1 (1) In this Act,
"building services provider" means an employer that provides building services including food, security or cleaning services;
"employee" includes a person who performs work for an employer for compensation, a person who supplies services to an employer for compensation in specified circumstances, an individual who is a homeworker, and a person who receives training from a person who is an employer;
"employer" means a person who employs one or more employees and includes an owner, proprietor, manager, superintendent, overseer, receiver or trustee of a business, work, trade, occupation, profession, project or undertaking;
"wages" includes monetary remuneration payable by an employer to an employee under an agreement or by law, a benefit or allowance payable to an employee in cash, and a benefit or allowance that is in kind if the Director so directs;
R.S.O. 2000, c. 41, s. 1; 2004, c. 21, s. 1; 2017, c. 22, Sched. 1, s. 2; 2021, c. 35, Sched. 1, s. 1.
Section 1 is the Act's dictionary. It defines the key terms used throughout every other section — most importantly who counts as an "employee" (much broader than just someone with a formal employment contract) and who is an "employer."
The definition of employee is intentionally wide: it captures gig workers, trainees, homeworkers, and people in ambiguous arrangements — not just those with signed employment agreements. The definition of wages covers cash pay and some non-cash benefits, which matters when calculating entitlements like vacation pay or termination pay.
- Review all working arrangements — contractors, gig workers, and trainees may meet the ESA definition of "employee" even without a formal contract, triggering full ESA obligations.
- Audit whether any benefits paid "in kind" (e.g., company car personal use, housing allowances) constitute "wages" for vacation pay and termination pay calculations.
- Maintain clear records distinguishing independent contractors from employees — the onus is on the employer to prove a worker is not an employee if challenged.
- If operating as a building services provider, be aware that specific successor rights provisions in later sections apply to your workforce.
- If you are called a "contractor" but work regularly for one business, receive direction on how to do your work, and use their equipment, you may legally be an employee entitled to ESA protections.
- All compensation — not just base salary — may count as "wages" for calculating your entitlements: commissions, allowances, and some benefits.
- If you receive training from an employer, you may be covered by the ESA even before formal employment begins.
- Homeworkers (those who work from home for an employer) are explicitly included — and are entitled to 110% of minimum wage.