: Question and Answers — Compensation Restraint Compliance

The Public Sector Compensation Restraint to Protect Public Services Act, 2010 prohibits compensation increases for non-bargaining employees in the broader public sector for two years. Each employer captured under this Act must provide the Minister of Finance with a compliance report for the period ending March 31st, 2011 and for the period from April 1st, 2011 to March 31st, 2012. The compliance report is available on the ServiceOntario Central Forms Repository at: www.forms.ssb.gov.on.ca/.

Broader public sector employers should send signed compliance reports to the appropriate government sector ministry early enough to allow ministries to submit these reports to the Minister of Finance. Signed compliance reports for the restraint period from April 1, 2011 to March 31, 2012 must be received by the Minister of Finance on or before May 1, 2012.

Q1. What is the Public Sector Compensation Restraint to Protect Public Services Act, 2010?

The Public Sector Compensation Restraint to Protect Public Services Act, 2010 sets out measures which are part of the government's plan to protect services for the public. The Act received Royal Assent on May 18, 2010.

For employees who do not collectively bargain compensation, the Act prohibits increases to rates of pay, pay ranges, benefits, perquisites and other payments in effect on March 24, 2010, before the beginning of April 2012, unless permitted by specified exceptions.

Q2. Who is covered by the Public Sector Compensation Restraint to Protect Public Services Act, 2010?

The Act applies to Ontario Public Service (OPS) staff who do not bargain collectively as well as most non-municipal employees in the broader public sector who do not bargain collectively, including political and legislative staff. All the organizations noted below are covered under the Act:

• The Crown in right of Ontario.
• Agencies of the Crown.
• Authorities, boards, commissions, corporations, offices or organizations of persons a majority of whose directors, members or officers are appointed or chosen by or under the authority of the Lieutenant Governor in Council or a member of the Executive Council.
• The Office of the Lieutenant Governor in Council, the Office of the Assembly, members of the Assembly and offices of persons appointed on an address of the Assembly.
• Every board as defined in the Education Act.
• Every university in Ontario and every college of applied arts and technology and post-secondary institution in Ontario whether or not affiliated with a university, the enrolments of which are counted for purposes of calculating annual operating grants and entitlements.
• Every hospital referred to in the list of hospitals and their grades and classifications maintained by the Minister of Health and Long-Term Care under the Public Hospitals Act.
• Every board of health under the Health Protection and Promotion Act.
• Hydro One Inc., each of its subsidiaries, Ontario Power Generation Inc. and each of its subsidiaries.
• Every other authority, board, commission, corporation, office or organization of persons that may be prescribed.

Q3. Who is not covered by the Act?

The Act does not apply to municipalities and local boards of municipalities as defined in subsection 1(1) of the Municipal Act, 2001, other than local boards of health.

Q4. Are other organizations, not specifically identified as “public sector employers” in the Act, subject to the restraint requirements?

Some organizations are covered if they received a significant amount of funding from the Province. The Act applies to an employer if the organization is an authority, board, commission, corporation, office or organization of persons, other than one described above, that meets the following conditions:

• It received at least $1,000,000 in funding from the Government of Ontario in 2009, as determined for the purposes of the Public Sector Salary Disclosure Act, 1996; and
• It does not carry on its activities for the purpose of gain or profit to its members or shareholders.

Q5. What is required of employers covered by the Act to ensure compliance?

The Public Sector Compensation Restraint to Protect Public Services Act, 2010 requires that each employer subject to the Act provide the Minister of Finance with a compliance report which includes a statement from the highest ranking officer confirming compliance with the Act throughout the reporting period.

Q6. Where do I submit the report?

Compliance Reports are to be forwarded to the ministry that provides the bulk of an employer's public funding. Each funding ministry will identify a contact person who will receive the forms.

Q7. Where may I get more detail on the requirements?

The compliance report and further information on broader public sector compensation restraint are available online at: www.ontario.ca/compensation

Q8. Which organizations need to submit a report?

All organizations covered by the Act are required to submit a compliance report for the restraint period from April 1, 2011 to March 31, 2012 no later than May 1, 2012.