Upcoming rules lock water and wastewater public corporations to public ownership and protect employees during asset transfers

Plain-language summary · AI-assisted · not legal advice

A set of amendments — not yet in force — will tighten the rules governing water and wastewater public corporations (WWPCs) in Ontario once activated by order. When the changes take effect, WWPCs may only be designated if all shares are held by a municipality, Ontario, Canada, or their agents, and shares can only be issued or transferred to those same parties. A new asset-transfer restriction will prevent a WWPC from disposing of water or sewage infrastructure unless its board first passes a resolution declaring the asset surplus. Municipalities making transfer by-laws will be required to set an effective date for each transfer, and debenture-related liabilities will be excluded from those transfers. Employees moved to a WWPC through a transfer by-law will have continuous employment, will not be considered terminated or constructively dismissed, and the corporation will be treated as a successor employer for labour-relations and pay-equity purposes. The Minister will also gain new regulation-making powers covering debt obligations linked to transferred capital works and the legal effect of transfer by-laws on contracts and rights. None of these changes are in force yet; each takes effect on a date to be set by order of the Lieutenant Governor in Council.

Who this affects: municipal water and wastewater operators · water and wastewater public corporations · municipal councils · employees transferred to water and wastewater public corporations · municipal shareholders and directors