
Every year, thousands of small and medium-sized businesses are established in Ontario, many of which have no experience in Human Resource Management. While experience in Human Resources isn’t a requirement for Ontario businesses, there are various HR policies that are mandatory under provincial legislation. An Ontario business must implement all legally-required HR policies to not be subject to fines and legal disputes.
This article will cover all legally required HR policies in Ontario so business can remain compliant and avoid legal liability. Let’s start with an overview of the provincial legislation relevant to an Ontario business’s mandatory HR policy.
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Ontario Regulations That Define Mandatory HR Policies
Employment Standards Act
The Employment Standards Act, 2000 sets out the minimum standards for employment in Ontario. It outlines general requirements for employers, their hiring practices, and how they manage their staff.
Some of what the Employment Standards Act (ESA) covers includes: hours of work, minimum wage, overtime pay, vacation entitlements, public holidays, and termination notice. Not every aspect of the act requires a written HR policy, but it’s important to familiarize yourself with the act to ensure compliance.
Employees can file a claim against the business for not following the ESA, and maximum fines for first time offenses are up to $100,000.
Occupational Health and Safety Act
The Occupational Health and Safety Act, 1990 was created to prevent workplace injuries and accidents. It outlines the obligations of an employer to create a safe working environment.
Some Ontario businesses will disregard this act, assuming that it applies mostly to high-risk industries (construction, manufacturing.etc). But the Occupational Health and Safety Act applies to all Ontario businesses, regardless of if the work environment has inherent safety risks or not.
Employees can file a claim against the business for not following the OSA, and businesses found liable face fines up to $2,000,000.
Accessibility for Ontarians with Disabilities Act
The Accessibility for Ontarians with Disabilities Act, 2005 requires businesses to create inclusive workplaces for people with disabilities. It applies to not just employees, but also customers. As an employer, it’s your responsibility to create an accessible workplace.
Businesses found liable for not following the AODA face fines up to $100,000 per day of non-compliance.
Personal Information Protection and Electronic Documents Act
The Personal Information Protection and Electronic Documents Act, 2000 (PIPEDA) is a law that regulates how businesses handle sensitive information given by employees (such as a SIN number, banking information.etc). PIPEDA ensures that employers take the proper steps and precautions to protect employee information.
Businesses found liable for not following PIPEDA can be fined up to $100,000 CAD for each violation.
Every Legally Required HR Policy in Ontario
The following are HR policies required for all employers in Ontario:
Occupational Health and Safety Policy
Business owners with six or more employees must have a written Occupational Health and Safety policy visible in the workplace. Additionally, employers must establish a program to train employees on health and safety and put the policy in action. Employers are required to review their health and safety policy with their staff annually.
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Workplace Violence and Harassment Policy
Both a workplace harassment policy and workplace violence prevention policy are required for Ontario businesses, regardless of size. Employers must review their workplace violence and harassment policy with their staff annually. These policies need to clarify what is considered workplace violence and harassment clearly while explaining how the business will prevent and respond to it.
For Ontario businesses with six or more employees, the workplace violence policy and workplace harassment policy needs to be visible in the workplace.
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Pay Equity Policy
As part of the Pay Equity Act, Ontario employers are required to follow pay equity standards with a pay equity plan. This applies to all employers except for those in the private sector with less than ten employees.
As for a written pay equity policy, businesses with 100+ employees must have one drafted and available in the workplace.
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Accessibility Policy
You’ll need an accessibility policy which outlines your business’s commitment to create an accessible environment. An accessibility policy for employees is required, as well as a customer-facing accessibility policy.
Ontario businesses with more than 50 employees must have their accessibility policies visible for customers and employees. Additionally, these larger businesses need a plan for accessibility which includes actionable steps they’ll take to make the environment more inclusive for employees.
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Privacy Policy
If a business collects personal information, they’re required to have a privacy policy. The policy should outline what specific information is collected, why it is collected, who the information can be shared with, and how it is protected. This applies to almost every Ontario business, as employers must collect an employee’s social insurance number for tax purposes.
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Disconnecting from Work Policy
Employers with 25+ employees must have a written disconnecting from work policy. The requirements for disconnecting from work are a recent addition to the Employment Standards Act (ESA) and have been in place since 2021.
The content of this policy will vary, as employers aren’t required to give employees the “right” to disconnect from work. Instead, the policy basically outlines the employer’s stance and expectations when it comes to responding to work communications after-hours.
Electronic Monitoring Policy
A written electronic monitoring policy is required for businesses that do any form of employee tracking or surveillance. The policy should explain how and when employee monitoring happens and why they are being monitored. This regulation only applies to businesses with 25+ employees.
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