What are my rights if I get paid in cash for work?

All workers are protected by labour laws, even if they get paid in cash and even if they don’t have valid immigration papers or status.

What forms of payment can employers use?

According to the Employment Standard Act, the law that sets the minimum standards for workplaces in Ontario, your employer can pay your wages by:

cash
cheque payable to the employee
direct deposit to an account in the employee’s name

Employers can also give their employees non-wage forms of compensation, like:

Meal allowances
Commuter benefits
Merchandise
Bonuses

Non-wage forms of compensation CANNOT replace the minimum wage every employee is entitled to.

What are the laws around getting paid in cash?

It’s not illegal to get paid in cash.

Many employers pay their workers in cash, including for jobs in:

Construction
Cleaning
Day labour
Temp agencies
Service industry

Even if you get paid in cash, you’re entitled to at least the minimum wage and a pay stub every time you get paid.

In Canada, part of what you earn for any given pay period will be deducted by your employer for taxes, the Canada Pension Plan (CPP), and Employment Insurance (EI). The amounts of these deductions should be clearly listed on your pay stub.

Don’t be surprised if the cash you get is less than the exact amount you worked, but double-check to make sure the deductions are correct.

Your pay stub should include:

how many hours you worked for that period
your pay rate
any overtime or public holiday pay you earned
deductions taken for taxes, CPP, and EI

At the end of every fiscal year in April, you are responsible for filing your taxes and reporting your earnings to the government. Your employer will give you the tax forms you need to report your income, but it’s a good idea to keep a record of your pay stub just in case.

What if I am working without any status?

You are still entitled to your labour rights even if you are working without a valid Social Insurance Number, work permit, or other immigration status that allows you to work in Canada.

Labour rights include:

Employment standards (e.g., minimum wage, overtime pay, regulated hours, etc.)
Health and safety (e.g., safe working conditions)
Human rights (e.g., the right to equal treatment without discrimination)

You can file a claim at the Ministry of Labour, Immigration, Training and Skills Development if your employer denies you any of your rights.

If you are worried about your immigration status, contact one of the organizations listed at the end of this article first.

The government also keeps track of employers who’ve violated employment standards.

How can I protect myself if I’m working a cash job?

The risk you run while doing a cash job is from failing to keep records or paying taxes. You can take measures to protect yourself to avoid issues with your employer, like pay discrepancies, or with the government if they audit you to check whether you reported your income accurately.

Here are some tips from the Workers’ Action Centre

Record the hours, dates, and locations where you work
Take note of any problems that happen and keep those notes private (either in a personal notebook or device at home)
Keep records of all communication (e.g., texts, emails, phone calls, letters, even notes of conversations)
Research and write down information about your employer and their company (e.g., names and titles, home and work addresses, phone numbers, vehicle information including license plates, etc.)
Only share personal information, like your address and immigration status, with people you trust