Paying Wages and Keeping Records
Employers and employees need to keep accurate records of the hours worked and the amount paid for those hours. Employers must pay employees for all hours they work and explain how the pay was calculated. Employment Standards requires employers to keep pay records for three years.
Who must keep records?
Employers must keep records of their employees, the hours they work, and the wages paid. It is strongly suggested employees also keep records of the hours they work and what they have been paid.
What records are employers required to maintain?
Employers must keep records for all employees that show:
If an employee is paid a monthly or annual salary, it can be divided into an hourly wage for record keeping purposes. Regular hours of work are not required to be recorded if they do not vary on a daily basis, but any overtime or other changes should be recorded.
How often must employers update records?
Employers must ensure their records are accurate and current. Some items, such as hours of work, need daily updates. Others, such as employee addresses, should be updated when there are changes.
How long must employers keep records?
Employers must keep records for at least three years after records are made. Records showing addresses, dates of birth, and wage changes are kept for three years after the termination of employment. It is important to note that other agencies, such as the Canada Revenue Agency, may require employers to keep different types of records, for different lengths of time.
When must employees be paid?
Employees must be paid at least twice a month, within 10 working days of the end of a pay period. If the employment is terminated, employees must be paid within 10 working days from the date of termination.
How long can a pay period be?
A pay period cannot be longer than 16 days because employees must be paid at least twice a month.
Can employees have monthly or annual salaries?
Employees who are on a monthly or annual salary must have the salary divided to ensure they are being paid at least twice a month.
Can employers pay their employees different wages?
Employers must pay at least minimum wage, but they are free to offer raises and negotiate different wages for employees. Employers cannot, however, discriminate between male and female employees; paying men on a different wage scale from women for work that is the same, or substantially the same, would not be in compliance with The Employment Standards Code.
Do employers need to provide pay statements when they pay wages?
Employers must give all employees written pay statements when they are paid wages. Pay statements are sometimes referred to as pay stubs.
Pay statements must show:
Can employers provide an electronic pay statement?
Yes. Employers can provide an electronic pay statement if employees have easy and confidential access. Employers need to consider the security of the information if they are sending pay statements electronically.
Employers who want to provide a pay statement electronically must ensure employees:
What must a pay statement show?
Pay statements must show:
For more information contact Employment Standards:
Phone: 204-945-3352 or toll free in Canada 1-800-821-4307
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 , The Worker Recruitment and Protection Act, or contact Employment Standards.
Date Published: April 22, 2016