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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

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When is overtime to be paid?

Overtime is to be paid on any hours worked in excess of 40 per week.

NOTE: If an employer approves a written request from one or more employees to switch shifts and this change results in affected employee(s) working more than 40 hours in a week, the employer is not required to pay overtime to the employees involved.

(section 25.(1) and 25.1 of the Labour Standards Act)

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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

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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; or at the employee's normal residence or by mail or personal delivery; or by deposit into the employee's bank account.

These monies must be paid in lawful currency of Canada, or by cheque or money order, or, providing the employee is in agreement, by direct deposit into an account of a bank chosen by the employee.

(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, E.I. contributions, overpayment of wages, deductions for a group benefit plan that the employee is participating in, savings plan deductions, overpayment on unused portions of travel advances and rental charges when the employee occupies the employer's premises, as well as sums established by law.

(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 employers operation (logo) to an extent that would make the uniform of no practical use to the employee should the employees employment be terminated.

(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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