s farm are exempt from all employment standards (including those which previously applied); • Definition of family member added based on the amendment to the Enhanced Protection of Farm and Ranch Workers Act. • Greenhouses, Nurseries, Mushroom Farms and Sod Farms • Not farms and ranches but special rules may be developed for industries in regulations • All changes to agricultural sector come into effect January 1, 2018 (same time as ES Code changes).

17. Employment Standards for Farm and Ranch • General Holiday Pay • Waged, non-family employees are entitled to either a day off or straight time pay, OR general holiday pay calculated at 4.2 per cent of the four weeks’ wages prior to the holiday. • Vacation Pay • Waged, non-family employees are entitled to vacation pay calculated on total wages, not on a maximum of 44 hours per week.

18. Employment Standards for Farm and Ranch • Days of Rest • Four days of rest to be provided for every 28 days at the employer’s discretion if the employer and employee can’t agree on dates. • Minimum Wage • Will apply to waged, non-family employees. • Youth Employment • Rules will apply to all waged, non-family employees. • Hours of Work and Overtime • Exemption remains from hours of work, breaks and overtime requirements.

19. conclusion

20. NEXT STEPS • Education and Awareness • Labour developing an education strategy on changes • Updating publications, creating webinars etc. • Employer Self- Assessment Tool (NEW) https://www.alberta.ca/employment-standards-self-assessment-tool.aspx • Regulations • Continued work in fall 2017 on details for implementation • Regulations (e.g. averaging agreements) • Youth employment (light and hazardous work) • Changes to Permits/Variances • Effective date for changes: • Minimum wage increases to $13.60/hr on October 1, 2017 • Other ES Code changes January 1, 2018

21. Additional Information • Employment Standards Website (updates will be provided primarily through this page): • https://www.alberta.ca/employment-standards-changes.aspx • Employment Standards Contact Centre: 1-877-427-3731 • Other enquiries: • Humyra.Sabir@gov.ab.ca, Executive Director, Workplace Policy & Legislation, Alberta Labour