Neglecting to comply with legislation
If you are the owner and/or manager of a small to medium enterprise (SME), you are probably occupied with keeping your business afloat. You are handling your operations, overseeing finances, making marketing decisions, hiring and managing people, monitoring sales, and so on.
In addition to those critical functions, you also likely rely on various professionals such as accountants, lawyers, engineers and government representatives to advise you in those areas that you may not possess as much expertise. Surrounded by all this professional advice it would seem logical that you might settle into a feeling of security about your compliance with all of the relevant legislation to run your business.
When it comes to Human Resources, though, there are three reasons why your compliance may be unsatisfactory without your knowledge:
1. |
Your list of advisors does not include a Human Resources professional or employment lawyer.
If you were composing your first symphony and gave the appropriate musicians their parts to practise for violin, cello, clarinet, flute, trumpet, trombone, etc., each of them would concentrate on their particular part of the musical piece. It is not until they all play the music together that anyone would notice that you are missing a drum part. Similarly, all of your business advisors are focused on, and provide expertise in their functional area only. They may not notice that you are missing the people piece. |
2. |
You have to ask the right questions of your advisors - and if you don't know the compliance issues, you won't know what questions to ask.
For example, you would have to realize that there is a minimum wage in order to ask someone how much it is. |
3. |
With Human Resources legislation, often no obvious clues exist to non-compliance.
Most of us would notice the symphony without drums immediately, but a company that was not complying with the minimum wage, may operate in non-compliance for a long time until someone complained or noticed. |
The above are not excuses for failing to comply with legislation, but are reasons that you may not realize your failure to comply. These reasons are offered to help open your mind and your eyes to the possibilities for legislative compliance. Without compliance, your business is in a very tenuous situation.
There are various measures, penalties, remedies, solutions and consequences for companies that do not comply with employment-related legislation. These include:
- Fines, penalties, monetary remedies
- Company or department closures
- Re-instatement of employees
- Certification (unionization) of employees
- Criminal charges against Directors
- Media attention (the bad kind)
- Loss of reputation Loss of business
Now that you are aware that you may not be as well covered in complying with Human Resources legislation as you thought, and are fully apprised of the potential consequences of non-compliance, what are the areas in which you need to examine your practices and policies?
The essential areas of Human Resource legislation that must be adhered to include those related to:
Hiring Employees
- Interview questions and processes
- Hiring practices and decision-making
- Letters of offer or Employment contracts
- References
Compensating Employees
- Wages / Salaries
- Overtime Pay
- Statutory Holidays
- Vacation Pay
Managing Employees
- Policies & Procedures
- Discrimination
- Harassment
- Certification or de-certification of employees
- Maternity / Parental and Leaves
Terminating Employees
- Notice Period
- Lay Offs
Severance Pay
- "Just Cause"
- Releases
Health & Safety of Employees
- Joint Health & Safety Committees
- Training
- Reporting and Investigating Accidents
- Workplace Inspections
For each of the above areas there is specific legislation in place that you may need to be aware of and comply with. Remember that in many cases, enforcement is complaints driven, so it is folly to assume that you are too small for anyone to take notice of.
For more information about these areas, please refer to websites or other resources provided by the following organizations / acts:
- Ontario Ministry of Labour, Employment Standards Act
- Ontario Human Rights Commission
- Pay Equity Commission
- Workplace Safety and Insurance Board
- Personal Information Protection and Electronic Documents Act ("PIPEDA")
As an alternative to researching the above yourself, you may engage the services of a Human Resource consultant and/or a lawyer specializing in Employment Law to guide you through the important areas of compliance and implement the necessary changes to your current practices
If you are the owner and/or manager of a small to medium enterprise (SME), you are probably occupied with keeping your business afloat. You are handling your operations, overseeing finances, making marketing decisions, hiring and managing people, monitoring sales, and so on.
In addition to those critical functions, you also likely rely on various professionals such as accountants, lawyers, engineers and government representatives to advise you in those areas that you may not possess as much expertise. Surrounded by all this professional advice it would seem logical that you might settle into a feeling of security about your compliance with all of the relevant legislation to run your business.
When it comes to Human Resources, though, there are three reasons why your compliance may be unsatisfactory without your knowledge:
1. |
Your list of advisors does not include a Human Resources professional or employment lawyer.
If you were composing your first symphony and gave the appropriate musicians their parts to practise for violin, cello, clarinet, flute, trumpet, trombone, etc., each of them would concentrate on their particular part of the musical piece. It is not until they all play the music together that anyone would notice that you are missing a drum part. Similarly, all of your business advisors are focused on, and provide expertise in their functional area only. They may not notice that you are missing the people piece. |
2. |
You have to ask the right questions of your advisors - and if you don't know the compliance issues, you won't know what questions to ask.
For example, you would have to realize that there is a minimum wage in order to ask someone how much it is. |
3. |
With Human Resources legislation, often no obvious clues exist to non-compliance.
Most of us would notice the symphony without drums immediately, but a company that was not complying with the minimum wage, may operate in non-compliance for a long time until someone complained or noticed. |
The above are not excuses for failing to comply with legislation, but are reasons that you may not realize your failure to comply. These reasons are offered to help open your mind and your eyes to the possibilities for legislative compliance. Without compliance, your business is in a very tenuous situation.
There are various measures, penalties, remedies, solutions and consequences for companies that do not comply with employment-related legislation. These include:
- Fines, penalties, monetary remedies
- Company or department closures
- Re-instatement of employees
- Certification (unionization) of employees
- Criminal charges against Directors
- Media attention (the bad kind)
- Loss of reputation Loss of business
Now that you are aware that you may not be as well covered in complying with Human Resources legislation as you thought, and are fully apprised of the potential consequences of non-compliance, what are the areas in which you need to examine your practices and policies?
The essential areas of Human Resource legislation that must be adhered to include those related to:
Hiring Employees
- Interview questions and processes
- Hiring practices and decision-making
- Letters of offer or Employment contracts
- References
Compensating Employees
- Wages / Salaries
- Overtime Pay
- Statutory Holidays
- Vacation Pay
Managing Employees
- Policies & Procedures
- Discrimination
- Harassment
- Certification or de-certification of employees
- Maternity / Parental and Leaves
Terminating Employees
- Notice Period
- Lay Offs
Severance Pay
- "Just Cause"
- Releases
Health & Safety of Employees
- Joint Health & Safety Committees
- Training
- Reporting and Investigating Accidents
- Workplace Inspections
For each of the above areas there is specific legislation in place that you may need to be aware of and comply with. Remember that in many cases, enforcement is complaints driven, so it is folly to assume that you are too small for anyone to take notice of.
For more information about these areas, please refer to websites or other resources provided by the following organizations / acts:
- Ontario Ministry of Labour, Employment Standards Act
- Ontario Human Rights Commission
- Pay Equity Commission
- Workplace Safety and Insurance Board
- Personal Information Protection and Electronic Documents Act ("PIPEDA")
As an alternative to researching the above yourself, you may engage the services of a Human Resource consultant and/or a lawyer specializing in Employment Law to guide you through the important areas of compliance and implement the necessary changes to your current practices
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