Less than a year into Ontario’s new Payroll Legislation, the Government of Ontario is changing it’s mind, and putting one of the regulations back the way it was! For now, anyways.
Under the new rules that took effect on Jan. 1 2018 as part of Bill 148, how public holiday pay is calculated was changed completely. Instead of Part-Time Employees being paid their average pay over the past four weeks, under the new rules they were to be paid for a full regular shift, whether they were slotted to work that day regularly or not.
This didn’t make a lot of sense. If a part time employee worked just one eight-hour day in the two weeks before the holiday, they would receive eight hours of pay for the Statutory Holiday even if it was not on their regular schedule to work that day. They would be paid a full day, which is the same as a full-time employee. Also, because it did not take into consideration a full four weeks of history, I saw some holiday pays that I calculated actually go down, if the two weeks previous had been lower than average for any reason. And so I blogged about this change when I first heard about it-> New Ontario Holiday Pay Calculation doesn’t make a whole lotta sense
I wasn’t the only person to think that! As per the Government of Ontario’s website: “The Changing Workplaces Review found that public holiday rules were the source of the most complaints under the ESA and needed to be simplified.” Their full Bulletin can be found here.
In response, the Government of Ontario will conduct a comprehensive review, and, as an interim measure, put the Public Holiday Calculation back to what it was. And this reversal is to take place as of July 1st 2018. The new PHP rule didn’t even last a year!
The Reinstated Regulation of the old formula has an expiry date worked right into it. Right in the Regulation itself it is noted “Revocation: This Regulation is revoked on December 31st 2019”. The actual bulletin can be found here.
As much as I shook my head when I first heard about the new Public Holiday Pay, I’m fairly impressed with the Government of Ontario for their quick response to the backlash of the new Public Holiday Pay Legislation they brought in at the beginning of the year. I also feel rather vindicated regarding my initial blog post on that part of the new Legislation!