Launching a small business is an exciting time. Perhaps you’ve worked closely with business lawyers in Edmonton to find the right structure and approach to doing business. However, there are many essential considerations beyond your business plan. What about a plan to ensure you comply with the many aspects of employment law?
A small business owner may not know all the aspects of the law that corporate lawyers in Edmonton might. However, one must understand some things to avoid potential legal problems in the future. Let’s take a quick look at some of the important areas of the law you should investigate.
1. Understand Wage Requirements and Pay Schedules
A business owner must understand appropriate salaries and wages. The general minimum wage in Alberta is $15 per hour, so you may not set compensation rates below this rate for workers in the general class. You may decide how often to pay workers, but you cannot pay them less frequently than once per month. Employers must also provide “equal pay for similar work” and avoid wage differences created based on gender.
2. Know the Difference Between Employees and Contractors
The type of workers your business employs impacts its legal obligations. You may have employees, independent contractors, or a combination. Both categories receive different levels of protection under the law. What are some of the key differences between the two?
You must pay employees commission or a specific rate, such as hourly wage. Contractors invoice your business instead and may receive payments in installments or simultaneously. Contractors exercise more control over their work hours and work tools, while employees must typically follow a set schedule and use tools provided by the employer. Employers have more direction and control over employees and less over contractors. Both categories have pros and cons, but small business owners must know the difference.
Be careful of designating a worker as an independent contractor, when they are in essence an employee, as per the factors above. A court or tribunal can often times find that a worker was not an independent contractor, and was in fact an employee, despite what the official “arrangement” was between the parties or what the agreement was between the parties.
3. Understand Anti-Discrimination Rules
Alberta’s Human Rights Act sets standards and guidelines for inclusive workplaces and fair hiring practices. Employers should carefully review materials related to this law and structure their selection process to avoid discriminatory conduct. The Alberta Human Rights Act defines many protected grounds on which an employer may not discriminate, meaning an employer cannot discriminate an employee based on the employee’s race or colour, religious beliefs, disabilities, etc. Consider working with legal support to develop practices that align with the law.
4. The Duty to Accommodate
The Alberta Human Rights Act also establishes an employer’s duty to accommodate individuals with disabilities. Except in some cases where accommodations would cause undue hardship for the business, employers must make all reasonable efforts to provide the requested accommodation. This could mean adding accessibility features to an office, offering more flexible work hours or arrangements, and other steps.
5. The Law Surrounding Terminations and Severance
Ending an employment relationship comes with many legal considerations. Employers should strive to understand their legal requirement to provide the proper notice period of termination, pay in lieu of such notice, or a combination. Beware of practices that could lead to wrongful dismissal, such as failing to pay the appropriate severance. Avoid engaging in constructive dismissal practices, such as arbitrarily altering the terms of an employment agreement or hostile behaviour toward employees.
It is important to have a thoroughly crafted and detailed Employment Agreement in order to protect your business and ensure compliance. Termination clauses in employment agreements are a very useful tool for employer but they require precision and attention to detail in their language to be valid enforceable. Such clauses can very significantly limit the amount of severance an employee may be owed at termination. Employment lawyers in Edmonton can offer a way to craft agreements that will achieve such outcomes.
Get the Whole Picture About Employment Law for Your Business
These five elements are essential to know about employment law as a small business owner. Confidence in your approach to compliance frees up time and energy to focus on making your business successful. Interested in learning more and developing legally-sound business practices? Support from knowledgeable business lawyers in Edmonton at Lypkie Henderson offers clarity and insight into this vital information. Connect with our offices today for additional information on how we can help.
