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Overview

The Ministry of Labour, Immigration, Training and Skills Development administers the Employment Standards Act, 2000 (ESA) and its regulations by:

  • providing compliance support
  • conducting inspections of payroll records and workplace practices to ensure the ESA is being followed
  • investigating and resolving complaints
  • enforcing the ESA and its regulations

Code of conduct

We all want to work in a healthy and safe environment where we feel respected. We ask that you help create that environment by being respectful to our ministry inspectors and officers whenever interacting with them whether virtually, on the phone or when they visit your location.

The government has a leading role to play in eliminating systemic racism and ensuring a healthy and safe work environment for all Ontarians, including ministry staff. When a ministry staff person is working on the phone, virtually, or anywhere onsite, that location becomes their workplace where they must be safe and respected.

Hate, racism, discrimination and harassment will not be tolerated. Ontario government employees have a duty to report when they are treated with disrespect by clients, and the Ontario government as their employer has a duty to address those situations.

We are committed to promoting interactions that are inclusive and support dignity and respect. Working together we can help ensure that interactions are respectful and safe for everyone.

Compliance support

The ministry offers a wide range of publications and services to help employees, employers and others who are covered by the ESA understand their rights and comply with their obligations. These include:

The ministry is also involved in outreach initiatives such as information seminars and workshops for interested parties, such as employer groups, employment counsellors, and professional associations.

Inspections

Employment standards officers conduct inspections of payroll and other records, including a review of employment practices. An officer performing an inspection will usually visit the employer's business location. Officers may notify the employer in writing before the inspection, but are not required to. A notice may set out a list of records and other documents the employer must provide during the inspection. The employer is required to produce the records requested and must answer questions that the officer thinks may be relevant.

An officer is able to take away records or other information for review and copying. The employer is welcome to ask questions, and to request further information.

Investigating complaints

When a claim is assigned for investigation, the employment standards officer may conduct their investigation by telephone, through written correspondence, by visiting the employer's premises or by requiring the employee and/or the employer to attend a meeting. During an investigation, both parties have the opportunity to present the facts and arguments they believe are important to their case.

If a claim has been submitted against the client of a temporary help agency or a recruiter, employment standards officers have the same powers of investigation with respect to the client or recruiter as they do for an employer. The same powers also apply in investigations into allegations of contraventions of the temporary help agency and recruiter licensing provisions.

The officer will make a decision based on the best available evidence, which may include records of any of the parties and interviews.

During an investigation, there are timeframes that apply to requests for documents from any of the parties. If the information is not provided in a timely manner, a decision may be made without consideration of those materials. Similarly, if both parties were required to attend a meeting but one did not show up, the employment standards officer may make a decision based solely on the evidence provided to the officer before the meeting and the evidence provided by the other party at the meeting.

Meetings

The employment standards officer conducting an investigation may call a meeting. The purpose of the meeting is to allow the officer to gather evidence from each party. Each party speaks directly to the officer, in the presence of the other party (whether in person or by teleconference), rather than the parties speaking directly to each other. If one party wants to ask the other party a question, the question must be directed through the officer.

The format of each meeting depends on the case and the approach of individual officers. However, most meetings proceed as follows:

  • first, the claimant provides their account of what happened, and provides any evidence (documents or the testimony of witnesses) or refers to any evidence already provided.
  • the employer (or other party the complaint was filed against) then provides its account of what happened, and provides any evidence or refers to any evidence already provided.
  • the parties are given an opportunity to challenge the other party's account of what happened. The officer makes further inquiries of both parties where necessary.
  • both parties are then given one last opportunity to provide or refer to any further evidence that may help the officer in making a decision.

Decision

After investigating a claim, the employment standards officer makes a decision about whether the ESA has or has not been followed.

If the officer finds that the ESA has been complied with, the claimant is notified in writing of this decision, and can apply for a review within 30 days.

If the officer finds that the ESA has not been complied with:

  • the officer may issue an order, notice of contravention, and/or, in some cases, a ticket. (For more information, see Enforcement below.)
  • the officer may require that a notice containing specific information about the administration or enforcement of the ESA, and/or a copy of the report or part of the report with the officer's findings, be posted

Settlement

The parties to a claim can enter into a settlement to resolve their dispute. A settlement is an agreement made between the parties that will resolve the claim. The ESA allows this option in certain circumstances after a claim has been filed.

In some cases, the investigation of a claim could take months; particularly where there are multiple complex issues that require the review of a large number of documents and records. A quick resolution to a claim may be important to some parties. If they are willing to work together to find a mutually acceptable solution, they may try to settle a claim.

If the claimant and party the complaint was made against do what they agreed to under the settlement, the claim is considered to be withdrawn and the investigation comes to an end.

Claimants, and all other parties, are not required to resolve a claim by entering into a settlement. If a settlement is made, the parties have to inform the ministry in writing of the terms of the settlement. The Notification of Section 112 Settlement Form and Section 112 Terms of Settlement forms can be used to inform the ministry of a settlement.

Complete the Notification of Section 112 Settlement form and attach the Section 112 Terms of Settlement and send both documents to the Ministry of Labour, Immigration, Training and Skills Development:

By mail :
Provincial Claims Centre
Ministry of Labour, Immigration, Training and Skills Development
70 Foster Drive, Suite 410, Roberta Bondar Place
Sault Ste. Marie, ON
P6A 6V4
By fax: 1-888-252-4684

By email: esdocuments@ontario.ca

If either party fails to do what they said they would do in the settlement, the other party can call the employment standards officer that was assigned to the claim. The name and telephone number of the employment standards officer can be found on the letter sent to the parties after the settlement was entered into. The employment standards officer will determine whether to resume the investigation of the claim.

If a claimant believes that the other party to the settlement used fraud (lied to get the claimant to agree to the settlement) or coercion (used force or intimidation to get the claimant to agree to the settlement), the claimant can apply to the Ontario Labour Relations Board to have the settlement set aside.

Enforcement

Once an employment standards officer has made a decision that a contravention of the ESA has occurred, the officer can issue an order. The type of order that can be issued depends on which provision of the ESA was contravened. Examples of orders include an order to pay direct – wages, an order to pay wages, a compliance order, a ticket, a notice of contravention or, for certain violations, an order to reinstate and/or compensate an employee. (More information about each of these follows.)

An officer can issue one or more orders, tickets and/or a notice of contravention in the course of an investigation or inspection.

In the case of a reprisal by a client of a temporary help agency, an officer can issue an order to reinstate the employee into the assignment and/or to compensate the employee for any loss incurred as a result of the reprisal.

In the case of a reprisal by a recruiter against a prospective employee who uses the recruiter’s services to find employment in Ontario, an officer can issue an order to compensate the prospective employee for any loss incurred as a result of the reprisal.

Employers, clients of temporary help agencies, recruiters, and others found to have contravened the ESA have the right to apply for a review (appeal) of an officer's order or a notice of contravention to the Ontario Labour Relations Board. There are also a number of options available if an officer has issued a ticket – see Appealing an Offence notice (ticket) below for information.

Employees who have filed a claim or for whom an order has been issued have the right to apply for a review (appeal) of an order to pay wages or an order for compensation and/or reinstatement issued against their employer or against a client of a temporary help agency.

Prospective employees who have filed a claim against a recruiter whose services they used to find employment in Ontario also have a right to apply for a review (appeal) the officer’s decision.

Order to pay direct - wages

An order to pay direct - wages is issued and served on an employer for wages, tips or other gratuitites owed to an employee or employees where the employer agrees to pay the employee directly.

The employer must comply with the order according to its terms, including paying the wages directly to the employee.

Order to pay wages

An order to pay wages is issued and served on an employer or a client of a temporary help agency for wages, tips or other gratuities owed to an employee or employees.

The employer or the client of a temporary help agency must comply with the order according to its terms. This includes paying the wages to the Director of Employment Standards in trust, or applying for a review (appeal) of the order within 30 days of the date the order is served. The order also requires the employer to pay an administrative cost of 10 per cent of the amount of the order, or $100, whichever is greater.

Compliance order

An officer can issue a compliance order if the officer finds that there has been a contravention of a provision of the ESA. The officer can order an employer or other person to stop contravening the provision, and to take certain steps or stop taking certain steps in order to comply with it. The order must also specify a date by which the employer or other person must comply with the order. These orders cannot require payment of wages or compensation.

Example of a compliance order in addition to an order to pay wages

While investigating Lisa's claim for overtime pay, the employment standards officer discovered the employer was not giving its five employees proper meal breaks of at least 30 minutes after every five consecutive hours of work. Also, the employer had not provided the employment standards poster as required under the ESA.

In addition to the order to pay wages, the officer issued and served on the employer a compliance order directing it to:

  • ensure that employees would receive their proper meal breaks;
  • provide the poster required by the ESA;
  • post a copy of the compliance order in a conspicuous place at the workplace for a minimum of six months.

Tickets

An offence notice (commonly called a "ticket") can be issued under Part I of the Provincial Offences Act for certain ESA contraventions. Typically, tickets are issued for less serious ESA violations. Tickets will be issued to the employer or other person responsible for the offence. Ticketable offences fall into three categories:

  • administrative and enforcement offences (for example, failure to retain records)
  • contraventions of wage-based employment standards (for example, failure to pay overtime pay)
  • contraventions of non-wage-based employment standards (for example, requiring employees to work hours in excess of daily or weekly limits)

Tickets carry set fines of $295, with a victim fine surcharge added to each set fine plus court costs. Someone who is issued a ticket can choose to pay the fine or appear in a provincial court to dispute the charge set out in the ticket.

Notice of contravention

Employment standards officers have the power to issue notices of contravention with prescribed penalties when they believe someone has contravened a provision of the ESA. The penalty amount (payable to the "Minister of Finance") must be paid or an application for review of the notice must be filed within 30 days of the date the notice was served.

If the notice relates to a contravention of the poster requirements of the ESA or a failure to keep proper payroll records or to keep these records readily available for inspection by an employment standards officer, an officer can issue a notice of contravention with the following prescribed penalties:

  • $250 for a first contravention;
  • $500 for a second contravention in a three-year period;
  • $5,000 for a third contravention in a three-year period.

If the notice relates to a contravention of the prohibition against providing false or misleading information in the context of an application for a temporary help agency or recruiter licence, an officer can issue a notice of contravention with the following prescribed penalties:

  • $15,000 for a first contravention;
  • $25,000 for a second contravention in a three-year period;
  • $50,000 for a third contravention in a three-year period.

As of July 1, 2024: If the notice relates to a contravention of the prohibition against operating as a temporary help agency or acting as a recruiter without a licence, the prohibition against clients knowingly engaging or using the services of an unlicensed temporary help agency, or the prohibition against employers, prospective employers or other recruiters knowingly engaging or using the services of an unlicensed recruiter, an officer can issue a notice of contravention with the following prescribed penalties:

  • $15,000 for a first contravention;
  • $25,000 for a second contravention in a three-year period;
  • $50,000 for a third contravention in a three-year period.

If an officer has found a contravention of any other provision of the ESA, the prescribed penalties are:

  • $250 for a first contravention multiplied by the number of employees affected;
  • $500 for a second contravention in a three-year period multiplied by the number of employees affected;
  • $5,000 for a third contravention in a three-year period multiplied by the number of employees affected.

Example of when there are further violations

Six weeks after serving the compliance order on Lisa's former employer, the officer visited the employer and conducted a further audit. The officer found that the employer was now paying overtime to all employees and had posted a copy of the compliance order. However, the employer had not provided a copy of the ESA poster to its employees and had not ensured that its five employees received proper meal breaks.

As a result, the officer issued and served a notice of contravention on the employer for failing to provide a copy of the ESA poster ($250 penalty) and for failing to give proper meal breaks to five employees (5 × $250 = $1,250).

The officer also informed the employer that further violations could result in future notices of contravention being issued and/or prosecution by the ministry.

Order to compensate and/or reinstate

In the case of some violations, an officer can order the person who violated the Act to reinstate the person whose rights were violated, compensate that person, or, in some cases, both. The violations in question relate to the following provisions of the ESA:

  • any of the leaves of absence;
  • the right to refuse to work on a Sunday for certain employees who work in retail business establishments;
  • reprisal against an employee for exercising their rights under the ESA or in other specified circumstances.
  • reprisal by a recruiter in specific circumstances against a prospective employee who uses the recruiter’s services to find employment in Ontario.

The officer can order compensation for any reasonable, foreseeable loss the person whose rights were violated may have incurred.

Types of wages and compensation

Depending on the type of violation, an employment standards officer can order the person who violated the Act to pay some or all of the following to the person whose rights were violated:

  1. Actual unpaid wages (including vacation pay on the amount of unpaid wages). These are wages that were actually earned by the claimant, but not paid.
  2. Compensation for direct earnings loss (including vacation pay on such earnings). This is what the claimant would have earned but did not earn because of the violation.
  3. Pre-reinstatement compensation (i.e., compensation for losses incurred prior to reinstatement). This is the lost "earnings" (including vacation pay calculated on those earnings) from the date that the claimant should have been reinstated to the date that the claimant was reinstated.
  4. Payment for time required to find a new job (compensation) or termination pay (wages), including vacation pay. This may be payable when the employer terminates an employee's employment, and the employment standards officer does not issue an order for reinstatement and the employer does not reinstate voluntarily.
  5. Severance pay (wages). This may be payable when:
    • the employer severed the employee's employment;
    • the employment standards officer does not issue an order for reinstatement; and
    • the employer does not reinstate voluntarily.
  6. Compensation for expenses that the claimant incurred in trying to find new employment. This may be payable, for example, if the employer terminated the employee's employment and the employment standards officer does not issue an order for reinstatement, and the employer does not reinstate voluntarily, or if the employee was reinstated, but the employee looked for a job before the employment standards officer issued the order or before the employer reinstated voluntarily.
  7. Compensation for loss of reasonable expectation of continued employment. This is compensation for loss of the job itself. It compensates for the loss of the opportunity to continue to be employed, an opportunity that the employer’s wrongful act denied. This may be payable if the employer terminated the employee's employment, and the employment standards officer does not issue an order of reinstatement and the employer does not reinstate voluntarily.
  8. Compensation for emotional pain and suffering. This may be payable if a claimant experienced emotional pain and suffering because of the contravention.
  9. Compensation for benefit plan entitlements. This is where the employer's contravention of the ESA resulted in the employee losing benefit plan coverage. The employment standards officer can order compensation for:
    • costs that the employee had because the benefit plan coverage stopped (for example, the cost of dental work and prescription drugs); and/or
    • replacement cost for coverage.
  10. Compensation for other reasonable foreseeable damages. Generally, the types of damages listed above will cover the kinds of losses the claimant suffered because of the contravention. However, any additional reasonable foreseeable damages may be made the subject of a compensation order.

Reviews (appeals)

Reviews are conducted by the Ontario Labour Relations Board (OLRB), an independent, quasi-judicial tribunal.

If a party is not satisfied with a decision, they may have the right to apply for a review (appeal). They must complete and submit an Application for Review, setting out the facts and reasons for the application. There are time limits that apply to applications for review.

See the sections below for details about what can be reviewed and the time limits that apply.

To obtain an Application for Review form and learn the procedures you must follow to file an application for review, visit OLRB - Forms by Case Type or contact:

Ontario Labour Relations Board
505 University Avenue, 2nd Floor
Toronto, ON M5G 2P1
Tel: 416-326-7500
 

The OLRB requires you to deliver a copy of the Application for Review Form and other documents to the Director of Employment Standards before filing them with the OLRB. Please refer to the OLRB’s forms and information bulletins for details. The application package can be delivered to the Director of Employment Standards by one of these methods:

  • email to appforreview.directorofES@ontario.ca (this is the preferred method of delivery)
  • fax to 1-855-251-5025

  • regular mail, courier or hand delivery to:

    Director of Employment Standards
    Employment Practices Branch
    Ministry of Labour, Immigration, Training and Skills Development
    400 University Avenue
    9th Floor
    Toronto, ON M7A 1T7

 

Employees and prospective employees - review (appeal) of an officer’s decision

An employee who files a claim can apply for a review (appeal) of an officer's refusal to issue an Order to Pay Wages, an Order to Pay Fees, an Order for Compensation and/or Reinstatement or a Compliance Order.

An employee for whom an order has been issued (whether or not they filed a claim) can apply for a review (appeal) of the amount of an officer's Order to Pay Wages or an officer's Order for Compensation and/or Reinstatement.

A prospective employee who files a reprisal claim against a recruiter that the prospective employee uses to find employment in Ontario can apply for a review (appeal) of an officer’s refusal to issue an Order to Pay Compensation. The prospective employee can also apply for a review (appeal) of the amount of an officer’s Order for Compensation, whether or not a claim was filed.

The Application for Review must be submitted within 30 days of service of :

  • the officer's letter advising the employee or prospective employee that an order has been issued, or
  • the officer’s letter advising that the officer has refused to issue an order.

Employer and clients of temporary help agencies – review (appeal) of an officer’s decision

For employers and clients of temporary help agencies, the Application for Review must be submitted within 30 days of the date of being served with an order or notice.

Employers and/or clients of temporary help agencies can apply for a review of:

  • an Order to Pay Wages (the employer and client of a temporary help agency must pay the full amount of the order, which includes applicable administrative fees, to the Director of Employment Standards in trust)
  • an Order to Recover Fees (a temporary help agency must pay the full amount of the order, which includes applicable administrative costs, to the Director of Employment Standards in trust)
  • a Compliance Order (these orders do not require payment of wages or compensation)
  • a Notice of Contravention (the employer or client of a temporary help agency does not have to pay the amount of the penalty before the review hearing can proceed)

In addition, employers and clients of temporary help agencies can apply for a review of an Order for Compensation and/or Reinstatement an employee. The employer or the client of a temporary help agency must pay the amount owing under the order or $10,000 (whichever is less) to the Director of Employment Standards in trust.

Recruiters - review (appeal) of an officer’s decision

A recruiter’s Application for Review must be submitted within 30 days of the date of being served with an order or notice.

Recruiters can apply for a review of:

  • an Order to Pay Compensation to a prospective employee. The recruiter must pay the amount owing under the order or $10,000 (whichever is less) to the Director of Employment Standards in trust
  • a Compliance Order
  • a Notice of Contravention. The recruiter does not have to pay the amount of the penalty before the review hearing can proceed

Prospective employers - review (appeal) of an officer’s decision

A prospective employer’s Application for Review must be submitted within 30 days of the date of being served with an order or notice.

Prospective employers can apply for a review of:

  • a Compliance Order
  • a Notice of Contravention. The prospective employer does not have to pay the amount of the penalty before the review hearing can proceed.

Temporary help agencies and recruiters - review (appeal) of a licensing decision by the Director

A temporary help agency or a recruiter whose application for a licence under the ESA has been refused by the Director of Employment Standards (Director) or whose licence has been suspended or revoked can apply to the OLRB for a review of the Director’s decision. The Application for Review must be submitted within 30 days of the date of service of a notice of refusal, revocation or suspension.

How to fulfill payment requirements to apply for a review (appeal)

Where an employer, client of a temporary help agency, recruiter or prospective employer is required to make payment to the Director of Employment Standards in Trust in order to apply for a review (appeal) of an order:

  • the payment must be made to the "Director of Employment Standards in trust" within 30 days of service of the order.
  • the payment is to be made by credit card, cheque, bank draft or letter of credit.

  • if payment is made by cheque or bank draft, it is sent by mail, courier or hand delivered to:

    Director of Employment Standards
    Employment Practices Branch
    Ministry of Labour, Immigration, Training and Skills Development
    400 University Avenue
    9th Floor
    Toronto, ON M7A 1T7

  • if payment is made with a letter of credit, it is strongly recommended that the applicant use the approved template for letters of credit.

The ministry will issue a proof of payment to payor, and will hold the payment in trust pending the outcome of the review (appeal) process.

Letters of credit

A letter of credit is a formal written promise made by a financial institution to pay money to a third party.

An employer, recruiter or other person who has a monetary order issued against them, can request a letter of credit from their financial institution to pay (in full or part) the Director of Employment Standards (Director) in trust for the purpose of applying for a review (appealing) an officer’s decision. You are strongly encouraged to use this approved letter of credit template when you make a request.

The Director will usually find a letter of credit acceptable for payment in trust for the purpose of applying for a review (appealing) an officer’s decision if it:

  • is irrevocable, so it cannot be recalled or repealed
  • will be automatically renewed when it expires
  • is an original document issued by a bank or another financial institution with an office in Ontario
  • permits "partial drawings,” meaning the director can demand and receive payment less than the entire amount mentioned in the letter of credit (this is in case the review of the order is partially successful, and the Board reduces the amount)
  • has no other conditions

If an employer, recruiter or other person wants the Director to consider a letter of credit as an acceptable form of payment, despite not meeting these criteria, they can provide - in writing to the Director - any additional details for consideration.

Letters of credit are also used in the context of temporary help agency and recruiter licensing under the ESA. For information about the licensing system, including the rules around the requirements of letters of credit in the licensing system, please see “Licensing – Temporary Help Agencies and Recruiters”

The review (appeal) process

When an application to review (appeal) an officer’s decision is filed with the Ontario Labour Relations Board (OLRB), an officer of the OLRB will sometimes schedule a mediation meeting with the parties. (Note that no mediation meeting takes place in the case of a review (appeal) of a notice of contravention.) If the matter is settled at this meeting, the minutes of the settlement are drawn up and signed off by the parties.

If the matter is not settled, or there has not been an attempt at mediation, a hearing may be scheduled. The parties have a right to appear at a hearing, present their information in full and explain why they think the employment standards officer was right or wrong.

The OLRB can amend, overturn or uphold the employment standards officer's order or notice of contravention. The board can also issue a new order.

After reviewing an employment standards officer's refusal to issue an order, the OLRB may issue an order or uphold the officer's refusal.

The OLRB may also overturn or uphold a decision of the Director of Employment Standards to refuse to issue a licence to a temporary help agency or recruiter, or to suspend or revoke a licence.

The OLRB's decisions are final and binding, although parties may apply to Divisional Court for Judicial Review.

Collections

If an employer, client of a temporary help agency or other person against whom an order or Notice of Contravention was issued does not apply for a review (appeal) within 30 days of the date it was served, the order or notice is final and binding. If the required amount has not been paid, the Director of Employment Standards (Director) draws down on any security provided as part of the licensing system or forwards the order or notice to a collector.

The Director may authorize the collector to collect a reasonable fee and/or costs from the person who was issued the order or notice. The fees and costs are added to the amount of the order.

Appealing an offence notice ("ticket")

Employers or other persons who receive a ticket must, within 15 days of the receipt of the ticket, choose one of the following:

  • Plead guilty by paying the amount owing on the ticket.
  • Plead guilty with an explanation to a Justice of the Peace. The employer or other person who received a ticket must bring their ticket to the Provincial Offences Court to provide explanations as to why the amount or time of payment of the ticket should be reduced.
  • Plead not guilty and fill out the notice of intention to appear in court. The court will schedule a trial.

An employer or other person who does not elect one of the above options within 15 days of receiving the ticket will be deemed not to dispute the charge.

Prosecution (other than by way of a ticket)

An employer or other person who is believed to have committed an offence under the ESA can be prosecuted under Part III of the Provincial Offences Act. It is an offence for an employer or other person to:

  • contravene the ESA or regulations
  • make or keep false records or other documents that must be kept under the ESA
  • provide false or misleading information under the ESA
  • fail to comply with an order, direction or other requirement under the ESA or regulations

If convicted, the employer or other person could be subject to a fine or a term of imprisonment or both. Individuals, if convicted of an offence, can be fined up to $50,000, imprisoned for up to 12 months, or both.

A corporation can be fined up to $100,000 for a first conviction. If the corporation has already been convicted of an offence under the ESA, it can be fined up to $250,000 for a second conviction. For a third or subsequent conviction, the corporation can be fined up to $500,000.

In addition to imposing a fine or term of imprisonment, a court could also order the convicted person (including a corporation) to take whatever action is necessary to remedy the violation, including paying wages and compensating and/or reinstating an employee.