Settling an Employment Standards Claim

• Issued: January 2011
• Content last reviewed: January 2011
• PDF Version [ 93 Kb / 2 pages | Download Adobe Reader ]
• See also: Filing an Employment Standards Claim |  Disclaimer

How are Employment Standards Claims Resolved?

There are four ways in which an Employment Standards Claim can be resolved:

1. An officer investigates, finds the employer has violated the Employment Standards Act, 2000 (ESA), and enforces the Act
2. An officer investigates, finds the employer has not violated the ESA, and denies the claim
3. The claimant and the employer settle the claim
4. The claimant withdraws the claim.

What is a Settlement?

The ESA allows claimants and employers to resolve a claim by entering into a settlement. If a settlement is made and both the claimant and employer do what they say they are going to do then the claim is considered to be withdrawn and any investigation relating to that claim will stop.

When can I Settle a Claim?

Claimants and Employers can decide to settle a claim at any time.

Do I Have to Try to Settle the claim?

No. You are not required to try to settle a claim. It is an option available if the claimant and employer want to try to resolve the claim on their own.

Under What Circumstances Would I Want to Settle a Claim?

In some cases, the investigation of a claim could take months; particularly where there are multiple complex issues that require the review of a large number of documents and records. A quick resolution to a claim may be important to some claimants and employers. If they are willing to work together to find a mutually acceptable solution, they may try to settle a claim.

Claimants and employers who choose to pursue a settlement can get more information about their ESA rights and responsibilities by calling the Employment Standards Information Centre at 1-800-531-5551 or 416-326-7160.

What Happens if I Settle a Claim?

The claim will be considered to be withdrawn and any investigation into the claim will stop if a claimant and an employer:

• Agree to a settlement,
• Do what they say they are going to do in the settlement, and
• Inform the Ministry of Labour in writing of the terms of that settlement.

What if the Claimant or the Employer do not Comply with the Settlement?

If the employer or the claimant fails to do what they said they would do in the settlement, call the Employment Standards Officer that was assigned to the claim. You can find the name and telephone number of the Employment Standards Officer on the letter that he or she sent to you after you entered into the settlement. The Employment Standards Officer will determine whether to resume the investigation of the claim.

For example, if the claimant and the employer have settled a claim with the agreement that $5000 will be paid to the claimant by October 1^st and the claimant does not receive the money on or before October 1^st, the claimant should call the Employment Standards Officer. The officer will continue with his or her investigation of the claim, make a decision about whether there was a contravention, and enforce the ESA if a contravention is found.

What if a Settlement was the Result of Fraud or Coercion?

If a claimant believes that the employer used fraud (lied to get the claimant to agree to the settlement) or coercion (used force or intimidation to get the claimant to agree to the settlement) they can apply to the Ontario Labour Relations Board to have the settlement set aside.

What Cannot be in a Settlement?

A settlement must not allow or require any person to engage in future contraventions of the ESA. For example, the settlement must not require the claimant to work overtime in the future without being paid an overtime rate of pay.

How do I Notify the Ministry of Labour of the Settlement?

If a claimant and an employer settle their claim, they must inform the Ministry of Labour of the terms of the settlement. For convenience, the Notification of Section 112 Settlement Form can be used. Complete the form and attach the terms of the settlement and send both documents to the Ministry of Labour.

This information is provided as a public service. Although we endeavour to ensure that the information is as current and accurate as possible, errors do occasionally occur. Therefore, we cannot guarantee the accuracy of the information. Readers should, where possible, verify the information before acting on it.

ISBN: 978-1-4435-3829-9   (HTML)
ISBN: 978-1-4435-3828-2 (PRINT)
ISBN: 978-1-4435-3830-5 (PDF)