BEST PRACTICES TO REDUCE WORKPLACE RISK
Whether or not an organization places EPL coverage, many
employment-related risks can be reduced with strong human resources
practices and strategies.
WRITTEN EMPLOYMENT CONTRACTS
The relationship between an employer and employee is a contractual
one – even in the absence of written terms. Although parties
are free to enter into a written agreement, in the absence of written
terms (or if the written terms are unenforceable), our courts
impute contractual terms into the relationship through their own
legal precedent (referred to as the common-law). For example, a
court will imply the contract of employment to be of an indefinite
length, and absent “just cause for termination,” an employer will be
obligated to provide an employee with “reasonable notice” of termination
of employment. “Reasonable notice” will almost always far
exceed whatever minimum notice is required under employment
standards legislation. A properly drafted employment contract can
reduce or even eliminate common law obligations.
Although a termination clause is the principal reason for using
an employment contract, it’s not the only reason. A written
benefits
employment contract clarifies obligations and entitlements during
the course of the employment relationship, as well as after its
conclusion. A well-prepared employment contract will set out remuneration,
a probationary period, duties of employment, hours
of work, vacation, confidentiality obligations, etc. It may also address
any post-employment covenant such as one that restricts the
solicitation of customers. For these reasons, a savvy employer will
use an employment contract to significantly reduce employment-
related risks and achieve important business objectives.
An employer that does not already have written contracts in place
should not despair – it may not be too late. An enforceable employment
contract can be introduced into an existing employment
relationship under the rights conditions, and with the assistance of
experienced employment counsel.
WORKPLACE VIOLENCE AND HARRASSMENT POLICY
Every organization is required to establish, implement and train
employees on workplace violence and harassment to comply with
health and safety and human rights law. However, the benefit of
such a policy goes beyond avoiding sanction from a government
regulator. An organization with a well-written policy will be better
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HRPA Members: Protect your organization with
Employment Practices Liability Insurance
Qualifying HRPA members* receive an HRPA-endorsed Employment Practices
Liability (EPL) insurance policy specifically designed to offer unparalleled protection
in the event of employment- or discrimination-related litigation against you or your
firm.
Key EPL insurance policy features include:
• $1,000,000 limit per claim with an aggregate policy limit of $1,000,000
• Covers monetary and non-monetary relief claims
• Enhanced coverage for first party (employee) and third party (client/customer)
claims
• Discrimination
• Wrongful dismissal
• Harassment
• Wrongful demotion/failure to promote
• Refusal to employ
• Defamation
*Contact EPL provider LMS ProLink for quote
email: hrpa@lms.ca or toll-free: 1-800-663-6828
HRPATODAY.CA ❚ OCTOBER 2015 ❚ 43