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Archive for December, 2009

• 24 Dec

  

  Posted by
  Erik Bartz

  
  

  Category

  • Commentary

  Key Drivers to Outsource HR

  0

  With 2009 coming to a close, many small businesses across Canada are starting to feel the effects of a turbulent year ease off, and they’re starting to look for ways to reign in costs and prepare for better days in 2010.  A hot trend in the small business market is Human Resources Outsourcing.  According to Hewitt Associations, a global provider of HR consulting services and research, the most common reason for outsourcing HR is to reduce overhead.  This is achieved by using the HRO firm’s economies-of-scale for things such as benefit products, HR infrastructure, or payroll systems.

  Size Counts

  Economies of scale are the primary method an HRO firm can reduce a business’ operational costs.  By pooling several businesses together, HRO firms aggregate needs for benefits, advice and legal expertise.  Additionally, they can manage routine HR tasks more efficiently as the talent and infrastructure is already in place.  When a small business joins the HRO firm, they simply access these existing programs at reduced rates and a minimal investment of time.  They can jump onto the HRO’s programs and platforms with little start-up time or expense, and can hit the ground running.

  Other reason to outsource human resources include:

  • Access to outside expertise
  • Improving service quality
  • Ability to focus on core expertise
  • High cost of remaining compliant with rapidly changing legislation
  • Eliminate high volume of low-value transactional activities
  • Reduce management distractions away from core business
  • Leverage existing staff to focus on key competencies
  • Reduce transaction costs

  Expanding into Canada

  Outsourcing is also a strategic advantage for foreign companies entering the Canadian market.  An HRO firm can quickly adopt a business’ policies to be compliant with Canadian legislation to on-board staff and efficiently pay their Canadian employees without any headaches.

  The H.R.O.I.

  Studies show once HR operations are outsourced, many companies show a strong return on investment.  IDC, a global provider of market intelligence, conducted a survey of executives and reported almost 85 percent of respondents saved as much as they spent on outsourcing.  And the savings, according to 95 percent of the respondents, went toward operational performance and innovation.  Check out some of our testimonials.

• 23 Dec

  

  Posted by
  Erik Bartz

  
  

  Category

  • Commentary
  • Legislation

  5 Things to Know about Bill 168

  0

  You might not have heard about Bill 168 yet, but businesses in Ontario will be hearing a lot about this amendment to the Occupational Health and Safety Act in 2010.  The Bill, which just received Royal Assent and will go into law on June 15th, defines and addresses workplace violence and harassment.  Though many of us haven’t experience violence in the workplace, it did account for 17% of violence in Canada in 2004.

  This new law will give businesses (with more than 5 employees) a few tasks to complete in order to be compliant.  So here are the top 5 things Employers need to know about Bill 168:

  1. Definition: with the bill comes formal definition of workplace violence and harassment, which gives the OHSA some teeth on the subject.  Implication: Employers will need OHSA compliant policies, have them posted and formally reviewed at least annually.
  2. Assess the Risk: Employers will need to conduct risk assessments for violence and harassment in the workplace, share the results with the Joint H&S committee, and re-assess “as often as is necessary.”  Implication: This is paperwork you definitely want in the office to protect your business in the future.
  3. You need a program to measure and control risks, a published process to request immediate assistance, report and investigate incidents or complaints in the workplace.  Implication: Employers need to document how they will monitor and handle risks and incidents, and of course follow the program in the event of violence or harassment.
  4. Precautions: Become educated about domestic violence, and able to recognize the signs, and learn appropriate ways to help and respond.  This applies to any place an employee works, except in their personal homes though you probably need to pay attention.  Implication: Employers cannot turn a blind-eye to any warning signs.  Note: this part of the Bill is a little murky, so its an area we’ll be watching closely.
  5. Inform:  Employers will need to inform and instruct employees about the policy, program, and provide information related to a risk of violence from a person with a history of violent behaviour.  Implication: Once the policy and program are ready to be implemented, get the staff together to inform and discuss.

  Download our Whitepaper

  We’ve assembled an in-depth whitepaper reviewing Bill 168, and included a checklist and recommendations so your company can quickly become compliant.  Click to download

• 22 Dec

  

  Posted by
  Erik Bartz

  
  

  Category

  • Commentary
  • Link

  4 Considerations Before Using a Bring-Your-Own-Computer to Work Program

  0

  [picappgallerysingle id="7291698"]ITBusinessEdge wrote a great piece yesterday, Employeed-Owned Computer Programs: Diving into Murky Waters which brings up an interesting trend in the workplace and raises some potential legal, security and HR issues.  A “BYOC” program could be a fantastic way for businesses to save money, improve employee performance and engagement, etc, but here’s 4 implications to consider first:

  1. Who “owns” the data? Make sure all employees are covered under data ownership agreements, that state all work-related data and applications are the property of the company.  And at the time of termination, etc that transfer and erasure of the data must be witnessed and verified by the internal IT resources.  Update and utilize intellectual property and confidentiality agreements.
  2. A Security Blackhole?! Provide all your staff with security and anti-virus programs, and conduct occasional audits to verify proper security measures are in place.  Include a security agreement stating the employee will take all necessary and mandated precautions.
  3. Who owns the laptop? Your company puts in a couple grand, but the employee bought it, so then who owns it?  Before the employee gets the money, require a “graduated pay-back” of the funds.  For example, each month represents $200 depreciation of the funds – so if you gave $2000 and the employee leaves 6 months later, they owe back $800.  Check with your accountant for the best way to handle it.  Utilize a waiver to satisfy any employment standards requirements regarding pay deductions.
  4. Make it a choice.  Allow employees the option of a company provided computer or participating in a BYOC program.  Some employees may not be interested in purchasing another computer.
• 15 Dec

  

  Posted by
  Jennifer French

  
  

  Category

  • Commentary
  • Legislation

  The Implications of Rehiring an Employee

  0

  [picappgallerysingle id="247501"]

  Many companies rehire employees who have worked for them in the past.  Typically, they have a “Re-employment Policy” which details the privileges that will be re-instated (i.e. benefits, vacation, and seniority).  However, they may not have considered the obligation regarding severance pay should the renewed relationship not work out.

  The company is required to pay severance for broken periods of service when they add up to five (5) years or more (if severance is applicable).  For example, if an employee had worked previously for the company for 2 years, resigned and was away for 2 years, rehired and worked for another 4 years and then the employee is terminated, he/she would be entitled to severance based on the combined service – therefore, 6 years (the 2 years previously employed plus the current 4 years of employment).  Notice would just be required on the current employment period of 4 years (therefore, 4 weeks of working notice or pay).   Under the Employment Standards Act, 2000 minimums, the total termination pay would be four (4) weeks of notice and six (6) weeks’ severance (if applicable).   In addition, it doesn’t matter how long the break in service is or the reason the employee left initially (quit or termination).  So rehiring an employee can mean taking on a potential severance liability.

  Some suggestions when considering an employee for re-hire include:

  • Insuring that the employee’s qualifications meet the requirements of the vacant position;
  • Confirming that he/she had been in good standing at the time of departure;
  • Reviewing the privileges you may consider reinstating (benefits, vacation, etc.) as there is no legal obligation to do so;
  • Clearly outlining all terms in the new offer letter.
• 14 Dec

  

  Posted by
  Erik Bartz

  
  

  Category

  • Commentary
  • Webinar

  Changes in Small Claims Court

  0

  We recently had a record-breaking (for us anyway) attendance to our webinar: “Wrongful Dismissal and the Changes to the Rules of Court.”  Its also a topic we blogged about a couple weeks back, and I’d like to share some of the highlights from the webinar with you.

  First some background to bring us up to speed.  On January 1, 2010 the Rules of Court for small claims will be changing in Canada.  Here is a brief highlight of the changes:

  1.  Claims doubled from $25k to $50k

  2.  Damages doubled from $50k to $100k

  3.  Simplified procedures are also being introduced for more cases

  In other words, more cases can be processed in Small Claims Court, which don’t require a lawyer, and they will be subject to an enhanced Simplified Procedure.  That means less time for discovery and faster judgements.  All of whihc adds up to a lower cost barrier for disgrunlted employees to sue their former employers for wrongful dismissal cases, etc.

  So although these rules mean Canadian business could get hauled off to court more often and have bigger judgements against them, they still have plenty of options to keep these costs/risks to a minimum.

  1.  Have termination clauses included in all employment contracts (they need to be specific to each employee, and must meet legal minimum standards)

  2.  Have an employee handbook with policies you preach and practice!  (Paper trails are your best friend)

  3.  Don’t be a jerk when it comes time to terminate.  Play fair, play nice, and have a little heart.

  We recently had a record-breaking (for us anyway) attendance to our webinar: “Wrongful Dismissal and the Changes to the Rules of Court.”  Its also a topic we blogged about a couple weeks back, and I’d like to share some of the highlights from the webinar with you.

  First some background to bring us up to speed.  On January 1, 2010 the Rules of Court for small claims will be changing in Canada.  Here is a brief highlight of the changes:

  1. Small Claims court limits have increased from 10K to $25k
  2. Damages doubled from $50k to $100k for claims under the Simplified Procedure rule
  3. Other changes to the Simplified procedures rule are being introduced to speed up claims and reduce costs for claimants

  In other words, more cases will be processed in Small Claims Court, which don’t require a lawyer, costs will be reduced for a disgruntled employee to pursue a claim against their employer.  And now more claims (up to 100K) can now be pursued under the simplified procedure rule that was previously reserved for claims up to 50K.  The additional changes to this rule relating to motions for summary judgement, timeframes for discovery, etc will further speed up the legal process for employees who want to “have their day in court.”

  These rule changes mean Ontario business could potentially get hauled off to court more often and have bigger judgements awarded against them.  However, employers still have plenty of options to keep these costs/risks to a minimum.

  1. Tighten up your employment contracts.  Beyond including confidentiality, non-disclosure, non-compete and IP agreements – have termination clauses included that are specific to each employee, and meet legal minimum standards.
  2. Have an employee handbook with policies you preach and practice!  (Paper trails are your best friend)
  3. As Elvis said, “Don’t be cruel”  when it comes time to terminate.  Play fair, play nice, and have a little heart.

  Give us a shout if you would like some assistance preparing you business for these changes

• 08 Dec

  

  Posted by
  Jennifer French

  
  

  Category

  • Commentary

  Resignation vs. Termination Notice

  2

  Recently, a client contacted me with the following question:

  “If an employee has provided 2 ½ months notice for resignation but we don’t require (or want) him here for more than two weeks – how do we handle it legally?”

  The answer is that it depends on the employee’s service with the company but it is the lesser of the resignation notice or the termination pay that would be owed under the Employment Standards Act, 2000 minimums.  For example, if the employee has 2 years of service, you would owe 2 weeks pay under Employment Standards (rather than 2 ½ months) because in essence you are terminating his employment (see section 56 subsection (1)(a) of the Act).  However, if the employee has 10 years of service, you may be obligated to pay the 2 ½ months (or continue to have the employee work for this period of time).  If severance is applicable, then the employee would be entitled to 8 weeks notice and 10 weeks of severance.  Therefore, the 2 ½ months of resignation notice would be less.  If severance is not applicable, then the employee would be entitled to 8 weeks notice only which would be less than the resignation notice of 2 ½ months.  You would be terminating his employment and paying (or having him work) the 8 weeks of notice.

  So, the next time you have an employee submit a resignation letter with a significant notice period, double check his/her service date!

• 03 Dec

  

  Posted by
  Erik Bartz

  
  

  Category

  • Commentary

  Employers and the Cellphone Ban: Who pays for the fine?

  0

  The cellphone ban has been in effect in Ontario for little over a month now, and maybe its just me but I’ve had a lot less road rage.  Drivers seem to be more attentive, and those chatting on their cellphones sure are getting a lot of dirty looks – this is when they pay attention to the road around them.

  We’ve gotten a lot of traffic on our post: “5 Responses Employers Should Do for the Cellphone Ban” where we discussed updating policies, signing agreements, providing hands-free devices, etc.  So we wanted to follow-up with and discuss some of the consequences of failing to comply with the ban, and in particular take a look at the employer/employee dynamic adding to the complexity of “who pays.”

  Who pays for an accident or property damage where your employee/driver was on a cellphone?

  Well your insurance company isn’t going to be too happy with this scenario, particularly if you haven’t taken any steps to address cellphone usage with your employee.  The insurance company is likely not to pay for the accident, and if they do your premiums are going to get hit hard.  Secondly any time loss as a result of injury and/or court time will be hitting your bottom line as well.

  Since this legislation is still new and not yet tested out in the courts, answers to all the scenarios are still unclear.  In particular, its not clear if accidents will be covered by WSIB if an employee is driving the vehicle, talking on the phone, while on a work assignment at the time of the incident.

  So play it safe, stress the importance of safe and legal driving practices.  Provide hands-free devices, update your policies and require signatures from your employees as proof they understand the policy and will perform in accordance.