Employment standards

How BC law treats it

The Employment Standards Act, RSBC 1996, c 113 applies to most provincially regulated employers and employees in British Columbia. Details such as the minimum wage and excluded occupations are set out in the Employment Standards Regulation, BC Reg 396/95. Section 4 makes the minimums non-waivable: a contract that provides less has no effect to that extent. Federally regulated businesses, such as banks, airlines, interprovincial trucking and telecommunications, are governed by the Canada Labour Code instead. Key standards include overtime after 8 hours in a day or 40 in a week, annual vacation of two weeks after one year and three weeks after five years, statutory holiday pay, unpaid job protected leaves, and paid sick leave of five days per year for eligible employees. Under section 63, an employer that dismisses an employee without just cause must give written notice or pay in lieu that increases with length of service, up to a maximum of eight weeks. Group terminations of 50 or more employees trigger additional notice. An employee can file a complaint with the Employment Standards Branch, generally within six months after the last day of employment. The Branch can investigate, mediate and issue determinations ordering payment, with appeals to the Employment Standards Tribunal. Under section 96, a director or officer of a company is personally liable for up to two months' unpaid wages for each employee, subject to exceptions such as receivership and bankruptcy.

What it means for your business

Employment standards set the floor for every BC payroll. Missed overtime, vacation pay or termination pay can add up quickly across a workforce and lead to Branch determinations with administrative penalties. Directors and officers face personal liability for unpaid wages, which matters for founders of struggling companies and for buyers reviewing a target's payroll and vacation pay compliance in due diligence. Example: A Victoria restaurant pays servers a flat daily rate regardless of shift length. After a complaint, the Employment Standards Branch orders it to pay unpaid overtime and statutory holiday pay to several employees, plus a penalty.

Risks and common mistakes

Treating salaried staff as automatically exempt from overtime when they do not fall into an excluded category. Paying out vacation entitlement incorrectly, or not at all, at the end of employment. Assuming a signed contract can waive minimum standards. Applying BC standards to a federally regulated business that falls under the Canada Labour Code. Overlooking director liability for unpaid wages when a company is winding down.