Ontario 3 hour rule for employers
It is reasonable for an employer to send an employee home early if, for example, the business is slow. The employer may wish to close up early for the day if no patrons are coming in. Alternatively, a manager may send a worker home if too many staff were booked and there is not enough demand. While employers have the right to take these actions, employees should be protected and that is where the Ontario 3 hour rule comes in. According to the 3 hour rule Ontario upholds, employers must pay regularly working employees for three hours even if they worked less time. In order to qualify, an employee must put in regular minimum hours of work as per their contract or employment agreement. If, however, the employee is available to work longer, but the employer cuts the hours of the shift to less than three, the employee is entitled to the time they worked plus the difference to bring it up to three hours at their regular rate.
3 hour rule Ontario, explained
In regard to the Ontario 3 hour rule, Bill 148 cites, “21.3 (1) If an employee who regularly works more than three hours a day is required to present himself or herself for work but works less than three hours, despite being available to work longer, the employer shall pay the employee wages for three hours, equal to the greater of the following: The sum of, the amount the employee earned for the time worked, and wages equal to the employee’s regular rate for the remainder of the time. Wages equal to the employee’s regular rate for three hours of work. 2017, c. 22, Sched. 1, s. 12.” There is, however, an exception to the Ontario 3 hour rule: “(2) Subsection (1) does not apply if the employer is unable to provide work for the employee because of fire, lightning, power failure, storms or similar causes beyond the employer’s control that result in the stopping of work. 2017, c. 22, Sched. 1, s. 12.” In short, a regular employee must be paid the equivalent of three hours’ work at their usual rate if their managers reduce the hours. Circumstances out of the employer’s control, like a power outage or inclement weather, are the only exceptions, provided they are the reason for the work stoppage.
Minimum hours of work and wages
The three-hour rule that Ontario mandated helps individuals and families avoid financial insecurity caused by unpredictably reduced work hours. This important component of the Fair Workplaces, Better Jobs Act helps employees earn a livable wage even when their shift is cut early. Previously, if a worker was sent home before their shift was supposed to end, they would only receive payment for what they worked and not the original hours. Workers cannot accurately budget or fulfil financial obligations if their expected working hours are unexpectedly reduced. Now, at the very minimum, employees can rest assured they will get a certain amount of pay even if their shift is cut short or cancelled. With regard to minimum hours of work, employees are also entitled to three hours of pay if they receive 48 hours or less notice that their shift is cancelled when they are on call. Even if they are on call but get enough notice that they do not end up going to work, they are still owed pay for three hours. We have been discussing employees who are on wages. What is the Ontario 3 hour rule for individuals who receive a salary? Read on to find out.
Ontario 3 hour rule for salaried employees
Employees who earn salaries are not exempt from the 3 hour rule Ontario enforces. Although they are not paid hourly, they are entitled to the equivalent of three hours of their normal pay. How do you calculate the hourly rate of a salary? Establish the amount earned by the employee during a standard work week. Now, divide that number by the amount of non-overtime hours the employee put in that week. As outlined in an earlier section, the employer does not have to adhere to the Ontario 3 hour rule if they cannot provide work due to causes outside of the employer’s control. If you are an employer, it is your responsibility to be versed in Bill 148’s components, including, and beyond, the three-hour rule Ontario upholds. As an employee, if you have any questions or concerns about the financial compensation you are entitled to for reduced work hours, talk to your employer or your human resources manager. If you are still unsure about your legal workplace rights after doing so, an employment lawyer may assist you.
The Ontario 3 hour rule and payroll
As mentioned earlier, the Canadian Government mandated a nationwide three-hour ruling but the details vary from province to province. If you are responsible for your company’s payroll, it is critical to know your province’s rules. The 3 hour rule in Ontario, for example, does not apply to students. The minimum wage also varies by province. If you are ever unsure or need some quick answers, the website of the Ontario Ministry of Labour is a good resource.
