Bill 27: Working for Workers Act, 2021 Passes in Ontario

Bill 27, sponsored by Minister of Labour, Training and Skills Development Monte McNaughton, has been passed into law and sets new requirements under a series of employment-related legislative amendments.

OGCA, with the CEC, has been in discussions with the government about returning excess WSIB funds to employers for some time. Under this Bill, qualified employers will be rewarded for their funding of high WSIB premiums to retire the unfunded liability. The WSIB is now overfunded by about $6 billion, and Bill 27 directs the WSIB to redistribute excess funds to employers when the funded level exceeds 115%.

The requirements and fund amounts are still to be determined through regulation and policies. The OGCA expects distribution to occur in 2022, returning as much as $2 billion to schedule 1 employers. We are working with the government and the WSIB to support the rollout to qualified employers, and we will update you as more information becomes available. 

This is a welcome move by the government, and we recognize this initiative will support construction employers at a time when the industry is dealing with challenging conditions.

Please see the attached Briefing note by Sherrard Kuzz LLP, which includes an overview of the Bill’s provisions. Please note the requirements restricting non-compete clauses and the need to develop a disconnect from work policy. The legislation doesn’t set a disconnect standard but requires the employer to develop their own and then communicate it to employees.

OGCA will work with experts to support members in developing and communicating their policies in compliance with the requirements of the legislation.