Important update to the Employment Standards Act (ESA), effective March 21, 2024, there are changes who qualifies as an employee.
What’s New?
If a job candidate is asked to perform a trial shift, task, or project to demonstrate job-related skills that your employees use, they are now considered an employee under the ESA, even if they haven’t been officially hired yet. For example, if a restaurant owner asks a potential candidate to work a trial shift to demonstrate their abilities, they are considered an employee for that period of time.
Why Does This Matter?
Being classified as an employee means they’re entitled to things like:
- Minimum wage
- Overtime pay
- Paid holidays
- Vacation pay
- Notice of termination or termination pay
Avoid Costly Mistakes
It’s crucial to get this right. Misclassifying someone as not being an employee when they actually are could lead to penalties, fines, or even legal action.
Who’s Not Covered?
This does apply to independent contractors, volunteers, or other non-employee roles, so be sure to review your classifications carefully.
