HR Best Practices for the New Year for Small and Medium Businesses
As we hit the ground running in 2025, it’s best practice for HR professionals and business owners of small and medium businesses (SMBs) across Canada to ensure that their organizations fully comply with the latest federal and provincial regulations. Start out 2025 on the right foot with hannahHR’s compliance checklist for Canadian SMBs!
Policy Review and Update
Staying on top of policy updates can be challenging but is crucial for businesses of all sizes. Review your employee handbook and internal policies, and ensure they align with current federal and provincial labour laws, particularly the Canada Labour Code and provincial Employment Standards Acts. This includes updating policies on workplace conduct, anti-discrimination, and harassment. If you’re considering our tool, hannahHR, you’re in luck. We base our query responses on your handbook and local ESA, so you’ll remain compliant in your responses to basic HR questions.
Remember, having clear, written policies is essential, even with a small team. They protect both your business and your employees. If you don't have formal policies, it is time to develop them. Consider consulting with a local HR professional like the team at blankslate.partners or employment lawyer to ensure your policies are compliant and suitable for your business size.
Wage and Hour Compliance
As a small or medium business owner in Canada, it's vital to stay current on minimum wage changes, which vary by province. Ensure your payroll systems are adjusted to reflect the current rates in your province as they change. Overtime rules can differ between provinces, so review your policies regularly to ensure you follow the correct location regulations. For SMBs, proper overtime management is crucial to avoid unexpected labour costs and ensure compliance.
Employee Classification
For many SMBs, the line between employees and independent contractors can sometimes blur. However, misclassification can lead to significant legal and financial consequences. Review your worker classifications carefully. Remember, the classification impacts entitlements and protections under Canadian employment laws.
Pay Transparency and Equity
Pay transparency and equity are becoming increasingly important across Canada. Some provinces, like Ontario, have introduced specific legislation on this topic. As an SMB, implementing these changes is challenging, but compliance is vital. Consider conducting a pay equity audit to ensure fair compensation practices across your organization.
Health and Safety Protocols
Workplace safety is crucial regardless of your business size. Review your health and safety protocols to ensure compliance with federal and provincial regulations. This includes providing adequate training and ensuring a safe working environment. For SMBs with limited resources, consider appointing a dedicated safety coordinator from your existing staff to oversee these responsibilities.
Equity, Diversity, and Inclusion
While SMBs may not have large HR departments, fostering an inclusive workplace is still essential. Review your hiring practices, promotion criteria, and workplace culture to ensure they promote equity and diversity. Remember, in Canada, employers cannot discriminate based on protected characteristics like race, gender, or family status.
Data Protection and Privacy
For SMBs handling customer or employee data, compliance with the Personal Information Protection and Electronic Documents Act (PIPEDA)(PIPA in BC,) is crucial. Regularly review your company's data handling, storage, and disposal practices. If you're unsure about your compliance, consider consulting with a data privacy expert or attending a workshop tailored for small businesses.
Remote Work Policies
If your SMB offers remote work options, ensure your policies address workplace safety, data security, and employee rights in a remote setting. Clear communication about expectations and responsibilities in a remote work environment is key for smaller businesses where roles may be less rigid.
Training and Development
While SMBs may have limited resources for extensive training programs, investing in employee development is crucial for compliance and growth. Consider cost-effective options like online courses, Bullying and Harassment training from www.compliancehr.ca or local workshops covering essential topics such as workplace safety, anti-discrimination, and leadership skills for your management team.
Small and medium businesses across Canada can avoid legal pitfalls and create a positive and lawful work environment by focusing on these key areas. Remember, compliance is an ongoing process. Regular reviews and updates in line with evolving federal and provincial laws are essential for the success and sustainability of your business.
