Bill 124, the Protecting a Sustainable Public Sector for
Future Generations Act, 2019 (the "Act") was passed
by the Ontario Legislature on November 7, 2019. The purpose of the
Act is to "ensure that increases in public sector compensation
reflect the fiscal situation of the Province, consistent with the
principles of responsible fiscal management and protect the
sustainability of public services". The Act applies to the
Ontario public service, school boards, post-secondary institutions,
hospitals and other employers in the broader public sector, to the
employees of those institutions and to the unions representing any
of those employees.
The Act provides for a three year "moderation" period.
The moderation period for unionized employers will begin, in most
cases, with the term of the next collective agreement negotiated
after June 5, 2019 (the date on which the Act was first introduced
in the Legislature). The moderation period for non-union employers
begins on the ea
