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 cover topics such as:

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

Published in: Business, Health & Medicine
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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

    1. 1. Presenters:<br />Michael Morawiec<br />Ekta Tripathi<br />CEO Liabilities from an HR Perspective<br />
    2. 2. About Pivotal<br />Experience: 25+ years/ Private/ Canadian<br />Market Position: broadest range of HR solutions<br />Outsourced HR management<br />HR Help Desk<br />HR Projects<br />Outsourced Payroll<br />Recruiting<br />
    3. 3. What you will learn today<br />CEO’s are facing increasingly stringent “rules”<br />Increases personal and corporate liability<br />Higher potential of incarceration<br />
    4. 4. Today we will review…<br />….the liabilities CEO’s face in the areas of:<br />Financial Reporting<br />Health & Safety<br />Human Rights<br />Employment Standards<br />
    5. 5. “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…” <br />BDO Dunwoody Weekly CEO /Business Leader Poll by COMPAS in Financial Post <br /> June 5, 2006.<br />Why be concerned?<br />
    6. 6. Why be concerned? (cont.)<br />This sentiment is growing…..<br />
    7. 7. 1. Financial Reporting (cont.)<br />Worldcom, and Enron have become synonymous with greed and financial criminality <br />
    8. 8. 1. Financial Reporting (cont.)<br />Canada has not been immune to it’s scandals<br />Bre-X in the 1990’s provided early evidence that fraud could be perpetrated by senior managers<br />This was followed up by the likes of YBM Magnex and Livent<br />
    9. 9. 1. Financial Reporting (cont.)<br />Led to Sarbanes-Oxley Act in the US <br />Canada followed suite with Bill C-13 amending the Criminal Code <br />Insider trading is a criminal offence<br />Increased penalties for corporate fraud<br />Protection for “whistle-blowers”<br />
    10. 10. 1. Financial Reporting (cont.)<br />Canadian securities administrators have adopted the S-OX requirements<br />Ontario has Bill 198 which has strengthened securities law including the right to sue auditors<br />The Rules have changed…..<br />
    11. 11. 1. Financial Reporting (cont.)<br />CEOs and CFOs required to personally certify quarterly and annual statements<br />Forensic Accounting and Auditing is a new growth “industry”<br />CFOs need strong compliance experience combined with operational skills<br />
    12. 12. 1. Financial Reporting (cont.)<br />Failure to meet these financial reporting standards has dire consequences<br />Just ask Bernard Ebbers, formerly of Worldcom<br />Kenneth Lay, formerly of Enron<br />Garth Drabinsky, formerly of Livent<br />and finally….<br />
    13. 13. 1. Financial Reporting (cont.)<br />“CIBC Haunted by Enron”<br /> 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<br />
    14. 14. Health & Safety<br />
    15. 15. 2. Health & Safety<br />Introduction<br />Defines the rights and responsibilities of employees in their workplace to ensure their safety and health.<br />
    16. 16. 2. Health & Safety<br />Effective H&S performance comes from the top <br />Businesses have OHS, legal and financial obligations<br />Quantifiable cost and benefit <br />Investing in H&S leads to better performance, better working environment<br />Introduction<br />
    17. 17. Brand Image & Value<br />Reduce absences, increase productivity<br />Increase motivation<br />Reduce costs<br />2. Health & Safety<br />Benefits to Employers<br />
    18. 18. 2. Health & Safety<br />Why is it important?<br />“...we can do our bit for society by running our companies in a socially responsible way…”<br />Giorgio Armani <br />“..cannot escape liability for negligence...”<br />- The court&apos;s verdict in the 1969-1973 lawsuit filed against Chisso by the Litigation Group of Minamata disease patients. <br />
    19. 19. 2. Health & Safety<br />$21,300Average direct cost (WSIB insurance) due to new lost-time injury in 2007<br />$85,200 Average indirect cost of each lost-time injury in 2007 (such as re-hiring, re-training, lost productivity)<br />250,000Average number of people injured in Ontario annually<br />335 Total deaths which comprises of 257 deaths due to occupational diseases & 78 due to traumatic injuries in 2008<br />Why is it important?<br />
    20. 20. 2. Health & Safety<br />How does it affect you?<br />
    21. 21. Human Rights<br />
    22. 22. Human Rights<br />Why should CEO’s be concerned about Human Rights in Canada?<br />
    23. 23. Human Rights<br /> Respect for human rights, human dignity and equality is a core value in Canadian society and a basis for public policy <br /> Respect for human rights is the law <br />
    24. 24. Human Rights<br />Second only to the Canadian Charter of Rights and Freedoms, 1982<br />Overrides federal and provincial legislation and collective agreements<br />Employers liability impacted by a precedent setting 1987 Supreme Court decision<br />
    25. 25. Human Rights<br />Robichaud v. Canada (Treasury Board)<br />1987 decision held employers liable for harassment in the workplace:<br /> “it must be admitted that only an employer can remedy undesirable effects; only an employer can provide the most important remedy – a healthy environment”<br />
    26. 26. Human Rights<br />Employers are liable in virtually all circumstances for any harassment carried out by employees<br />Applies to all protected categories, including:<br />Race, national or ethnic origin, colour, religion, age, sex, marital or family status, physical or mental disability, conviction where pardoned or sexual orientation.<br />
    27. 27. Human Rights<br />Changes are continuing...<br />Age - mandatory retirement is essentially gone in most of Canada<br />Disability - both physical and mental has to be accommodated <br />Alcohol addiction is included<br />
    28. 28. Human Rights<br />Every employer has a duty to accommodate.<br />Three factors are considered:<br />Cost of the Accommodation<br />Outside sources of funding<br />Health & Safety Requirements<br />
    29. 29. Human Rights<br />Factors not to be considered in assessing undue hardship:<br />Business inconvenience<br />Employee morale<br />Third-party preference<br />Collective Agreements or Contracts<br />
    30. 30. Human Rights<br />To insure compliance, a complete strategy requires the following elements:<br />A barrier prevention, review and removal plan<br />Anti-harassment / discrimination policy<br />An internal complaints procedure<br />An accommodation policy<br />An education / training policy<br />
    31. 31. Human Rights<br />The consequences of failing to meet Human Rights obligations can be expensive;<br />Lane vs. ADGA Group Consultants were assessed $79,279 plus interest for terminating a probationary employee with bipolar disorder<br />
    32. 32. Employment Standards <br />
    33. 33. Employment Standards <br />Introduction<br />
    34. 34. Employment Standards <br />Introduction<br />Provincially regulated <br />Sets up basic legal framework<br />Provides ways to design flexible work arrangements<br />Effectively handles mergers and reorganizations <br />Provides greater flexibility for hours of work overtime, vacations and public holiday<br />Avoid disputes & minimize potential liabilities <br />
    35. 35. Employment Standards<br />Provincial government has promised $10 million to hire new inspectors to enforce the Employment Standards Act (ESA)<br />That commitment made 3 months ago as part to investigate any contraventions in the ESA<br />The hiring would lead to the recovery of more than $17 million in back pay and other obligations from &quot;non-compliant&quot; employers each year<br />Why is it important?<br />
    36. 36. Employment Standards<br />Post the ESA Poster in the workplace<br />Retain records with respect to each employee for minimum 3 years<br />Provide written notice of termination or pay in lieu<br />Ensure employees are free from reprisals<br />Requirements<br />
    37. 37. Employment Standards <br />How does it affect you?<br />Fines up to $100,000 - $500,000<br />Individuals can be fined up to $50,000 or imprisonment for a term of not more than 12 months or<br />Both <br />
    38. 38. Employment Standards<br />How does it affect you?<br />
    39. 39. What should you do?<br />To reduce liabilities:<br />Have strong CFO & HR capabilities<br />Have/Review your current policies & procedures<br />Where deficiencies are found, insure that P&P are compliant<br />Insure that your organization is trained and adheres to these P&P<br />
    40. 40. Questions<br />www.pivotalsolutions.com<br />Twitter: pivotalHRcanada<br />

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