11 Things You Can't Do as an Employer in Ontario: A Guide for Accounting Professionals

As accounting professionals, many of us wear multiple hats – we're not just number crunchers, we're business owners and employers too. And while we might feel confident navigating tax codes and financial statements, employment law can feel like uncharted territory.

Here's the thing: being the boss doesn't give you unlimited control over your employees. Ontario has strict employment laws, and violating them can cost you big time – both financially and reputationally.

Whether you're running a solo practice thinking about hiring your first assistant, or you're managing a growing team, understanding these boundaries isn't just smart business – it's essential protection for your practice.

The 11 No-Go Zones for Ontario Employers

1. Workplace Discrimination You can't treat employees differently based on age, gender, race, religion, disability, or other protected grounds. This applies during hiring, throughout employment, and even during termination. That "cultural fit" excuse? It won't hold up if it's masking discrimination.

2. Workplace Harassment Creating a respectful workplace isn't optional – it's the law. This includes everything from inappropriate comments to public humiliation. As accounting professionals, we know the importance of maintaining professional standards with clients – the same applies to our teams.

3. Retaliation If an employee raises a workplace concern or files a complaint, you can't punish them for it. Even if their complaint turns out to be unfounded, retaliating against them can land you in serious legal trouble.

4. Wrongful Termination This is where many small business owners trip up. You can't just fire someone without proper notice or severance pay. Depending on the situation, you might owe up to two years of compensation. Always consult with an employment lawyer before terminating anyone.

5. Unauthorized Wage Deductions You need written consent before deducting anything from paychecks (except for taxes, benefits, and court-ordered payments). That broken office equipment? You can't just dock their pay for it.

6. Withholding Wages Even if you're in a dispute with an employee, you must pay them for hours worked. Your cash flow concerns don't override their right to timely payment.

7. Denying Vacation Time Employees are entitled to at least two weeks of vacation annually, plus 4% vacation pay. You can't deny this, even during busy seasons.

8. Forcing Unpaid Overtime Non-management employees must receive time-and-a-half for hours over 44 per week. This applies whether they're hourly or salaried.

9. Misclassifying Employees as Contractors Calling someone a contractor doesn't make them one. The actual working relationship determines their status, and misclassification can result in hefty fines and back payments.

10. Forcing Retirement or Resignation Employees choose when to leave. Pressuring someone to retire or resign can trigger constructive dismissal claims and age discrimination lawsuits.

11. Unilateral Contract Changes You can't significantly change someone's role, pay, or working conditions without their consent. Major changes without agreement can constitute constructive dismissal.

The Real Cost of Getting It Wrong

Employment law violations aren't just expensive – they can destroy your professional reputation. Imagine explaining a discrimination lawsuit to your clients or having to shut down operations to deal with a Ministry of Labour investigation.

The financial costs can be staggering: severance payments, legal fees, fines, and potential damages. But the reputational damage? That can take years to recover from.

Protecting Your Practice

The best defense is a good offense. Here's what you should do:

• Consult with an employment lawyer before hiring your first employee

• Create proper employment contracts and workplace policies

• Document everything – performance issues, disciplinary actions, accommodations

• Treat your team with the same professionalism you show your clients

• When in doubt, get legal advice before acting

The Bottom Line

Running an accounting practice is complex enough without adding employment law violations to your stress list. Understanding these boundaries isn't about limiting your authority – it's about protecting the business you've worked so hard to build.

Remember, just as we advise our clients to stay compliant with tax regulations, we need to stay compliant with employment law. The consequences of getting it wrong are simply too significant to ignore.

Until next time,