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Payment of Wages and Deductions

Wages
Deductions
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Wages

What is the current minimum wage?

Effective October 1, 2014, Minimum Wage - $10.25 per hour

Effective October 1, 2015, Minimum Wage - $10.50 per hour

(Section 8 of the Labour Standards Regulations)

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What is the overtime rate?

Effective October 1, 2014, the minimum overtime wage is $15.38 per hour

Effective October 1, 2015, the minimum overtime wage is $15.75 per hour

(section 9 of the Labour Standards Regulations)

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When should employees be paid?

The employer must pay an employee not less frequently than half monthly. All wages owing must be paid within 7 days of the end of the pay period.

(section 33 of the Labour Standards Act)

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How is an employee to be paid?

The employer must pay the wages:

  • at the place of employment during regular working hours
  • at the employee's normal residence
  • by mail
  • personal delivery
  • by direct deposit into the employee's bank account

The wage must be paid in Canadian currency

  • by cheque
  • money order
  • by direct deposit into the employee's bank account

(Section 34.(1)(2)(3) of the Labour Standards Act)

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Deductions

What can be deducted from wages?

  • Income Tax
  • Canadian Pension Plan contributions
  • Employment Insurance contributions
  • Overpayment of wages
  • Deductions for a group benefit plan in which the employee participates
  • Savings plan deductions
  • Overpayment on unused portions of travel advances
  • Rental charges when the employee occupies the employer’s premises
  • Sums deducted or withheld by court order

(section 36.(3) of the Labour Standards Act)

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Can deductions be made from employee's wages for cash shortages, bad cheques, or charge cards?

The employer cannot deduct these charges from wages.

(section 36. of the Labour Standards Act)

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Can an employee be required to pay for Uniforms?

An employer shall not require an employee to pay for a uniform where the uniform is unique to the employer's business operation and is identified with the employer’s operation (logo).

(section 36.1 of the Labour Standards Act)

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If an employee damages an employer's product, property, or has an outstanding account with the employer, can the employer recover his loss by deducting from the employee's wages?

No, the employer can only deduct sums established at law. Therefore, if an employee owes the employer for any of the above, the employer will have to take alternate measures to recover the sums that are owed.

(section 36. of the Labour Standards Act)

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