Employment Equity For the purposes of employment laws, businesses either fall under federal or provincial/territorial legislation, but not both. Federal employment equity legislation applies to, among others, employers with at least 100 or more employees and certain employers that bid on certain federal government goods or services contracts.
If the employer has a payroll in Ontario of at least $2.5 million, and the employee has given at least five years of service, the employee is also entitled to statutory severance pay of one week per year to a maximum of 26 weeks.
In addition to legislation, the common law (judge-made law) automatically incorporates into every employment relationship (written or not) the concept of “reasonable notice of termination.” human rights legislation aims to protect individuals from certain forms of discrimination. In Ontario the Human Rights Code prohibits discrimination in all aspects of employment, including recruitment and hiring.
You as employer must ensure employees are not discriminated against because of their race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, age, record of offences, marital status, family status and handicap.
The Human Rights Code also has specific harassment (including sexual harassment) provisions and recognizes damages for loss of dignity. A breach of the Human Rights Code can also form the basis for a claim of constructive dismissal.
The Human Rights Code is enforced by the Human Rights Tribunal of Ontario. The broad remedial powers of the Ontario Human Rights Tribunal include monetary compensation, reinstatement, and cease-and-desist orders. We can recommend steps that you can be taken to minimize the risk that an employee will file a human rights complaint with the Ontario Human Rights Tribunal.

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