Navigating employment standards can be complex. This guide provides a concise overview of key aspects of employing staff, focusing on minimum wage, young worker protection, wage payment, and more, based on the Employment Standards Code.
What are Employment Standards?
Employment Standards are government regulations, often administered by a body such as Manitoba Finance, that set minimum requirements for wages, working hours, holidays, and other workplace entitlements and responsibilities. These standards are enforced through legislation like The Employment Standards Code, The Construction Industry Wages Act, The Remembrance Day Act, and The Worker Recruitment and Protection Act, including investigations into alleged violations.
Who is Covered by Employment Standards Laws?
In many regions, most employees fall under provincial jurisdiction. However, some sectors are federally regulated and those employees must contact the relevant federal labor program for concerns about wage payments. Independent contractors are generally not covered by employment standards legislation. Some categories of workers, such as some agricultural workers, construction workers, professionals, part-time domestic workers, landscape workers, and election workers, may have partial coverage.
Independent Contractors vs. Employees
Self-employed individuals or independent contractors are typically not covered by The Employment Standards Code. However, determining whether a worker is truly an independent contractor can be complex. Key factors include:
- Control over duties and schedules: Who determines the work to be done and when it’s performed?
- Negotiation of payment: Can the worker negotiate their rate of pay?
- Method of payment: How is the worker paid (e.g., hourly wage vs. project fee)?
Individuals who believe they have been misclassified as independent contractors can file a claim with Employment Standards for a determination.
Minimum Standards
What is the Minimum Wage?
The minimum wage is the lowest hourly wage an employer can legally pay. This rate is subject to change, so employers should remain up-to-date on the current minimum wage laws in their region. For example, as of October 1, 2024, the minimum wage in Manitoba is $15.80 per hour.
Can Employers Exceed Minimum Standards?
Yes, employment standards legislation sets only the minimum requirements. Employers can, and often do, provide more generous benefits and higher wages.
Contractual Agreements and Minimum Standards
Employees cannot waive their right to minimum standards, even through a contract. While employers and employees can agree to different terms in some cases, these terms must always meet or exceed the minimum standards.
Part-Time Employees
Part-time employees are covered by The Employment Standards Code and are entitled to the same rights as full-time employees. However, wages based on a percentage of total earnings, such as vacation pay and general holiday pay, will be affected by the number of hours worked.
Young Workers
Rights of Young Workers
Young workers have the same rights and obligations as other employees, including the right to vacation pay, overtime, minimum wage, and general holiday pay.
Minimum Working Age
Young people may be required to complete a Young Worker Readiness Certificate Course and obtain parental/guardian consent before they can work.
Workplace Restrictions for Young Workers
Specific restrictions may apply to the types of jobs young workers can perform, such as restrictions on working:
- On construction sites.
- In industrial or manufacturing processes.
- With dangerous equipment or substances.
- Without direct adult supervision.
Working Hours for Young Workers
During school weeks, the number of hours young people can work may be limited. During school breaks, these limitations may not apply. Additional restrictions may apply to younger workers regarding the use of certain equipment or working alone.
Paying Wages and Keeping Records
Payment Frequency
Employees must be paid at least twice a month, within a specific timeframe (e.g., 10 working days) of the end of a pay period. Upon termination of employment, final wages must be paid within a defined period from the termination date.
Pay Statements
Employers are generally required to provide written pay statements (pay stubs) to employees, detailing:
- Regular wage and hours worked.
- Overtime wage and hours worked.
- All deductions from wages.
- Total wages paid.
Electronic pay statements are often permissible.
Record Keeping
Employers must maintain accurate records for all employees, including:
- Name, address, date of birth, and occupation.
- Date of hire.
- Wage rates and changes.
- Hours worked (regular and overtime).
- Wage payment dates and amounts.
- Deductions and reasons for deductions.
- Leave information.
- Termination date.
Employees are also encouraged to keep their own records of hours worked and wages paid.
Minimum Wage for All Hours Worked
Employees are entitled to at least minimum wage for all hours worked and cannot agree to work for less.
Payment for Reporting to Work
Employees who report to work but are sent home early due to canceled shifts may be entitled to a minimum number of hours of pay.
Deductions from Wages
Permissible Deductions
Employers can generally only make deductions from wages when these are:
- Required by law (e.g., statutory deductions).
- Agreed to by the employee and directly benefit them.
- To compensate for cash advances or payroll errors.
Unauthorized Deductions
Unauthorized deductions include:
- Fees for cashing checks.
- Costs of damage to company property (with limited exceptions).
- Costs of lost, stolen, or broken tools or equipment.
- Costs of cash or inventory shortages.
- Cost of mandatory uniforms or safety equipment.
Direct Benefit to Employees
Examples of deductions that directly benefit employees include:
- Health or insurance packages.
- Voluntary purchases of goods or services from the employer.
- Some educational expenses.
- Room and board (under certain conditions).
Hours of Work and Scheduling
Standard Hours of Work
Standard hours of work are often defined as 40 hours per week and 8 hours per day. Employees are entitled to their regular wage rate for work during these hours.
Scheduling Control
Employers typically control work schedules and can change them as needed.
Transportation
In some jurisdictions, employers may be required to provide transportation to or from work when an employee’s shift begins or ends during specific late-night or early-morning hours.
Overtime
Employees cannot work overtime without the knowledge or permission of their employers. Overtime is typically paid at 1.5 times the regular wage rate for hours worked over 8 in a day or 40 in a week.
Breaks
Employees are often entitled to a 30-minute unpaid break after a certain number of hours worked (e.g., every five hours). They are also usually entitled to at least one day of rest per week.
Overtime
Overtime Wage Rate
The overtime wage rate is typically 1.5 times the regular hourly wage for each hour (or part of an hour) worked during overtime.
Determining Overtime Hours
Overtime is generally determined by the number of hours employees work in a day and in a week.
Banking Overtime
Employers and employees can agree in writing to bank overtime hours, with specific rules regarding accrual, scheduling time off, and time limits.
Overtime for Salaried Employees
Salaried employees are generally entitled to overtime pay.
Overtime Exclusions
Some employees may be exempt from overtime provisions, such as those who substantially control their hours of work and earn above a certain threshold.
Leaves
Available Leaves
Employees may be entitled to various leaves of absence without fear of losing their job, including:
- Maternity leave.
- Parental leave.
- Family leave.
- Bereavement leave.
- Compassionate care leave.
Paid vs. Unpaid Leave
Employers are not always required to pay wages to employees while on leave, although some jurisdictions may have programs to provide income replacement.
Returning from Leave
Employees must generally be returned to their original position or a comparable position with no less than the pay and benefits they earned before the leave.
Vacations and Vacation Pay
Vacation Length
Employees are typically entitled to at least two weeks of vacation after each of the first few years of employment, with longer vacations after a certain number of years.
Vacation Pay Calculation
Vacation pay is usually calculated based on a percentage of gross earnings in the previous year.
Vacation Pay Timing
Employers decide when vacation pay is to be paid, but it must be paid by a certain date.
Scheduling Vacations
Employees and employers can agree on when vacation will be taken. If they cannot agree, the employer typically sets the vacation date, with a required notice period.
General Holidays and Sunday Shopping
General Holidays
These are public holidays recognized by the government. Most employees are paid general holiday pay for these days, whether they work or not.
General Holiday Pay Calculation
For employees who consistently work the same number of hours, general holiday pay is one regular work day’s pay. For employees with varying hours, general holiday pay is often calculated as a percentage of gross wages in the four weeks before the holiday.
Working on a General Holiday
Employees who work on a general holiday are typically entitled to 1.5 times their regular rate of pay for the hours worked, in addition to their general holiday pay.
Retail Businesses on Sundays and Holidays
Retail businesses may be subject to restrictions on operating hours on Sundays and general holidays, depending on local regulations.
Termination of Employment
Notice of Termination
Both employees and employers may be required to give notice of termination, with the amount of notice depending on the length of employment.
Wages in Lieu of Notice
Employers can pay wages in lieu of providing notice of termination.
Situations Without Notice
There are certain situations where notice of termination is not required, such as in cases of just cause or temporary layoff.
Seeking Further Information
This guide provides a general overview of employment standards. For detailed information, refer to the current legislation in your jurisdiction and contact the relevant Employment Standards agency.
