Order to pay (employment standards)
An order to pay is an order by an Ontario employment standards officer who finds that an employer owes wages to an employee. Section 103(1) of the Employment Standards Act, 2000 lets the officer order the employer to pay, and section 106 lets the officer make an order against directors.
A buyer meets this when reading the target’s employment file, because an unpaid wage order against the seller can show up in diligence. This entry covers Ontario only; check the rules where you are. See how to check employment records in due diligence.
How it works
The ministry’s claim guide says that a claim not resolved by an early resolution officer goes to an employment standards officer, who completes the investigation, provides a written decision and takes enforcement action if necessary. Under section 106(1), when an officer makes an order against an employer that wages be paid, the officer may also make an order for wages for which directors are liable under Part XX of the Act. Section 114 limits when an order may be issued, so the dates matter.
What to ask
- Whether any claim or order to pay exists against the target or its directors.
- Whether an order has been paid, appealed or settled, with the paperwork.
- Which owed amounts, such as vacation pay, the target’s records show as accrued but unpaid.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of OntarioGovernmentEmployment Standards Act, 2000, S.O. 2000, c. 41
- 02Government of Ontario — Ministry of Labour, Immigration, Training and Skills DevelopmentGovernmentFiling a claim — Your guide to the Employment Standards Act
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