Ministry of Labour Changes Minimum Wage and More…
As you are no doubt aware, the Ontario Government voted in some big changes to minimum wage beginning January 1, 2018. Minimum wage will now go from $11.60 to $14.00 per hour. Along with this change, there are several other changes to the Employment Standards Act that will impact small businesses including overtime pay, vacation pay and public holiday pay.
We contacted, Karen Beauchamp of Beauchamp Niemisto LLP, an accounting firm that works with tourism operators, to get their input on how these changes will impact our members and this is what they shared with us:
******************************************************************* We have all heard of the changes that are happening with regards to the Ontario Labour Laws but do you really know how they will affect your business? Most tourist camps operate a short season and don’t think that this is something they have to worry about … but you do. While most tourist camps pay their seasonal employees a salary amount for the entire season, you have to make sure that you are meeting the minimum standards. Minimum wage has gone up to $14.00 and vacation pay for employees over 5 years is now 6%. The salary amount that you determine for the season must include the above new standards, plus the calculations for public holidays and overtime (if applicable) while trying to fit the proper rest periods in a week. If your location enables the employees the ability to leave the camp for their rest days, it is easier to make sure they take that time. If your tourist camp is fly-in only, it may be more difficult to make sure they take the rest time required. If you are uncertain if these new rules will affect your business, you should contact your accountant and get them to work through the numbers for you.
