Ford government passes Bill 124 – updated
Ford government passes wage restraint legislation – updated
On November 7, 2019, the Ford government passed Bill 124, the Protecting a Sustainable Public Sector for Future Generations Act, 2019.
Bill 124 is wage restraint legislation. It imposes a series of 3-year “moderation periods” – in the form of salary and compensation caps – on a variety of public sector unionized and non-unionized workplaces. We first reviewed the provisions of Bill 124 when it was introduced in June, 2019.
The bill was amended in certain respects prior to its passage. New rules were added to deal with, for example, extension agreements or memoranda of agreement that pre-date the legislation but come into force afterwards. There are also new exemptions, regulation-making powers, and nuanced rules on what constitutes “salary” or “compensation”.
Initially, some of the new rules were contingent on when a particular section of the Act comes into force, but no date had yet been set. The legislation has now come into force. As a result, the rules that were contingent on the coming into force date have now crystalized.