Meeting your obligations as an employer is important not only in terms of meeting legal requirements, but also to ensure that your employees are satisfied at work and motivated to perform and stay. Not complying with these obligations can lead to claims and fines. To provide the right context, it should be noted “small business” generally refers to businesses with less than 100 employees.
For each of these topics, we look at what it is, why it is important, what it means to you, and provide tools and resources to help you further explore.
Please keep in mind that the information provided here does not constitute legal advice. If you require legal advice, please consult a lawyer.
While this portal does not detail how to develop HR policies, the links below provide broad HR advice and tools, including guidance and samples on HR policies and employee manuals. Developing HR policies to ensure compliance and consistency not only inform your employees, but also indicate that you have responded to the various legislative requirements in a thoughtful manner.
Good working conditions benefit both employees and business owners. Studies show that when employees are satisfied at work, they perform better and stay longer. More than 20,000 employment standard claims are filed in Ontario each year. Facing a claim is both expensive and time consuming, and hundreds of businesses are prosecuted every year.
The Ontario Employment Standards are enforced under the Employment Standards Act, 2000 (ESA), which sets minimum standards and regulations that employers and employees must follow.
Key components of the act include:
The standards apply to almost all employers and employees in Ontario. Click here to see the few exceptions. Any HR policies that you develop around the employment standards must not provide less than what is offered in the legislation and/ or regulations. Employers are free to develop policies or practices that enhance those that are required by law.
The Ontario Occupational Health and Safety Act (OHSA) is Ontario’s key legislation for workplace health and safety. It is in place to protect employees from health and safety hazards on the job. The Act identifies three fundamental employee rights:
The Act outlines the duties and responsibilities of all workplace parties and the rights of employees. However, it makes clear that employers have the greatest responsibility for ensuring health and safety in the workplace. It states that employers must take every reasonable precaution to protect workers, provide information and instruction, and to ensure that workers properly use or wear the required equipment. Failure to comply can result in fines of up to $100,000 and/or up to a year’s imprisonment. Corporations can be fined up to $1,500,000 per charge. Employers and supervisors who fail to comply with the OHSA are also subject to fines of up to $100,000.
Your obligations under the Act depend on the size of your organization.
Regardless of the size of your organization, as an employer you are responsible to:
Business owners cannot opt out of OHSA, even if they have opted out of WSIB coverage (these are two separate pieces of legislation).
Workers Compensations Boards are insurance boards that protect employers from being sued by employees who are injured on the job or who become ill because of workplace conditions. They also provide employees with access to income and benefits if they become injured at work or if they contract a disease caused by workplace conditions.
The employer-funded Ontario’s Workplace Safety and Insurance Board (WSIB) is one of the top 10 disability insurers in North America. In addition to a strong prevention mandate, the WSIB provides insurance for injuries and illnesses incurred in workplaces covered under the Workplace Safety and Insurance Act and supports early and safe return to work.
WSIB provides small businesses with guaranteed no-fault workplace insurance that protects you from costly court settlements and provides services and support when you need it. They offer incentive programs, value for premium dollars, and services and expertise to small businesses.
Individual employers who fail to register their business or fail to report an accident may be fined up to $25,000 and/or imprisoned for up to six months for each offence. Corporations are liable to a fine of up to $500,000 for each offence.
Below we highlight which employers are required to provide WSIB coverage:
Essentially, employees fall under two categories as described by The Office of the Worker Advisor:
Information on how your organization is classified (Schedule 1 vs. 2) and what your premiums would be can be found in the resources below.
Human rights legislation seeks to guarantee people equal treatment regardless of identified characteristics (called “prohibited grounds of discrimination”) that have attracted historical stereotyping or bias. It prohibits discrimination in employment, directly or indirectly, and is enforced by the local human rights commission.
Employers benefit from having environments that are inclusive, diverse, and free of discrimination. Such workplaces help to attract and retain the best employees, and maximize employee performance and retention. Discriminatory policies and programs can lead to not looking broadly when hiring. Workplace harassment creates conflict, lowers productivity, and can result in losing valued employees.
Mishandling or ignoring human rights issues can lead to human rights complaints, workers’ compensation claims, grievances under collective agreements, or wrongful dismissal claims. All of these have high costs to the organization in terms of time, money, reputation and morale.
Two pieces of federal legislation set the groundwork for creating a diverse and inclusive workplace:
The majority of employers and small businesses fall under provincial/territorial jurisdiction for human rights legislation; this is the Ontario Human Rights Code. Harassment and discrimination are a violation of the law, and organizations failing to adequately prevent and address them may be held liable.
The Code lists the grounds of discrimination – nobody can discriminate against another person or group of people because of their:
Under the Ontario Human Rights Code, employers, landlords and service providers are required to ensure that they are providing inclusive and non-discriminatory environments. Employers should be aware of human rights legislation as it applies to all employment practices, including:
OHRA suggests that a complete strategy to prevent and address human rights issues should include all of the following elements:
Keep in mind that companies with more than 100 employees contracted to the federal government need to comply with the Federal Contractors Program (see the Employment Equity Act page).
The Accessibility for Ontarians with Disabilities Act (AODA) is Ontario legislation adopted in 2005 with the goal of making Ontario completely accessible for individuals with disabilities by 2025. Accessibility Standards have been developed for five key areas of daily living:
The first Standard was the Customer Service Standard, which came into effect in 2012. The remaining four Standards were combined into one regulation called the Integrated Accessibility Standards Regulation (IASR).
The Employment Accessibility Standards (EAS) mandate that every organization that provides goods, services or facilities to the public or to other organizations, and has one or more employees, must establish and implement employment policies, procedures, and training related to accessibility in recruiting, hiring, retaining and accommodating people with disabilities. The EAS cover the following:
The Employment Equity Act seeks to achieve equality in the workplace so that no person shall be denied employment opportunities or benefits for reasons unrelated to ability and, in the fulfillment of that goal, to correct the conditions of disadvantage in employment experienced by women, Aboriginal peoples, persons with disabilities and members of visible minorities by giving effect to the principle that employment equity means more than treating persons in the same way but also requires special measures and the accommodation of differences. Diverse workplaces are more likely to have recruited and selected from a broad talent base to get the best candidates.
The Federal Contractors Program ensures that organizations that do business with the Government of Canada adhere to the Employment Equity Act.
Employers should identify workplace barriers and develop equity plans for the four designated groups. Only the following federally regulated employers and service providers fall under the federal act:
However, under the Federal Contractors Program, organizations with 100 or more permanent employees who want to bid on a federal government contract, or a standing offer of $1,000,000 or more must first sign the Agreement to Implement Employment Equity.
Whether you fall under the requirements or not, you can promote employment equity by focusing on these key areas:
In practical terms, this means you should:
Business owners and their managers should also ensure that they:
As an employer, payroll requirements include deducting employee Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and income tax from remuneration or other types of income you pay. After making the deductions, the employer must remit the deductions, plus their share, to the CRA. After deductions, employers must report the income and deductions on the appropriate information returns.
Consequences of not meeting your CRA reporting requirements include:
The following steps will help you to understand your responsibilities as an employer and how payroll works. You should maintain proper record keeping throughout this process.
As an employer, you must have a payroll program account to remit your deductions:
You must open a payroll account before the 15th day of the following month after the date on which you start withholding payroll deductions from your employee(s).
When hiring employees, the following should be obtained.
These documents and the relevant information should be kept in your records. It is a serious offence to knowingly accept a TD1 that contains false or deceptive statements. If the employee works for you and you cannot get the above, you are still responsible to start calculating and withholding payroll deductions.
CRA has developed an online tool, the Payroll Deductions Online Calculator (PDOC) for businesses to calculate their payroll deductions.
As an employer, you must remit the CPP contributions, the EI premiums, and income tax deducted from your employees’ income, along with your share of contribution. Your remittance due date is the 15th day of the following month after the date on which you withheld the payroll deductions.
Note that Quebec employers deduct Quebec Pension Plan (QPP) contributions instead of CPP contributions. For information, see Revenu Québec.
All summaries and slips are due on or before the last day of February following the calendar year to which they apply.
Note: If you file more than 50 slips, you must electronically file the information.