
Question:
I've been reading some of the press releases coming out from the Ministry of Labour about changes to Employment Standards, OH&S etc. I have a small business - should I be worried about anything?
Answer:
Well, whether you should be "worried", depends on how well you manage the HR side of your business. Here's a rundown of the most recent MOL news releases.
"Tickets" for Employment Standards violations
You've heard of getting a ticket "on the way to work". Now imagine getting a ticket " at work".
The McGuinty government announced on July 14th that employment standards officers can now issue tickets under a stepped-up enforcement effort.
The government believes that tickets will deter employers from taking advantage of vulnerable workers and will level the playing field for the majority of employers who comply with the law.
Tickets carry fines of $300. OK, so, this won't break the bank for most employers, but it does enable the Ministry of Labour (MOL) to take other action against an employer to ensure compliance. Additionally, any time the MOL is interested in your company - it's generally not a good sign.
Tickets can be issued for a range of Employment Standards violations:
- Failing to pay an employee's wages
- Failing to retain records
- Failing to give vacation time
- Requiring employees to work hours in excess of the daily or weekly limits
1200% increase in Employment Standards inspections
More troublesome for employers is the government's announcement that workplace inspections will increase to 2000.
We decided to dig a little deeper on this issue. While 2000 inspections may not sound like a lot, there were only 151 performed for the entire 12 month period March 2003 - March 2004. This represents a 12-fold increase.
200 new WSIB inspectors
Finally, the MOL announced on July 8th plans to hire 200 new health and safety enforcement staff. Currently there are only 230 inspectors. The additional staff represents nearly a doubling enforcement.
Employers with the highest injury rates will be targeted first with 4 visits per year. Inspectors will use their full array of enforcement tools to safeguard Ontario workers.
We wondered whether these new WSIB inspectors would also have the ability to snoop around an employer's premises to find other "non-OH&S" violations. We did some more digging and found out that while these new inspectors are being hired for the primary purpose of WSIB inspections, they won't rule out that information will be shared with other representatives of the MOL.
What this means for your firm
Any time the Ministry of Labour announces more fines and more inspections it generally means that employers need to be more careful about how they manage the HR.
Here are a couple of things you can do to help reduce the risk of fines and inspections:
1. Make sure you have a good handle on the basics of wages, vacations and especially overtime. Overtime rules have recently changed. A lunch & learn on recent ESA changes could be helpful.
2. Do a quick audit of your employment standards practices.
- Have you got a Pay Equity Plan? (...you should if you have more than 10 employees)
- Have you posted ESA rules and guidelines?
- Is your Employee Policy Manual/Handbook up to date?
- Could your managers use a refresher?
3. Have a look at your NEER surcharge/rebate. Since the WSIB is targeting unsafe employers - a NEER surcharge is your first sign of a problem. Doing a mock Workwell Audit is a real help in getting your OH&S issues cleaned up.
4. Be prepared in case MOL shows up at your doorstep. Make their job as easy as possible. Any inconsistencies or backpedaling on your part will raise warning signs for the MOL inspector.
5. Know that one visit by a MOL inspector could lead to many others.
Stephen Smith, PIVOTAL Managed HR Solutions