Impact of Ontario’s Provincial Bill 148 Fair Workplaces, Better Jobs Act, 2017, on Temporary Help Services in the National Capital Region
Please be advised that Ontario Bill 148Fair Workplaces, Better Jobs Act, 2017 received Royal Assent on November 27, 2017. The Government of Canada is not subject to this Ontario legislation but some of Canada’s suppliers are subject to Bill 148
This Ontario legislation makes a number of changes to the Employment Standards Act, 2000, the Labour Relations Act, 1995, and the Occupational Health and Safety Act, including raising the minimum wage and providing employees with:
- equal pay for equal work, including but not limited to: casual, part-time, temporary and seasonal workers
- one week’s notice or pay in lieu of notice for employees of temporary help agencies if longer-term assignments end early
- fairer scheduling rules: a minimum of 3 weeks' vacation after five years with the same employer
- up to 10 individual days of leave and up to 15 weeks of leave, without the fear of losing their job when a worker or their child has experienced or is threatened with domestic or sexual violence
- expanded personal emergency leave in all workplaces
- unpaid leave to take care of a critically ill family member
Equal Pay for Equal Work
Bill 148 equal pay for equal work provisions came into effect on April 1, 2018. A plan for fair workplaces and better jobs (Bill 148) contains more information on the implications of these provisions on suppliers in Ontario:
In an effort to reduce the negative impact of equal pay for equal work provisions on suppliers, PSPC may allow suppliers to have their call-ups and contracts terminated by mutual consent if the reason for termination is the financial impacts on suppliers created by the new legislation. This will lessen the chance of negative impact on a supplier’s vendor performance records. Many contracts will not be affected by the legislation and suppliers may not necessarily be entitled to relief from their contractual obligations
If Canada agrees to terminate a contract by mutual consent as a result of a change in circumstances brought on by the new legislation but the services are still required by Canada, three procurement options are available to clients:
- Clients may re-compete the requirement through the Supply Arrangement
- Clients may issue a new call-up (either through the first right of refusal method or the directed method if the value of the requirement is under $25,000) for requirements starting April 2, 2018; or
- Clients may issue a sole source (directed) contract against the Supply Arrangement if the value of the requirement is under $25,000.
One week’s notice or pay in lieu of notice for employees of temporary help agencies if longer-term assignments end early
The Termination Clause in the Temporary Help Services (THS) method of supply states, “When an Identified User intends to terminate a Contract for a temporary resource in advance of the Contract's expiry date and the resource has been on continuous assignment for 3 to 12 months, the Identified User must provide the Supplier with a minimum of 1 week written notification…. If the required notification is not provided, or provided for a lesser period, the Identified User will pay a fee based on 7.5 hours per day at the rate charged by the Supplier for that resource under the contract for each remaining days of the required notice period set above.”
Bill 148 obliges suppliers to provide their resources one week notice, or pay in lieu of notice, when termination occurs before 3 months for contracts that were intended to be longer than 3 months. Therefore, it is strongly encouraged that THS users engage suppliers as soon as possible when any resource performance issues arise. Users should allow suppliers the chance to rectify the performance issues. Regardless of Bill 148, it is best practice for THS users to engage early with suppliers to address any performance-related resource issues.
THS users should also engage early with suppliers if it is anticipated that the THS call-up/contract will need to be terminated early due to operational, or other non-performance reasons. This will allow suppliers to provide the legislated minimum notice to their resource and therefore reduce the cost burden on suppliers.
Do not hesitate to contact the THS Team at any time if you have questions or issues.
The THS Team
Temporary Help Services (THS) in the National Capital Region (NCR)
Acquisitions Branch/Public Services and Procurement Canada/Government of Canada
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