Ontario Bill 27: Working for Workers Act, 2021 (VIDEO + Facts)

The Ontario government has passed Bill 27: Working for Workers Act, 2021. The bill was introduced in October 2021. It was passed on November 30, with unanimous support, receiving Royal Assent on December 2.

The legislation is meant to help employees disconnect from work and achieve a better work-life balance. Ontario is the first province in Canada to introduce a right-to-disconnect law.

GET THE FACTS

1. Right to disconnect policy for Ontario workers

What are the new right-to-disconnect rules in Ontario?

Through a change to the Employment Standards Act, Bill 27 requires employers with 25 or more employees to have a written policy regarding disconnecting from work. A copy of the policy must be provided to all employees and new hires. The policies must have clear expectations for employees regarding email response times, out-of-office notifications, and other forms of communication after work hours have ended.

Companies must complete these objectives within 6 months of the bill receiving Royal Ascent, which occurred on December 2, 2021.

WATCH: Alex Lucifero, an Ottawa employment lawyer and partner at Samfiru Tumarkin LLP joined CTV News at 5 with Matt Skube to discuss Bill 27 and employee rights.

What is the right to disconnect in Ontario?

Bill 27 defines ‘disconnecting from work’ as not participating in work-related communications, which includes emails, phone calls, and sending and receiving messages. The concept means that employees do not have to conduct work outside of the hours agreed upon with their employer.

Who will be affected by these new rules?

The new right to disconnect legislation affects companies in Ontario that employ 25 or more workers. The employees at those companies are covered by Bill 27.

What is the goal of Ontario’s Right to Disconnect law?

The legislation is intended to help workers who are feeling burnt out. Ontario Labour Minister McNaughton said that the pandemic has caused damaging changes to our work lives. “The lines between family time and work time have been blurred. I think all of us have faced challenges over the last couple of years,” he said.

Back To Top

2. Ban on non-compete clauses in Ontario

Bill 27 prohibits the use of non-competition agreements (or clauses) in employment contracts. Employers use non-compete clauses to stop an employee from working for a direct competitor for a specific period of time after their employment ends. They also prevent an individual from starting a business that was in direct competition with a previous employer. These terms typically reference industries and geographical areas that the employee is not allowed to engage in.

Non-compete clauses are generally not enforceable by an employer because they unfairly remove a person’s ability to financially support themselves after termination. They are seen as limiting work opportunities for employees as well as restricting their access to higher salaries. The ban of such clauses is expected to improve the pool of professional talent in some sectors in Ontario, as well as increase investment in certain industries.

Are non-compete clauses illegal in Ontario?

As of October 25, 2021 employers operating in Ontario are not permitted to use a non-compete clause in their employment contracts. New employment contracts created for non-unionized employees in Ontario can’t contain a non-compete agreement.

Does the ban apply to non-compete clauses created before October 25, 2021?

Bill 27 does not apply to non-compete clauses entered into before October 25, 2021. Those employment contracts are still valid and legitimate. This fact has been reinforced by a recent Ontario Superior Court decision, Parekh et al v. Schecter et al, that confirms that contracts agreed to prior to October 25 are still in effect. However, this does not mean that those non-compete clauses are completely enforceable, something that an employment lawyer at Samfiru Tumarkin LLP can determine after careful review.

Are there any exemptions to this ban?

Bill 27 contains two specific exemptions to the ban on non-compete clauses for Ontario non-unionized employees:

Executives

Employers can still include a non-compete clause for executives of a company. Bill 27 refers to executives as “any person who holds the office of chief of executive officer, president, chief administrative officer, chief operating officer, chief financial officer, chief information officer, chief legal officer, chief human resources officer, or chief corporate development officer or holds any other chief executive position”

Sale of a business

Non-compete clauses can still apply to situations where businesses are sold, as the seller must agree not to compete with the purchaser after the sale of the business.

Back To Top

3. Changes to temporary work agencies and recruiters

Bill 27 legislates a requirement for temporary help agencies and recruiters to operate with a license. The government hopes that the move will reduce the amount of labour trafficking at the expense of workers. The act also affects foreign-trained immigrant workers seeking employment in their professions, by removing ‘unfair’ work requirements related to experience.

Back To Top

4. Barriers to professional workers with international training

To mitigate the effects of labour shortages, the government is reducing the requirements for internationally trained professionals who are seeking employment in Canada. This legislation will make changes to the 2006 Fair Access to Regulated Professions and Compulsory Trades Act, altering requirements for ‘Canadian experience’.

Back To Top

5. Fair access to washrooms for delivery persons

Businesses that use delivery services for meal pick-up and delivery will now be required to allow delivery drivers to use their washrooms as needed. The move is seen as supportive of delivery drivers and gig economy workers, who throughout the last two years, have become increasingly essential to our economy.

Back To Top