Bill 177 2011

An Act to amend the Public Sector Salary Disclosure Act, 1996 with respect to disclosure of severance payments

Note: This Act amends the Public Sector Salary Disclosure Act, 1996.  For the legislative history of the Act, see the Table of Consolidated Public Statutes – Detailed Legislative History at www.e-Laws.gov.on.ca.

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

   1.  Section 1 of the Public Sector Salary Disclosure Act, 1996 is amended by adding "and to assure the public disclosure of severance payments greater than $100,000 in respect of employment in the public sector" at the end.

   2.  (1)  The definition of "salary" in subsection 2 (1) of the Act is amended by striking out "or" at the end of clause (b), by adding "or" at the end of clause (c) and by adding the following clause:

  (d)  an amount received by the employee as a severance payment. 

   (2)  Subsection 2 (1) of the Act is amended by adding the following definition:

"severance payment" means an amount paid by an employer to an employee that is required by subparagraph 56 (1) (a) (ii) of the Income Tax Act (Canada) to be included in the employee's income as a retiring allowance; ("indemnité de cessation d'emploi")

   3.  Subsection 3 (2) of the Act is amended by adding the following clause:

  (e)  the amount of any severance payment made by the employer to the employee in the year.

   4.  The Act is amended by adding the following section:

Disclosure of severance payments over $100,000

   3.1  (1)  Every employer shall make available for inspection by the public without charge a written record of the amount of a severance payment of $100,000 or more paid by the employer to or in respect of an employee.

Same, timing

   (2)  The record mentioned in subsection (1) shall be made available promptly after the employer makes a severance payment to the employee.

   5.  (1)  Subsection 4 (1) of the Act is amended by striking out "section 3" and substituting "section 3 or 3.1".

   (2)  Subsection 4 (3) of the Act is amended by striking out "section 3" and substituting "section 3 or 3.1".

   6.  (1)  Subsection 5 (1) of the Act is amended by striking out "section 3 or 4" and substituting "section 3, 3.1 or 4".

   (2)  Subsection 5 (2) of the Act is amended by striking out "section 3 or 4" and substituting "section 3, 3.1 or 4".

   (3)  Subsection 5 (3) of the Act is amended by striking out "section 3 or 4" and substituting "section 3, 3.1 or 4".

   7.  Paragraph 1 of subsection 7 (1) of the Act is amended by striking out "section 3" and substituting "section 3 or 3.1".

   8.  (1)  Clause 8 (1) (d) of the Act is amended by striking out "section 3" and substituting "section 3 or 3.1".

   (2)  Clause 8 (1) (f) of the Act is amended by striking out "section 3" and substituting "section 3 or 3.1".

   (3)  Clause 8 (1) (g) of the Act is amended by striking out "the definition of "salary" or "benefit" for the purpose of this Act" and substituting "the definition of "salary", "benefit" or "severance payment" for the purpose of this Act".

   (4)  Clause 8 (1) (i) of the Act is amended by striking out "section 1, subsections 3 (1) and (3) and clause 8 (1) (b)" and substituting "section 1, subsections 3 (1) and (3), section 3.1 and clause 8 (1) (b)".

Commencement

   9.  This Act comes into force on the day it receives Royal Assent.

Short title

   10.  The short title of this Act is the Public Sector Salary Disclosure Amendment Act, 2011.

EXPLANATORY NOTE

Currently, the Public Sector Salary Disclosure Act, 1996 requires public sector employers to disclose the salary and benefits of employees paid a salary of $100,000 or more in a year.

The Bill amends the Act to require public sector employers to disclose the salary, benefits and severance payments paid to employees if the total of those amounts is $100,000 or more in a year. The Bill also requires public sector employers to promptly disclose severance payments of more than $100,000. A definition of "severance payment" is provided.