Glossary. Earnings that qualify towards EI benefits.
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1 Employment Law
2 Glossary Canada Pension Plan (CCP) Contract for services Discrimination Employment Insurance Program (EI) Full time employment Gross earnings Insurable earnings Minimum wage The CPP is a mandatory, universal pension plan which pays monthly pensions to individuals who have been employed in Canada. Payments are calculated using past contributions you and your employers have made, based on your income. Normally CPP benefits begin at age 65 but you can receive them as early as age 60 if you qualify. An employee who suffers a permanent disability and is unable to work can apply for a CPP Disability Pension at any age. When an individual enters into a contract as a self-employed person to provide services for a fee based on a sum of money agreed to by contract. The self employed individual provides an invoice for services and must pay taxes based on income earned as a self employed individual. Discrimination is when a person is treated differently because of their gender, age, religion, ethnic or visible minority, disability or sexual orientation. Some laws do discriminate, for example, you must be a certain age to obtain a driving licence, or to vote. EI is a mandatory, universal plan for insuring earnings that will be paid when a person is laid off from work, or is unable to work because of illness, pregnancy, the birth of child or other compassionate grounds. Full time employment is permanent employment with a minimum of 37.5 hours a week. Unlike a contact position, there is no termination date for the employment. A full time position terminates when you have been given proper notice (depending on how many years you have worked for the employer), your position has been terminated, you quit or are fired. If you are laid off because there is a lack of work, you can return to the position when there is more work. Earnings before deductions for taxes, CPP and EI. Earnings that qualify towards EI benefits. Is the minimum hourly wage to be paid to employees. Each province and territory sets the minimum wage to be paid. Some
3 Net earnings Notice Part-time employment Piece work Self-employed Sexual harassment Statutory holidays employment positions are exempt from minimum wage. Earnings remaining after deductions have been made. Permanent positions, whether full-time or part-time, require that notice be given when employment is terminated, if the employee has worked for the employer for more than six months. How much notice is given depends on how many years the employee has been employed with the employer. Employment where the employee works less than 37.5 hours a week. Wages based on how much work has been produced as opposed to the number of hours worked. An individual who contracts with another person or organization to provide a service is self-employed. This person must report their income to Revenue Canada and pay income tax and CPP benefits. Is conduct or behaviour that is offensive and sexual in nature. May include the telling of explicit sexual jokes by co-workers, unwelcome inappropriate touches, or the displaying of explicit sexual material such as photographs. In Prince Edward Island there are six statutory holidays: New Year s Day, Good Friday, Canada Day, Labour Day, Remembrance Day and Christmas Day. Full time employees are entitled to these holidays. Other employees may also be entitled if they worked 15 days of the 30 days preceding the holiday, worked the day immediately before the holiday and the day after the holiday.
4 When you apply for a job or go for an interview, it is a good idea to ask questions. You can ask about the work and the working conditions. How many hours will you be expected to work? If you are on call, how many hours can you expect to work each week? Is shift work required? How much will you be paid? What is the policy about overtime? What is the policy about sick time? When you go for an interview, you should be prepared to ask questions as well as answer them. Employers have to meet certain employment standards which are set out in a provincial law called the Employment Standards Act. The purpose of the Act is to ensure that employees are treated fairly and consistently in the workplace. There are other provincial laws which also regulate employment relationships and working conditions and include: the Workers Compensation Act which provides benefits and compensation for employees who are injured on the job; the Occupational Health and Safety Act which sets workplace standards, to protect the health and safety of employees; the Youth Employment Act: which regulates employment for youth under the age of 16; the Labour Act which regulates the relationship between unionized workers and their employers and provides the process for certifying a union; and the Human Rights Act which authorizes investigations and dispute resolution for complaints of discrimination in the workplace including sexual harassment.
5 How much does my employer have to pay me? In most jobs you must be paid at least the minimum wage. In P.E.I., the rate for 2008 is $8.00 an hour. This rate will usually increase each year. Exceptions to a minimum wage include, farm work, babysitting, and caring for the elderly or people with disabilities in private homes. Some employers also pay on the basis of piece work, where the amount of your wage is based on the amount you produce, or pay a commission based on the amount you sell. If you are being paid less than minimum wage you may contact the Employment Standards Branch (see contact information at the end of this document) to make sure that you are not being paid less than you are entitled to receive. Contract for Services Increasingly businesses and governments are contracting for services rather than hiring employees to do the work. This means that the person providing the service is considered to be self-employed, and is paid for services by submitting an invoice for services or is paid based on an agreed fixed amount as per the contract. Because this is a payment for services as opposed to a wage there are no deductions made and no benefits provided. It is then up to the person who is self-employed to make the required deductions for CPP and provincial and federal income tax. However, even though you may have a contract for services with a business, agency, organization or even a government department, it may not meet the requirements of Revenue Canada. When determining if there is a contract for services or if an employee/employer relationship exists, Revenue Canada will examine such things as: who controls the workplace who dictates the hours of work
6 who is supplying the tools and equipment to provide the service If Revenue Canada determines that the relationship is employer/employee, the employer will have the responsibility of ensuring that all mandatory deductions are made from your wages. Pay Deductions An employer has an obligation to make deductions from your earnings for income tax, the Employment Insurance Program (EI) and Canada Pension Plan (CPP). Your employer is also required to make payments into the EI program and the CPP. Under the EI program, you are entitled to collect weekly benefits for a period of up to 45 weeks (depending upon which region of Canada you live in) if you have been laid off, you have worked enough hours to qualify and you have insurable earnings. This allows you to have an income while you look for another job. The rate paid is 55% of your regular earnings before deductions. Qualifying requirements and program delivery are subject to change. The CPP deductions you make accumulate throughout your working life. When you retire, you will be eligible to collect a government pension. The amount of the pension you will receive depends on the amount you have paid into the CPP fund. Some workplaces also offer private pension funds and health care benefits. You do not have to participate in these programs, however you should consider the benefits they offer. Making contributions to a private pension is like putting money in the bank for when you retire. Private health care plans usually cover a large portion of the cost of prescription drugs, glasses, hearing aids and other health related services and goods that are not covered through the public health care system.
7 If you owe child support payments, back taxes, overpayments of EI benefits and/or child support and spousal benefits, both provincial and federal governments have the authority to garnishee or make deductions from your wages. This means that they can take their payments from your salary before you get paid. (Refer to Module VII, Family Law, for more information on the provincial Maintenance Enforcement Office.) The employer is required to provide you with a pay slip that shows: the name and address of the employer and name of the employee the period of time or the work for which the employee is being paid the rate of wages to which the employee is entitled and the number of hours worked the gross amount of wages to which an employee is entitled the amount and purpose of each deduction any bonus, gratuity, living allowance or other payment to which the employee is entitled and the net amount of money being paid to the employee 1 Do I get paid holidays? There are six statutory holidays in a calendar year. They are New Year's Day; Good Friday; Canada Day; Labour Day; Remembrance Day and Christmas Day. In order to qualify for these holidays an employee must: be employed 30 calendar days prior to the holiday earned wages on 15 of the 30 calendar days prior to the holiday 1 Prince Edward Island, Department of Community and Cultural Affairs, 2004 Guide to Employment Standards, Catalogue no. 04AC , p. 11
8 worked their last scheduled shift prior to the holiday and first scheduled shift after the holiday If you meet these qualifications and are asked to work on one of the statutory holidays, you will be paid time-and-a-half for that day and be given another day off with pay. This means that if your regular rate of pay is $8.00 an hour, you will receive $12.00 an hour for working on the statutory holiday. Do I get paid vacation? If you work at the same job for one year, you are entitled to two weeks paid vacation. Your vacation pay must equal 4% of the wages you have earned in one year. If a paid holiday falls within your vacation period, your vacation must be extended for one day. If you have worked at the same job for less than a year and your job ends, you must be paid 4% of the total wages you have earned during this time. The employer must give you your vacation pay no later than one pay period after you stop working. If you get room and board as part of your pay, the 4% vacation pay must include the cash value of your room and board. Does my employer have to pay me overtime? In P.E.I., there is no limit to the number of hours per week an employer can ask you to work. However, if you work more than forty-eight (48) hours a week, your employer must pay you one-and-a-half times your regular hourly rate of pay for each hour of overtime. Some employers and/or industries are exempt from this rule; these include the construction industry, fish processing industry, trucking industry, peat moss industry and health care industry. If you want to find out if your
9 employer is exempt, call the Employment Standards Branch. What breaks do I get? You are entitled to one 30 minute unpaid break for every five hours worked. "Coffee breaks" or "smoke breaks" are not provided for under the Act. You are also entitled to one day off for every six days work, the Act states that wherever possible this day is Sunday. Do I have to come to work every time my employer calls me in? Yes, but you must be paid for a total of three working hours each time you are called in to work even if you only work for one or two hours. What if I am sick and cannot go to work? After six months of continuous service with an employer, you are entitled to unpaid leaves of absence of up to three days for sick leave during a 12-month employment period. If you take three consecutive days, the employer may ask you for a medical certificate. Can I have time off if I am pregnant? If you have worked a minimum of 20 continuous weeks with the same employer you are entitled to seventeen weeks of unpaid maternity leave. You may start your leave anytime within the eleven-week period before the birth of your baby. You may also be eligible for maternity benefits under the Employment Insurance Program (EI). In order to qualify, you must have insurable earnings, meaning that you have paid into the EI fund through salary deductions and have worked 600
10 hours within a 52 week period or since a previous claim for benefits under the program. If you qualify, you will be paid at a rate of 55% of your regular earnings up to a maximum of $ a week. Under the program, a birth-mother is entitled to receive 15 weeks of maternity leave and may be eligible for an additional 15 weeks of sick benefits. The EI program also provides for parental leave of up to 35 weeks that can be shared by the parents, if both parents qualify. For example, you and your spouse/partner might decide that one of you will take 20 weeks of parental leave, while the other takes 15 weeks. Contact Service Canada for more information on maternity and parental benefits. Can I go back to the same job afterwards? Yes, you have the right to go back to your job with the same pay and benefits. If the position no longer exists, your employer must give you another position with the same pay and benefits. Can I take time off if we adopt a baby? Yes, the same conditions apply. You may have seventeen weeks of unpaid leave if you have worked at your job for twenty weeks. Both men and women have the right to take this leave. If you meet the eligibility requirements of the EI program you are entitled to 35 weeks of parental leave. The same conditions apply as for parents of a new born child.
11 Can a woman take maternity leave and parental leave? Yes, she must take her parental leave immediately after her maternity leave unless she has an arrangement with her employer. She must also give her employer two weeks notice of the date that she is returning to work. Can I take time off if someone in my family dies? If someone in your immediate family dies, you may take up to three days without pay. Your immediate family includes your spouse or common-law partner, child, parent, brother or sister. If someone in your extended family, such a grandparent, aunt or uncle dies, you are entitled to have one day off without pay. How much notice must I get if I am laid off? The first six months that you work for an employer are considered a probationary period. During this time an employer can lay you off without notice. After six months, an employer must give you two weeks notice. If you have been working in the same place for more than five years, you must get four weeks notice. The employer must also provide you with a Record of Employment (ROE) showing the wages earned, the total number of hours worked and reasons for the layoff or termination of your employment. The ROE is important as it is required in order to apply for Employment Insurance. How much notice must I give when I leave a job? You must give one week's notice if you have worked at your job for more than six months but less than five years. If you have been there for more than five years, you must give two weeks notice.
12 What can I do if any of the employment standards are not being kept in my workplace? Talk to other people in the workplace to see if they are having the same problems. Call the Employment Standards Branch of the Department of Communities, Cultural Affairs and Labour. They have the authority to do inspections and take action on your behalf. Contact information is provided at the end of this module. Can an employer refuse to give me a job because I am an immigrant? No, if you are legally able to work in Canada and you meet the requirements for the job, you must be considered on the same basis as every other person applying for the job. On Prince Edward Island it is against the Human Rights Act to deny you employment because of your: age association colour or race creed or religion criminal conviction ethnic or national origin family status marital status physical or mental disability political belief sexual orientation source of income sex pregnancy
13 It is illegal for an employer to ask you for any information on an application form which could lead to discrimination. If you experience discrimination or harassment in the workplace once you have been hired, bring it to your supervisor or employer s attention. Your employer is responsible for what happens in the workplace. If your complaint is with the employer or if the employer fails to respond to a complaint of workplace discrimination by other employees, contact the P.E.I. Human Rights Commission and make a complaint. Equality in the workplace You may find it hard to get work when you first come to Canada. Research has shown us that discrimination against visible minorities does exist in the workplace. Even when it is not obvious, discrimination may be present in the form of systemic barriers. Systemic barriers are employment practices that are neutral in themselves, but have a negative effect on certain groups. Some examples of systemic barriers are: qualifications that are not job related, such as the automatic requirement of a university degree which often excludes visible minorities employment tests that are linguistically, culturally or sexually biased and screen out minorities work practices which require employees to put in extremely long or inflexible hours and so discriminate against parents with young children. Employment equity programs have had success in ensuring equal access to work for all groups of people including women, visible minorities and people with disabilities.
14 These programs help employers set goals and timetables for the hiring of people from employment disadvantaged groups. Some people consider employment equity programs as reverse discrimination, however statistics show that there must be a catch-up process. Some discrimination is needed to reverse historic trends, as this will not happen naturally. Without employment equity programs, the gap will simply continue or get wider. Under employment equity no one loses their job and many people gain. If you think that systemic barriers are creating discrimination in your search for employment or advancement in your current employment contact the P.E.I. Human Rights Commission. What is sexual harassment? Sexual Harassment means any conduct, comment, gesture or contact of a sexual nature: that is likely to cause offence or humiliation to any employee, or that might, on reasonable grounds, be perceived by that employee as placing a condition of a sexual nature on employment or on any opportunity for training or promotion. 2 Sexual harassment can be experienced by both men and women however, women are more likely to experience sexual harassment. Some examples of sexual harassment are: questions and discussions about sexual activities, suggestive remarks and innuendos, bragging about sexual prowess, and proposals of physical intimacy being judged on physical attributes rather than skills 2 Prince Edward Island, Department of Community and Cultural Affairs, 2004 Guide to Employment Standards, Catalogue no. 04AC , p. 14
15 displays of pornographic or sexually degrading material in the work place practical jokes of a sexual nature which cause awkwardness or embarrassment letters and notes expressing sexual intentions leering or other gestures unnecessary physical contact Sexual harassment is a major source of anxiety and can lead to severe problems to your physical and mental health. It can affect your ability to do your work and may compromise any future career plans.
16 Do I have any protection if I am sexually harassed on the job? Your employer is responsible for keeping the workplace free of sexual harassment. Your employer must have a policy on sexual harassment, that is posted so all employees can see it and are aware of the policy. The policy must define sexual harassment and explain the steps to be taken if it happens at work. If you are being sexually harassed: do not ignore it, it will not go away and will probably get worse understand that you do not have to put up with it speak directly to the individual who is harassing you and ask that they stop the harassment, or inform your supervisor, union representative or other person designated in the sexual harassment policy If nothing happens, file a complaint with the P.E.I. Human Rights Commission. Keep a note of every act of harassment with times, dates, description, and names of witnesses. This is very important. Consider speaking to your co-workers about it. Other employees may have been harassed as well. What happens if I am injured while at work? In P.E.I., workplace injuries are covered by the Workers Compensation Act. Under the Act, you are entitled to collect benefits on either a temporary or permanent basis depending upon the seriousness and extent of your injuries. If the injury prevents you from returning to the same job, you may be eligible for a re-training program.
17 Your employer has an obligation to make the work place safe. The Occupational Health and Safety Act requires that employers take steps to reduce risks in the workplace. Occupational health and safety officials are responsible for monitoring work sites and providing training programs for both employees and employers on workplace safety. Contact information is provided at the end of the module. Youth Employment Child labour is illegal in Canada. The Youth Employment Act regulates conditions for employing youths under 16. Youths under 16 years of age are prohibited from working on construction sites. An employer who employs a youth is required to: take into account the age, knowledge, education and work experience when assigning duties identify any potential risks to health and safety and provide appropriate instruction personally supervise the youth s work or ensure that they are supervised by an adult who has the experience of the work provide adequate training and instruction before authorizing the youth to perform unsupervised work 3 Resources Contact Information Copies of the Employment Standards Act and complaint forms are available from: 3 Prince Edward Island, Department of Community and Cultural Affairs, 2004 Guide to Employment Standards, Catalogue no. 04AC , p
18 5550 Employment Standards Branch Toll Free Gordon Drive, Sherwood (902) 368- PO Box 2000, Charlottetown, PEI C1A 7N8 online: Department of Development and Technology (902) th Floor, Shaw Building Charlottetown Access Alberton (902) Access Charlottetown (902) Access Montague (902) Access O Leary (902) Access Souris (902) Access Summerside (902) Access Tignish (902) Access Wellington (902) Other resources: Service Canada Provides infomation on various federal government programs including the Employment Insurance Program. Worker Compensation Board Toll Free Charlottetown (902) Provides benefits and compensation and re-training for workers who have been injured at work.
19 Occupational Health and Safety Charlottetown (902) PEI Human Rights Commission Toll Free Charlottetown (902)
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