Corporate & Commercial, Small Business, Corporate Services
Momentum Team
Incorporation: Federal or Ontario? Updated ...

Some significant changes to Ontario corporate law and the launch of the new Ontario Business Registry has led the Momentum team to update our advice. Deciding between incorporation at the Federal level or the Provincial level is a key decision in the incorporation process. Updated considerations …

Incorporation: Federal or Ontario? Updated Advice
Megan Cornell
Legal Basics of Personal Real Estate ...

As of October 1, 2020, real estate agents in Ontario are able to form personal real estate corporations (PRECs). This allows agents the flexibility which many other professions have, to operate as corporations instead of sole proprietors. Although PRECs are now available, they are not required.

This can allow significant tax planning advantages for real estate salespeople or brokers. The sole purpose of the PREC is to receive compensation from a brokerage which is earned by a registered broker or salesperson. The PREC does not directly provide the services of a salesperson or broker.

Legal Basics of Personal Real Estate Corporations (PRECs)
Megan Cornell
Holiday Employment Rules

For many entrepreneurs the holidays are one of the most lucrative, but also stressful times of the year! More work for the business means that employees need to work more, at the same time that many employees as well as the business owner, are hoping to spend time with family!

During this time of year it is important to be mindful of Ontario employment rules and ensure that your business is not exposed to being offside of the Ontario Employment Standards Act. Here are some of the key points to keep in mind

Holiday Employment Rules
Megan Cornell
Canadian Trademark Changes - June 17, 2019: How ...

Trademark registrations are powerful tools for protecting brands, and now is the time to prioritize registering your trademarks in Canada. Canadian trademark law is undergoing a major shift on June 17, 2019, and among the changes are an increase in the fees for trademark registrations, but also new registration requirements that will make it easier to register marks in Canada. The period between now and June 17 is the sweet-spot where you can file a trademark application and get the best of both systems – lower fees and fewer registration requirements.

Canadian Trademark Changes - June 17, 2019: How to Protect Your Brand and Save Money
Cannabis, Corporate & Commercial, Employment (HR), Business Purchase, Small Business
Guest User
AGCO Retail Cannabis Regulations

With all the talk about retail cannabis in Ontario, a lot of small business owners are being left with more questions than when they started. For the folks who just want to know what it is going to take to get a store open, here is the article for you.

AGCO Retail Cannabis Regulations

Better Workplaces

Employment Contracts Series: Compensation, Benefits and Policies

This post is part of a series on employment contracts which delves into that a comprehensive employment contract should address.  This part of the series discusses compensation terms, how benefits should be addressed and the incorporation of employment policies.

Offer letters almost always address starting salary, but are often vague regarding other employment benefits such as bonus earnings, stock options and other forms of incentive pay.  It is important to establish that compensation above base salary is  variable each year, at the discretion of the employer, or else to very clearly establish how the compensation will be calculated.  The employment contract should also deal with the effects of the termination of the employment relationship on variable forms of compensation (see a further discussion on that point in my blog post on termination clauses).

Commission calculations, bonus guidelines and expectations and stock option grants should likely be set out as schedules to the Agreement and should be updated each year.

Non-management employees are entitled to overtime pay, regardless of whether they are on salary or paid hourly, once they work more than 44 hours per week.  The employer and the employee can agree in writing that the employee will be given time and a half in paid time off so a contract should stipulate if pay or time off will be taken.  The contract should address hours of work expectations.

Vacation and other paid time off, as well as entitlements to unpaid time off, if any, should be spelled out in the employment contract.  Rules surrounding the use of those entitlements can be set out in employment policies, as discussed below.  There is an employer movement towards all encompassing Paid Time Off policies (“PTO Policies”) which I have discussed in another blog post.

Incorporation of Employment Policies:

Many companies have some form of employment policies which they expect employees to comply with.  It is important to incorporate the compliance with those policies into the employment agreement, along with a statement that the policies are updated from time to time.  Employment policies may include statements and rules regarding certain work behaviour that will be subject to discipline or dismissal (i.e. chronic culpable absenteeism, harassment).  It is particularly important to incorporate these types of policies specifically into the employment agreement and at times some of these policies may need to be specifically referred to in the employment contract.

Other policies may address procedures for employee time off of work, internet use and social media policies, demeanour and personal conduct issues and any other policy relevant to a particular workplace.

Also, all workplaces are required to have policies addressing violence and harassment in the workplace.  If the workplace has 6 or more regularly employed workers the policies must be in writing The policy must be reviewed each year and signed by the person highest in the management structure.