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Ceo Liabilities From Hr Perspective
 

Ceo Liabilities From Hr Perspective

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As the economy recovers and new legislation is passed, the liabilities faced by CEOs are constantly changing. Pivotal is here to keep you informed of these liabilites from the HR perspective. We'll ...

As the economy recovers and new legislation is passed, the liabilities faced by CEOs are constantly changing. Pivotal is here to keep you informed of these liabilites from the HR perspective. We'll cover topics such as:

* Financial Reporting
* Health & Safety
* Human Rights
* Employment Standards

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  • Michelle – Organization structure, however, is more than the boxes on a chart; more than the number ofemployees, positions, or jobs; and more than business processes (e.g., it includes formal and informal patterns of interaction that link all organizational elements toward mission accomplishment). Rightsizing can involve reducing the workforce (downsizing) as well as eliminating functions, reducing expenses, and redesigning systems and policies (e.g., to reduce costs or reduce organizational size). It can also require upsizing (increasing the workforce) in certain areas. Rightsizing eliminates unnecessary work and improves and prioritizes the most important work. It is a multifaceted attempt to reshape the total organization. Some adherents also give rightsizing a strong humanistic orientation. Synonyms: lean organization, revitalization, renewal, reinvention, total organizational performance, organizational design

Ceo Liabilities From Hr Perspective Ceo Liabilities From Hr Perspective Presentation Transcript

  • Presenters:
    Michael Morawiec
    Ekta Tripathi
    CEO Liabilities from an HR Perspective
  • About Pivotal
    Experience: 25+ years/ Private/ Canadian
    Market Position: broadest range of HR solutions
    Outsourced HR management
    HR Help Desk
    HR Projects
    Outsourced Payroll
    Recruiting
  • What you will learn today
    CEO’s are facing increasingly stringent “rules”
    Increases personal and corporate liability
    Higher potential of incarceration
  • Today we will review…
    ….the liabilities CEO’s face in the areas of:
    Financial Reporting
    Health & Safety
    Human Rights
    Employment Standards
  • “CEOs and business leaders on the COMPAS business panel believe that putting executives behind bars is a relatively effective way of keeping the capitalist system honest…”
    BDO Dunwoody Weekly CEO /Business Leader Poll by COMPAS in Financial Post
    June 5, 2006.
    Why be concerned?
  • Why be concerned? (cont.)
    This sentiment is growing…..
  • 1. Financial Reporting (cont.)
    Worldcom, and Enron have become synonymous with greed and financial criminality
  • 1. Financial Reporting (cont.)
    Canada has not been immune to it’s scandals
    Bre-X in the 1990’s provided early evidence that fraud could be perpetrated by senior managers
    This was followed up by the likes of YBM Magnex and Livent
  • 1. Financial Reporting (cont.)
    Led to Sarbanes-Oxley Act in the US
    Canada followed suite with Bill C-13 amending the Criminal Code
    Insider trading is a criminal offence
    Increased penalties for corporate fraud
    Protection for “whistle-blowers”
  • 1. Financial Reporting (cont.)
    Canadian securities administrators have adopted the S-OX requirements
    Ontario has Bill 198 which has strengthened securities law including the right to sue auditors
    The Rules have changed…..
  • 1. Financial Reporting (cont.)
    CEOs and CFOs required to personally certify quarterly and annual statements
    Forensic Accounting and Auditing is a new growth “industry”
    CFOs need strong compliance experience combined with operational skills
  • 1. Financial Reporting (cont.)
    Failure to meet these financial reporting standards has dire consequences
    Just ask Bernard Ebbers, formerly of Worldcom
    Kenneth Lay, formerly of Enron
    Garth Drabinsky, formerly of Livent
    and finally….
  • 1. Financial Reporting (cont.)
    “CIBC Haunted by Enron”
    Four years after a $3 billion settlement to extricate itself from the Enron scandal, CRA is challenging the tax deductibility of the settlement…losing would cost CIBC 8% of it’s book value
  • Health & Safety
  • 2. Health & Safety
    Introduction
    Defines the rights and responsibilities of employees in their workplace to ensure their safety and health.
  • 2. Health & Safety
    Effective H&S performance comes from the top
    Businesses have OHS, legal and financial obligations
    Quantifiable cost and benefit
    Investing in H&S leads to better performance, better working environment
    Introduction
  • Brand Image & Value
    Reduce absences, increase productivity
    Increase motivation
    Reduce costs
    2. Health & Safety
    Benefits to Employers
  • 2. Health & Safety
    Why is it important?
    “...we can do our bit for society by running our companies in a socially responsible way…”
    Giorgio Armani
    “..cannot escape liability for negligence...”
    - The court's verdict in the 1969-1973 lawsuit filed against Chisso by the Litigation Group of Minamata disease patients.
  • 2. Health & Safety
    $21,300Average direct cost (WSIB insurance) due to new lost-time injury in 2007
    $85,200 Average indirect cost of each lost-time injury in 2007 (such as re-hiring, re-training, lost productivity)
    250,000Average number of people injured in Ontario annually
    335 Total deaths which comprises of 257 deaths due to occupational diseases & 78 due to traumatic injuries in 2008
    Why is it important?
  • 2. Health & Safety
    How does it affect you?
  • Human Rights
  • Human Rights
    Why should CEO’s be concerned about Human Rights in Canada?
  • Human Rights
    Respect for human rights, human dignity and equality is a core value in Canadian society and a basis for public policy
    Respect for human rights is the law
  • Human Rights
    Second only to the Canadian Charter of Rights and Freedoms, 1982
    Overrides federal and provincial legislation and collective agreements
    Employers liability impacted by a precedent setting 1987 Supreme Court decision
  • Human Rights
    Robichaud v. Canada (Treasury Board)
    1987 decision held employers liable for harassment in the workplace:
    “it must be admitted that only an employer can remedy undesirable effects; only an employer can provide the most important remedy – a healthy environment”
  • Human Rights
    Employers are liable in virtually all circumstances for any harassment carried out by employees
    Applies to all protected categories, including:
    Race, national or ethnic origin, colour, religion, age, sex, marital or family status, physical or mental disability, conviction where pardoned or sexual orientation.
  • Human Rights
    Changes are continuing...
    Age - mandatory retirement is essentially gone in most of Canada
    Disability - both physical and mental has to be accommodated
    Alcohol addiction is included
  • Human Rights
    Every employer has a duty to accommodate.
    Three factors are considered:
    Cost of the Accommodation
    Outside sources of funding
    Health & Safety Requirements
  • Human Rights
    Factors not to be considered in assessing undue hardship:
    Business inconvenience
    Employee morale
    Third-party preference
    Collective Agreements or Contracts
  • Human Rights
    To insure compliance, a complete strategy requires the following elements:
    A barrier prevention, review and removal plan
    Anti-harassment / discrimination policy
    An internal complaints procedure
    An accommodation policy
    An education / training policy
  • Human Rights
    The consequences of failing to meet Human Rights obligations can be expensive;
    Lane vs. ADGA Group Consultants were assessed $79,279 plus interest for terminating a probationary employee with bipolar disorder
  • Employment Standards
  • Employment Standards
    Introduction
  • Employment Standards
    Introduction
    Provincially regulated
    Sets up basic legal framework
    Provides ways to design flexible work arrangements
    Effectively handles mergers and reorganizations
    Provides greater flexibility for hours of work overtime, vacations and public holiday
    Avoid disputes & minimize potential liabilities
  • Employment Standards
    Provincial government has promised $10 million to hire new inspectors to enforce the Employment Standards Act (ESA)
    That commitment made 3 months ago as part to investigate any contraventions in the ESA
    The hiring would lead to the recovery of more than $17 million in back pay and other obligations from "non-compliant" employers each year
    Why is it important?
  • Employment Standards
    Post the ESA Poster in the workplace
    Retain records with respect to each employee for minimum 3 years
    Provide written notice of termination or pay in lieu
    Ensure employees are free from reprisals
    Requirements
  • Employment Standards
    How does it affect you?
    Fines up to $100,000 - $500,000
    Individuals can be fined up to $50,000 or imprisonment for a term of not more than 12 months or
    Both
  • Employment Standards
    How does it affect you?
  • What should you do?
    To reduce liabilities:
    Have strong CFO & HR capabilities
    Have/Review your current policies & procedures
    Where deficiencies are found, insure that P&P are compliant
    Insure that your organization is trained and adheres to these P&P
  • Questions
    www.pivotalsolutions.com
    Twitter: pivotalHRcanada