Any business is a joint enterprise between the employer and employees



A Joint Commitment


Any business is a joint enterprise between its employer and its employees.

Working Together

Employers and employees benefit from each other. Certainly employers have responsibilities for their employees as the many rules and regulations contained in employment legislation demonstrate. On the other hand, employees must understand they too have to conduct themselves responsibly to ensure their employers continue in business. Employees should understand that, if the business they are working for goes under because their behaviour has led to low productivity, layoffs, lawsuits and weak earnings, no one benefits.

Employment contracts should be designed to ensure the continued well-being of both the employee and the employer. The contract should cover remuneration, hours of work, days of work, breaks, vacation pay, deductions from pay, job location, overtime requirements, duties and responsibilities.

These areas of common concern are a starting point, but other areas put both the employer and employee at risk during the normal work day. Employers are subject to “vicarious liability” (i.e., the employer may be liable for the acts of employees while the employees are on company business). Some violations of the terms of employment may even have consequences for the private lives of the employees, such as driving on company business while impaired.

Upfront Explanations

Employees should not feel obligated to sign an agreement before they have read and understood it. The employee should ask for an explanation of any article of the agreement they do not understand. For instance, an employee may well wonder why it is necessary to provide information regarding infractions under their provincial highway traffic act. Management can answer that the business could potentially face higher insurance costs if the employee is found responsible. There could even be a lawsuit. The employee should be made aware that commission of an offence at work can have an impact on not only their employer and their own employability, but also on their personal lives beyond the workplace.

The type of business determines the conditions of employment.


What Should Be in an Agreement?

The type of business will certainly determine the conditions of employment the owner-manager wishes to include in any agreement. For example, an employer may request the employee agree to and understand some or all of the following factors:
1. The employee is responsible for filing personal income taxes and ensuring that any discrepancies in remittances to outside entities (whether taxation or health plans, insurance, etc.) are brought to the attention of management to ensure that both parties to the agreement are in compliance.
2. Under the Occupational Health and Safety Act of Ontario, the employer must “instruct, inform and supervise workers to protect their health and safety”. Employees must “work in compliance with the Act and regulations”. This means workers must: 
use or wear the right equipment
report hazards 
not remove any protective device 
not operate equipment in a way that would endanger other workers 
not engage in pranks, contests or feats of strength
3. The employee may also be asked to agree that arriving at work impaired or using illegal drugs or alcohol during contract hours is strictly prohibited and could result in immediate termination.
4. Distracted driving laws may require the inclusion of paragraphs that outline the employee’s understanding and agreement that the use of any handheld device such as, but not limited to, cell phones, tablets, or laptops, in violation of provincial highway traffic legislation is strictly prohibited and that use of any or all of the above could result, at the discretion of management, in termination.
5. An employee, while under contract, must notify the business in writing immediately of any traffic violation citation regardless of whether the citation results in a conviction.

Legal Counsel

Because employment law and regulations vary from province to province, owner-managers should seek legal counsel once they have determined what needs to be included in employment contracts. Counsel can then decide whether your requirements are recognized in law and either incorporate them or look for an alternate approach.

Continuous Care

Employers usually find it difficult not only to keep abreast of changes in the rules and regulations, but they also have a difficult time ensuring these changes are passed down to employees. It is advisable to retain an employment lawyer familiar with your business to not only construct your first employment agreement but also to keep you informed of the changes that could impact your business. This could reduce the possibility
of serious and expensive litigation from employees or third parties claiming your company is not meeting its legal responsibilities in the employer/employee relationship.

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