Section 3: Labour Relations and Record Keeping

Many small businesses hire people to work for them. To meet the demands of their Twin Peaks operation, Nancy and Steve have hired several individuals including ranch hands, kitchen and cleaning staff, and gift shop personnel. In this regard, it is necessary for them to know what responsibilities they have towards their employees, and what obligations their employees have in regards to fulfilling their employment duties. It is also extremely important for business owners to understand their obligations in regards to maintaining accurate records of all business activities, so as to satisfy the regulatory requirements established by government authorities.

Lesson 1: The Responsibilities of Employers

The legal responsibilities that businesses owe to their employees are multi-faceted and they stem from different sources. Some of these are established through precedents laid down in the courts, some through legislation, and others on the basis of the employment contract agreed to by the individual employer and employee.

The courts have established that an employer is responsible for

• the safety of employees

• the payment of wages, the reimbursement of expenses incurred by employees while carrying out their employment duties, and the payment of gratuities received on the employees' behalf

• the fair and equal treatment of employees

Further to these obligations, legislation establishes other standards that employers must adhere to. These include the following:

•     Minimum Wage, Hours of Work, and Overtime

Each province prescribes an hourly minimum wage to ensure an adequate standard of living. This amount is subject to change at the government's discretion. In Alberta, it is currently set at $15.00 per hour . It also regulates the number of hours worked per day (normally 8 hours) and per week (normally 40 hours). An employee, in consultation with the employer, may choose to work additional hours. As a rule, overtime is paid at the rate of one and a half times the normal hourly wage.

•     Meals and Breaks

During the course of the workday, employees are entitled to receive meal breaks when they are required to work more than five hours. The break must be at least half an hour in length. These breaks are unpaid. Some employment standards provide for paid breaks (usually fifteen minutes) that are mandatory for a specified number of consecutive hours worked (normally four).

•     Workplace Health and Safety

Each province has regulations regarding the health and safety of employees in order to maintain their well-being and to prevent accidents. Standards are legislated through the Occupational Health and Safety Act. Each province also has a Workers Compensation Act that requires employers to contribute to a fund that will be used to make payments to employees who are injured on the job. Employees who are covered by workers' compensation cannot sue their employer for injuries sustained during the course of their employment.