The Working for Workers Act
What is the purpose of the act?
The Working for Workers Act, 2021 is an Ontario employment-law reform package that made several substantive changes, including a statutory ban on most post-employment non-compete clauses, new “disconnecting from work” policy requirements for larger employers, and enhanced regulation of temporary help agencies and recruiters.
The Act is an omnibus statute that works with and amends the Employment Standards Act, 2000, S.O. 2000, c. 41.
There is much to digest with these changes consult Invictus Legal LLP about how this law impact you, seek a consultation from a tean that understands how this law functions.
Disconnecting from work
Likely this act is best know for the requirement for employees to have the right to disconnect from work, it requires certain employers to maintain written policies on disconnecting from work. Many employment contracts have required workers to effectively be permanently on call. This applies a lot to remote workers, or those in support roles (like IT support workers). Employers with 25 or more employees must, by the applicable deadline, have a written policy on “disconnecting from work” and provide copies to employees.
The author once worked in a role where it was required he had the company cell phone with him 24*7*365, this is no longer permitted. The law requires employers retentain records of employees disconnecting-from-work policies for three years.
Compliance impacts business policies. However it is not a substantive right to be unreachable at all times, just that the employer has to respect the right to switch off.
The statute defines “disconnecting from work” as:
“not engaging in work-related communications, including emails, telephone calls, video calls or the sending or reviewing of other messages, so as to be free from the performance of work.”Employment Standards Act, 2000, S.O. 2000, c. 41, s. 21.1.1
Non-Compete agreements
The use of non compete agreements has changes within employment contracts. The new rules prohibits employers from entering into non-compete agreements with employees, subject to narrow exceptions. Most ordinary employment non-competes, like those forbiding waiters or bartenders from leaving and working for the competitor next door are void.
This will be true even if you have an existing employment contract then it is unenforceable. Workers cannot be penalised if they work for a competitor. In high-skilled professions, like computer programing, then there may be some regulatory issues with respect of an employee moving to a major competitor, e.g a key programmer moving from Microsoft to Google. This could apply to legal, accounting, tax, and similar professions.
This does not exclude non-solicitation, non-disclosure clauses, as well as confidentiality requirements.
There is also a sale of business agreement which permits non-competes tied to a sale of business where the selling business owner becomes an employee of the purchaser. Here the restrictive covenant protection preserved in that context. Also senior leadership agreements may still include non-compete clause.
“No employer shall enter into an employment contract or other agreement with an employee that is, or that includes, a non-compete agreement.”Employment Standards Act, 2000, S.O. 2000, c. 41, s. 67.2(1).
You should note that the Act did not abolish all restrictive covenants; it targeted most post-employment non-competes in the employment context.
Recruitment and TemporaryAgency licensing
This law creates licensing rules for temporary help agencies and recruiters. Operating or using unlicensed agencies/recruiters can trigger enforcement consequences. Some people argue this is long overdue.
Agencies cannot charge workers to work for them.
Reprisal protections
The new law adds protection against reprisals relating to recruiter-related rights and inquiries. The law improves enforcement and complaint rights for workers and job seekers.
Spin Legal Video
Listen to Peter Giblett interviewing Angela Browne about this subject
Spin Legal
