Employers won't be allowed to charge workers for dine and dash, gas and dash or any other stolen property
Ontario is looking to ensure restaurant and service workers’ salaries are intact in case their customers choose to leave the business establishment without paying for food or service.
The Working for Workers Four Act, 2023 includes updates to the province’s Employment Standards Act which would ban unpaid trial shifts. The legislation also states that employers can never deduct an employee’s wages in the event of a dine and dash, gas and dash or any other stolen property.
“It is unacceptable that any worker in our province should have their wages deducted or see themselves put in harm’s way because of someone else’s criminal activity,” says David Piccini, minister of labour, immigration, training and skills development. “Under the leadership of Premier Ford, our government is continuing to stand up for those in Ontario’s service industry to ensure workers keep their hard-earned money.”
There are negative perceptions facing the hospitality industry, and it will not change overnight, according to a previous report.
As many as one in 20 diners has left a restaurant without paying, says the Ontario government, citing studies. Also, gas thefts cost Ontario businesses over $3 million in 2022.
And while the province’s laws generally require employees to be paid for all hours worked and prohibit pay deductions, “unpaid trial shifts and punitive deductions are still common in the restaurant and service industries”.
The latest iteration of Ontario’s Working for Workers Act was passed on Oct. 26, expanding on “worker-friendly” laws already put in place by earlier bills adopted in 2021 and 2022.
Changes to rules around pooled tips
Ontario is also requiring employers to post in the workplace if they have a policy of sharing in pooled tips – which is something that is only allowed if they perform the same work as their staff.
This would help ensure service workers are paid what they are owed, and that they understand how their tips are calculated and distributed, according to the government.
Also, employers who pay tips using direct deposit will be required to allow their employees to select the account tips are to be deposited into. This would help workers avoid fees they didn’t agree to so they may access their tips in full when needed, according to the government.
In a previous case, an employee questioned her employer’s policy of retaining tips, and claimed she suffered for it.
‘Ensuring fair practices are in place’
Several stakeholders welcomed the legislation introduced by Ontario.
"These changes to the Employment Standards Act give restaurant employees the protection they deserve,” says Kelly Higginson, president and CEO of Restaurants Canada. “They will reduce costs for employees around their gratuities, ensure their earnings are safeguarded from patrons who dine and dash and reinforce that our employees’ hard-earned paycheques are their own. These positive changes simply reflect what is already practiced by the vast majority of those in our industry."
UNITE HERE Local 75 also welcomes the change that, will “allow for greater transparency by holding employers in the restaurant and hospitality industry accountable,” says Guled Warsame, theri president.
“The challenges endured by workers in this industry on a daily basis should be a driving force for the employers to create a safe and healthy workplace environment.”
"The announced changes today support clear messaging and transparent procedures for both restaurant operators and employees, ensuring fair practices are in place,” says Tony Elenis, President and CEO, Ontario Restaurant Hotel and Motel Association.
