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

Unpaid Interns

April showers have turned into May flowers, and the college and university students are once again filling out the corporate ranks as “interns”.  Many companies exchange valuable experience on a student’s CV for unpaid help, and assume that if the company calls this an “intern” relationship, then they are entitled to do so. 

Before you dive into engaging unpaid interns, make sure that your company intern program complies with the exemption from the definition of “employee” in the Ontario Employment Standards Act (the ESA).  If your program does not comply with the very strict exemptions, then your intern is an employee and is entitled to the minimum employee rights set out in the ESA. These standards include minimum wage, overtime pay, vacation pay, hours of work restrictions and obligations upon termination.

The exemption for “interns” in the ESA is intended to allow companies to participate in the training of students in a field of work. If the intern is being trained in a skill that the company’s employees use, then that intern is considered an employee, unless all of the following criteria are met:

  1. The training is similar to that which is given at a vocational school;
  2. The training is for the benefit of the individual;
  3. The person providing the training derives little, if any, benefit from the activity of the individual while he or she is being trained;
  4. The individual does not displace employees of the person providing the training;
  5. The individual is not accorded a right to become an employee of the person providing the training; and
  6. The individual is advised that he or she will receive no remuneration for the time that he or she spends in training.

These requirements call into question the basis of many corporate intern programs. First, most companies expect to derive value from an intern program.  Second, the intern is often used in place of an employee (i.e., if the intern was not doing the job then the company would need to hire someone else to do it).  Third, company intern programs often lead to employment with the company after the period of “internship” expires, and this expectation may be set by the company.

If your company intern program fails on even one of these six points, then the program faces two choices: it can convert to a paid internship program, which complies with the minimum expectations set out in the ESA, or it can be revised to comply with the exemptions. A failure to address an unpaid intern program, which does not fall under one of the exemptions, can lead to a Ministry of Labour investigation and ruling.

Intern programs are best set out in writing and include an agreement with the intern on certain key terms of the engagement, including a clear statement that the intern will receive no remuneration during the internship.

How Can We Help?

Please contact us if you would like to have your internship program reviewed for compliance or you would like a written internship program drafted.