Can an Employer Withhold Pay in Ontario?

If you’re not getting paid properly in Ontario, you’re not alone. Whether your employer is withholding your pay, making unauthorized deductions, or delaying your paycheque, it’s important to know that most of these actions are illegal under the province’s employment laws.

In Ontario, employers must follow strict rules about when and how they pay employees. The Employment Standards Act (ESA) clearly outlines your rights when it comes to wages, deductions, and final pay.

This guide will explain:

• When a company is allowed to withhold pay
• What counts as an illegal deduction from wages
• What to do if your employer doesn’t pay you
• How long your employer can hold your pay
• Your legal options to recover unpaid wages

When Can an Employer Deduct Wages in Ontario?

In Ontario, your employer can’t take money off your pay whenever they feel like it. The law is clear: deductions from your wages are only allowed in specific situations.

✅ Legal Deductions from Wages

Your employer can legally deduct money from your pay if:

• It’s required by law (e.g. CPP, EI, income tax)
• You’ve provided written consent for a specific deduction (e.g. company uniform)
• It’s a court order or legal garnishment

❌ Illegal Deductions from Wages

Your employer can’t deduct pay for:

• Cash shortages (e.g. missing till money)
• Loss of property or equipment
• Damage caused on the job
• Customer walkouts or dine-and-dash situations
• Performance-based “penalties”

Even if you made a mistake at work, they can’t legally deduct the cost from your pay unless you agreed in writing after the issue happened.

What if My Employer is Withholding My Pay?

If your employer is holding back your pay, you’re likely dealing with a serious breach of Ontario’s employment laws.

❌ Can an employer withhold pay in Ontario?

In most cases, no. Your employer can’t refuse to pay you for work you’ve already done – even if:

• You were terminated for cause
• There’s a dispute about your hours or performance
• You quit without giving notice
• Your employer is having financial difficulties

⚖️ The law says your employer must:

• Pay you on your regular payday
• Provide your final pay (including unused vacation) within 7 days of termination or by the next scheduled payday, whichever is later

🚩 Common excuses employers use (that don’t hold up legally)

• “We’re reviewing your hours”
• “We’re waiting for your replacement to start before processing your final pay”
• “You owe us for damage or lost items”
• “We’ll pay you once the project or client pays us”

None of these are valid reasons to withhold your wages.

If this is happening to you, it’s time to take action – because the longer you wait, the harder it can be to recover what you’re owed.

How Long Can an Employer Hold Your Pay in Ontario?

Under Ontario’s Employment Standards Act (ESA), employers must pay you on time. That includes both regular pay during your employment and your final pay after you leave the job.

⏰ During Employment

• Employers must establish a regular pay schedule (e.g. weekly, biweekly).
• They can’t change your pay schedule without notice and can’t delay payment beyond the agreed-upon payday.

🧾 After Termination

If you’re fired or quit, your employer must provide your final pay:

• Within 7 days of your last day of work, or
• By your next regular payday – whichever is later

This includes any unpaid wages, overtime pay, and unused vacation.

What to Do if You’re Not Getting Paid by Your Employer

If you’re not getting paid – or your pay is being delayed or reduced without reason – don’t ignore it. You have legal options to recover what you’re owed in Ontario.

✅ Here’s what to do

1. Document Everything. Keep copies of pay stubs, emails, and work schedules. Write down dates and details of missed or partial payments.
2. Ask Your Employer for Clarification. Politely ask why your pay is missing or reduced. Request a timeline for when it will be resolved.
3. Contact an Employment Lawyer. A lawyer can quickly review your case, explain your rights, and send a demand letter to your employer if needed. In almost all cases, this leads to a fast resolution without going anywhere near court.
4. File a Complaint with the Ministry of Labour (Optional). You can file an ESA claim through Ontario’s Ministry of Labour. However, once you do this, you can’t pursue a lawsuit for the same wages later. Speak to an employment lawyer first to ensure you’re choosing the best path

This includes any unpaid wages, overtime pay, and unused vacation.

What is Payroll Withholding?

The term “payroll withholding” can be confusing – especially if you’re not getting your full pay. But not all withholdings are illegal.

✅ What Payroll Withholding Actually Means

Payroll withholding refers to mandatory deductions your employer makes from your wages, such as:

• Income Tax
• Canada Pension Plan (CPP) contributions
• Employment Insurance (EI) premiums

These are legal and required by law. You’ll see them listed on your pay stub, and they’re submitted to the government on your behalf.

❌ Withholding Isn’t the Same as Wage Deductions

Some employers try to disguise unlawful deductions as part of “payroll withholding.” That’s not allowed.

If your employer is taking money beyond standard deductions – like charging you for mistakes, lost items, or training costs – it could be illegal.

Speak to an Employment Lawyer if Your Pay is Being Withheld

If your employer is withholding your pay, making unauthorized deductions, or refusing to pay you on time, don’t wait to take action.

At Samfiru Tumarkin LLP, we’ve helped more than 50,000 non-unionized employees across Ontario get what they’re legally owed – including unpaid wages, severance packages, and compensation for wrongful dismissal.

Lost your job and still waiting to be paid?

You may be entitled to both:

• Withheld wages (your employer can’t withhold pay after termination)
• Full severance pay – as much as 24 months’ pay, depending on your age, position, and years of service.

⭐ Over 2,000 Five-Star Google Reviews

Our team of employment lawyers are trusted across Ontario for clear advice, fast results, and no upfront fees for most employment matters (eligibility may vary).

You can use our Pocket Employment Lawyer to get quick answers about your rights, or try the Ontario Severance Pay Calculator to estimate what you’re owed.

Take the first step today

Call 1-855-821-5900 to speak with an Ontario employment lawyer, or fill out our confidential online form.