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If you’re reviewing a termination package that includes a ‘retiring allowance,’ it might sound like a perk tied to retirement. That makes sense, right? Not really.

Despite the name, a retirement allowance in Canada has nothing to do with retirement. In most employment law cases, it simply means money paid to an employee upon or after termination of employment in recognition of long service. It’s a tax term, not a legal entitlement, and it often leads to confusion when planning severance packages or reporting to the CRA. Let’s break down what it is – and what it isn’t.Continue Reading Retiring Allowances – Don’t Be Fooled by the Name

What Employers Can and Can’t Deduct from Employee Wages in Ontario

Accurate payroll management is essential for employers in Ontario. A common question is: What can we legally deduct from an employee’s wages? The short answer—very little, unless the employee has agreed, or the law requires it.

Ontario’s Employment Standards Act, 2000 (ESA) sets strict rules on wage deductions. However, some recent Ontario Labour Relations Board (OLRB) decisions have conflicting interpretations regarding whether employers can deduct overpaid vacation pay. Because OLRB decisions are not binding on courts, the law on this issue remains unsettled.Continue Reading I Overpaid My Employee: What Now?

Underperformance can be a big issue for employers, especially in smaller organizations where every employee’s contribution matters.

There can be serious costs to the business. Before you terminate someone, you need to understand the legal framework in Ontario. Skipping the proper steps can expose your business to claims for wrongful dismissal, which can be even more expensive.Continue Reading Can I Terminate an Employee for Underperforming?

Hiring workers like nannies, doulas, housekeepers, or gardeners can make life a lot easier for Ontario households, but it’s critical to understand the legalities involved. A key issue is whether the worker is an employee or an independent contractor. Misclassification can lead to financial liabilities, tax issues, and legal disputes.Continue Reading Hiring Workers for Your Household in OntarioHiring Workers for Your Household in Ontario

The holiday season is a time when many employers want to show appreciation to their employees. Gift cards are a popular and convenient choice for recognizing hard work and spreading some seasonal cheer.

But employers need to be aware of the employment and tax implications of gifting gift cards, especially here in Canada. Missteps can result in unintended financial consequences for both the employer and the employee.

If you’re planning to hand out gift cards this year, here’s what you need to know.Continue Reading Keeping Gift Giving Jolly: How Employers Can Avoid Tax Surprises

In an era of heightened political tensions, employees increasingly express their political beliefs at work. While engaging in discussions about societal issues can be healthy, these expressions sometimes lead to friction among colleagues and risk disrupting workplace harmony.

Employers in Ontario need to navigate this complex terrain carefully, balancing the rights of individuals to express their views with the need to maintain a respectful and productive environment.Continue Reading Managing Political Expression in Ontario Workplaces