Chapter 14 Employees and Employment Standards

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 2 Summary of Objectives  To define master, servant and independent contractor  To determine the appropriate elements of a job description  To examine discrimination legislation  To establish rights and duties of employers and employees

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 3 The Nature of Employer- Employee Relationships  The master identifies the services to be performed as well as when, where, how and what standard of service is required.  There are two types of servant – the employee, and the independent contractor.  The servant decides whether to serve after a consideration of contract terms.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 4 Independent Contractor or Employee?  Does the servant work for other employees?  Does the employer control the working conditions?  Does the employer own the tools used to complete the work?  Does the servant have the authority to hire staff?  Who bears the risks and is entitled to the profits?

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 5 Duties of Employers  Employers must provide a safe work environment.  Employers must make statutory remittances.  Employers should create accurate job descriptions that include job dutiesjob duties remunerationremuneration duration of term of employmentduration of term of employment likelihood of changes to positionlikelihood of changes to position

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 6 Human Rights Protections  Protected grounds include race, colour, creed, ethnic origin, place of origin, religion, sex, sexual orientation, marital status, family status, age and disability – including drug and alcohol dependency.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 7 Human Rights Protections 2  Employers have a duty to accommodate the protected needs of employees.  Affirmative action programs protect underrepresented groups.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 8 Duties of Employees  Employers have the right to expect from employees proper performance of workproper performance of work good faith and loyaltygood faith and loyalty confidentialityconfidentiality the honouring of non competition agreementsthe honouring of non competition agreements reasonable noticereasonable notice

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 9 Termination of Employment  Termination of the employment relationship may arise when the contract expireswhen the contract expires when there is just cause for terminationwhen there is just cause for termination when there is a wrongful dismissalwhen there is a wrongful dismissal

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 10 Wrongful Dismissal  An employee’s entitlement to damages depends on the type of job and level of responsibilitythe type of job and level of responsibility the length of service and remunerationthe length of service and remuneration the age and job prospects of the employeethe age and job prospects of the employee the manner of terminationthe manner of termination

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 11 Statutory Obligations – Federal  Human Resources Development Canada administers the Canada Labour Codethe Canada Labour Code the Fair Wages and Hours Actthe Fair Wages and Hours Act the Fair Wages Policy Orderthe Fair Wages Policy Order

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 12 Statutory Obligations – Provincial or Territorial  Labour standards legislation applies to people who perform work for an employer for wages.  Employment standards do not apply to all provincial or territorial employees. The many exclusions of workers include federal government and Crown corporation employeesfederal government and Crown corporation employees professionals and students training in the professionsprofessionals and students training in the professions domestic servants and babysittersdomestic servants and babysitters

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 13 Specific Requirements  Legislation requires that personnel records be keptthat personnel records be kept that employees meet the minimum age requirementthat employees meet the minimum age requirement that at least the minimum wage is paid to employeesthat at least the minimum wage is paid to employees

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 14 Hours of Work and Wage Rates  The hours of work legislation varies across Canada from 40 to 48 hours per work week.  Overtime compensation is standardized at 1.5 times the regular rate.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 15 Payment of Wages  Labour standards legislation regulates the payment intervalthe payment interval the methods of payment (direct deposit, cash, or cheque)the methods of payment (direct deposit, cash, or cheque) allowable deductions (statutory remittances, room and board)allowable deductions (statutory remittances, room and board)  Upon bankruptcy of the employer, the employee becomes an unsecured creditor.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 16 Vacations  Employees who have worked twelve consecutive months are entitled to at least two weeks of paid vacation.  Vacation pay varies from four to six percent of gross pay earned in a twelve-month period.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 17 Statutory Holidays  If a holiday falls on a day when the employee is either scheduled to work or on vacation, he or she may choose either to have a replacement day off or to receive wages instead of a day off.  The employer must pay not only the holiday pay, but also premium pay of 1.5 times the regular rate for all hours worked by the employee on a statutory holiday.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 18 Parental Leave  Maternity leave is seventeen weeks for the biological mother.  Parental leave is thirty-five weeks.  Adoptive parents qualify for parental leave.  Seniority and vacation time accrue during parental leave.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 19 Individual and Group Termination  The employer can terminate an employee without just cause if the employee is given reasonable notice of the termination, or payment equal to the duration of the notice period. He or she must also be given vacation pay.  Group terminations (50 or more employees) occur when a business closes or significantly downsizes.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 20 Equal Pay and Pay Equity  These policies attempt to redress systemic gender discrimination.  Equal pay legislation tends to progress through four phases: Equal pay for males and females doing the same jobEqual pay for males and females doing the same job Equal pay for substantially similar jobsEqual pay for substantially similar jobs If “value” of jobs is considered, equal pay for jobs of equal valueIf “value” of jobs is considered, equal pay for jobs of equal value Pay equityPay equity

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 21 Employment Equity  Employment equity programs attempt to remove historical barriers faced by certain groups.  Affirmative action programs assist the underrepresented.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited 22 Employment Insurance  Employment insurance is governed by the Employment Insurance Act (federal)  Employers must withhold premiums up to annual maximums.  The number of required hours of employment to qualify varies from 420 to 700 based upon regional unemployment rates.  Benefits are $413 per week or 55 percent of average insured earnings, whichever is lower.