Human Resources Legislative Update

Ontario Legislative Assembly Resumes Sitting

Hicks Morley — Tue, 21 Feb 2012 14:19:29 -0500

On February 21, 2012, the House resumed sitting.

BPS Solvency Funding Relief Regulation Amended

Hicks Morley — Fri, 17 Feb 2012 14:09:38 -0500

On February 17, 2012, the Ontario government filed an amendment to O. Reg. 178/11 (Solvency Funding Relief For Certain Public Sector Pension Plans) under the Pension Benefits Act.

O. Reg. 12/12 prescribes those plans that have successfully applied for and, are receiving, solvency funding relief under O. Reg. 178/11.

The Regulation is now in force.

The details regarding solvency funding relief for public sector pension plans were first announced in February, 2011.

Drummond Commission Reports on Public Service Reform

Hicks Morley — Wed, 15 Feb 2012 14:39:59 -0500

On February 15, 2012, the Commission on the Reform of Ontario's Public Services (“Commission”) chaired by Don Drummond released its long-awaited report (“Drummond Report”) identifying wide-ranging reform measures aimed at increasing efficiencies within the broader public service.

In June of 2011, the Ontario government tasked the Commission with the examination of its service delivery models, and the preparation of a comprehensive report identifying:

programs that were no longer serving their intended purpose that could be eliminated or redesigned;
areas of overlap and duplication that could be eliminated; and
areas of value in the public sector that could be further enhanced.

With hundred of recommendations made, the Drummond Report is intended to provide the Minister of Finance with a series of wide-ranging and far-reaching recommendations for the government to consider in advance of its 2012 Ontario Budget.

We are in the process of reviewing the Report, and will be providing a more detailed analysis of the potential impact of the Report in subsequent FTR Nows over the coming days

Federal Pooled Registered Pension Plan ("PRPP") Legislation Referred to Committee

Hicks Morley — Mon, 06 Feb 2012 10:07:20 -0500

On February 1, 2012, Bill C-25, An Act relating to pooled registered pension plans and making related amendments to other Acts passed at Second Reading in the House of Commons, and was referred to the Standing Committee on Finance.

As previously reported, Bill C-25 is new legislation implementing the framework for federally regulated PRPPs, and was first introduced on November 17, 2011. The government subsequently released draft, supporting Income Tax Act amendments related to the PRPP for public commentary on December 14, 2011, which will apply to both federally and provincially regulated PRPPs. Provincial enabling legislation has not yet been introduced; the Ontario Legislative Assembly is set to resume sitting on February 21, 2012.

As announced in Budget 2011, the release of the PRPP legislation follows a joint federal-provincial initiative to move forward with a new type of broad-based privately administered pension arrangement to bridge existing gaps in the Canadian retirement system. Notably, the PRPP is intended to provide small business owners and their employees with access to large-scale, low-cost, professionally administered pension plans.

The proposed tax rules for PRPPs would apply to both federally and provincially regulated PRPPs, and would operate alongside Bill C-25.

Stakeholders and interested parties may submit comments on the package of proposed PRPP amendments before February 14, 2012.

More information about the proposed PRPP legislation is available in our FTR Now of November 23, 2011, "Pooled Registered Pension Framework Introduced."

Ontario Human Rights Code Independent Review: Consultation Paper Published

Hicks Morley — Tue, 03 Jan 2012 12:57:12 -0500

As part of the independent, mandated review of the changes resulting from the enactment of amendments to the Ontario Human Rights Code (the “Code”) which came into effect June 30, 2008, a consultation paper has been published which identifies key issues and points for discussion for the public consultation process which will take place in January and February of 2012.

The review, chaired by Andrew Pinto, is prescribed by section 57 of the Code. It will consider the “implementation and effectiveness” of these amendments, including an assessment of the Human Rights Tribunal of Ontario’s “direct access" model.

Public consultations are also prescribed under that section, prior to the Chair’s submission of a Report to the Minister, which must occur within one year of the Chair’s appointment, which occurred on August 12, 2011.

For more information on the Consultation Paper and the review process, see our FTR Now of January 3, 2012, entitled "Ontario Human Rights Review Chair Invites Comments on 2008 Changes to the Human Rights Code."

2012 Car Expense Benefit Rates, Deduction Limits Set

Hicks Morley — Thu, 29 Dec 2011 15:26:59 -0500

On December 29, 2011, the federal government announced automobile expense deduction limits and the prescribed rates for the automobile operating expense benefits that will apply in 2012.

A number of deduction limits will remain the same, including:

the existing, $30,000 capital cost allowance ("CCA") ceiling with respect to passenger vehicles used for business purposes;
the $800 per month limit on deductible leasing costs for leases entered into after 2011 (a separate restriction prorates deductible lease costs where the value of the vehicle exceeds the capital cost ceiling); and
the $300 maximum allowable interest deduction for amounts borrowed to purchase an automobile, for loans related to vehicles acquired after 2011.

The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes for 2012 will be increased by 1 cent to 53 cents per kilometre for the first 5,000 kilometres driven and to 47 cents for each additional kilometre, with certain exceptions.

In addition, the general prescribed rate for determining the taxable benefit relating to the personal portion of automobile operating expenses paid by employers for 2012 will increase by 2 cents to 26 cents per kilometre. The prescribed rate in respect of taxpayers employed principally in selling or leasing automobiles, will increase by 2 cents to 23 cents per kilometre.

Mandatory WSIB Coverage for Construction Industry To Commence January 1, 2013

Hicks Morley — Thu, 29 Dec 2011 09:52:00 -0500

Effective January 1, 2013, amendments to the Workplace Safety and Insurance Act, 1997 outlined in Bill 119, the Workplace Safety and Insurance Amendment Act, 2008 will extend mandatory WSIB coverage to certain employers in the construction industry. These amendments will apply, with certain exceptions, to independent operators who carry on business in construction, and to sole proprietors and partners in a partnership that carry on business in construction and do not employ any workers.

On January 1, 2012, a free, “voluntary pre-registration” period of one year will commence during which affected employers may register electronically on the Workplace Safety and Insurance Board ("WSIB") website, through the WSIB’s eServices. Premiums will not become due until January 1, 2013.

The pre-registration period will coincide with a year-long education campaign designed to educate construction industry employers about the new mandatory coverage.

More information about mandatory coverage in the construction industry and the pre-registration period is available in an “F.A.Q” information sheet, which has been posted to the WSIB website.

CPP Post-Retirement Benefit Elections Established

Hicks Morley — Thu, 22 Dec 2011 11:36:54 -0500

The federal government filed a regulatory amendment to the Canada Pension Plan Regulations which prescribes the manner of employee elections (or revocations) regarding the new Post-Retirement Benefit (“PRB”), which will be available under the Canada Pension Plan (“CPP”), effective January 1, 2012.

The amendment was first proposed in October of 2011, as previously reported.

The PRB extends participation in the CPP to those employees (and self-employed workers) who are 60 years of age or older and who receive CPP benefits while continuing to work. Contributions towards the PRB will be mandatory for employees who are at least 60 years of age but under the age of 65 and their employers, and optional in respect of employees who have reached 65 years of age but who are under the age of 70.

Individuals in the latter group will be required to contribute towards the PRB unless they elect to opt out.

The regulatory amendment will also extend the time limit for payments of CPP contributions where an election has been made in respect of self-employed earnings.

For more information on these changes to the CPP, see our FTR Now of December 22, 2011, "Changes to the Canada Pension Plan (CPP): Important Information for Employers."

Mandatory Reporting of Internet Child Pornography Bill, Regulations Come Into Force (C-22)

Hicks Morley — Thu, 22 Dec 2011 10:53:27 -0500

On December 8, 2011, Bill C-22, an Act respecting the mandatory reporting of Internet child pornography by persons who provide an Internet service, came into force, along with supporting regulations.

The Internet Child Pornography Reporting Regulations provide the enabling framework for the legislation. It names the designated organization (Canadian Centre for Child Protection) for the purpose of receiving reports, and elaborates upon its role, functions and activities, as well as the manner in which "service providers" discharge their duties under the Act. This includes the notification of police, and preservation of evidence in accordance with sections 3 and 4 of the Act.

As previously reported, Bill C-22 received Royal Assent on March 23, 2011, and imposes a mandatory duty on persons providing an "internet service" (a service providing internet access, e-mail or internet content hosting) to the public to report child pornography in specific cases. This includes where the person has "reasonable grounds to believe" the internet service is being used for this purpose. "Persons" is defined to include individuals, corporations, partnerships, unincorporated associations or organizations. There is an offence provision for non-compliance.

Filing Deadline Announced for AODA Customer Service Standards Accessibility Reports

Hicks Morley — Wed, 21 Dec 2011 17:08:09 -0500

On December 21, 2011, the Ontario government confirmed that private sector and not-for-profit organizations have until December 31, 2012 to file accessibility reports required under the Accessibility for Ontarians with Disabilities Act, 2005 (“AODA”) Customer Service Standards regulation. The government also prepared “tip sheets” to assist organizations in meeting the emergency response requirements under the Integrated Accessibility Standards, the second regulation enacted under the AODA.

Both the Customer Service Standards and the emergency response requirements under the Integrated Accessibility Standards have compliance deadlines of January 1, 2012.

More information about these standards is outlined in our FTR Nows of November 17, 2011, “Are You Prepared for the AODA?”, and June 9, 2011, “Ontario Government Releases Final Integrated Accessibility Standards Regulation Under the AODA.”

Information on the AODA is available on the Ministry of Community and Social Services website.