On November 8, 2019, the Provincial Government passed Bill 124,
"the Protecting a Sustainable Public Sector for
Future Generations Act, 2019" ("Bill 124").
Bill 124 imposes wage restraint in the public sector for both
unionized and non-unionized employees. The purpose of this
legislation is "to ensure that increases in public sector
compensation reflect the fiscal situation of the Province, are
consistent with the principles of responsible fiscal management and
protect the sustainability of public services."
Bill 124 applies to certain public sector entities, including
not-for-profit entities that received at least $1,000,000 in
funding from the Ontario Government in 2018.
Bill 124 creates a 3 year "moderation period" during
which time compensation increases for individual positions must be
limited to no more than 1% per year. For non-unionized employers
the 3 year "moderation period" begins on a date selected
by the employer after June 5, 2019 or January 1, 2022,
