Employment standards – Audits

Basic rules

• An audit may be:
  • officer direction to the employer to conduct a self-audit
  • a Crown audit
  • an independent, third-party audit
• Audits may be requested at any time, and aren’t limited to instances where an employment standards complaint has been filed or an anonymous tip has been made.

Officer-directed audit

An officer may direct an employer to complete an audit for an employee or a group of employees.

Officer-directed audits may occur as a part of:

• a proactive inspection
• a complaint-initiated inspection
• the complaint resolution process

An officer-directed audit is when an officer directs an employer to conduct a self-audit by a specified date. The employer needs to review their past records to either:

• ensure they’ve been compliant with the minimum standards
• rectify where they haven’t been compliant, which may include paying money owed to employees based on minimum standards, and change their practices moving forward to be compliant

After completing the audit, the employer must provide the officer with sufficient evidence and records to prove that they’ve either:

• been compliant
• have rectified their past actions to be compliant

An officer may issue a direction in writing to direct an employer on how they can change their actions to be compliant with the Code. The direction must be complied with.

Crown audit and independent audit

An officer may recommend a Crown audit or an independent audit conducted by a third party organization.  This may be recommended if an employer has a history of non-compliance or if a significant number of employees are affected. The Director will provide notice to the employer of the Crown or third party audit. The employer is responsible for all costs associated with the audit.

How the law applies

Part 3, section 72 and 78.1 of the Employment Standards Code outlines audits. Section 59 of the Regulations outlines the fees associated with audits.

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