Rules of payment and payroll records including equal pay for equal work

Employers are required to pay their employees by cash, cheque or deposit to the employee’s bank account at least every 16 calendar days. On each payday, employees should receive all wages and commissions owed to them up to seven days prior to payday.

Employers are required to give each of their employees a statement on each pay day showing:

• the dates of the pay period and the gross wages for that period
• the amount and description of each deduction
• the net pay

Should the employer choose to provide electronic pay statements, they must:

• provide the employee with confidential access to the electronic pay statement
• a means of making a paper copy of his statement

If an employee does not receive a pay cheque on time, they are advised to first discuss the issue with their employer to resolve the matter. If the employer does not correct the problem, then the employee should contact the Employment Standards Branch.

Employers cannot withhold or treat as wages any tips, gratuities or employer-imposed surcharges. They are the property of the employee to whom or for whom they are given. Surcharges must be distributed to the employee no later than the next regular pay day after which the employer collected them. There are rules regarding the pooling of tips. For more information, contact the Employment Standards Branch.

When employment ceases, all wages normally due on the next regular pay day must be paid to the employee at that time. All other outstanding wages, commissions, vacation pay, and other benefits must be paid on the following pay day but no later than 21 calendar days after the employee’s last day.

The Employment Standards Act does not expressly set out the conditions under which an employer may deduct monies from an employee’s wages. However, the Labour and Employment Board has established criteria in this regard. Employers should contact the Employment Standards Branch before making any deduction to an employee’s wages other than those regulated by law (Employment Insurance, Canada Pension, Income tax and court ordered).

Where employees of the opposite gender perform substantially the same jobs, in similar work environments, utilizing the same skill level and responsibility, the employer must pay both employees at the same rate.

Employers may deviate from this requirement where there is:

• a seniority or merit system
• a system that measures earnings by quantity or quality of production
• any other system or practice in place that is not otherwise unlawful

Both male and female employees are protected as it relates to equal pay for equal work. However, comparisons may only be made between persons of the opposite gender.

Employers are required to keep payroll records for each employee showing:

• name, address, date of birth and social insurance number
• date the employment began
• number of hours worked each day and each week wage rate and gross earnings for each pay period
• amount and reason for each deduction from gross earnings
• vacation dates, vacation pay due or paid, and the dates of payment
• public holidays pay due or paid, and the dates of payment
• net amount of money paid
• dates and reason the employee was on a leave of absence and any document or certificate relating to a leave of absence
• date of any dismissal or layoff, and the dates of the notices thereof,
• date of cessation of employment
• any other relevant information about the employer/employee relationship

Employers are required to keep payroll records for at least 36 months. This includes any period after the employee ceases to work for the employer. These records must be maintained within the province.

Note that for the purpose of ensuring compliance with the act, an Employment Standards Officer may enter any office or premises and request all books of account and make copies of these items.

When an employer fails to maintain accurate records, the Employment Standards Branch may accept the evidence of the employee with respect to employment. In this instance, the onus is on the employer to prove that the employee’s evidence is incorrect.

Weekly rest period

All employees are entitled to a weekly rest period of at least 24 consecutive hours, if possible, on a Sunday. The only exceptions to this are where:

• the employee is required to cope with an emergency
• the employee is not usually employed for more than three hours in any one day
• the employee works on a Sunday

An employee who works in certain retail businesses may be able to refuse to work on Sunday. If this employee qualifies and wishes to refuse to work on a Sunday, they must give the employer verbal or written notice of the refusal at least 14 days before any Sunday for which the employee refuses to work.

For more information on which employees qualify, contact the Employment Standards Branch.

An employer cannot dismiss, suspend, lay off, penalize, discipline or discriminate against an employee for refusing to work on a Sunday if the employee was permitted to do so.

Training hours

Depending on the circumstances, training hours may be considered regular hours of work and may be required to be paid, unless the training is a pre-requisite for employment.

Food and rest break

All employees are entitled to food and rest breaks as required under the Occupational Health and Safety Act. WorkSafeNB 

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