Employment Law Basics
Employment law in Canada is a complex and evolving legal framework that governs the relationship between employers and employees. Each province and territory has its own employment standards legislation that sets out minimum terms and conditions of employment, such as minimum wage, working hours, overtime pay, vacation entitlement, and termination notice. The Canada Labour Code governs employment and labor relations for federally regulated industries and workplaces.
Both federal and provincial/territorial regulations govern workplace health and safety. Employers are required to provide a safe working environment and comply with relevant occupational health and safety standards.
Human rights legislation at both the federal and provincial levels prohibits discrimination on various grounds, such as race, gender, religion, disability, and sexual orientation. Employers must adhere to these laws in all aspects of employment, including hiring, promotion, and termination.
Employers are typically required to implement measures to achieve workplace equity and eliminate employment barriers for designated groups, such as women, indigenous peoples, persons with disabilities, and visible minorities.
It is important to note that employment laws vary by jurisdiction, and both employers and employees must be aware of the specific regulations that apply to their location and industry.
The following are some of the fundamental aspects of employment law in Canada:
1. Employment Standards
Employment standards legislation sets out the minimum requirements that employers must adhere to regarding wages, hours of work, overtime pay, vacation entitlements, and other basic employment conditions. These standards vary by province and territory, but they generally cover areas such as:
Minimum wage rates
Hours of work and rest periods
Overtime pay
Public holiday entitlements
Annual vacation leave
Employers must comply with these standards to ensure that employees receive fair treatment and compensation for their work.
2. Occupational Health and Safety
Occupational health and safety (OHS) laws aim to protect workers from hazards and ensure their safety and well-being in the workplace. Employers are responsible for providing a safe work environment, which includes:
Identifying and addressing workplace hazards
Providing appropriate safety training and equipment
Establishing health and safety policies and procedures
Creating joint health and safety committees where required
Employees also have the right to refuse unsafe work under certain circumstances outlined in OHS legislation.
3. Human Rights and Anti-Discrimination
Human rights legislation prohibits discrimination and harassment in the workplace based on protected grounds such as race, gender, age, disability, sexual orientation, and religion. Employers must ensure that their policies and practices comply with human rights laws and take steps to prevent and address discrimination and harassment in the workplace.
4. Employment Contracts
Employment contracts outline the terms and conditions of employment, including job duties, compensation, benefits, and termination provisions. While written contracts are not always required, they can help clarify the rights and obligations of both parties and minimize disputes.
5. Termination and Severance
Employment law governs the process of terminating employment, including notice periods, severance pay, and the reasons for dismissal. In most cases, employers must provide reasonable notice of termination or pay in lieu of notice. If there is cause for dismissal without pay, the termination must be compliant with the contract and the legislation.
6. Collective Bargaining and Labour Relations
Collective bargaining laws govern the relationship between employers, employees, and unions in unionized workplaces. These laws outline the process for collective bargaining, the certification of unions, and the resolution of labour disputes. In Ontario, the primary legislation is the Labour Relations Act,1995, SO 1995, c 1, Sch A.
7. Enforcement and Dispute Resolution
Employment standards, OHS, and human rights laws are enforced by government agencies responsible for investigating complaints and ensuring compliance. Employees who believe their rights have been violated can file complaints with these agencies or pursue legal action through the courts.
Whether you are an employer or an employee, we can help with general inquiries or disputes.
Life Insurance
Many types of life insurance can be purchased either individually, through a group policy (such as with your employer), or for business protection. Below are some of the examples of standard life insurance. In addition to the below, other specialized products also fall under the umbrella of life insurance, including critical illness and accidental death insurance (click here to learn more).
Term Life Insurance:
Provides coverage for a specific period (e.g., 10, 20, or 30 years).
Premiums are typically lower compared to permanent life insurance.
If the insured dies within the term, the beneficiaries receive the death benefit.
Once the term ends, coverage usually expires, but it may be renewable or convertible to a permanent policy.
Permanent Life Insurance:
Provides coverage for the insured's entire life (as long as premiums are paid).
Includes various types such as whole life, universal life, and variable life insurance.
Accumulates cash value over time, which can be accessed through withdrawals or policy loans.
Premiums are typically higher compared to term life insurance but remain level throughout the policy's life.
Whole Life Insurance:
A type of permanent life insurance that provides coverage for the insured's lifetime.
Premiums are fixed and typically higher than term life insurance but remain constant.
Accumulates cash value that grows over time on a tax-deferred basis.
Policyholders may borrow against the cash value or surrender the policy for its cash surrender value.
Universal Life Insurance:
Offers flexibility in premium payments and death benefits.
Allows policyholders to adjust coverage levels and premiums within certain limits.
Accumulates cash value, which can vary based on market performance or interest rates.
Policyholders can access the cash value through withdrawals or policy loans.
Variable Life Insurance:
Combines death benefit protection with investment opportunities.
Policyholders can allocate premiums among various investment options (e.g., mutual funds).
Cash value and death benefit may fluctuate based on the performance of the underlying investments.
Offers potential for higher returns but also carries investment risks.
Term-to-100 Insurance:
A type of permanent life insurance without a cash value component.
Provides coverage for the insured's lifetime with level premiums.
Unlike traditional whole life insurance, it does not accumulate cash value.
Typically used for estate planning or final expense coverage.
Joint Life Insurance:
Covers two individuals under a single policy.
Can be structured as either term or permanent insurance.
Premiums are often lower compared to purchasing separate policies for each individual.
Death benefit is paid upon the first insured's death, after which coverage may continue for the surviving insured or terminate depending on policy provisions.
Standard life insurance claims (meaning those that are not critical illness or accidental) can be denied for any number of reasons. Some of the more common reasons include:
Disability Benefits
Disability benefits are available to Canadians through both private insurance plans and public government programs. The following is a list of some common forms of disability benefits:
Private Disability Insurance: These benefits are often available as a condition of employment. Other plans can be made available through associations or trade groups. These benefits (with the exception of mortgage and loan) are tied to income and are a percentage of a claimant’s pre-disability income. Private disability insurance is also available for purchase through an individual policy - typically for self-employed individuals or professionals needing a top-up to their employment-related coverage.
Short-Term Disability Benefits: Private insurance plans often include short-term disability benefits, which provide coverage for a limited period (usually up to a year) following the onset of a disability. These benefits typically replace a portion of the individual's income while they are unable to work due to their disability.
Long-Term Disability Benefits: Some private insurance plans also include long-term disability benefits, which provide coverage for an extended period. Coverage is either provided for a capped period (2, 3, or 5 years for example) or until age 65. Entitlement to these benefits, however, is contingent on a variety of factors often found within the contract of insurance. See: Why are disability benefits denied?
Mortgage or Loan Insurance: Some mortgages, loans, and lines of credit are insured in case of disability or death. These benefits will typically cover principal payments, and occasionally principal and interest payments, on a lump sum basis or for as long as the claimant remains disabled.
Public Disability Benefits:
Canada Pension Plan (“CPP-D”) Disability Benefit: This federal program provides financial assistance to individuals who have made enough contributions to the CPP and who are unable to work regularly due to a severe and prolonged disability. CPP Disability Benefits are payable monthly and are adjusted annually based on changes in the cost of living. To qualify, applicants must meet specific eligibility criteria, including having a severe and prolonged disability, being under the age of 65, and having made sufficient CPP contributions. In addition to the personal benefits available through CPP-D, there are child benefits that are also available.
Disability Tax Credit (“DTC”): The DTC is a tax credit designed to provide financial assistance to individuals with disabilities or their supporting family members. It aims to alleviate some of the financial burdens associated with living with a disability. To be eligible for the Disability Tax Credit, individuals must have a severe and prolonged impairment in physical or mental functions, significantly affecting their ability to perform basic activities of daily living or requiring an excessive amount of time for life-sustaining therapy.
Qualifying for the Disability Tax Credit may also make individuals eligible for other federal, provincial, or territorial benefits and programs, such as the Registered Disability Savings Plan (RDSP) or certain provincial disability assistance programs.
Provincial and Territorial Disability Programs: Each province and territory in Canada may offer additional disability benefit programs to supplement federal benefits or provide support tailored to the needs of residents. These programs may include income support, healthcare coverage, vocational rehabilitation services, and other forms of assistance for individuals with disabilities. Eligibility criteria and benefit amounts vary depending on the jurisdiction.
Specifically, in Ontario, residents can apply for the Ontario Disability Support Program (“ODSP”) and in Alberta, residents can apply for the Assured Income for the Severely Handicapped (“AISH”). In addition to meeting the relevant test for disability, these benefits typically require being financially destitute (limited or no assets, such as property ownership, etc).
The intention of disability benefits in Canada is to provide crucial financial support and assistance to individuals with disabilities, whether through private insurance plans offered by employers or public government programs. These benefits aim to help individuals maintain their quality of life and meet their basic needs despite the challenges posed by their disabilities.
Addiction as a Disability
Contrary to what an insurer might say, addiction can be a disability, and it cannot be treated any differently than other disabilities.
Disclaimer: The stigma surrounding addiction as a disability is multifaceted and deeply entrenched in society. Even the terms addiction, addict, and drug abuse can be problematic. As a result, from here forward, the terms used will be substance use disorder (“SUD”) instead of addiction and individuals with substance use disorder.
Individuals struggling with SUD often face moral judgment, blame, and shame, as their condition is perceived as a lack of willpower or moral failing. This stigma can lead to discrimination in various areas of life, including employment, housing, and healthcare, and may hinder access to support and treatment. Misunderstandings about the condition further perpetuate stigma, while punitive approaches, such as criminalization, exacerbate the problem. Stigma intersects with other forms of discrimination, compounding the challenges faced by marginalized individuals.
Just as a physical disability can hinder daily activities, SUD can disrupt various facets of life, including relationships, work, education, and personal well-being. The social isolation and stigma that accompanies SUD often fuels and exacerbates the condition. The chemical changes, along with the comorbidities that may exist, can lead to a seemingly insurmountable cognitive dissonance in appreciating the impact the condition is having. This often leads to disability claims being denied, despite the fact that the individual may remain disabled. Financial support is critical to a person’s ability to overcome SUD and the loss of it can lead to a worsening of the condition.
People with any form of disability require a support system, whether through assistive devices, therapies, or accommodations (think of glasses for vision issues, brace for knee injury, medication for seizures, and CBT for panic disorder). Similarly, individuals battling a SUD often require support networks, rehabilitation programs, therapy, and sometimes medical intervention to manage and work through their recovery.
Acknowledging Substance Use Disorder as a disability can promote a more compassionate and understanding approach toward individuals struggling with it. Recognizing it as a condition that significantly impairs an individual's ability to function in various spheres of life may encourage more comprehensive support systems and resources to assist those affected.
If you have experienced discrimination at your place of work as a result of a SUD or your claim for disability benefits has been denied. Please reach out to discuss the matter further to ensure your rights are protected.