On Dec. 5, Queen’s Park legislators unanimously voted to pass Bill 142, or the Construction Lien Amendment Act, which upholds the rights and securities of workers in Ontario.
Bill 142 was first announced in the spring of 2016. Since then, it has remained a priority during legislative sessions. Now that it has received royal assent, it promises a prompt payment system to more than 400,000 workers serving Ontario’s construction industry. It is expected to reduce payment delays, which had been previously identified as the biggest hindrance to investment and productivity.
“This legislation could not have been introduced at a better time, as higher interest rates will make delayed payment unbearable. We hope that this groundbreaking piece of legislation will set the stage for change across the country,” said Prompt Payment Ontario (PPO) director Ron Johnson.
PPO is an alliance of industry professionals who has pushed for the approval of Bill 142. Its purpose and goal is to persuade the government that late payment is a growing problem in the industry and that legislation is needed to ensure that compensation flows as intended down to the workers in the contractor supply chain.
This is the first law of its kind to be passed in Canada and the PPO hopes that it will serve as a model for the rest of the country to propose their own legislature that will protect the financial security of construction workers.