Statutory holiday pay to revert to pre-Bill 148 calculations

Published May 9, 2018

Restaurants Canada is pleased the Ontario Government has listened to Restaurants Canada and other groups and has backed down on one of their costly changes introduced in Bill 148.

The Ministry of Labour announced that they will be reverting to the previous statutory holiday pay calculations as of July 1, 2018.  The government will undertake a study looking at ways to simplify the calculation method without the high cost of the current regulation.

“This revision represents a significant victory for foodservice owners and operators across the province,” said James Rilett, Vice President Central Canada of Restaurants Canada. “They clearly heard our concerns, recognized the unintended consequences of their original policy and appreciated the recommendations we brought forward.”

It is important to note that this will not take effect until July 1, so restaurateurs and business owners will still be required to use the current rules for the Victoria Day holiday on May 21.

After the minimum wage increase, this has been the biggest irritant of the Bill 148 changes.  It was seen as costly to businesses and unfair to many employees. It also saw many employees attempting to game the system for higher holiday pay.

“We look forward to working with government officials develop a holiday pay system that is fair to employers and employees alike,” said Rilett. “This decision allows time to consult with everyone affected and get it right.”

The Minister of Labour has agreed that this was not what they envisioned and promised to study the problem. Restaurants Canada has lobbied for the government to use the old rules which, while more complex, were also more fair.

 

Restaurants Canada is a growing community of 30,000 foodservice businesses, including restaurants, bars, caterers, institutions and suppliers. We connect our members from coast to coast through services, research and advocacy for a strong and vibrant restaurant industry. Canada’s restaurant industry directly employs 1.2 million Canadians and serves 18 million customers every day.

Kartikey Bhargava

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