LO1- To ensure that the organization is compliant with employment legislation, the first step for
HR is to determine which laws apply to the organization. Three questions can guide HR
regarding the laws to abide by.
Employees are governed under employment standards and have the right to vacation pay,
statutory holidays, overtime pay, and notice or severance pay in lieu of notice upon termination,
and the right to collect employment insurance benefits. An independent contractor, however, is
governed solely by the contract they sign with the employer. Determining whether someone is an
employee or an independent contractor depends on the level of employer control, who owns the
tools used, and whether the worker has the opportunity for profit and risk of loss.
If a worker has signed a contract—and does not rely on the employer to set hours and assign the
work to be done, owns their own tools and equipment, and has the opportunity for profit and risk
of loss—then the worker is likely an independent contractor.
Federal employment laws cover the approximately 10 percent of Canadian employees who work
in federally regulated industries. These industries include communications, interprovincial or
international transportation, banks, postal service, and the federal government. The Canada
Labour Code covers the minimum employment standards (e.g., minimum wage, termination
provisions) that must be given to all employees in federally regulated industries. It also applies to
businesses in the territories and on First Nations reserves, and to certain Crown corporations. The
other 90 percent of all employees fall under provincial legislation, and the employment laws of
the province the employee works in would apply. Each province has a pair of provincial
employment regulations—one for unionized and one for nonunionized employees—that guide
the minimum employment standards of workers.
Each province has its own employment standards act or code that defines the minimum standards
for wages, vacation days, and termination provisions for nonunionized employees.. Unionized
employees, on the other hand, are covered under each province’s labour laws. These labour
relations acts set rules for how unions and employers will organize and collectively bargain to
determine the minimum employment standards.
Finally, some employees are exempt from many employment laws. These vary by province and
may include farmers, municipal police, inmates, politicians, temporary election workers, and
family members working in a family business.
In sum, there are many different sets of legislation, and the particular laws that apply to a worker
and their organization depend on the industry, status as an employee (vs. independent
contractor), and whether or not the worker is part of a union. HR navigates to the laws that
correspond to their employees and then seeks to ensure that the organization is minimally
compliant.
LO2- Human Rights Legislation
Usually, employment-related laws and regulations are limited in scope; their impact on HR is
confined to a single HR activity. For example, minimum-wage laws specify the lowest amount
an employer can pay for each hour worked; in spite of their importance, these laws affect only
the compensation management function. Human rights legislation, however, is an exception in
that it affects nearly every HR function: planning, recruiting, selection, training, compensation,
and labour relations. Human rights legislation is about not treating any Canadians differently
because of their membership in a protected group. What constitutes membership in a protected
group was defined in an extremely important piece of legislation: the Canadian Charter of
Rights and Freedoms. Implications of the Charter to HR and industrial relations issues are still
unfolding. This is because of how the court system operates in Canada.4 When a person or group
challenges that their rights were infringed upon, the dispute may be settled through a dispute
resolution process, it may be heard by an administrative board or tribunal, or it may end up in
court. The courts interpret and apply the Constitution, as well as legislation passed by both the
federal and provincial levels of government. They also develop and apply the common law (i.e.,
precedents set from previous cases). Each province and territory has lower courts, which are the
first to hear a case and make a ruling. The case may proceed to provincial higher courts, through
courts of appeal, and ultimately may reach the Supreme Court. The Supreme Court only hears
cases of public importance or of national significance and is the ultimate interpreter of the
Charter.
Section 1 of the Charter guarantees rights and freedoms “subject only to such reasonable limits
prescribed by law as can be demonstrably justified in a free and democratic society.” Of course,
such adjectives as “reasonable” and “demonstrably justified” will lead to different interpretations
by different judges. This is one of the reasons why many cases wind their way through the
judicial system up to the Supreme Court, just to get a final opinion. Every time a court invokes
one of the rights or freedoms, it must determine if the infringement is justified.
Section 2 of the Charter guarantees freedom of association, a very important aspect in industrial
relations, especially for unions. A key question in this context is whether the freedom to
associate carries with it the right to bargain collectively and the right to strike, which are the
main reasons for the existence of unions.
Section 15—the equality rights part—came into effect on April 17, 1985, having been delayed to
allow the federal government and the provinces to create or change laws to ensure compliance
with the Charter. It states in its first paragraph:
Every individual is equal before the law and under the law and has the right to the equal
protection and benefit of the law without discrimination and, in particular, without discrimination
based on race, national or ethnic origin, colour, religion, sex, age, or mental or physical
disability.
This section of the Charter was expected to—and has—caused a flood of litigation. The Charter
of Rights and Freedoms applies only to individuals dealing with federal and provincial
governments and agencies under their jurisdiction, but its impact is far-reaching, since
potentially every law can be challenged. While the Canadian Charter of Rights and Freedoms
guarantees equality before the law for every Canadian, human rights legislation seeks to provide
equal employment opportunities and prohibits discrimination on all prohibited grounds. The
Canadian Human Rights Act governs federally regulated employees, whereas provincial
human rights laws govern provincially regulated employees. Both the provincial and the federal
human rights bodies of legislation exist to provide equal employment opportunity for members
of protected groups and to prevent discrimination. Collins English Dictionary defines
discrimination as “the practice of treating one person or group of people less fairly or less well
than other people or groups.” What grounds of discrimination occur most frequently? When
examining the annual reports of the various human rights commissions/tribunals, the ground
alleged most frequently is discrimination on the basis of disability (alleged in about 52 percent of
claims), 20 percent were based on sex, 27 percent on national or ethnic origin, and 26 percent on
race. Note that a complainant may allege more than one ground of discrimination. Normally,
intentional direct discrimination on grounds specified in the human rights legislation is illegal.
However, under certain circumstances, intentional direct discrimination is acceptable. A fashion
store catering to women will be allowed to advertise for female models, and schools controlled
by religious groups are permitted to limit their hiring to members of the specific faith. This legal
discrimination is called a bona fide occupational requirement (BFOR).
Indirect, unintentional, or systemic discrimination takes place if there is no intention to
discriminate, but the system, arrangements, or policies allow it to happen. Such employment
practices may appear to be neutral and may be implemented impartially, but they exclude
specific groups of people for reasons that are neither job-related nor required for safe or efficient
business operations.
Indirect or systemic discrimination is more difficult to detect and to fight because often it is
hidden and requires a special effort to deal with effectively. The Canadian Human Rights
Commission (CHRC) has taken specific steps to define and detect the causes and sources of
indirect or systemic discrimination To prevent discrimination, employers must provide
employees with reasonable accommodation up to the point of undue hardship. To aid in
determining what is “reasonable” accommodation and when the accommodation would result in
“undue” hardship, many cases have been heard before tribunals and courts. In this section, a
series of case examples will be used to highlight the complexity and scope of human rights
legislation and important human rights concepts.
Race and Colour, National or Ethnic Origins, Age, Sex, Gender Identity. Marital Status, Family
Status disability, pardoned convicts
The Canadian Human Rights Commission has also been approached by persons who claim to
have been refused employment on the basis of their arrest record, even when the arrest did not
lead to a conviction. These persons are without legal protection because the Canadian Human
Rights Act does not address this type of discrimination. For HR, this does not mean that all
applicants can be asked for their arrest record; it must still be shown that doing so is relevant to
the job. For this reason, the Commission has advised employers under federal jurisdiction that
applicants should not be asked, “Have you ever been convicted of an offence?” It is
recommended—if such information is legitimately needed for employment purposes—that the
question be phrased as “Have you ever been convicted of an offence for which you have not
received a pardon?
The responsibility for the administration of the Canadian Human Rights Act lies in the hands of
the Canadian Human Rights Commission (CHRC). The role of the CHRC is to investigate and
try to resolve allegations of discrimination in employment and the provision of services within
the federal jurisdiction. The CHRC administers the Employment Equity Act discussed below. The
Commission is also mandated to develop and conduct information and prevention programs, to
conduct and sponsor research, and to report annually to Parliament. The Commission is not a
tribunal and does not rule on cases. If a complaint cannot be resolved, the Commission may
recommend mediation or ultimately ask the Canadian Human Rights Tribunal to hear the case.
describes some of the remedies available to the tribunal in settling a complaint. Should the
tribunal find that the discriminatory practice was maintained purposely or recklessly, or that the
victim’s feelings or self-respect have suffered as a result of the practice, it may order the person
or organization responsible to compensate the victim appropriately.
LO3- Employment Equity Act
To ensure effective, efficient, and equitable methods of promoting employment opportunities,
the federal government proclaimed the Employment Equity Act in 1987. Its intent is to remove
employment barriers and promote equality of the members of four designated groups: women,
persons with a disability, members of visible minorities, and Indigenous people (many of whom,
but not all, prefer the term Indigenous to Aboriginal although Aboriginal appears in the
legislation). The Act requires employers with 100 or more employees under federal jurisdiction
to develop and submit annual plans setting out goals and timetables for progress.
Virtually every HR function is affected by employment equity plans:
Human resource plans must reflect the organization’s employment equity goals.
Job descriptions must not contain unneeded requirements that exclude members of protected
classes.
Recruiting must ensure that all types of applicants are sought without discriminating.
Selection of applicants must use screening devices that are job-relevant and nondiscriminatory.
Training and developmental opportunities must be made available for all workers, without
discrimination.
Performance appraisal must be free of biases that discriminate.
Compensation programs must be based on skills, performance, and/or seniority and cannot
discriminate against jobholders in other respects.
Even when HR specialists know that their intent is not to discriminate, they must carefully
review the results of these HR functions to ensure that the results are not discriminatory.
Otherwise, lawsuits may arise, and the current employment equity plan may need to be revised
or scrapped.
Employment equity programs are a mechanism for improving the opportunities of a group
through the elimination, reduction, or prevention of discrimination. They are developed by
employers to remedy past discrimination or to prevent discrimination in the future. Employment
equity programs exist for several reasons. From a practical standpoint, employers seldom benefit
from excluding people who belong to a particular group. To exclude an entire class of workers,
such as women or visible minorities, limits the labour pool available. Open discrimination can
also lead to negative public relations, boycotts by consumers, and government intervention. To
ensure that such discrimination does not occur, employers often develop equity programs
voluntarily.
It should be noted that mandated equity programs take place mainly at the federal level—that is,
in organizations and industries under federal jurisdiction. At the provincial level, such programs
are implemented almost exclusively on a voluntary basis. Regardless of the reasons or goals of
such programs, HR groups should adhere to the guidelines here:
Step 1: Exhibit commitment. No matter how favourably HR is viewed by others in the
organization, the CEO/president of the company should support the program in writing.
Anything less than total support from top officials raises questions about the sincerity of the
organization’s commitment in the eyes of government agencies, courts, and employees. To
exhibit this commitment forcefully, company officials may make raises, bonuses, and
promotions dependent upon each manager’s compliance.
Step 2: Appoint a director. One member of the organization should be responsible for equity
issues. Commonly, the vice- president of HR is appointed director, although day-to-day
implementation may be delegated to a compliance specialist in HR.
Step 3: Publicize commitment. An employment equity program is ineffective unless publicized
externally and internally. Outside the company, sources of potential recruits must be made aware
of the new policy. Organizations should include the phrase “An equal opportunity employer” on
company stationery and in employment ads to further publicize the policy. Internally, the
practice should be conveyed to everyone involved in the hiring process. Otherwise, top
management may pursue one policy and lower levels, another.
Step 4: Survey the workforce. HR needs to know how the composition of the employer’s
workforce compares with the composition of the workforce in the labour market. For example, if
the employer’s mix of male and female employees differs significantly from the labour market
from which the employer attracts workers, it is possible that discrimination has occurred. When a
survey of the employer’s workforce indicates such differences, the employer may find examples
of underutilization or concentration. Underutilization exists when a company or department has
a smaller proportion of protected class members than is found in the labour market.
Concentration is just the opposite, occurring when protected class members are concentrated in
a few departments, out of proportion with their presence in the labour market.
Step 5: Develop goals and timetables. When, through surveys, underutilization and concentration
are found (possibly as consequences of past discrimination), HR specialists should set up goals
and timetables to eliminate them.
Step 6: Design specific programs. To reach goals, HR specialists must design remedial, active,
and preventive programs. Remedial programs correct problems that already exist. Active
programs imply that management goes beyond instructing supervisors about new hiring policies
and waiting for things to happen. It means going to high schools in areas dominated by
minorities, approaching community leaders in such areas for assistance, inviting residents to
attend information sessions, and advertising in newspapers or other media outlets accessible to
minorities and special target groups: Preventive programs are more proactive. They involve an
assessment of HR policies and practices. Policies that discriminate (such as height rules) or
practices that continue past discrimination (such as hiring exclusively from employee referrals)
must be eliminated.
Step 7: Establish controls. An employment equity program is likely to fail unless controls are
established. HR specialists and line managers must perceive their rewards as depending upon the
success of the program. To evaluate that success, monthly, quarterly, and yearly benchmarks
should be reported directly to the director of the program and to the CEO/president or another
senior official. In addition to companies or agencies under federal jurisdiction, the federal
government requires compliance with the Employment Equity Act from any company doing
business with the federal government. Companies with 100 or more employees bidding on
contracts for goods and services of $1 million or more are subject to the employment equity
criteria listed in the Act. Under this policy, companies are required to certify in writing at the
tendering stage of a contract their commitment to implementing employment equity. Employers
will be subject to random reviews to ensure their compliance with the Act.
Women aged 25–54 earn about 87 percent as much per hour as male employees, and the gap has
shrunk by about 10 cents since 1981. Pay equity legislation attempts to remedy these inequities.
At the federal level, the Canadian Human Rights Act prohibits discrimination based on sex; it is
therefore illegal to pay women less than men if their jobs are of equal value, a principle known
as “equal pay for work of equal value. Pay equity policy frameworks exist in British Columbia
and Saskatchewan, and pay equity negotiations with public sector unions exist in Newfoundland
and Labrador. Legislation in Nova Scotia, Manitoba, New Brunswick, and Prince Edward Island
applies to public service employees, but only Quebec and Ontario have laws covering the public
and private sectors. At the federal level, the Pay Transparency Act regulates publication of wage
gap information as part of annual reports. In November 2011, the Supreme Court of Canada
decided in favour of female Canada Post workers in a pay equity case that was brought 28 years
ago. Originally, about 2,300 employees worked in the affected classification (office workers),
but about 6,000 employees (including some men) have been in the classification at some point in
time. It is estimated that workers employed in the classification between 1983 and 2002 will
share about $250 million. The main issue was whether it was appropriate for the Human Rights
Commission to compare the office group with a male-dominated group that had some female
members. The implication for HR is that they must make very sure the wage and salary system
does not subtly discriminate on the basis of sex. The use of employment equity programs can
lead to charges of reverse discrimination against employers. The charges usually arise when an
employer seeks to hire or promote a member of a protected group over an equally (or better)
qualified candidate who is not a member of a protected group. For example, if an employer has
an employment equity program that gives preference to women over men when promotions
occur, a qualified male may sue the employer and claim that he was discriminated against
because of his sex. Charges of reverse discrimination may put HR in a difficult position. On the
one hand, HR is responsible for eliminating concentration and underutilization. On the other
hand, giving preference to members of a protected class (such as women) raises questions about
whether the HR group is being fair. Although preferential treatment will always raise questions
of fairness, the Canadian Human Rights Act declares employment equity programs nondiscriminatory if they fulfill the spirit of the law.
LO4- Privacy Legislation
A relatively newer set of laws in Canada relates to the privacy of personal information. Canada
has privacy legislation to guide the information that can be collected, stored, and accessed by
individuals, employers, and the government. Personal information is data about an “identifiable
individual.” It is information that, on its own or combined with other pieces of data, can identify
a specific individual. The definition of personal information differs somewhat under the various
privacy laws in Canada, but generally, it can mean information about:
race or national or ethnic origin,
religion,
age or marital status,
medical, education, or employment history, finances,
DNA,
identifying numbers such as Social Insurance or driver’s licence numbers, and views or opinions
about a person as an employee.
Information that is generally not considered to be personal information includes the following:
Information that is not about an individual, because its connection to a person is too weak or farremoved (e.g., a postal code that covers a wide area)
Information about an organization such as a business
Information that has been rendered anonymous, as long as it is not possible to link that data back
to an identifiable person
Certain information about public servants such as their name, position, and title
A person’s business contact information that an organization collects, uses, or discloses for the
sole purpose of communicating with that person in relation to their employment, business, or
profession.
Canada has two federal privacy laws that are enforced by the Office of the Privacy
Commissioner of Canada. The Privacy Act relates to a person’s right to access and correct
personal information that the Government of Canada holds about them. The Act also applies to
the government’s collection, use, and disclosure of personal information in the course of
providing services such as Old Age Security pensions, Employment Insurance, border security,
federal policing and public safety, and tax collection and refunds.
The Personal Information Protection and Electronic Documents Act (PIPEDA) sets rules for
how private sector organizations collect, use, and disclose personal information in for-profit,
commercial activities across Canada. It also applies to the personal information of employees of
federally regulated businesses. PIPEDA generally applies to personal information held by private
sector organizations that are not federally regulated, and in all provinces except Alberta, British
Columbia, and Quebec, which have their own provincial privacy legislation.
Generally, HR can ask for and store personal information that relates to the employment
relationship but should refrain from collecting or storing information that is not directly related
to employment. Employees can also refuse to provide personal information that infringes on their
right to privacy.
LO5- Workplace Policies
A healthy organization will not just meet minimum legal standards but will also promote a
positive workplace through workplace policies. Having defined HR policies in the workplace
should be a principal objective for every HR group. A set of HR policies for the organization are
often provided as part of an employee handbook or welcome package for new employees. A
2018 small business survey found that 84 percent of businesses provided employee handbooks
and formal written policies and 85 percent required employees to acknowledge receipt of these
policies. Current, ethical, and effective HR policies serve many purposes:
Outlining expectations in the workplace, such as defining acceptable and unacceptable
behaviours and safe work practices
Meeting statutory requirements, such as having a working alone policy in Alberta or a workplace
violence policy in Ontario
Outlining how to address complaints, problems, and grievances by employees
Helping to protect employees from their colleagues’ poor behaviour and from misdeeds by the
organization
Helping to train and develop employees in line with the needs of the organization, and to guide
acceptable parameters
Outlining breaks, vacations, and statutory holidays which may meet or exceed requirements from
employment standards to eligible employees
LO6- Types of HR Policies
Some HR policies may be specifically needed to meet jurisdictional legislative requirements, and
others may be prudent to create a safe and productive workplace. HR must develop the policies
required by law, and should consider developing some additional policies that are described next.
HR may choose to develop some or all of these policies or others specific to their organization’s
context.
Harassment Policy
Also called a respectful workplace policy or code of conduct policy, a harassment policy outlines
desired treatment of employees in the organization and prohibits harassment and discrimination
from taking place. Provincial or federal regulations may stipulate specific policy requirements,
so it is important to review the applicable laws and ensure that all components are included.
In short, harassing behaviour may be verbal, physical, deliberate, unsolicited, or unwelcome; it
may be one incident or a series of incidents. Protection against harassment extends to incidents
occurring at or away from the workplace, during or outside normal working hours, provided such
incidents are employment related. Specifically, harassment may include the following:
Verbal abuse or threats
Unwelcome remarks, jokes, innuendo, or taunting about a person’s body, attire, age, marital
status, ethnic or national origin, religion, and so on
Displaying of pornographic, racist, or other offensive or derogatory pictures Practical jokes that
cause awkwardness or embarrassment
Unwelcome invitations or requests, whether indirect or explicit, or intimidation Leering or other
gestures
Condescension or paternalism that undermines self-respect
Unnecessary physical contact, such as touching, patting, pinching, or punching Physical assault
Harassing behaviour is assumed to have taken place if a “reasonable person ought to have known
that such behaviour was unwelcome.”
Ostracism, or social exclusion, is a form of bullying and can be overt or subtle and should be
included in harassment policies. Cyberbullying is also a growing concern. A study of employees
in 10 countries revealed that almost 10 percent of employees have had a manager use
information against them that was obtained from a social media site, 53 percent believe that
workplace privacy has been eroded due to social media, and 11 percent have had embarrassing
photos or videos taken at a work event and then uploaded onto social media. Common forms of
cyberbullying include sending unpleasant or defamatory remarks to or about a colleague and
posting negative comments on a social media site about a colleague’s appearance.
Sexual harassment is usually specifically addressed within a harassment policy. The Canadian
Human Rights Tribunal identified three characteristics of sexual harassment:
1. The encounters must be unsolicited by the complainant, unwelcome to the complainant,
and expressly or implicitly known by the respondent to be unwelcome.
2. The conduct must either continue despite the complainant’s protests or, if the conduct
stops, the complainant’s protests must have led to negative employment consequences.
3. The complainant’s cooperation must be due to employment-related threats or promises.
How common is sexual harassment? A recent Angus Reid survey revealed that 52 percent of
Canadian women report being subject to sexual harassment at work during their lifetime, and 28
percent indicate that they have been subject to nonconsensual sexual touching. A survey by
Employment and Social Development Canada revealed that 94 percent of respondents
experiencing sexual harassment were women; men experiencing sexual harassment were usually
reporting other men. About half of respondents reporting harassing or violent behaviour said that
the perpetrator was an individual with authority over them, while 44 percent said that the
behaviour was by a co-worker. Although about three-quarters of people experiencing harassment
or violence took action, 41 percent stated that no attempt was made to resolve the issue.
Employees experiencing harassment or violence were most likely to discuss the matter with a coworker (64 percent) or supervisor (58 percent), with only 22 percent talking to an HR
professional.
A study by the NRG Research Group found that about 82 percent of participants believed that
stalking or cyberstalking were examples of sexual harassment or sexual violence. Other
examples included asking someone on a date more than once after being told no (47 percent) and
greeting someone and telling them they look nice today (5 percent). About 51 percent of
respondents indicated that recent sexual harassment allegations of high-profile individuals (such
as Harvey Weinstein and Kevin Spacey) have had a very large or somewhat large impact on
reducing the occurrence of sexual harassment at work. In addition, 50 percent of participants
were very or somewhat aware of the #MeToo campaign, and 84 percent of those aware of
#MeToo felt that the campaign was very or somewhat effective in raising awareness of sexual
harassment and sexual violence.
Attendance, Leave, and Break Policies
Attendance policies communicate employees’ scheduled start times, procedures for informing
their supervisors of unscheduled absences or late arrivals, and discipline for unexcused absences.
Leave policies should outline the organization’s rules and procedures regarding holidays,
vacation, sick leave, study leave, and any other time-off benefits. They should also cover leaves
required by law, such as isolation requirements (a new consideration that arose during COVID19), voting leave, bereavement leave, and domestic violence leave. Meal and break period policy
communicates the frequency and duration of breaks, and any additional rules or restrictions
relating to them. These policies must comply with the applicable provincial and federal
employment standards.
Occupational Health and Safety Policies
These policies describe an extensive range of topics in health and safety from hazards to diseases
to ergonomics to emergency procedures. They outline reporting procedures for work-related
injuries and processes for investigating incidents. Legislation covers policy requirements for
each province, the three territories, and the federal level, although they share much in common.
The applicable occupational health and safety acts will require employers to have specific
policies in place if certain workplace hazards exist. For example, a hazard communication
program will be required for workplaces with certain chemicals.
Workplace Violence
From threatening behaviour to verbal or written threats, to verbal abuse, to physical attacks,
workplace violence policies define unacceptable forms of behaviour in the workplace. A policy
on weapons in the workplace may be included within a workplace violence policy or exist as a
stand-alone policy. These policies need to comply with jurisdictional laws, which may include
posting requirements, listing specific examples of prohibited violent conduct, and explaining
workplace responsibilities for violence prevention.
Remote Workers Policy
In particular following work-from-home requirements during the COVID-19 pandemic, more
and more employees are working remotely. A remote workers policy will outline the jobs and
workers who are eligible, any limitations on remote work, and how remote workers will be
monitored. It may stipulate the organization’s ability to end the remote working, and any specific
compensation provisions during remote work periods. The policy should include check-in
procedures for remote workers working alone.
Technology Use Policy
When the organization owns the technology and computer equipment, it can choose what is
appropriate or inappropriate use of that equipment. A technology use policy may outline what is
acceptable on an employee’s break time at the workplace, or during off-hours away from the
worksite. These policies outline whether the company-owned equipment can be used for
personal purposes and describe inappropriate uses on a taboo list (e.g., pornography, religious
webpages).
A technology use policy may also relate to employees’ using their personal devices—such as
phones, laptops, and tablets—for business. When personal devices are used, issues related to
privacy, security, monitoring, and theft need to be considered. The policy should include an endof-employment procedure and any risks or liabilities associated with using personal devices for
work.
Social Media Policy
A social media policy will provide guidelines for employees who post on social media or
respond to social media using either work-related social media accounts or personal accounts.
They may address how social media use is controlled in the workplace, guide treatment of
confidential information, and describe disciplinary measures for policy violations. The
Substance Use Policy
Substance use policies are growing in popularity owing in part to the legalization of marijuana in
Canada in 2018. Impairment from substance use creates lost productivity, increased absenteeism,
liability problems, reduced employee morale, and injury risk for harm to the employee, other
staff, and customers, making it seem that an outright ban on substances in the workplace might
be preferable. However, addictions to substances are considered to be a disability in Canada. As
such, employers need to think through reasonable accommodation and undue hardship in their
particular work context as part of the policy as well. The substance use policies may differ based
on the potential safety risks to the employee and others in the work environment (e.g., operating
heavy equipment versus working in an office setting).
A review of workplace substance use policies in Canada by the Canadian Centre on Substance
Use and Addiction indicates that the best policies will make clear that substance use impairment
will not be tolerated but will encourage a supportive environment for workers afflicted by
substance use issues. While substance use policies may include disciplinary
procedures for non-compliance, they should also discuss treatment, support, and return-to-work
programs as supportive measures.
Confidentiality Policy
Confidentiality policies indicate the types of information that employees should keep
confidential, which may include information about trade secrets, non-public information, and
even information about wages and working conditions. They should also include the
consequences for violating confidentiality and provide specific examples of the confidential
material in question.
While the list of HR policies that an organization may develop seems potentially long and
daunting, priority policies to have in place and communicate about with employees regularly
may vary depending on legislation compliance, industry, and work context of the company.
Within Canadian organizations, HR holds primary responsibility for diversity, equity, and
inclusion. Prime Minister Justin Trudeau campaigned on increasing equitable treatment of
women in Canadian organizations and introduced Canada’s first ethnically diverse cabinet with
equal numbers of men and women in 2015.Many recent events—including the killings of George
Floyd and other Black people in the United States—galvanized growth in the Black Lives Matter
movement around the world. In Canada, the uncovering of mass graves at residential schools has
brought new and renewed attention to the importance of truth and reconciliation work with our
Indigenous peoples. Undoubtedly there is a greater focus on and awareness of diversity, equity,
and inclusion in Canadian workplaces than ever before.
Consider some of these statistics on Canadian diversity:
According to the most recent census (2016), Canada has a total of 72,880 same-sex common-law
couples, representing 0.9 percent of all couples in the country. The number of same-sex couples
increased by 60.7 percent between 2006 and 2016.
In July 2005, Canada became the third country in the world to legalize same-sex marriage, after
the Netherlands (2000) and Belgium (2003).
Some 21.9 percent of Canadians were born outside the country, and this is expected to increase
to 25–30 percent by 2036.
Nearly 7.7 million Canadians, or 22.3 percent of the total population, are visible minorities.
About 70 percent of visible minorities live in Toronto, Montreal, or Vancouver.
About 3.8 million Canadians (13.7 percent) reported having a disability. Women (14.9 percent)
were more likely to report a disability than men (12.5 percent).
Historically and currently, members of diverse groups experience specific challenges in
Canadian workplaces owing to their diversity. Four such challenges are stereotyping, the old
boys’ network, the glass ceiling, and “from pet to threat.”
Recognition of a person’s unique background, capabilities, and individuality may generate better
workplace outcomes. Multiple people may share commonalities in their background dimensions,
but grouping people can result in stereotyping. Further, the differences between groups need not
be intrinsic or innate; they can be differences attributed to history or prevailing culture and
subject to change.
Of course, these generalizations that all women and all men act and think and believe in the same
manner are simply untrue and based on his personal stereotype. Although some stereotypes can
be positive (e.g., about ethnicities who are good in math), there is, in general, much more
difference among people in the same group than between people of different groups, making
stereotyping dangerous.
Many women are hindered by lack of access to the old boys’ network, the set of informal
relationships that develop among male managers and executives. The friendships and contacts
built through the network become the basis for assignments and promotions, and the network
becomes the informal communication link that provides vital information about business from
which women are excluded. This network may limit the number of women who reach positions
of power.
A global study by Oliver Wyman revealed that 25 percent of executives at financial services
firms in Canada are female, placing Canada third in the world behind Norway (33 percent) and
Sweden (32 percent) and ahead of the United States (20 percent). Japan ranked last of 19
countries, with 2 percent of women holding executive roles at major financial institutions. The
Back to Bay Street program, which assists women returning to the financial sector after taking
time off to have children, was cited as part of a web of support.
The Canadian Board Diversity Council’s Annual Report Card (2018) revealed that women held
about 19.5 percent of C- suite executive positions and 24.5 percent of board seats in FP500
companies. Women were more likely to be on the board of firms in finance and insurance (33.1
percent), utilities (30.1 percent), and retail and trades sectors (23.7 percent). About 23 percent of
board seats in manufacturing and mining, oil, and gas were held by women.
Although it is projected that visible minorities will make up about one-third of the country’s
population in 15 years, representation on the boards of public institutions and agencies tends not
to be reflective of the community. About 95 percent of board directors agreed that board
diversity is very or somewhat important to them (up from 85 percent in 2010). However, 76.1
percent of female directors indicated that board diversity is very important to them, compared
with 52.4 percent for male directors. When considering diversity of board directors, about 6.2
percent are visible minorities, and less than 1 percent are Indigenous peoples.
The existing values, norms, and patterns of interactions among managers may also act as a glass
ceiling that stunts the career growth of women, LGBTQ+, and visible minorities beyond a
certain level. Promotional opportunities are visible, but invisible obstructions seem to block the
way. The perception of the existence of a glass ceiling results in frustration, reduced job and
career satisfaction, alienation from the workplace, and ultimately higher employee turnover.
However, some organizations are making major strides in advancing promotional opportunities
for female, LGBTQ+, and visible minority employees.
The City of Saskatoon was recognized nationally as a diversity employer in 2020. Indigenous
awareness training is mandatory for employees and there is a Truth and Reconciliation Resource
Kit for ongoing learning. Other training initiatives include cultural bridging, understanding
invisible disabilities, and inclusive practices for LGBTQ2S identities.
Despite the transformation of Canadian cities and towns into multicultural mosaics, prejudices
against visible minorities continue to exist in the workplace. In addition, the stereotypes faced by
women belonging to specific religious groups prevent them from gaining even lower-level jobs:
Discriminatory hiring practices and workplace racism toward Muslim women are common in
Toronto, according to a study by Women Working With Immigrant Women, a nonprofit
organization that works with immigrants. Of the 32 Muslim women surveyed, 29 said that
employers had commented on their hijab and 13 women reported that an employer told them
they would have to take the hijab off if they wanted a job. The study also included a field
experiment where three teams of applicants—matched in every way except that one wore the
hijab and one didn’t—visited 16 job sites to apply for a job. At more than half of the sites, the
applicant without the hijab was asked to fill out an application or leave a resumé while the
applicant with a hijab was not. At two job sites, the woman without the hijab was told there was
a job available while the woman with the hijab was told there weren’t any jobs.
A more recently labelled challenge is “from pet to threat.” A shared experience by many Black
women is that the managers, mentors, and sponsors who once supported them later undermine
them because they are perceived to be a threat or competition.Despite being high performers,
they feel ostracized when people who formerly supported them withdraw their support. A study
by MLT (Management Leaders of Tomorrow) found that 50 percent of their alumni who were
women, Black, Latinx, and Indigenous peoples felt that a white person who supported them had
later undermined them
LO7- Strategic Importance of Diversity
Diversity, equity, and inclusion recognizes that an organization is a mosaic where employees
with varying beliefs, cultures, values, and behaviour patterns come together to create a whole
organization and where these differences are acknowledged, valued, and accepted. It assumes
that differences among employees can add value to an organization and that diversity includes all
types of differences and not simply obvious ones such as sex/gender, race, and so on. Also,
organization culture and working environments are key items to focus on to create diverse,
equitable, and inclusive organizations. Several factors make diversity, equity, and inclusion
strategically important.
Changing Workforce
The Canadian labour market is undergoing rapid and continuous transformation. Years ago, the
average member of the workforce was male, white, and approximately 30 years old, and usually
held a high school diploma or lower. These men also worked within the region of their birth,
were married, and had children. In contrast, today’s workforce is considerably more diverse.
Given this change, diversity, equity, and inclusion is not merely desirable but mandatory if an
organization is to effectively attract, utilize, and develop human resources.
The Government of Canada is responding to the Truth and Reconciliation Commission’s Call to
Action 92 by urging the Canadian corporate sector to adopt the United Nations Declaration on
the Rights of Indigenous Peoples as a reconciliation framework and to apply its principles,
norms, and standards to corporate policy and operational activities related to Indigenous people,
their land, and their resources. This includes but is not limited to:
1. Commit to meaningful consultation, building respectful relationships, and obtaining the
free, prior, and informed consent of Indigenous peoples before proceeding with economic
development projects.
2. Ensure that Aboriginal peoples have equitable access to jobs, training, and education
opportunities in the corporate sector, and that Aboriginal communities gain long-term
sustainable benefits from economic development projects.
3. Provide education for management and staff on the history of Indigenous peoples,
including the history and legacy of residential schools, the United Nations Declaration on
the Rights of Indigenous Peoples, treaties and Aboriginal rights,
Indigenous law, and Aboriginal–Crown relations. This will require skills-based training in
intercultural competency, conflict resolution, human rights, and anti-racism.
Importance of Human Capital
Changes in production technology have dramatically increased the importance of human capital.
In today’s world of “intellectual capitalism,” the knowledge worker may be the key to the
success or failure of the firm. Often the departure of even a few key workers can spell disaster
for the firm. The most valuable parts of the firm’s operation may be reflected in human tasks of
sensing, judging, and making decisions. In today’s information age (and the growing
advancement of artificial intelligence, machine learning, and digitization), the importance of
human capital is critical.
Diversity as a Competitive Advantage
Proactive organizations recognize that competitive strength often lies in focusing on their
employees and their clients. Globalization and changing domestic markets (demographic
changes, immigration, etc.) mean that a firm’s customers are incredibly diverse. Further, many of
the growing export markets for Canadian firms are located in Asia, Latin America, and Africa.
“It makes perfect sense that Mercedes-Benz Canada’s corporate strategy prioritizes diversity:
this country’s highly competitive luxury automotive sector is incredibly diverse, not just in terms
of vehicles but audience as well. In order to thrive, we must continue to bring together people
who are able to provide valuable insights about our organization, customers, and communities.”
— Virginie Aubert, VP, marketing, Mercedes-Benz Canada Inc.
Diverse employees can provide insight into how to meet the needs of diverse customer groups.
Diversity affects all strategies and processes of the organization. Diversity, equity, and inclusion
ties to the strategic plan and involves every employee across the whole workforce.
Although the great majority of organizations report that diversity, inclusion, human rights, and
equity are strategic initiatives at their workplaces, a study by the Canadian Institute of Diversity
and Inclusion revealed that only about 19 percent of employers are measuring the impact,
efficiency, or return on investment (ROI) of their diversity initiatives. In addition, very few
employers measure the diversity impact over an employee’s life cycle.
Increasing Role of Work Teams
Work teams have always reflected some degree of diversity. Functioning on an effective work
team requires skills to facilitate involving, understanding, embracing, and valuing multiple
perspectives. Valuing differences can result in improved creativity and innovative problem
solving.
LO8- Diversity, Equity, and Inclusion Initiatives
While diversity may be defined as “all the ways in which we differ,” and equity refers to treating
people the same, inclusion involves establishing and maintaining work practices and a work
environment where everyone can be fully themselves and make contributions. Many
organizations are now moving from a strictly diversity and employment equity approach toward
leveraging inclusion. One primary reason behind this shift is that “managing diversity” requires
first a label or classification of a person along a dimension of diversity (for instance, older,
female, gay, Lebanese, transgender). Inclusion leapfrogs this labelling and moves right into
creating practices and conditions where all employees are able to contribute effectively
regardless of their differences. For organizations seeking to move toward an inclusive
environment, one of the first steps is to articulate the ideal future state the organization would
achieve through inclusion. Creating an inclusive culture is not accomplished merely by stating it
within the organization’s vision and values, but these statements provide guideposts for the
organization to develop practices and conditions toward living inclusion.
A study by the Royal Bank of Canada of 64 major Canadian organizations revealed that almost
90 percent of participants strongly believe that diverse and inclusive teams make better
decisions, while 66 percent strongly agree and 20 percent agree that leveraging diverse
backgrounds and individuals is fundamental to their organizational performance. A bit over half
of respondents indicated that they use scorecards to track annual diversity performance, about 60
percent train executives and managers on how to manage diverse teams, 55 percent publicly
communicate how the organization is progressing in meeting diversity and inclusion goals, and a
bit over 40 percent hold leaders accountable for diversity and inclusion results.
Current policies, systems, practices, rules, and procedures have to be examined for their
appropriateness for an inclusive culture. Included here are work assignments, recruitment and
hiring, onboarding, training, compensation, employee communication, employee development,
and performance appraisal. As one example, recruitment practices may need to be revised, as
seen in this example:
Shopify, a recipient of the 2018 Employer Excellence Award from Hire Immigrants Ottawa,
launched an Android Bootcamp in 2017. This program involves reaching out to software
developers who are recent immigrants to Canada, selecting candidates for a 2.5-day Android
Bootcamp, and considering Bootcamp participants for employment. According to Meghan
Herman, “Diversity and inclusion are integral tenets of Shopify’s culture.”
Senior management commitment to inclusion is one of the most important elements of ensuring
the success of inclusion efforts; so is whole-hearted support from the unions. Inclusion efforts
will fail unless all managers and employees see them as an integral part of the firm’s business
philosophy. This means that particular attention should be paid to communication, hiring, and
reward structures to promote inclusion. A number of managers do not know what their specific
role is when it comes to managing inclusion. According to Siu, “A lot of managers are saying ‘I
know how great diversity is but exactly what can I accomplish to prove that and align what I am
doing with the senior management agenda?’
Unless the firm monitors the progress of the diversity, equity, and inclusion effort on a
systematic basis, corrective actions may not follow. Monitoring will also ensure that quantitative
and qualitative indices of change are available to the management, the union, and the workforce.
These results should be widely communicated and the gaps between targets and
accomplishments publicized along with the proposed corrective actions. Indices such as number
of hires, promotions, absenteeism, turnover, salary levels, grievances, harassment complaints,
and so on, are useful for gauging progress, but should not be used exclusively since qualitative
responses from employees may convey other dimensions of work climate and the intensity of
employee feelings. More progressive organizations make use of diversity and inclusion audits
on a regular basis to uncover the underlying dimensions, causes, and progress-to-date on
diversity, equity, and inclusion matters. Managers and lower-level supervisors need to learn new
skills that will enable them to manage and motivate an inclusive workforce. Often, outside
experts are invited to provide diversity, equity, and inclusion training programs in
organizations. Such training programs help to create awareness of the bottom-line impact of
diversity, equity, and inclusion and the role of managers, supervisors, and co-workers in creating
a work climate that is comfortable for all employees, irrespective of their differences.
Experts suggest two types of training: awareness training and skill-building training. Awareness
training focuses on creating an understanding of the need for managing and valuing diversity,
equity, and inclusion. It is also meant to increase participants’ self-awareness of diversity- and
inclusion-related issues, such as stereotyping and cross-cultural insensitivity.
Once individuals develop an awareness, they can then monitor their feelings, reactions, and so
on, and make conscious decisions about their behaviour, often resulting in improved
interpersonal communication. Skill-building training educates employees on specific cultural
differences and how to respond to differences in the workplace. Often awareness and skillbuilding training are combined.
In the long run, it is therefore more practical, although more difficult, to focus on process
training; that is, supervisors and employees have to learn about diversity. Participants in a
process-oriented diversity training program develop an understanding of how management style,
the interpersonal communication process, teamwork, and other managerial issues are affected by
diversity. After such a training program, participants may not have all the answers, but they will
have plenty of questions. Often, removal of negative factors can enhance employee performance
and career growth. This is especially so in the case of women who have multiple and conflicting
role demands from work and family, or older workers who find the traditional work
arrangements difficult. Several alternate work arrangements such as flexible work hours,
telecommuting, extended leave, and job sharing have been used in the past to accommodate the
unique needs of employee groups. Apprenticeships are similar to mentoring programs except
that they relate to junior-level or technical jobs and often involve working with prospective
employees before they formally join the organization. Employees belonging to diverse groups
that are underrepresented in the organization may feel lonely and uncomfortable at the
workplace. Sometimes, this might be simply a feeling of loneliness and distance from
mainstream workers. In other instances, the new employee may even face hostility from other
members of the work group, especially when others perceive that the employee’s group status
resulted in preferential treatment during hiring. Often the result is employee alienation, which in
turn results in high turnover.
To overcome this problem, many organizations form support groups that are designed to
provide a nurturing climate for employees who may otherwise feel unwanted or shut out.
Socialization in such groups enabled the newcomer not only to share concerns and problems but
also to assimilate the organization’s culture faster.