HR Implications in the Workplace

HR Implications in the Workplace

Bill 66, which is the new Ontario law, allows less pay for overtime workers. The new law has significant human resource implications by reducing workers’ morale and vigor towards work. According to The Star, employers in Ontario have lighter responsibility to compensate workers for overtime. The law reduces some protections around excess hours of work in the Ontario province. According to the previous laws, overtime work was to be paid for every hour based on the contract. It was calculated based on whether the employee is paid on an hourly basis, fixed salary, or fluctuating salary (Ruling expected in New Year in largest-ever unpaid overtime lawsuit The Star, 2020). Employers had greater responsibility to ensure that workers are rewarded for extra work they do that is not covered in the net salary. The new law affects human resources in that it reduces the morale of employees and the vigor to offer extra efforts at workplace. Consequently, demoralized workers have low work performance, and this has a direct impact on the quality of output.

Another impact Ontario legislation on overtime payment will have on human resources is based on labor supply. According to The Star, Ontario judges are to issues ruling on the most significant cases of unpaid overtime lawsuits. Ruling in favor of employers reduces the amount of labor supply in the market. If workers are aware that they will not get compensated for the extra work they do, then few will be willing to offer their services to the companies. Exceptionally few employees will be ready to work at the prevailing circumstances, as many will opt to seek other sources of income.

Furthermore, employees sometimes need the extra time to complete a piece of work, and in the process, the quality of performance increases. If they are denied the opportunity to put extra payable efforts, then many will opt-out. A decrease in labor supply will increase the cost of labor in the long run.  Consequently, there will be a competition of labor in the industry.

New Ontario law allows less pay for overtimeThe Star (2020) noted that the Ontario legislation results to, pilling of job, go-slows and reduces the quality of human resources. Failure to pay employees for extra efforts results in the low quality of work performance. Since the rewards for the work are less as compared to the dedication given, employees will render small quality work. In extreme cases, workers may opt to go-slows if they are not paid for the overtime. Most importantly, Ontario legislation may impact on human resource my increasing the volume of work in waiting. With no payment for overtime, the volume of work increases, and more work may pile waiting to be assigned. Employees will be working strictly on their work schedule, observing the time they are paid.  A lot of work is left unattended to creating confusing at workplace.  The overall consequences are not desirable to employers. However, to the employers, the Ontario legislation is a reliever from the burden of paying extra money. It increases their chances of saving for other expenses, which then raises their profits levels.

In conclusion, Ontario legislation has adverse implications for human resource, especially to the employees. For the employers, the law relieves them from liability to pay more money for extra work. The overall result of Ontario law is a reduced rate of work hence a decline in production rate. Further, the quality of work may be compromised due to reduced workers’ moral.

References

New Ontario law allows less pay for overtime | The Star. (2020). Retrieved 5 February 2020, from https://www.thestar.com/politics/provincial/2019/04/02/new-ontario-law-allows-less-pay-for-overtime.html

Ruling expected in New Year in largest-ever unpaid overtime lawsuit | The Star. (2020). Retrieved 5 February 2020, from https://www.thestar.com/business/tech_news/2019/12/12/ruling-expected-in-new-year-in-largest-ever-unpaid-overtime-lawsuit.html