Interpretation Guidelines Manual
British Columbia Employment Standards Act and Regulations

employment standards act part 1 – introductory provisions

(a) salaries, commissions or money, paid or payable by an employer to an employee for work,

(b) money that is paid or payable by an employer as an incentive and relates to hours of work, production or efficiency,

(c) money, including the amount of any liability under section 63, required to be paid by an employer to an employee under this Act,

(d) money required to be paid in accordance with

(i) a determination, other than costs required to be paid under section 79 (1) (f), or

(ii) a settlement agreement or an order of the tribunal, and

(e) in Parts 10 and 11, money required under a contract of employment to be paid, for an employee's benefits, to a fund, insurer or other person,

but does not include

(f) gratuities,

(g) money that is paid at the discretion of the employer and is not related to hours of work, production or efficiency,

(h) allowances or expenses,

(i) penalties, and

(j) an administrative fee imposed under section 30.1.

Examples

• a bonus for remaining to the end of a season, for seasonally employed persons, if the bonus was a term and condition of employment when hired, or during the employment period
• additional commission if certain sales objectives are met, such as 10% commission if more than $250 of product is sold in a day
• contributions towards an RRSP if the employee meets certain sales objectives
• a $100 bonus for each employee if the company meets a projected sales target

• any money an employer requires an employee to pay, directly or indirectly, toward an employer's cost of business, is recoverable as wages pursuant to Part 3. s.21(2). This includes money paid out of an employee’s gratuities. [See s.21(3)]
• any money collected or deducted from the employee, but not remitted to a third party as required, is recoverable as outstanding wages, pursuant to s.23.
• interest (s.88(3))
• third party demands (s.90(1))
• seizure of assets (s.92(1)(b))
• wrongful removal of seized assets (s.94(3))
• penalties imposed under Section 98. (s.98(4))

Example

An employer requires all employees who receive tips to put 15% of tips received into a pool. The pool is disbursed to all employees who do not receive tips at the end of each shift according to a formula agreed to by the employees. This activity does not contravene the Act.

Employers cannot deduct from a tip pool, or from tips to which the employer has access, such as those made through debit or credit cards. An employer may not charge an employee for costs such as a "dine-and-dash fund".

Example

An employer requires all tips paid through credit or debit cards to be put in a tip pool. At the end of each month, after paying for dine-and-dash meals, for spillage, and for breakage, the employer distributes the residual to all employees. This activity is a contravention of the Act.

• Gifts or money paid strictly at the discretion of the employer that are not related to hours of work, production or efficiency.

Example

At Christmas an employer surprises each employee with a $100 gift certificate. This payment is discretionary and not considered wages.

• Reimbursement for an employee’s personal expenses, such as car or meal allowances.

• Penalties

Note: A determination issued under s.79 of the Act for unpaid wages must include the imposition of an escalating monetary penalty, subject to s.98 of the Act. The penalty, although not considered wages under the Act is treated as wages for the purposes of collection as noted in s.98(4).

ESA
• s.21, Deductions
• s.23, Employer’s duty to make assigned payments
• s.26, Payment by employer to funds, insurers or others
• s.63, Liability resulting from length of service
• s.78, Settlement agreements
• s.79, Determinations and consequences
• s.85, Entry and inspection powers
• s.87, Lien for unpaid wages
• s.88, Payment of interest
• s.89, Demand on third party
• s.90(1), Failure to comply with demand
• s.92(1)(b), Seizure of assets
• s.94(3), Wrongful removal of seized assets
• s.98(4), Monetary penalties