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Strategic Use of Contracts, Policies & Procedures
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February 28, 2020
Strategic Use of
Contracts, Policies &
Procedures
Stuart Rudner
stuart@rudnerlaw.ca
416.864.8501
Presented by:
Prepared for:
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Disclaimer
The user is authorized to use this presentation for the user’s own needs only, and is not
authorized to make copies thereof for sale or for use by others.
This presentation is not provided for the purpose of providing legal advice.
Every situation is unique and involves specific legal issues. If you would like legal advice
with respect to the topics discussed in this presentation, or any Employment Law
matter, we would be pleased to assist you.
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True or False?
● every employee has a probation period during which they can be
dismissed without notice or cause
● severance is one month per year of service
● employees can agree to average their hours over several weeks instead
of accruing overtime weekly
● employees paid by annual salary don’t get overtime
● part-time employees get the same vacation, holidays, etc. as full time
employees
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Mistake: Risky Hiring Practices
● luring people away from secure jobs → increased severance
● knowing too much can be costly!
○ Human Rights Code - be aware of protected grounds
● misrepresentation / bad faith
● not having a contract in place
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Human Rights in Hiring Process
Avoid human rights issues
● cannot discriminate on protected grounds
● you don’t want to know more than you have to
● use social media but
○ risk of inaccurate information
○ take everything with a grain of salt
○ risk of stumbling on inappropriate information (e.g. race, age,
disability)
○ protect yourself
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Mistake: Not using employment
agreement for every employee
● every employee has a contract
● if you don’t set the terms, many (employee friendly) terms will be
“implied”
● having them sign when they start is too late - no consideration
● using offer letters first
● tailor contract to role
● consider terms like restrictive covenants
● avoid ambiguity
● maintain discretion
● ensure it is legally compliant & effective
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Why Use Contracts and Policies?
● increase rights & flexibility
● control costs
● increase Certainty - Reduce Need for Lawyers (especially at
termination)
● protect corporate interests
● restrict post-employment conduct
● govern your workplace!
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Termination Clauses
● enforceable if done properly
● avoid uncertainty of “reasonable notice” & reduce dismissal costs
● use clear language
● don’t go below employment standards
● use saving clause
Example: A 65 year old Office Manager has worked with the same clinic
for over 30 years with slim chances of re-employment
Written Contract: As little as 8 weeks’ pay
No Written Contract: Potentially 24+ months’ pay
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Employment Agreements
Partial Checklist
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✓duties (maintain flexibility)
✓compensation and benefits
(maintain flexibility)
✓restrictive covenants
✓termination
✓probation
✓no conflicting obligations
✓hours of work
✓vacation / holidays
✓acceptance of policies
✓conflict of interest
✓expenses
✓social media
✓use of personal devices
Customize!
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Make the Contract Enforceable
Best practice:
● no verbal offers of employment
● the contract is the offer
○ not hired until they sign
● avoid emails like “welcome aboard” until then
● allow opportunity for independent legal advice
● provide consideration for changes
● review contracts regularly to ensure they reflect current state of law
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Mistake: Paying an employee
as a “contractor”
Employee:
● contract of service
● part of the organization / team
● set hours
● subject to review, oversight &
discipline
● entitled to protections of employee
Independent contractor:
● contract for services
● in business for themselves
● no right to direct, oversee, or review
● no set hours
● no payroll taxes or ESA entitlements
● risk: CRA penalties, Ministry of Labour
violations, etc.
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Policies
Required
● Workplace Harassment and Violence (OHSA)
● Workplace Health and Safety (OHSA)
● Accessibility Policies (AODA)
Recommended
● Human Rights / Workplace Discrimination
● Attendance and Absences
● Vacation
● Drugs and Alcohol
● Social Media and Use of Tech
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What else is relevant to
your workplace?
Your Workplace, Your Rules
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● some policies are legislatively required
● others will give you additional rights
● cannot discipline for not following rules that don’t exist
● must communicate & train
● monitor, apply and discipline
Mistake: Not keeping policies up to
date (or having any)
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Customization!!!
It is CRUCIAL that you customize the Handbook to suit your individual
workplace
● make sure that the Handbook makes sense for your workplace
○ if a policy does not apply, it should be removed or changed
○ terminology should reflect your workplace
○ policies should reflect your processes!
○ add policies as needed to govern your workplace
● not “one size fits all”
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Training
Mandatory training requirements:
ALL WORKERS must receive training on:
● Occupational Health and Safety Awareness Training for Supervisors
and Employees
● Workplace Health and Safety Training
● Workplace Harassment and Violence Training
● Training on the AODA and the Human Rights Code
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Health and Safety
The Company is required to:
● provide training on policies;
● advise employees of hazards in the workplace;
● provide training on safety equipment and safe operating procedures;
● take all reasonable precautions to keep employees safe;
● post copies of the OHSA and certain posters in the workplace.
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Workplace Harassment and
Violence
Employers are required to provide “information and instruction” to all workers on their
Workplace Harassment and Workplace Violence Policy
The training will be different for each employee
● supervisors and managers need to know how to recognize and address issues of
workplace harassment and violence
● anyone who will conduct investigations of complaints need to be trained on how to
conduct a proper investigation
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Workplace Harassment and
Violence - Training
Your training should include:
● what is workplace harassment (including sexual harassment), and how to
recognize it;
● what is workplace violence;
● how and to whom to report an incident of workplace harassment or violence;
● how you will investigate and deal with an incident or complaint of workplace
harassment or violence; and
● how you will report the results of the investigation to the complainant and
respondent.
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Posting Requirements
Employers required to post in conspicuous location within workplace:
● the Employment Standards in Ontario poster
● the OHSA “Prevention Starts Here” poster
● a copy, in full, of the OHSA
● the Health and Safety Policy
● the Workplace Violence and Harassment Policies
● the WSIA “In Case of Injury” poster
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Mistake: Mishandling Requests for
Accommodation
● never dismiss accommodation requests out of hand
○ even if they are unusual
● have clear policy & standard process
● understand what you can/cannot request
● don’t be scared to push back where appropriate
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Mistake: Failure to investigate
harassment
● investigation required even if no formal complaint
● or “victim” tells you not to
● investigation must be impartial
● conclusion must be reached
● do not ignore concern or rush to judgment
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THANK YOU!
Feel free to contact us if we can be of assistance. We’d be glad to speak with you.
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905.209.6999
www.rudnerlaw.ca
info@rudnerlaw.ca
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Markham, ON L3R 6H3
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