Ont. stat holiday pay to revert to pre-Bill 148 calculations

Toronto – The Ontario government has backed down on statutory pay changes introduced in Bill 148, in response to concerns expressed by Restaurants Canada and other groups.

The Ministry of Labour announced it 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, Restaurants Canada said in a news release.

“This revision represents a significant victory for foodservice owners and operators across the province,” said James Rilett, vice-president for central 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, the association said.

“We look forward to working with government officials develop a holiday pay system that is fair to employers and employees alike,” Rilett said. “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.