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CPP Changes for the Employer
Effective January 1, 2012, employers must deduct CPP contributions for all employees aged 60 to 65 – even if the employee is receiving a CPP or QPP retirement benefit and did not contribute previously.
Employers must also deduct CPP contributions for all employees aged 65 to 70 unless the employee elects not to contribute by giving their employer a copy of the signed and completed Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election. The employee must also send the original to the Canada Revenue Agency.
Employees cannot contribute to CPP after the month in which they turn 70.
For more information, visit cra.gc.ca/cppchanges-employers
New Standards under AODA
The first standard under the Accessibility for Ontarians with Disabilities Act is effective January 1, 2012. The Accessibility Standard for Customer Service applies to all people or organizations (whether in the private, non-profit or public sector) in Ontario that:
- Provide goods or services, and
- Have one or more employees
There are four steps that organizations need to take:
- Create and put a plan in place that:
- Considers a person’s disability when communicating with them
- Allows assistance devices (e.g. wheelchairs, oxygen tanks) in your workplace
- Allows service animals
- Welcomes support persons
- Lets customers know when accessible services aren't available
- Invites customers to provide feedback
- Ensures the employee knows the process for requesting an accommodation (who to ask, their number of sick days, etc.)
- Train staff on accessible customer service
- Put the plan in writing and let customers know how to find their plan (e.g. on the website)
- Report their progress
For employers with more than 20 employees, an annual report must be submitted to the provincial government.
For more information, visit Ontario.ca/AccessON
Salary Adjustements for 2012
Employers project base salary budgets will increase by 3.1% for next year according to Mercer’s 2012 Compensation Planning Survey. This is a slight improvement over the 2011 projected increase of 2.9% but, with an inflation rate projected at 2.6%, working Canadians will not be much further ahead.
For more information, visit www.imercer.ca
Ontario Court Decision on Severance
A recent court decision, Jensen v. Schaeffler Canada, has provided insight on how various kinds of post-employment income should be treated in assessing employees’ entitlement to damages for severance.
In this case, the individual was terminated and subsequently started a new job with lower salary and no disability benefits. The individual was diagnosed with cancer 16 months after being terminated. The court ruled the former employer was responsible for maintaining all benefits through the notice period, which the court felt should be 22 months. As a result, the court awarded the employee long term disability benefits through the former employer.
In this case, the court allowed for a notice period plus an additional amount of pay due to the difficulty a disability posed for the individual for finding new work. However, the total amount was actually less than the employee had received from the combination of Workers Compensation and the termination and severance pay provided under the minimum standard laws (the Employment Standards Act).
The decision provides strong support for the employer’s position that pay in lieu of notice should be reduced by any employer paid disability benefit.
For more information, visit www.fasken.com