Bill 168 - New Legislation on Workplace Safety - Will Your Business Comply?

If your business has employees you need to be aware of Bill 168, which comes into effect on June 15, 2010. It sets out a number of amendments to the Occupational Health and Safety Act (Ontario). These amendments require employers to develop and maintain policies that address workplace harassment, violence and threats of violence in the workplace. And the policies must be reviewed at least annually.

Workplace Harassment is defined as "engaging in a course of vexatious comment or conduct against a worker in a workplace that is known or ought reasonably to be known to be unwelcome." Workplace harassment may include bullying, intimidating or offensive jokes or innuendos, displaying or circulating offensive pictures or materials, or offensive or intimidating phone calls.

Workplace Violence means:
(a) The exercise of physical force by a person against a worker, in a workplace, that causes or could cause physical injury to the worker;
(b) An attempt to exercise physical force against a worker, in a workplace, that could cause physical injury to the worker; or
(c) A statement or behaviour that it is reasonable for a worker to interpret as a threat to exercise physical force against the worker, in a workplace, that could cause physical injury to the worker.

In workplaces of more than five employees, the policies are to be written and posted in a conspicuous place in the workplace. There have to be mechanisms for reporting violence, investigating complaints and controlling risks.

In anticipation of this new legislation, employers should be reviewing their current policies, assessing risks, security protocols and procedures and implementing training for staff.

For more information, check out the Ministry of Labour Website at http://www.labour.gov.on.ca/english/hs/sawo/pubs/fs_workplaceviolence.php

HST and Resale Real Estate

Many potential home buyers and sellers have been worried about the implications of the HST which kicks in as of July 1, 2010. In fact, no HST will be applicable on the purchase price of a resale home. Some ancillary services, however, will be subject to the new tax. Sellers will have to pay 13% HST on real estate commissions and legal fees associated with selling. Buyers will pay 13% HST on their lawyer's fees and things like house appraisals or status certificates on a condo. But the bulk of the expense - the purchase price, is not taxable. The implications, therefore, for home buyers of resale homes, are not huge. Certainly no reason to panic or rush a decision to purchase your home.

When a Non-profit closes its doors

I just had a question from an accountant friend of mine who asked me the following: a nonprofit client is shutting down its operations and it has a suplus. Where does the surplus go? The answer is "it depends". If the non-profit is a registered charity - the surplus should go to another registered charity. The articles or by-laws of a corporate charity may indicate what sort of charity (usually similar in nature) the proceeds will be disbursed to. If the organization is a nonprofit but not a charity, the proceeds can be disbersed to its members, unless its articles or by-laws stipulate otherwise. Of course this is just Ontario law, folks! Every jurisdiction has different rules.

Barrie Senior Awards

Do you know an exceptional senior in Barrie? Nominate them for an award for their community service at http://bit.ly/cqa2JI

Can't Pay the Rent?

In these economic times I have, unfortunately, had a few clients who have been struggling to continue to make their monthly lease payments on their commercial or industrial space. When they call, I usually give them this advice: let's call the landlord. The most practical piece of advice a lawyer can give in these situations, in my opinion, is to keep the lines of communication open. Sure the landlord wants to get paid, but he may also be willing to negotiate with you, over the short term, in order to keep you as a long term tenant. Often, the last thing he wants is to have to look for a new tenant. Of course, every situation is different, and yes, sometimes landlords are just waiting for the opportunity to distrain a tenant's goods and lock them out, but if your business has always paid its rent on time, and you are simply in need of a little flexibility to get you over a short-term hurdle, a phone call to the landlord can't hurt. We have had some success in negotiating alternative rental arrangements to get clients through hurdles. Letting the landlord know that you want to pay the rent, and asking him for a plan to make that happen, can be an up-front and straight-forward approach, and an excellent alternative to simply ignoring his calls and not paying your rent on time.

Small Claims Court Limit Increase

Effective January 1, 2010, the limit for claims in Ontario small claims courts has increased from $10,000 to $25,000. With the process being relatively user friendly, and not requiring a lawyer, I would imagine the number of claims will increase significantly, providing access to justice for people who may have otherwise declined to pursue a claim due to legal costs. For businesses, this means larger accounts receivable, for instance, can be collected through this process, with few upfront legal expenses. Good news for the small business community.

Non-Competition Covenants

When an employer hires an employee, they are often concerned with what might happen if that employee was to leave and work for a competitor or start a competitive business. Quite often, employment agreements will contain non-competition covenants which stipulate that, upon termination of employment for any reason, the employee agrees not to compete with the employer within a certain georgraphic region and a certain period of time. Difficulties can arise where these covenants are too broad, and not necessary for the reasonable protection of the employer's interests. Sometimes these covenants are entirely unenforceable. A good question to ask yourself, as an employer, is: can I reasonably protect my business by using a confidentiality clause (employee agrees not to disclose any confidential information of the business) and a non-solicitation covenant (employee cannot solicit the existing customers or prospects of the business). If your interests can be protected using these means, it may make sense to draft your employment agreement accordingly. Having an agreement that is both reasonable and enforceable makes good business sense.