Ontario’s Bill 16, Creating the Foundation for Jobs and Growth Act, receives Royal Assent

Bill 16 (the Budget Bill) received Royal Assent on May 18, 2010, introducing the new Public Sector Compensation Restraint to Protect Public Services Act. This Act freezes net compensation for non-bargaining employees in the Ontario Public Service and the broader public sector until March 31, 2012. It is important to note that the legislation is retroactively effective from March 25, 2010.

Since we last discussed Bill 16 (see our April 2010 Focus Alert, which may be found here) there has been only one change. The Act was first drafted to exempt local boards, which include public library boards, police service boards and boards of health, among others, from its application. The final version of the Act applies to boards of health. Other local boards remain exempt.

For further information, please contact Lynn Harnden at (613) 940-2731.