Employment Law Basics That Every Startup Must Follow


Hiring the right team is crucial for a startup’s growth, but it is often overwhelming to get the best talent in your tight budget. Limited knowledge of employment law also makes things challenging for new employers. It is important to understand that the law grants certain protections and benefits to the employees and places obligations on employers.

 Not being on the right side as an employer can get you into legal hassles and even cause reputational damage to your business. So you must know the employment law basics and follow them to keep your business on the safe side. Here are the facts that all Canadian startup employers must understand.

Employment standards laws are just minimums
While every Canadian employer must know and comply with employment standards laws, they are just minimums. Start by getting a copy of the laws that apply in your province. Federally-incorporated employers such as banks, airports and airlines, marine shipping, railway and road transportation, and radio and television broadcasting need to follow federal law. These laws set minimum standards for employment conditions like hours of work, minimum wages, vacation time and pay, public holidays, and termination notice. While you need to stick to the minimums, the employee may be entitled to more, according to the contract. 

A written employment contract with every employee is essential
When you onboard an employee, you have an employment contract with them even when there is nothing in writing. But not having written contracts can lead to disagreements, disputes, and even lawsuits later. Experts recommend that you must have an employment contract in writing with every employee to prevent such issues. It is best to have these contracts drafted by an expert. You can check sultanlawyers.com to understand the importance of properly-drafted contracts. Most employees and independent contractors will make sure that agreements cover their rights and entitlements. As an employer, you must do your homework as well. 

Employee safety and human rights should be a priority 
Even as a startup, you need to prioritize employee safety and human rights due to legal and ethical reasons. Failing to comply with your obligations can get you on the wrong side of the employment law, which is the last thing any new entrepreneur will want to encounter. Federal and provincial occupational health and safety regulations are applicable to all employers, so you must understand and implement them at your workplace. Startups operating in high-risk domains such as oil and gas and construction need to go the extra mile with occupational safety. Your business must also accommodate human rights by prevention of discrimination at the workplace. You must ensure a work environment free from violence and harassment for the employees.

Complying with employment law puts your startup at an advantage. It keeps your business safe from lawsuits, which can drain a lot of money and cause stress for you. Following the law makes you an ideal employer and attracts the best talent in the job market. The effort is worthwhile as it consolidates your reputation as a business and employer.



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