Five Tips from an Employment Lawyer to the Salary-Capped and Frustrated Employee on how to Maximize your Compensation in 2025
As you set goals and resolutions for 2025, are you feeling stifled by a lack of pay increase?
In my public sector career prior to law, I became frustrated at how difficult it was to break away from pay bands or salary freezes to increase my annual income. I would occasionally work separate gigs and take on freelance writing assignments to increase my cash flow and brainstorm ways to reduce my spending.
Here are five considerations from an employment lawyer for the frustrated, salary-capped employee seeking more income in 2025.
- Consider moonlighting. Before you do this, however, you’ll want to look into any exclusivity terms in your employment agreement. Some agreements may require approval before picking up a second job or commencing self employment. However, if the contractual term is ambiguous, contact a lawyer and you may be able to proceed with the side gig without approval from your employer. If you pick up part-time, or even full-time, employment elsewhere, take notice of any exclusivity obligations from your new employer as well to ensure that you are not offside.
- Look into your overtime entitlements. Ontario’s Employment Standards Act, 2000 entitles employees to overtime pay. There is a common misconception that managers are excluded from this entitlement, no questions asked. This is only partially true and comes with qualifications. If managers are performing the work of their subordinates, for example, the exception does not apply. Employees can request overtime pay and if the employer is not forthcoming, a Ministry of Labour complaint will often trigger a mediation, investigation and ultimately, an order to pay unpaid overtime – with little to no cost to the employee. Admittedly, this will not increase your popularity at the workplace but the entitlement is there and if you’re working overtime and thus helping your employer over achieve, it is only fair that your time away from family and personal life permit you to get in on that success. Note that regulated professionals like lawyers, paralegals and doctors are exempt. But similar to the managerial exemptions, the exception only exists if the professional is performing the work of the profession.
- Review your vacation pay entitlements. Was vacation pay paid on your bonus or commissions, for example? Ontario law says that those are wages just like base salary and also attract vacation pay. A Ministry of Labour complaint can also be made for unpaid vacation pay.
- Ensure that you are paid public holiday pay if you work on public holidays. Again, a Ministry of Labour complaint can help to realize these entitlements.
- Look into other forms of compensation or tax sheltering offered at your workplace. For example, does your employer provide equity or RRSP matching but require you to express interest or “opt in”? If so, prod your employer to provide qualification and enrollment details. I frequently speak with terminated employees kicking themselves for failing to take advantage of additional perks included in their employment agreements. Obtaining compensation for them at termination is often a challenge if the employee failed to sign up for these perks prior to termination and money is left on the table as a result.
If you have questions about how these tips can help you, contact Zubas Flett Liberatore Law LLP for counsel at 416-593-5844 or questions@employment-lawyers.ca.