Frequently Asked Questions
(by HR and Small Business Owners)
1. What employment laws apply to my business?
Most Ontario businesses must follow the Employment Standards Act (ESA), the Human Rights Code, and the Occupational Health and Safety Act (OHSA). Federally regulated employers follow the Canada Labour Code. Many workplaces must also comply with WSIB requirements.
2. What’s the difference between the ESA and common law?
The ESA sets minimum standards (minimum wage, hours, leaves, termination pay).
Common law provides additional protections, especially around reasonable notice.
An employee can receive much more than ESA minimums.
3. Do I need a written employment contract?
Yes — written contracts protect your business. Without one, employees default to generous common-law rights, which can significantly increase termination costs.
4. How often should I update my employment contracts?
At least every 1–2 years or whenever there are major legal decisions. Court rulings frequently invalidate older termination clauses.
5. Are independent contractors treated differently from employees?
Yes — but the distinction is legal, not what you call them.
Misclassification can result in ESA liability, back pay, and tax consequences.
When in doubt, get a contract review.
6. What policies does my workplace legally need?
Most Ontario employers need:
Workplace Harassment & Violence Policy
Occupational Health & Safety Policy
Accessibility (AODA) Policy
ESA Poster
Pay Equity compliance (some industries)
Larger teams need additional policies (e.g., JHSC requirements).
7. What should I do before terminating an employee?
Before terminating, employers should:
Review the employment contract
Calculate ESA + common law exposure
Consider risk factors (discrimination, reprisal, protected leaves)
Prepare documentation and scripts
Consider offering a severance package
Always get legal guidance before a termination meeting.
8. What is wrongful dismissal?
Wrongful dismissal is when an employee isn’t given enough notice or pay, not when the employer lacked a “reason.” Even legal terminations can be “wrongful” if the compensation is too low.
9. How much severance or notice do I need to provide?
It depends on:
Contract wording
Length of service
Age
Role
Availability of similar employment
Without a valid contract, common-law notice can be months.
10. Can I terminate an employee without cause?
Yes — most terminations in Ontario are without cause.
You must provide proper notice or severance.
Cause terminations are rare and held to a very high legal standard.
11. What qualifies as termination “for cause”?
Only serious misconduct that makes continued employment impossible — e.g.:
Theft
Fraud
Serious harassment
Major safety violations
Repeated misconduct after warnings
Minor issues almost never meet the threshold.
12. Can I fire an employee who is underperforming?
Yes — but only after proper performance management, documented warnings, and a fair opportunity to improve.
13. Can I terminate an employee on maternity leave?
Not for reasons related to the leave.
You can terminate if the decision is completely unrelated and well documented, but this is high-risk. Get legal advice first.
14. What happens if an employee files a Ministry of Labour claim?
The MOL investigates ESA violations (e.g., unpaid wages, overtime).
Employers may need to provide records and participate in the process.
We can help respond and reduce exposure.
15. Do I have to pay overtime to salaried employees?
Often yes — salary does not remove overtime rights.
Exemptions exist (managers, IT specialists, certain professionals) but are narrow.
16. How do I handle workplace harassment complaints?
Employers must:
Respond promptly
Investigate internally or externally
Maintain confidentiality
Take corrective steps
Not following this can lead to MOL penalties and human rights complaints.
17. Should I conduct my own workplace investigation?
Minor issues can be handled internally.
Serious allegations (harassment, violence, discrimination) often require a trained or external investigator to ensure fairness and reduce risk.
18. How should I handle accommodation requests?
You must explore reasonable accommodation up to undue hardship, such as:
Modified duties
Temporary changes
Flexibility with schedules
Document the entire process.
19. Do I need to track employee hours if they’re salaried?
Yes — unless they are exempt, employers must track hours, breaks, and overtime eligibility.
20. When should employers call a lawyer?
Call us when you are:
Updating contracts
Handling terminations
Managing performance issues
Responding to complaints
Conducting investigations
Implementing policies
Unsure about employee rights vs. business needs
Early advice prevents costly mistakes.
21. What’s the best way to keep my business compliant year-round?
Use:
Updated employment contracts
Annual/quarterly HR checklists
Current policies
Documentation templates
Legal audits
And stay informed through our quarterly HR intel newsletter.
22. Do small businesses really need HR policies?
Yes — policies aren’t only for big corporations.
Even a 1–5 person team has mandatory requirements under OHSA and AODA.
23. Are electronic signatures valid for employment documents?
Yes. E-signatures are widely accepted for contracts, policies, and acknowledgments.
24. Can I change an employee’s job, hours, or pay?
Not without risk.
Significant changes can trigger constructive dismissal.
Get a legal review before implementing changes.
25. What HR mistakes cause the biggest liability?
Top employer traps:
Outdated or missing contracts
Poor documentation
Incorrect overtime calculations
Mishandling terminations
Ignoring accommodation requests
Not conducting proper investigations
Misclassifying contractors