Though this is not specifically benefits related, we see many Ontario employers failing to implement or properly maintain a Pay Equity plan.  This can create a very high cost problem when the auditors come knocking, and it doesn’t just hit high profile companies, but huge settlements can be forced on companies as small at 10 employees.

The article below helps employers to understand who Pay Equity applies to… 

In Ontario, since January 1, 1988, all public sector employers and all private sector employers with 10 or more employees have obligations under the Pay Equity Act (the “Act”) to ensure jobs of equal value receive equal pay.

It also explains where things can go wrong…

The financial consequences for non-compliance may be devastating. There is no limitation period on pay equity, meaning that an employer can be ordered to pay retroactive adjustments to the date the adjustment should have first been paid. This date can be as early as 1988, depending on when the employer became subject to the Act and when the non-compliance occurred, plus interest. These retroactive adjustments are payable not only to current employees, but also to former employees.

Ontario Employers, Pay Equity Or Pay The Price: Comply Now Or Face Potential Liability Retroactive To 1988

https://www.mondaq.com/canada/employee-rights-labour-relations/1484842/ontario-employers-pay-equity-or-pay-the-price-comply-now-or-face-potential-liability-retroactive-to-1988

The Employment Standards Act allows employees to take 3 unpaid days each year for personal illness, injury, or medical injury.  This has required doctors notes in the past, but the government is looking to changes this and is covered in the article below.

Ontario Government Announces Changes To Requirement For Medical Notes Under The Employment Standards Act, 2000

https://www.mondaq.com/canada/employee-rights-labour-relations/1462458/ontario-government-announces-changes-to-requirement-for-medical-notes-under-the-employment-standards-act-2000

The article below is a great reminder of the importance of getting employment contracts signed BEFORE the employee starts.

I would add that this is also a great time to have employees complete their benefit plan enrolments (and health questions, if required). This timing avoids chasing them down after they have started, and the problems with people saying they don’t want to be on the plan, or have deductions, when it is mandatory and required by the contract.

It’s critical that your business obtains employee sign off and acceptance of their terms and conditions of employment prior to the employee’s first day of work.

https://connectsus.com/blog/why-your-canadian-employee-must-sign-their-employment-contract-their-first-day-work

We have more and more clients using HealthCare Spending Accounts (HSA or HCSA) each year.  This is a valuable benefit which has lower administrative costs than traditional benefits, and provides great flexibility to employees and their families.

In order to ensure your employees HSA is best utilized, it makes sense to coordinate usage with spousal benefit plans.  (If you are single, or don’t have spousal benefits, you can ignore this post).  The document below provides a simple example of how this process works.  Depending on the provider (insurer or TPA) you use, claims may be handled in slightly different manners, but the general order of operations shown below apply.

If you’re interested in adding an HSA to your plan, or have one and would like to increase your HSA annual limit, let us know and we can make it happen.  Most plans work on the calendar year, so there is lots of time to discuss before make changes for 2025.  Starting an HSA can be done at almost any time.

I think this is a pretty great and quick read about how to do handle termination correctly and items to keep in mind.

If you’re a Mainstay client, we have HR resources to help you with templates, policy and handbook samples etc. Our new HR ON CALL offering (paid by us) is even more timely and can be used to schedule a call for things like this.

Reach out if you’re not already signed up.

HR Resources

With employers across the country terminating employees en masse, it is important to understand how to approach terminations in a lawful way. This article sets out a five-step guide that any employer or human resource professional can follow when broaching the topic of termination.

1. Identify the “Why”
2. Understand Your Severance Obligations
3. Prepare Termination Documents
4. Conduct the Termination Meeting
5. Issue Payments and the Record of Employment

https://www.mondaq.com/canada/employee-rights-labour-relations/1442378/a-5-step-guide-on-how-to-legally-terminate-an-employee