An Update on Bill 27, Working for Workers Act, 2021

In our recent blog, we talked about Ontario’s Bill 27, Working for Workers Act, 2021, which proposed new changes to several pieces of legislation, most notably the Employment Standards Act, 2000. On November 30, 2021, Bill 27 passed third reading and on December 2, 2021, it received royal assent, making it now law. In this post, we will highlight some of the key changes.

Non-Compete Agreements are Prohibited

Under Bill 27, employers are prohibited from entering into employment contracts or other agreements with employees that is or includes a non-compete agreement. Employers will be pleased to know that there is an exception for executives; these employees may still enter into non-compete agreements with employers. 

Executives are defined as “any person who holds the office of chief executive officer, president, chief administrative officer, chief operating officer, chief financial officer, chief information officer, chief legal officer, chief human resources officer or chief corporate development officer, or holds any other chief executive position”.

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Arbitration Decisions on Mandatory Vaccination Policies

This month has seen arbitral treatment of two mandatory vaccination policies in the context of unionized workplaces. In a grievance brought by the United Food and Commercial Workers Union, Canada, Local 333 against employer Paragon Protection Ltd., the arbitrator found that the employer’s vaccination policy was reasonable. In a grievance brought by the Power Workers’ Union (the “PWU”) against employer Electrical Safety Authority, the arbitrator found that it was not.

Paragon Protection’s Vaccination Policy

Paragon Protection Ltd. provides security services and employs 4,400 unionized security guards to hundreds of client sites across Ontario. Many of these client sites had vaccination requirements. Paragon gave its employees approximately two months notice that they would be requiring them to be fully vaccinated against COVID-19. Employees would report their vaccination status by way of a declaration. The policy allowed exemptions for human rights reasons on the basis of creed/religion and health. 

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Bill 27 – Working for Workers Act, 2021 and Disconnecting from Work Policies

As a result of the Covid-19 pandemic, Ontario’s labour market has experienced significant disruptions and a permanently shifted work landscape. Employers are grappling with redefined work locations, rapidly changing public health standards, and the need for economic revitalization. As part of the province’s recovery scheme, Monte McNaughton, Minister of Labour Training and Skills Development, established the Ontario Workforce Recovery Advisory Committee (OWRAC). The Committee’s mandate is to “provide recommendations to position Ontario as the best place in North America to recruit, retain and reward workers.” Its work centers around three pillars: economic recovery, strengthening Ontario’s competitive position, and supporting workers. Integral to the Committee’s work were community stakeholder consultations involving workers, employers, and unions, which invited submissions by July 31, 2021. 

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A Proposed Ban On Non-Competes

A Proposed Ban on Non-Competes

On October 25, Ontario Bill 27, Working for Workers Act, 2021 (“the Bill”) passed first reading. This Bill proposes amendments to our key Ontario employment statutes, including the Employment Standards Act, 2000 (the “ESA”) and the Occupational Health and Safety Act. In today’s post, we will review highlights regarding the proposed ban on non-competes and talk about how Ontario businesses can prepare. 

A Ban On Non-Competes

One much-discussed element of the Bill is the proposed ban on non-competition agreements in employment contracts. 

A non-competition agreement restricts – or tries to – an employee’s ability, for a period of time, to work for a competitor after leaving the employer. The restriction is usually somewhere between three months to two years. 

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A Deeper Dive into Exemptions from Mandatory COVID-19 Vaccination Policies

In our recent blog, we discussed the consequences that employees may face for not receiving government-approved COVID-19 vaccinations. We also touched on the legitimate medical or religious reasons that some employees may have for refusing or being unable to be vaccinated. In this blog, we’ll take a deeper dive into what sorts of exemptions employers should be prepared to expect (if they have not already come across them) and the steps they can take to determine whether employees have a valid request for an exemption from vaccination, along with the required accommodations. 

Types of COVID-19 Mandatory Vaccination Exemptions Employers May Encounter

Employers should keep an eye out for valid medical and religious/creed-based exemptions employees may have from vaccination. 

The College of Physicians and Surgeons of Ontario has provided some examples (of which it emphasizes there are few) of acceptable medical exemptions from the COVID-19 vaccination:

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