Bill 148 Passes Bringing Major Changes to Ontario Employment Legislation
As anticipated in Charity & NFP Law Bulletin No. 405, the Ontario Government has moved swiftly to pass Bill 148, Fair Workplaces, Better Jobs Act, 2017 (“Bill 148”), which received Royal Assent on November 27, 2017. The final version of Bill 148 contains several changes to what was first introduced
on June 1, 2017, including a new Schedule 3 amending the Occupational Health and Safety Act, and other amendments to the Labour Relations Act, 1995. However, the focus of this Bulletin is on the
amendments to the Employment Standards Act, 2000 (“ESA”), including changes to the minimum wage,
paid vacation entitlements, job protected leaves of absence, scheduling rules and the treatment of
independent contractors, as the most relevant to charities and not-for-profits in Ontario. With the
significant changes made to Bill 148 since Charity & NFP Law Bulletin No. 405 was posted in June 2017,
this Bulletin provides an update to Bill 148 now that it has received Royal Assent.
Read the Bulletin here. Charity & NFP Law Bulletin No. 411
Bill 148 Passes Bringing Major Changes to Ontario Employment Legislation
Nov 2017 Charity & NFP Law Update
As anticipated in Charity & NFP Law Bulletin No. 405, the Ontario Government has moved swiftly to pass Bill 148, Fair Workplaces, Better Jobs Act, 2017 (“Bill 148”), which received Royal Assent on November 27, 2017. The final version of Bill 148 contains several changes to what was first introduced on June 1, 2017, including a new Schedule 3 amending the Occupational Health and Safety Act, and other amendments to the Labour Relations Act, 1995. However, the focus of this Bulletin is on the amendments to the Employment Standards Act, 2000 (“ESA”), including changes to the minimum wage, paid vacation entitlements, job protected leaves of absence, scheduling rules and the treatment of independent contractors, as the most relevant to charities and not-for-profits in Ontario. With the significant changes made to Bill 148 since Charity & NFP Law Bulletin No. 405 was posted in June 2017, this Bulletin provides an update to Bill 148 now that is has received Royal Assent.
For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 411.
CRA Announces New Charities Education Program
Nov 2017 Charity & NFP Law Update
On November 6, 2017, the Canada Revenue Agency (“CRA”) announced the launch of a new Charities Education Program (“CEP”) to provide early support and guidance to registered charities “that will help them comply with their obligations, and to answer any questions they may have regarding their activities, the maintenance of their books and records, and the filing of their annual information return.” Under the CEP, a Charity Education Officer (“Officer”) from the CRA will conduct an in-person visit with a charity, which will consist of information sharing along with a review of the charity’s books and records.
Prior to the visit, the charity in question will receive a letter from the CRA, which will include the name and contact information of the assigned Officer, as well as their team leader, both of whom can be contacted prior to the visit for further information.
Concerning the information sharing aspect of the visit, the Officer will ask questions about the charity’s books and records, purposes and activities in order to ensure the charity continues to meet its legal requirements and to educate the charity on how to change its operations, where needed. The Officer will also provide further information on registration, filing, receipting and will answer any questions that the charity may have. The books and records review is intended to “identify any issues that could prevent the charity from meeting its regulatory obligations.” After this review, the Officer will provide feedback on their accuracy and completeness, along with advice for regulatory compliance and accurate filing of the charity’s information return. The visit will conclude with the Officer providing a Summary of Findings and Recommendations and asking an authorized representative of the charity to sign it, confirming that the charity “understand their responsibilities and have received information to help them comply with their regulatory obligations.” Although not stated by the CRA, the Summary of Findings and Recommendations would most likely be used as a reference tool to measure compliance on a return CEP visit or in the event of a future audit by the CRA.
The CRA has stated that all charities are eligible to be selected for a CEP visit, and that 500 visits are expected to be conducted annually and could be selected for a number of reasons, including the fact that a charity is newly registered, on account of certain information from its T3010 return, or because of common areas of non-compliance, such as receipting and reporting issues.
While the CRA states that the CEP “is not part of the traditional audit program, but rather a complement to it,” it is not clear exactly what the CEP visit actually is, as it includes elements of both an educational purpose as well as the possibility of a pre-audit. In this regard, the CRA states that “a CEP visit does not preclude the possibility that the charity could be audited in the future.” With this in mind, any charity receiving a CEP letter should contact their legal counsel to discuss how to prepare for and handle a CEP visit prior to it taking place, as well as to receive advice on how to address any Summary of Findings and Recommendations presented to the charity by the CRA.
Legislation Update
Nov 2017 Charity & NFP Law Update
Bill C-63, Budget Implementation Act, No. 2, 2017
On October 27, 2017, the Minister of Finance introduced Bill C-63, Budget Implementation Act, 2017, No. 2 (“Bill C-63”) in the House of Commons, which passed second reading on November 8, 2017 and was reported without amendments by the Standing Committee on Finance on November 22, 2017. As mentioned in the October 2017 Charity & NFP Law Update in reference to the draft legislation before it was introduced as Bill C-63, the proposal includes amendments to the Income Tax Act concerning ecological gifts that were proposed in the 2017 Federal Budget, along with amendments to the Excise Tax Act regarding the calculation of net tax for charities. For more information on the 2017 Federal Budget see Charity & NFP Law Bulletin No. 399.
Bill C-51, An Act to amend the Criminal Code and the Department of Justice Act and to make consequential amendments to another Act
On November 20, 2017, Bill C-51, An Act to amend the Criminal Code and the Department of Justice Act and to make consequential amendments to another Act (“Bill C-51”) was reported on with amendments by the Standing Committee on Justice and Human Rights. Bill C-51, as introduced by the Minister of Justice on June 6, 2017, included the repeal of section 176 of the Criminal Code, which prescribes the offence of obstructing or violence to or arrest of an officiating clergyman or minister and the offence of disturbing religious worship or certain meetings. However, after submissions made to the Standing Committee on Justice and Human Rights, it was recommended that Bill C-51 make minor amendments to the current wording of section 176 of the Criminal Code rather than repeal the section.
Budget Consultations
On November 9, 2017 the Minister of Finance launched pre-budget consultations for 2018. The general public, including charities and not-for-profits, are invited to submit their opinions online at the #YourBudget2018 website and via Twitter with the hashtag #YourBudget2018. The website has four surveys; a video from the Minister highlighting the focus of the consultations, which it states includes the middle class, technology, lifelong learning and gender equality; and email contact for submissions. For additional information on accessing submitted briefs, witnesses’ transcripts and the scheduled meetings of the Standing Committee on Finance, visit the parliamentary website.
Ontario Bill 148, Fair Workplaces, Better Jobs Act, 2017
On November 27, 2017, Bill 148, Fair Workplaces, Better Jobs Act, 2017 (“Bill 148”), received Royal Assent. Bill 148 amends three employment-related acts, introducing significant changes applicable to employers in Ontario, including charities and not-for-profits. For a detailed review of the most relevant changes introduced by Bill 148, see Charity &and NFP Law Bulletin No. 411, above.
Ontario Bill 154 Receives Royal Assent
On November 14, 2017, Bill 154, Cutting Unnecessary Red Tape Act, 2017 (“Bill 154”), received Royal Assent, with several provisions concerning amendments to the Ontario Corporations Act (“OCA”), the Ontario Not-for-profit Corporations Act, 2010 (“ONCA”), and the Charities Accounting Act (“CAA”) coming into force the same day and others scheduled to come into force at a later time. Further information on the Bill 154 amendments to the CAA on “social investments” is available in Charity & NFP Law Bulletin No. 407 and “Social Investments Now Permitted under Charities Accounting Act”, below. Further information on the Bill 154 amendments to the OCA is available in Charity & NFP Law Bulletin No. 406 and Charity & NFP Law Bulletin No. 412, below. For information on the Bill 154 amendments to the ONCA, see Charity & NFP Law Bulletin No. 409.
Ontario’s Seniors Active Living Centres Act, 2017 now in force
On October 1, 2017, the Seniors Active Living Centres Act, 2017, (the “Act”) replaced the Elderly Persons Centres Act in accordance with the Protecting Patients Act, 2017, previously discussed in the June 2017 Charity & NFP Law Update. The Act regulates “corporations without share capital having objects of a charitable nature” with regard to the approval of programs and the payment of grants, as described in the Act.
Changes to Ontario Condominium Act, 1998
On November 1, 2017, new changes to the Condominium Act, 1998 as well as the new Condominium Management Services Act, 2015 came into force, as contemplated in Bill 106, Protecting Condominium Owners Act, 2015. Among the many changes that are now in force, several of which target condominium boards as well as new corporate requirements, there are new forms, mandatory training for condominium board directors, disclosure requirements for board members, mandatory licensing of managers, and information certificates, as well as the establishment of a new online tribunal of the Condominium Authority of Ontario.
Restriction on Frequent Charitable Auction Liquor Permits Repealed in BC
On September 18, 2017, British Columbia Regulation 172/2017 repealed the prohibition on section 127 of the British Columbia’s Liquor Control and Licensing Regulation under the Liquor Control and Licensing Act. Section 127 previously did not allow the issuance of a charitable auction permit to a non-profit corporation or a representative of a non-profit corporation to sell liquor by auction on a date that was less than 31 days after the latest permit to sell liquor by auction had been issued to the non-profit corporation or representative.