Vancouver Employment Law Blog

Some business owners in British Columbia may not be pleased that just about every employer must register for and pay insurance premiums to protect injured workers. In BC, even property owners who build their own residences or those who hire casual workers as regular gardeners, domestic workers, nannies and cleaners must register with WorkSafe BC. While it might seem like an unnecessary expense, some argue that employers can see the value of these payments if they consider that the absence of workers' compensation insurance could require their businesses to be responsible for payment of medical fees that follow on-the-job injuries and rehabilitation.

Another compelling argument for workers' compensation exists in the fact that an incident that injures several workers can burden the business with astronomical expenses that might compromise profits. Employees who are covered by WorkSafeBC are, except for cases of gross negligence by the employer, generally prohibited from filing personal injury lawsuits against their employers in exchange for the coverage they enjoy at no cost regardless of negligence or fault.

When it comes to recruiting sales representatives, it is only natural for a business owner to want the best of the best. In many cases, successful sales reps are noticed because they do such an excellent job for other companies. However, inducing an employee from another business could become costly if not all the intricacies of employment law are considered. A business owner could face unanticipated problems if, for instance, the sales manager entices an employee to join the company by promising incentives and commissions of which the owner is unaware.

A recent such case of inducement made its way through the British Columbia Supreme Court this year when the sales manager of another company lured a 44-year-old sales representative from a lucrative and secure position. He was promised high-profile, big-money projects after a probationary period of between six and nine months, as well as a specific percentage of commission on top of a salary similar to what the other company paid him. Furthermore, the sales manager promised to double the commission percentage after the first three months.

Many British Columbia business owners choose to use the services of independent contractors instead of employees. There are benefits for both parties with such a work relationship, but there can also be severe consequences if the independent contractor arrangement is improperly executed. 

Hiring contractors can benefit the cash flow of a company because these workers receive no benefits and pensions, and they are responsible for their own contributions to the Canada Pension Plan and income tax payments. Thus, the employer is not required to deduct income tax, pay a share of pension, or account for Employment Insurance when calculating payroll. Furthermore, the company will not have to finance any life and health insurance and pension plans, nor pay for the independent contractor's training.

Most employers in British Columbia know that human rights are not earned by employees -- instead, human rights are held by every person from birth. Regardless of an employee's level of education, skills or the position they hold, they have rights to equality, respect, dignity, and a right to not face any form of discrimination. While employers cannot give or take away their employees' rights, they may violate them, in which case the employer might be held accountable.

Human rights issues do not always present themselves clearly, and may only become evident when issues arise. For that reason, employers should be proactive and review your policies and practices to ensure that they comply with human rights legislation before any legal claims arise.