The Ontario government appealed the Superior Court of
Ontario's decision in respect of Bill 124,
the Protecting a Sustainable Public Sector for Future
Generations Act, 2019 (Bill 124 or the Act), which struck
down legislation that capped public sector compensation
increases. On February 12, 2024, a divided Ontario Court of
Appeal largely dismissed the government's appeal, affirming
that Bill 124 violates the Charter of Rights and Freedoms in
respect of unionized employees.
Background
The Ontario government enacted Bill 124 in November 2019, which
imposed a 1% cap per year on compensation increases for all
employees in the public sector for three years. The stated purpose
of the Act was to address the province's fiscal challenges
and ensure the sustainability of public services.
