Employees in Ontario are owed tens of hundreds of thousands of {dollars} in unpaid wages that the provincial authorities has but to gather from employers, in keeping with inner authorities information.
The information, obtained by CBC Toronto by a freedom of knowledge request, present a snapshot of the prevalence of wage theft in Ontario, which employee advocates say is a serious situation.
The information present there’s round $60 million in unpaid wages the provincial authorities has but to gather from employers, between the 2017-2018 fiscal yr and July 2024.
The figures embrace Ontario Labour Relations Board orders and notices of contravention, which may embrace penalties for violations similar to not conserving correct payroll.
If the Ministry of Labour orders an employer to pay wages they usually do not comply inside 30 days, the case will get referred to the Ministry of Finance for collections.
The information present that, for the reason that 2017-2018 fiscal yr, on common, lower than 30 per cent of that cash has been paid.
The numbers are disappointing however they are not stunning, say a staff’ rights group and employment lawyer.
They’re calling on the provincial authorities to take stronger enforcement motion in opposition to employers who do not adjust to paying orders, in hopes of sending a message that wage theft is being taken significantly in Ontario and employers shall be held accountable.
“I really feel that the system is admittedly damaged proper now,” stated Deena Ladd, government director of the Employees’ Motion Centre in Toronto.
Sharaf Sultan, an employment lawyer who makes a speciality of office associated immigration information, says wage theft have to be addressed in Ontario.
“I believe it is a massive situation, however I believe … to a sure extent, a minimum of till now, it has been a comparatively forgotten situation,” he stated.
Wage theft amongst prime complaints: motion centre
Ministry of Finance spokesperson Scott Blodgett says the federal government has made “important strides” in bolstering its enforcement and has launched harder penalties for many who violate the Employment Requirements Act (ESA).
“The Ministry of Finance makes each effort to get well quantities owed to claimants below the Employment Requirements Act,” he stated in an announcement.
Wage theft sometimes refers to when an employer withholds earnings which are owed, would not present trip and vacation pay, makes unlawful wage deductions, misclassifies workers, and different violations, in keeping with Ladd.
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If a employee believes they’re owed wages, they’ve two years to file an ESA declare with the Ministry of Labour, which can examine.
Ladd says wage theft is likely one of the prime complaints the Employees’ Motion Centre hears about, usually coming from workers who’re misclassified as contractors, when in actuality they’re workers.
She says it is most prevalent in gig work, truck driving, cleansing, building and well being care and amongst staff with precarious immigration standing.
“The numbers are very staggering … by way of the variety of wage theft complaints that we’re coping with on an on a regular basis foundation,” Ladd stated. “It is actually horrible.”
‘Tip of the iceberg’
The variety of orders to pay wages issued by the Ministry of Labour has gone down normally over the past six years, from simply over 5,000 orders in 2018 and 2019 to round 2,100 in 2022 and a couple of,300 in 2023, in keeping with the federal government information.
In addition they present there have been 22,270 excellent orders to pay wages, from the 2017-2018 fiscal yr till July 2024.
When orders get referred to the finance ministry after 30 days of non-payment, the paperwork present that solely 41 per cent, on common, have been paid in full between 2017 and July 2024.
Ladd says she believes the numbers are simply the “tip of the iceberg.”
“Lots of the staff that we work with do not even file complaints as a result of they simply do not see the purpose,” she stated.
Ladd says she’d wish to see the federal government do extra proactive and expansive inspections.
For instance, if the ministry receives a criticism from one employee, Ladd want to see a larger-scale investigation into the office to uncover whether or not different workers are additionally victims of wage theft.
“However the system proper now could be based mostly on every particular person employee making a criticism,” she stated.
“Going by the method we discover big numbers of repeat violators, and on the finish of the day there’s little or no deterrent for employers who break the legislation.”
Cultural shift
Sultan, the employment lawyer, says he believes the ministry’s enforcement is missing, possible attributable to an absence of assets.
“Sadly, I believe there may be an understanding on the market that the ministry isn’t as laborious as they need to be and you’ll delay [paying wages] with little to no consequence,” he stated.
He says the ministry has ample enforcement instruments, however he questions the willingness to make use of the extra punitive measures.
Employment and immigration lawyer Sharaf Sultan says he believes the Ministry of Labour has the ample instruments to implement wages be paid, however want to see them exercised extra. (Angelina King/CBC)
“I believe there must be a cultural shift whereby there may be an understanding of the seriousness of wage theft,” Sultan stated.
“I believe that can possible come by harsher enforcement, notably on greater instances and to show to employers that there are critical penalties related.”
Authorities elevated penalties
Blodgett with the Ministry of Finance says the federal government has improved enforcement instruments and lately elevated the utmost superb for a person convicted of violating the ESA from $50,000 to $100,000 – the best within the nation.
Blodgett says if employers do not pay their orders letters are issued and comply with up calls are made. If there may be nonetheless non-compliance, the ministry can register and implement warrants of seizure and sale, put liens on property and garnish financial institution accounts.
“The ministry’s efforts have resulted in a restoration of roughly $105.4 million in wages and different cash owed to workers over the past 5 fiscal years and has accomplished a complete of 1,025 inspections over the past fiscal yr,” he stated.
A Ministry of Finance spokesperson says the federal government has bolstered enforcement, launched harder penalties and makes each effort to get well the unpaid wages which are owed. (Yan Theoret/CBC)
An employer who has did not adjust to an order to pay wages might be prosecuted below the Provincial Offences Act, and if convicted, might face fines and jail time of as much as one yr.
For the legal guidelines to work successfully in opposition to deterring wage theft, Ladd says the federal government should train harsher penalties when applicable.
“It is a fundamental proper that we must always receives a commission on the finish of the day and if that may be a big downside proper now in our labour market, then I believe that ought to be a trigger for concern for many people,” she stated.
