The construction industry has several minimum standards that are different from other industries. Termination, general holidays and minimum wage are all handled differently in this industry. The Construction Industry Wages Act sets the minimum wage for tradespeople and other construction workers in the industrial, commercial, institutional sector (ICI) and the heavy construction sector.
What is construction?
Construction includes alteration, building, decoration, demolition, erection, maintenance, relocation, renovation or repair of buildings, structures, roads, sewers, water or gas mains, pipelines, transmission lines, tunnels, bridges or canals.
Does the legislation apply to independent contractors?
The legislation only applies to employees. True independent contractors are not employees and are excluded from the legislation, but this type of employment relationship can be complicated. The nature of the relationship between the parties would determine whether someone is truly an independent contractor. Consideration needs to be given to a number of factors, such as:
A person who has not been paid properly and feels they may be an employee, can file a claim with Employment Standards. An Officer will make a determination if the person is an independent contractor or an employee.
How is construction different from other industries?
The Construction Industry Wages Actwhich sets out several different standards in the ICI and Heavy Construction sectors including those for terminating employment, general holidays, minimum wage, and hours of work.
Employees working in the house building sector are covered by The Employment Standards Code, but have different requirements from other industries regarding notice of termination and general holiday wages.
What rights and responsibilities are the same for employers and employees in construction as in other industries?
Most parts of The Employment Standards Code, which establishes the rights and responsibilities of most employees in Manitoba, alsoapplies to employers and employees in construction, including:
See those fact sheets for more information.
When must employees in the construction industry be paid?
Employees who work in the construction industry must be paid within 5 days after the end of the pay period. If employment has ended, the employer must pay all wages owed to the employee within 5 days.
Are the rules the same in all sectors of the construction industry?
The standards for general holidays and termination of employment are the same for all employees in ICI and Heavy construction, but wages and hours of work depend on the type of construction job and its location. The Construction Industry Wages Act covers employees working in the ICI and Heavy Construction sectors.
The Employment Standards Codecovers employees in the house building sector.
How is the termination of employment handled in the construction industry?
Employees and employers in all sectors of construction can terminate employment at any time without notice. No notice is required by either party regardless of the number of years they have worked together.
How are general holidays paid in the construction industry?
Unlike employees in other industries, construction employees are paid for general holidays at 4% of their regular earnings. Regular earnings include vacation wages but do not include overtime wages. Employers can include the general holiday pay on every cheque, or pay it all out at the end of the year.
Construction employees who work on a general holiday are entitled to 1 ½ times the regular wage for all hours worked in addition to general holiday pay.
What are the general holidays in Manitoba?
There are eight general holidays throughout the year:
Most employees are paid general holiday pay for these days whether they work or not.
When are construction employees paid for general holidays?
Construction employees must be paid all general holiday pay by the end of the year. Some employers add general holiday pay to every cheque or in smaller amounts throughout the year, while others pay it all at the end of the year, . Employees who are not sure how they are being paid for general holidays should ask their employers.
Do construction employees have to work on the general holiday to get general holiday pay?
Construction employees earn general holiday pay at 4% of their gross regular wages. They receive this pay, even if they never work on a general holiday.
For example: if employees work from June 1 to June 30, a period where there is not a general holiday, they would still receive 4% of their regular earnings as general holiday pay.
If an employee works on a general holiday, they must be paid 1 ½ times their regular wage for all hours worked on that day, in addition to 4% general holiday pay.
Can employers pay vacation and general holiday wages together?
Employers in the construction industry can pay employees for their vacations and general holidays once a year, on every cheque, or in smaller amounts throughout the year.
For vacation pay, employees earn 2% of their total gross wages for each week of vacation. Employees with less than five years of service with the same employer are entitled to two weeks’ vacation and receive 4% of their regular wages for vacation pay. Employees with at least five years with the same employer get three weeks’ vacation and earn 6% as vacation pay.
For general holidays, the employee receives 4% general holiday pay.
If the construction employee completes five years with the same employer, the vacation allowance increases to 6% ($10,000 X 6%).
What is the minimum wage in the construction industry?
The Construction Industry Wages Act sets the minimum wages for most of the construction industry.
For employees working in residential construction, minimum wage falls under The Employment Standards Code, which, as of October 1st, 2013, is $10.45 per hour in most industries. See the Minimum wage fact sheet for more details.
For employees working in ICIorHeavy construction, the minimum wage rate depends on the type of job the employee is doing. See the ICI Construction and Heavy Construction fact sheets for more information.
What are the standard hours of work in the construction industry?
The standard hours of work in the residential construction sector are 8 hours in a day and 40 hours in a week.
In ICI construction, the standard hours are 10 hours in a day and 40 hours in a week.
In Heavy construction, the standard hours are
Any hours worked in excess of these standard hours must be paid at 1 ½ the employee’s regular wage rate, as overtime.
What types of construction activities are excluded from the heavy and ICI sectors?
The ICI and heavy construction sectors do not include:
Employees doing these types of construction are covered under The Employment Standards Code. See the Quick Guide to Employment Standards fact sheet for more information.
What types of buildings are included in house building?
Generally, the construction of a dwelling unit falls under the house building sector and is covered by The Employment Standards Code. However, the construction of an apartment building or complex, whether the units are rented or owned, is part of the ICI sector.
Is the construction, renovation, or redecoration of a tenant space in a shopping mall part of the ICI sector?
Generally speaking, all renovations and redecorations are excluded from the ICI sector unless the work involves the structural or architectural alteration or remodelling of the building or structure. The need for a blueprint is one sign that the work being done is likely part of the ICI sector.
Are journeypersons who perform maintenance part of the ICI or heavy sectors?
No, the onsite maintenance of an industrial, commercial or institutional building is specifically excluded from the ICI and heavy construction sectors, and is covered instead by The Employment Standards Code.
Are employees in a shop that prefabricate a structure used on a construction site included in the ICI sector?
Employees who prefabricate a structure or part of a structure away from a construction site are excluded from the ICI and Heavy sectors. Employees who are required to build structures or parts of structures directly on the construction site are part of the ICI sector.
Are all farm buildings excluded from the heavy and ICI sectors?Construction of farm buildings is not part of the ICI or heavy sector. A farm building is a building or structure, other than a dwelling, situated on a farm and used in the actual farming operation. This includes buildings used to house equipment or livestock, or those used for production, storage, or processing agricultural produce or feeds. For example: the construction of a hog barn, milking centre, grain bin or silo would be excluded from the ICI and heavy sectors.
Can the cost of tools be deducted from wages?
Some employees may want to buy tools from their employers. The tools may even be a condition of employment, which employees must have for that workplace. Common examples are automotive mechanics and construction workers. Employers can deduct the cost from an employee’s wages only if the employee agrees, and the tool:
See the Deductions fact sheet for more information.
Can the cost of personal safety equipment be deducted from wages or made a condition of employment?
Workplace Safety and Health legislation states that any equipment, device or clothing required to be worn to help with rescue or to provide protection from health and safety hazards at a workplace must be provided and paid for by employers. There are exceptions for safety headwear and some safety footwear.
Contact Workplace Safety and Health at 204-945-3446 for more information.
Who pays for damages to company vehicles, valuable equipment or other losses?
Employers may not deduct wages to cover any costs for faulty work, poor quality work, loss of customers, cash shortages or damages to their property. This includes: the cost of car accidents and parking tickets involving company vehicles; dishes broken by employees, customers leaving without paying. See the Deductions fact sheet for more information.
For more information contact Employment Standards:
This is a general overview and the information used is subject to change. For detailed information, please refer to current legislation including The Employment Standards Code, The Construction Industry Wages Act and The Worker Recruitment and Protection Act, or contact Employment Standards.
Date Published: April 2, 2014