The arrival of warmer weather often signals not just the end of the academic year but also a surge in summer hiring. Businesses across Ontario, from bustling restaurants and retail stores to sprawling tourism operators and even professional services firms, frequently welcome the influx of student workers eager to gain experience and earn some income during their break.
While this seasonal workforce can be a valuable asset, employers must be keenly aware of the specific legal considerations that come into play when hiring students, particularly given their younger age and the often temporary nature of their employment. Failing to navigate these legal nuances can lead to costly mistakes and potential legal repercussions.
The Foundational Framework: Employment Standards Legislation
At the heart of the employment relationship in Ontario lies the Employment Standards Act (ESA). This legislation sets out the minimum standards that employers must adhere to, covering aspects such as minimum wage, hours of work, overtime pay, vacation entitlements, and termination. It’s imperative for employers hiring students to understand that the ESA applies to student employees in much the same way it applies to other workers.
Minimum Employment Standards: Age, Wages, and Hours
A fundamental aspect of employing students revolves around their age and the corresponding application of minimum employment standards legislation. While the Employment Standards Act generally applies to all employees, certain provisions have particular relevance when dealing with younger workers.
Minimum Employment Age
For instance, the minimum age for employment in Ontario is generally 14 years old. However, there are restrictions on the types of work individuals under 16 can perform, primarily focusing on ensuring their safety and well-being and preventing interference with their education. Employers must be diligent in verifying the age of student hires and ensuring that the tasks assigned are appropriate for their age group and do not contravene any restrictions outlined in the ESA regulations.
Limit on Hours of Work
Additionally, the Employment Standards Act outlines regulations regarding hours of work, including daily and weekly limits, as well as rules around rest periods and breaks. These provisions are particularly important when employing students who may also be balancing their work responsibilities with summer school, extracurricular activities, or simply the need for adequate rest. Employers should establish clear schedules and ensure they comply with the ESA’s requirements regarding working hours and breaks for all employees, including students.
Minimum Wage
The Employment Standards Act mandates specific minimum wage rates, which can vary depending on the employee’s age and the type of work performed. Employers must ensure they pay student employees at least the applicable minimum wage, which may differ from the general adult minimum wage in some circumstances. It’s crucial to stay updated on Ontario’s current minimum wage rates, as these are subject to change.
Vacation Pay
Vacation pay is another important consideration when employing students. Under the Employment Standards Act, all employees, including students, are entitled to vacation pay, currently at a minimum of 4% of their total earnings. This vacation pay typically accrues during the period of employment. It is usually paid out upon termination or on a regularly scheduled basis as agreed upon by the employer and employee. For summer students with a defined end date, vacation pay is often paid out with their final paycheque. For students working part-time year-round, employers should establish a clear process for how and when vacation pay will be provided.
Public Holidays
Public holidays also present specific considerations. Ontario has several designated public holidays throughout the year. Generally, employees who work on a public holiday are entitled to premium pay (1.5 times their regular rate of pay) for all hours worked on that day, in addition to receiving their regular pay if they qualify.
Like all other employees, students are generally entitled to these public holiday entitlements, provided they meet the eligibility criteria outlined in the ESA. This typically includes having worked their regular scheduled day of work before and after the public holiday. Employers need to be aware of the designated public holidays in Ontario and ensure they are correctly calculating and providing public holiday pay or substitute days off to their student employees.
Temporary Employment and Termination Considerations
Summer student hiring is often characterized by its temporary nature. While such positions can offer flexibility for both employers and students, it’s essential to understand the legal implications surrounding temporary employment and termination.
Under the Employment Standards Act, there is no distinct category of “temporary employee” that exempts employers from basic employment standards. Even if employees are hired for a fixed term, such as the summer months, they are still entitled to certain rights and protections under the ESA.
Notice of Termination
One crucial aspect is the termination of employment. If an employer wishes to end the employment of a student before the agreed-upon end date of their fixed-term contract, they may be required to provide notice of termination or pay in lieu of notice, depending on the length of the student’s employment. While there are exceptions for specific circumstances, such as wilful misconduct, employers should generally be prepared to provide the statutory notice or pay if terminating a student employee early.
Conversely, if the fixed term of employment simply expires, there is usually no requirement to provide notice of termination. However, clear communication with the student regarding the end date of their employment is always advisable to avoid misunderstandings.
Year-Round Part-Time Students: Ongoing Employment Obligations
While many students are hired for temporary summer positions, some may work part-time throughout the year while attending school. In these cases, the employment relationship is ongoing, and all the Employment Standards Act and other relevant legislation provisions continue to apply. Employers must ensure that these year-round student employees receive at least the applicable minimum wage (which may be a different rate for students under 18 working during the school year), are paid overtime in accordance with the ESA, accrue vacation time and pay, and are entitled to public holiday pay if they meet the eligibility requirements.
Employers should also be mindful of the potential for changes in a student’s status, such as turning 18 or graduating. These changes may affect their entitlement to certain minimum wage rates or other employment standards. Maintaining open communication with year-round student employees and regularly reviewing their employment terms can help ensure ongoing compliance.
Workplace Safety and Insurance for Student Workers
Under the Occupational Health and Safety Act, employers are responsible for maintaining a safe and healthy workplace for all employees, including students. This includes identifying potential hazards, implementing safety measures, providing adequate training, and ensuring employees know their workplace safety rights and responsibilities. Young workers, in particular, may be less experienced and more vulnerable to workplace accidents, making thorough safety training and supervision paramount.
In Ontario, most employers must register with the Workplace Safety and Insurance Board (WSIB) and provide workplace insurance coverage for their employees. This coverage protects employees in case of work-related injuries or illnesses. Student employees are generally entitled to WSIB coverage in the same way as other employees. Employers should ensure they understand their obligations regarding WSIB registration and reporting requirements.
Human Rights Considerations: Ensuring a Respectful Workplace
The Ontario Human Rights Code prohibits discrimination and harassment in employment based on protected grounds such as age, race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, disability, family status, marital status, and record of offences (in very limited circumstances).
Employers hiring students must ensure that their hiring practices are non-discriminatory and that their workplace is harassment-free. Treating student employees differently based on their age (unless permitted by law, such as in the case of minimum wage for younger workers) or any other protected ground is unlawful. Employers have a duty to take steps to prevent and address discrimination and harassment in the workplace, including having appropriate policies and procedures in place.
Privacy Considerations: Handling Student Employee Information
When hiring students, employers will collect personal information, such as their names, addresses, contact details, and potentially their social insurance numbers and academic records. The collection, use, and disclosure of this personal information are subject to privacy legislation in Ontario and Canada, primarily the Personal Information Protection and Electronic Documents Act (PIPEDA) for federally regulated organizations and provincial legislation like the Personal Health Information Protection Act (PHIPA) if health information is involved.
Employers must handle student employee information responsibly and in accordance with applicable privacy laws. They should only collect information necessary for legitimate employment purposes, such as payroll and benefits administration. They must obtain consent for the collection, use, and disclosure of personal information and ensure that this information is kept secure and confidential. Employers should also have clear policies in place regarding the retention and destruction of employee records.
The Importance of Clear Communication and Written Agreements
Having clear communication and written agreements can significantly reduce the risk of misunderstandings and potential legal disputes. A written employment agreement, even for a summer position, can outline key terms and conditions of employment, such as the job duties, hours of work, rate of pay, vacation entitlement, and the expected duration of employment. Such information can provide clarity for both the employer and the student and help prevent disagreements.
Employers should also clearly communicate workplace policies, safety procedures, and expectations. Providing students with an employee handbook or other written materials outlining these details can be beneficial. Open and transparent communication throughout the employment relationship is crucial for building trust and fostering a positive working environment.
Proactive Compliance for a Smooth Summer
Hiring students can be a rewarding experience for both employers and young individuals entering the workforce. Students bring enthusiasm and a fresh perspective, while employers can benefit from flexible staffing during peak seasons.
However, navigating the legal landscape of employing students in Ontario requires diligence and a proactive approach. By understanding and complying with the various applicable laws, employers can ensure they meet their legal obligations, foster a safe and respectful workplace, and ultimately contribute to a positive and legally sound summer employment experience for their student hires.
Contact Bader Law for Trusted Employment Law Advice in Oakville & Mississauga
At Bader Law, we have been guiding business owners through their legal obligations for many years. We serve employers of all sizes and industries, from family-run service providers to mid-sized firms in the software, technology, manufacturing, and industrial sectors. Our clients include businesses with over 100 employees and annual revenues exceeding $50 million, often operating across multiple jurisdictions. Our employment lawyers provide timely, trusted advice to employers, including proactive compliance audits on hiring and HR practices. Please call (289) 652-9092 to book a consultation or contact us online.