No HR department? No worries, you’re not the only one. Every year, thousands of Canadians with no HR experience start a business. Most small and medium-sized businesses won’t have a team of experts in disability management, compensation, benefits, payroll, hiring, talent management, etc. at their disposal — so what do they do to stay compliant?
With the risk of legal issues, not prioritizing compliance is simply not an option. In this article, you’ll learn how other small to medium businesses maintain compliance with no HR department.
Is an HR Department Legally-Required for Businesses in Canada?
No, Canadian businesses are not required to have a formal HR department. However, these businesses are still required to follow federal and provincial employment legislation. An HR department can make being compliant easier, but it’s not a necessity.
How to Stay Compliant When You Have No HR Department
Step 1: Know What You’re Responsible For
It’s your responsibility to ensure your business is following federal and provincial workplace legislation, which means familiarizing yourself with key employment laws. You should take the time to read and understand:
- The Employment Standards Act*
- Human Rights Code*
- Occupational Health & Safety Act*
- Workplace Safety and Insurance Board (WSIB)*
- Privacy Laws (PIPEDA)
*Linked above is Ontario-based employment legislation. Each province has their own employment legislation. If your business operates in a different province, you should seek out their specific legislation online.
For more information about legally required policies in Ontario, check out our blog!
Some compliance-related tasks the employer must manage without an HR department include:
- Drafting written employment contracts.
- Writing clear and transparent job descriptions.
- Paying at least the mandated minimum wage and overtime when applicable (according to your province’s standards).
- Tracking hours worked and vacation time.
Step 2: Train Your Team
As you start to understand your own role in compliance as the business owner, you also need to make sure your team knows what role they play in the company. Your team needs to exercise compliance by protecting sensitive information, adhering to workplace policies, and following company guidelines. It’s useful to designate a specific team member to be in charge of ensuring compliance, whether that be a manager or yourself.
Depending on your province, the following training may be legally required:
- Occupational Health & Safety Awareness Training
- Workplace Violence and Harassment Prevention Training
- WHMIS (Workplace Hazardous Materials Information System)
- Accessibility Training
You should also be ready to re-train your staff in these subjects as required.
Step 3: Get Expert Training with a HR Workshop
If you aren’t confident with learning HR requirements on your own, there are other options to ensure you and your team are effectively trained in compliance.
Many small to medium businesses in Canada refer to expert HR professionals who can share industry-standard practices — such as H2R Business Solutions. With both online and in-person training options available, H2R hosts a diverse set of personalized workshops that equip your team with everything they need to succeed.
Compliance training is among our most popular workshops for businesses without an HR department, but we also offer leadership development, executive coaching, employee training, and more.
Working with the experts ensures no aspect of compliance is forgotten or overlooked, you can get expert HR insights in less than half the time it’d take to understand it yourself.
Step 4: Outsource Your HR Needs
Compliance isn’t straightforward, it’s situational, circumstantial, and most of all, complex. That’s why we offer hands-on HR services for on-demand, partial, or complete management of your HR tasks.
Whether looking for one-time onboarding help or day-to-day employee management, our pay-as-you-go model ensures you get the most out of our services. You get the HR help you need on your terms.
Here’s just a preview of what HR tasks our team can handle for you:
- The creation and implementation of policies, procedures, and employee handbooks.
- Internal HR assessments.
- Workplace compliance training.
- Employee performance management and retention.
- Harassment investigations and conflict resolution.
- Payroll, benefits, and compensation management.
- Employee terminations.
- Employee onboarding.
- Recruitment and executive search.
Why Outsource Your HR?
- It saves you time, so you could be spending your valuable time on what you do best.
- It prevents legal liability or fines that could result from accidental compliance violations.
- It eliminates your need to manage tedious and repetitive administrative tasks.
- You’re able to consult directly with seasoned HR professionals and receive tailored advice and guidance.
Have the power of a full-time HR department — without the full-time costs.
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