First Reference company logo

Inside Internal Controls

News and discussion on implementing risk management

machine cogs image

Payroll and Personnel Management

Giving individual investment choice in DC plans is a bad idea

It is no secret that DB plans are too financially risky for individual employers. It is also no secret that, on average, it costs approximately 92% more to provide the same $1 of retirement income under a DC plan than under a DB plan. DB plans are just that much more cost efficient. To provide more satisfactory results, DC plans should take the best features of DB plans.

 

, , ,

An idea to help drive effective risk management

We want all decision-makers to consider all the potential consequences of their decision (in fact, all the potential consequences for each option on the table) before making an informed and intelligent judgment. What if the quality of decision-making was a significant factor in assessing performance? Thus affecting compensation and career progression. This idea could help drive effective risk management.

 

, , , , , , , ,

Update on overtime class actions in Canada

To avoid claims and payments for unpaid overtime, employers should consider methods to control overtime costs such as establishing overtime policies, overtime agreements, or averaging agreements, if permitted by applicable legislation.

 

, , , , , , , , ,

Changes to the Canada Pension Plan

It is important for employers, sooner rather than later, to start thinking about whether any changes need to be made to payroll costs in order to address the costs of an expanded CPP and whether amendments to pension and benefits plans will be required to accommodate the more generous CPP benefit.

 

, , , , , ,

Rejected job applicants obtain disclosure of application records under privacy law

PIPA governs how private organizations handle personal information and creates rules regarding its collection, use, and disclosure. Section 23(1)(a) of PIPA gives individuals the right to access their personal information that is under the control of an organization.

 

, , , , ,

ONCA affirms an offer of employment by the purchaser of business assets to an employee of the seller is valid consideration for a new employment contract

Where the purchaser of all or part of the assets of a business offers employment to a seller’s employee, and the employee accepts, the following common law rule applies: the employee’s employment with the seller is constructively terminated, and a new contract of employment is entered into with the purchaser.

 

, , , , , ,

Directors’ liability for source deductions

An issue came up when a CRA auditor queried CRA rulings. She had a file where she intended to assess the directors of a not-for-profit corporation for its failure to remit trust funds. The directors had retained legal counsel, who was of the view that directors’ liability does not apply to directors of a not-for-profit corporation.

 

, , , , , , , , ,

Employee forfeits $115,000.00 in bonuses by resigning; active employment clause valid

A bonus policy may state that employees who are eligible for bonuses must also be actively employed to receive their bonus payments. That is, employers may institute an “active employment clause”. Courts will uphold valid active employment clauses, as demonstrated by Bois v. MD Physician Services Inc., 2017 ONCA 857 (CanLII). MD Physician Services Inc. […]

 

, , , , , ,

New initiatives to hold companies accountable for human rights violations abroad

On January 17, 2018, the federal government announced two new initiatives to hold Canadian companies doing business and operating abroad accountable for human rights violations abroad.

 

, , , , , , , , , , , ,

An example of game theory in risk management

One of the risks identified by many organizations as significant and included in the risk disclosures required in corporate filings, such as the annual and quarterly filings with the U.S. Securities and Exchange Commission, is the loss of key personnel.

 

, , ,

Keeping an eye on employees – Guidance from BC’s Office of the Information and Privacy Commissioner

If you decide that you need to keep an eye on your employees, you’ll want to take into consideration this guidance from BC’s Office of the Information and Privacy Commissioner. As technology becomes more inexpensive, accessible and ubiquitous, we are seeing an increase in employers’ use of surveillance tools. While workplace monitoring has its benefits, […]

 

, , , ,

You can’t delegate ethics on the issue of sexual harassment

There is no denying the alarming scope and prevalence of workplace sexual harassment. For the past several months, it seems not a day goes by without news of another troubling example of egregious workplace behavior. Victims of sexual harassment have moved beyond simply speaking up; they are now standing up, speaking out and making sure their voices are heard.

 

, , , , , , ,

Is it about managing risk?

Managing risk absent the context of your objectives leads you to manage what may be irrelevant and miss what may be crucial.

 

, , , ,

High-profile sexual harassment claims show a toxic culture can be a product defect

The rapid demise of the Weinstein Co., once one of the most successful movie studios in Hollywood, should have every CEO wondering: What skeletons does my organization have in the closet? And how could they destroy the value of my company’s brands, or the company itself?

 

, , , , , ,

Indecent proposal? Whether and how to ask existing employees to sign new employment contracts

Asking existing employees to sign new employment contracts can be a sensitive topic. Employees will undoubtedly wonder why they are being asked to do so. Many will quite rightly assume that the employer’s main motive for having new contracts be signed is to protect the employer – not the employee. Some will sign without issue, while others will refuse to do so.

 

, , , , , ,

Previous Posts