Ontario moves to ban unpaid restaurant trial shifts, wage deductions

Today, the Ontario government announced significant updates to employment laws impacting the restaurant and hospitality industry.

These changes, part of the Working for Workers Four Act, are spearheaded by Labour Minister David Piccini with a focus on enhancing worker rights.

The proposed changes, once passed, will update Ontario’s Employment Standards Act (ESA).

Unpaid Trial Shifts

The upcoming legislation will ban unpaid trial shifts in Ontario’s restaurant and hospitality sectors. While current laws require payment for all hours worked, this new rule aims to prevent the misuse of unpaid trial shifts during hiring.

If you’re subjected to an unpaid trial shift, you can file a claim with the Ministry of Labour. Facing employer retaliation after such a claim? Contact Samfiru Tumarkin LLP to secure proper severance pay with help from an experienced employment lawyer.

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Wage Deductions

Under the new law, employers in Ontario can no longer deduct wages for incidents like “dine and dash” or “gas and dash.”

Currently, it is illegal for employers to deduct wages due to lost or stolen property. If your employer makes any significant change to your job (such as a cut in pay, demotion, or job relocation), you can treat the move as a termination. Our employment lawyers in Ontario can work to get you a full severance package  – as much as 24 months’ pay – through a constructive dismissal claim.

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Tip Distribution

The legislation also requires employers to inform their staff if they participate in pooled tips. Existing laws in Ontario allow employers to share in pooled tips if they perform the same work as their staff.

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• Severance pay for food servers

Digital Payment for Tips

With the rise of digital payment apps for tips, the new laws will mandate employers to allow employees to choose the deposit account for direct deposit tips.

This move aims to eliminate unfair fee deductions by these apps. Labour Minister David Piccini emphasizes, “We’re seeing apps that are taking a cut every time a worker accesses their tips and that’s not acceptable.”