Bill 124 Declared Unconstitutional: Implications For The Education Sector

The Ontario Superior Court of Justice recently found Bill 124, Ontario's public sector wage restraint legislation, to be unconstitutional.¹ As a result, the Court declared the statute to be void and of no effect. However, the government has announced their intention to appeal the decision.

This development has been the subject of significant media focus and repudiates another attempt to restrict compensation through legislation for unionized public sector employees, including teachers and other education workers. Below, we review key aspects of the decision.

Background

Bill 124—formally, the Protecting a Sustainable Public Sector for Future Generations Act, 2019 (the "Act")—came into force in 2019. It imposed a three-year "moderation period" on salary and compensation for approximately 780,000 employees in the broader public sector upon the expiry of their collective agreements. This resulted in wage and salary increases being capped at 1% annually (with