SK Government proposes amendments to Employment Act to address tips, overtime, sick leave notes and more
On December 4, 2024, the Government of Saskatchewan introduced Bill 5, The Saskatchewan Employment Amendment Act 2024.
In the accompanying announcement, the Government stated the amendments are intended to reduce administrative burdens for employers and provide support to employees. Some of the more notable proposed changes include regulating tips, limiting when employers can request sick leave notes from employees, and allowing employers more flexibility regarding overtime.
Regulating tips
Currently, Saskatchewan is one of the few provinces that does not have employment legislation directly addressing the regulation of tips or “gratuities” given to employees. The proposed amendments introduce measures to prevent employers from either withholding or deducting gratuities earned by employees. This includes acknowledging that any withheld or deducted gratuity as a “debt” owing to the employee and that it will be deemed to be wages owing.
Bill 5 also introduces prescribed conditions and requirements that employers must meet in order to establishing tip pooling arrangements. These conditions and requirements would be set out in the regulations to The Saskatchewan Employment Act (the “SEA”), and draft language has not yet been published.
Increasing the number for group terminations
Under the SEA, employers are currently required to provide “group termination notice” to the Minister, impacted employees, and any applicable union, if they are terminating a minimum of 10 or more employees within any four-week period. Bill 5 would increase this minimum number from 10 employees to 25.
Limiting the use of sick leave notes
The proposed amendments introduces limitations on an employer’s ability to request sick leave notes for employees that are incapable of working due to illness or injury. In particular, these amendments would restrict an employer from requesting a medical certificate certifying the employee was incapable of work unless the employee’s absence is longer than five consecutive working days or the employee has had non-consecutive absences of two or more working days due to sickness or injury in the preceding 12 months.
Extending employment leaves
Another focus of Bill 5 is the extension of various employment leaves such as long-term sick leave and maternity leave for employees who experience a loss of pregnancy. Bill 5 also introduces a long-term interspousal violence and sexual violence leave that would exist in addition to the currently-existing short-term leave.
Bill 5 also includes amendments that would allow employees to access to bereavement leave within six months of a death. The current provisions in the SEA restrict the use of bereavement leave to a week before or after the funeral.
Changes to a “day” for overtime purposes
For the purposes of overtime, the SEA currently defines a “day” to mean any period of 24 consecutive hours as opposed to a regular calendar day. Since this 24-hour period can run between calendar days, this can impact when an employee becomes entitled to overtime.
Bill 5 proposed an amendment that would allow employers to choose between defining a “day” (for the purposes of overtime) to mean either a calendar day or a period of 24-consecutive hours. This amendment would provide employers with more flexibility to structure its workforce according to its occupational needs.
Other amendments
Bill 5 includes a number of other amendments that have been proposed to bring Saskatchewan in line with other jurisdiction across Canada. This includes, among other things:
- allowing employers, with consent of their employees, to apply from a variance from the meal break and notice of work schedule changes provisions;
- giving the director of employment standards the authority to order reinstatement or compensation for lost wages in cases of discriminatory action by an employer;
- allowing employers to deduct salary advances, voluntary training and housing allowances from wages if the employee agrees to the deductions;
- removing the requirement for employers to provide two consecutive days off every week to retail sector employees and instead requiring the employer to provide one day off;
- clarifying that employees can be paid their wages in cash; and
- clarifying that an employer does not have to provide vacation pay on the period for which pay-in-lieu of notice is being provided.
If these amendments are passed, they would come into force on proclamation. Although Bill 5 is only passed its First Reading of the Legislature, it will be important for employers to monitor the status of this Bill to ensure that their policies and procedures remain up-to-date and compliant with these changes.
MLT Aikins will continue follow the progress of Bill 5 as it makes its way through the Legislature. In the meantime, if you have questions about what these potential changes mean to your organization, please do not hesitate to contact a member of our Labour and Employment team.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.