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There is some good news for the province's minimum wage earners. On International Workers Day (May 1), the minimum wage increase took effect in Québec. The minimum hourly wage in the province is now $9.90, an increase of 25 cents. The minimum hourly wage for the employees who make tips was also increased by 20 cents to $8.55.
In the past five years, the minimum wage has jumped by 25%. This hike surpasses the inflation rate for the same period. Indeed, according to the Bank of Canada's official figures, the average annual rate of inflation for 2007-2012 is 1.84%. Theoretically, this means more money in the pockets of lower-income citizens.
However, the increase has some people concerned. According to this news article, representatives of independent businesses in Québec point out that the recent hike implicitly puts pressure on the employers to increase the wages of other workers who have been in their employ for a substantial period of time. In turn, others say that the latest increase does not go far enough. Although Québec had once the second highest minimum wage in the country, it now has one of the lowest, with only Saskatchewan, Alberta and Yukon offering lesser wages.
According to article 40 of an Act Respecting Labour Standards (the "Act"), an employee must be paid a wage that is at least equivalent to the minimum wage. However, there are exceptions and certain workers are not covered by this provision. Some of these workers include: students working for a non-profit organization that has a social or community mission (e.g., a summer camp); interns or apprentices in professional training programs recognized by the law (e.g., articling students in law or interns in accounting); workers entirely paid on commission who work in a commercial activity off-site, and whose work hours are not controlled by the employer (e.g., commissioned telephone salesperson working from home); some of the workers employed in fruit and horticultural production, etc.
Generally, employees who do not receive their remuneration are not without recourses. Under article 98 of the Act, where the employer fails to pay the wages, the Commission des normes du travail (the "CNT"), on behalf of the affected employee, may claim the unpaid wages from that employer. In fact, the CNT may claim any commission owing to an employee remunerated insofar as it can submit evidence of this debt to a court. It is therefore important for all parties to keep the right documentation to show that owed sums were paid (or not!).
In collaboration with Andrei Molchynsky, student at Norton Rose Canada LLP
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