Ontario passes legislation protecting the rights of restaurant and hotel employees
It will affect hundreds of thousands of people.
The Ontario government has introduced a bill that, if passed, would provide revolutionary protections for more than 400,000 people employed in the restaurant and hospitality industry.
These are amendments to the province’s Employment Standards Act that involve two major changes:
- A complete ban on unpaid trial shifts (any work must be paid);
- Prohibition of deducting from employees' salaries damages related to theft by visitors (e.g., running away without paying the bill).
"It is unacceptable that any worker in our province should have their wages deducted or see themselves put in harm’s way because of someone else’s criminal activity," commented Labor Minister David Piccini on the bill.
Studies have shown that about one in 20 diners leave a restaurant without paying, and gasoline thefts at gas stations cost Ontario businesses more than CA$ 3 million in 2022.
Ontario laws already require employees to be paid for all hours worked, but many employers get around them through "trial" shifts and penalty systems.
Something about a tip
In addition, if a general tip bank is used (not for specific employees, but on a "stack and share" basis), employers are now required to notify visitors. Signs to this effect must be posted in public.
However, the province reminded us that this tip policy is only acceptable if employers do the same work as their employees. This will help ensure that service workers are paid what they are owed and that they understand how their tips are calculated and distributed.
The proposed changes would also require employers who pay tips on deposit to allow their employees to choose their tip account. This will help employees avoid fees they did not agree to so they can access their tips in full.
