Interpretation Guidelines Manual
British Columbia Employment Standards Act and Regulations

Employment Standards Regulation - Part 2 - Employment Agencies and Farm Labour Contractors

E.S.R. Section 5.1: Calculation of Security

Contents:

Summary
Text of Legislation
Policy Interpretation
Related Information


Summary

This section explains what sections of the Employment Standards Act are considered to be “core requirements” for farm labour contractors, requiring security to be posted and the amount of the security required.

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Text of Legislation

Calculation of security


5.1. (1) In this section, "core requirement" means a requirement under any of the following sections:
(a) section 13 (1) of the Act [Farm labour contractors must be licensed];

(b) section 17 (1) of the Act [Paydays];

(c) section 28 of the Act [Payroll records];

(d) section 58 of the Act [Vacation pay];

(e) sections 15 and 18 (1) [Minimum wage].
(2) Subject to subsection (3), the amount of security required to be posted by a farm labour contractor under section 5 (3) (c) is equal to the amount obtained by multiplying the minimum hourly wage by 80, and multiplying the result by the number of employees specified in the licence.

(3) If a farm labour contractor has not contravened any core requirement for a period stated in Column 1 of the following table, the amount of security required to be posted under section 5 (3) (c) is equal to the amount obtained by multiplying the minimum hourly wage by the number set out in Column 2 opposite the period of non-contravention in Column 1, and multiplying the result by the number of employees specified in the licence.

Period of non-contravention
Multiplier
1 year to less than 2 years
60
2 years to less than 3 years
40
3 years or more
20

(4) For the purpose of subsection (3), the "period of non-contravention" begins
(a) on the date the farm labour contractor begins operating, if the farm labour contractor has not previously been licensed or is newly licensed after the farm labour contractor's licence was cancelled, or

(b) on the date the farm labour contractor resumes operating, if the licence of the farm labour contractor was suspended.

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Policy Interpretation

For the purposes of this section there are five “core requirements”. The “core requirements” are:

Employment Standards Act
  • Section 13(1). Farm labour contractors must be licensed
  • Section 17(1). Paydays
  • Section 28. Payroll records
  • Section 58. Vacation pay
Employment Standards Regulation
  • Section 15. Minimum hourly wage
  • Section 18(1). Minimum wage – farm workers
Contravention of a core requirement:

Where there is a contravention of a core requirement, a determination will be issued under s.79 of the Act requiring the farm labour contractor to remedy their practices and cease contravening the core requirements.

Under s.98 of the Act a person in respect of whom the director makes a determination and imposes a requirement under section 79 is subject to a monetary penalty.

Refer also to s.29 of this Regulation that sets out the escalating monetary penalties that apply to a person who contravenes a provision of the Act or Regulation.

When a second determination is issued against an FLC for any core provision:
  • FLC license is suspended until FLC can provide proof of compliance
When a third determination is issued against an FLC for any core provision:
  • FLC license is cancelled.
Authority to suspend or cancel a licence is provided by s.7 of this Regulation.

Note: A determination issued under s.10 of the Regulation to suspend or cancel a licence is separate from and in addition to a determination issued under s.79 of the Act.

Subsection (2)

Under this section of the Regulation, before a farm labour contractor will be issued a licence, they must post security in the amount directed under s.5.1 of this Regulation. For purposes of the first year of a farm labour contractor’s licence, the amount of security required to be posted will be equal to the amount obtained by:
  • multiplying the minimum hourly wage by 80; and
  • multiplying the result by the number of employees specified in the licence
Subsection (3)

Under this subsection, the amount of security that is required to be posted is reduced, if a farm labour contractor has not contravened any “core requirement” for a period of time established in the table shown in this subsection.

Where there is a history of compliance with the “core requirements”, the amount of security required to be posted will be a lesser amount that under subsection (2) above, as follows:
If there is not contravention for 1 year to less than 2 years:
# employees X minimum wage X 60
If there is not a contravention for 2 year to less than 3 years
# employees X minimum wage X 40
If there is not a contravention for 3 or more years
#employees X minimum wage X 20
Subsection (4)

Fur purposes of calculating the period of “non-contravention” under subsection (3) above, the period begins:
  1. On the date the farm labour contractor begins operating, if:
    • the contractor has not previously been licensed, or
    • the contractor is newly licenced after a licence was cancelled

    OR

  2. On the date the farm labour contractor resumes operating, if a licence was suspended.

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Related Information

Related sections of the Act or Regulation Other:

See www.labour.gov.bc.ca/esb/facshts/

Factsheets

Farm workers (English) (Punjabi)

Farm Labour Contractors (English) (Punjabi)

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