Rules are important to businesses all over the world. Without governing regulations, the Canadian marketplace would be in shambles. Rules help to keep companies running fairly and honestly, benefitting both business owners and employees.
With rules come great responsibilities (and even greater penalties). Make sure you understand and follow all workforce compliance regulations. If not, it could mean the end of your business.
As a staffing agency, it’s important for you to ensure your clients are abiding by workforce compliance before you begin placing candidates there. One of these areas is in accordance with the Workplace Safety and Insurance Board.
If a candidate you placed is injured on the job and you could’ve identified your client’s WSIB discrepancies ahead of time, you may be held responsible for the injury. To avoid this situation altogether, it’s essential you take the necessary precautions ahead of time to prevent workplace injuries. You can confirm this by:
- Clearly identifying the worker’s roles and responsibilities,
- Confirming the candidate has the proper training or scheduling necessary orientation and training for them, and
- Reviewing your client’s workplace policies and procedures.
It’s crucial that, before you place any candidate, they have thoroughly reviewed their role, the workplace manual and rules, and the workplace harassment, violence, and health and safety policies.
Placing a new candidate, or changing the duties of an existing worker, raises that dreaded question—are they an employee or an independent contractor? Far too few people know the difference between the two, and a workplace compliance mistake of this magnitude (no matter how unknowingly committed), could mean serious trouble for your company.
Misclassification may not seem like a big deal, but it is considered tax fraud and a punishable offence. Since employers are only required to deduct EI, CPP, and tax deductions for employees, some companies try to pass off their employees as independent contractors to avoid paying the requirements and administrative hassles of payroll.
How can you tell the difference between the two kinds of workers? Thankfully, the government has released a four-point system to determine the status of a worker and prevent worker misclassification.
- If the employer has control over the project, the worker is an employee.
- If the worker stands to make a profit or loss, the worker is an independent contractor.
- If the worker has no control over where and when the project is done, the worker is an employee.
- If the worker must provide their own tools, the worker is an independent contractor.
Still unsure how to properly classify workers to abide by workforce compliance regulations? This is one mistake you can’t risk making. If you still require further explanation, a back office solutions provider can assist you with your workforce compliance questions.
Why is diversity essential in the workplace? Because it’s 2018.
Creating equal opportunities is a fundamental building block in Canada’s identity. In 1995, Canada implemented the Employment Equity Act. This act aims to create equal employment opportunities for four designated groups:
- Visible minorities,
- Indigenous Canadians, and
- Individuals with disabilities.
In this act, Canadian employers and staffing agencies are responsible for eliminating obstacles that may inhibit these four groups from entering the workforce.
Acts of discrimination in the workplace are strictly prohibited under the Canadian Charter of Rights and Freedoms.
If your business is reported to be disobeying the Employment Equity Act and Canadian Charter of Rights and Freedoms, you will be assigned an employment equity compliance review officer who will perform a compliance audit of your company.
Your company may be fined up to $10,000 for a single workforce compliance violation and up to $50,000 for multiple violations.
These are just some of the examples of how workforce compliance errors can cause you major trouble.