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Marketing and Consumer Studies
MCS 3040
Joseph Radocchia

CHAPTER 20 – The Employment Relationship Employment Law: Both Federal and Provincial have employment law: Federal - regulate industries such as banking, airline, broadcasting, railway and shipping industries. Provincial - affect all other employees – eg: newspaper company not federally regulate Independent Contractor: person in working relationship that doesn’t meet criteria of employment (eg: doctors, lawyers) ADVANTAGES: tax savings, flexibility, and independence in arranging a work schedule. Employees vs. Independent Contractor: Courts have come up with a variety of tests to distinguish between the two: 1. The Degree of control exercised over the individual by the employer: more supervision employer has, the more likely the relationship is employment 2. The Ownership of tools, chance of profit, and the risk of loss from performance of the requested service: Sharing profits and losses and the ownership of tools are indicative of an independent contractor. 3. The Degree of Integration: Nature of work being performed is considered in the relation to business itself. – Is it “integral” or “adjunct” – more work integrated into company’s activities, more likely you are an employee. Implications of Employee Relationship: Employees have certain rights and benefits, such as paid holidays and paid overtime. Employers have certain obligations like the deduction of income taxes and employment insurance premiums. - assuming someone thinks they’re an independent contractor, but are not, can have bad outcome (smart to establish the employment relationship, before people begin to give their services) Risks In Hiring Business Perspective – Hiring someone who is best suited for the job. Legal Perspective – Hiring can reduce the risks associated with employment relationship. Risks: 1. Vicarious Liability – employers liable for torts of employee committed in ordinary of employment The justifications for hold employers guilty: • Employers have ability to control employees • Employers benefit from the work of the employees • Employers are usually in a better position that employees to pay for damages • Employers have an incentive to try and prevent torts from occurring 2. Negligent Hiring – employer has duty to use skill & care in hiring employees. If employee injures another employee, there is blame on the employer for having hired that person. The Hiring Process: • Develop job descriptions • Advertise the positions • Have candidates complete an application • Short list candidates • Check background • Interview selected Candidate Human Rights Requirements - provide equal access to employment opportunities Adverse Effects Discrimination – Occurs as a result of a rule that appears neutral but in its effect is discriminatory (eg: Systemic Discrimination - results from the combined efforts of many rules, practices and policies (eg: if a workforce is dominated by male workers) Defenses to Discrimination 1. Bona fide Occupational Requirement (BFOR) - excuses discrimination in good faith and for a legitimate reason (ie. you are hiring truck drivers and not going to hire someone who is blind) 2. Duty to Accommodate – the duty of employer to modify work rules, practices, and requirements to meet the needs of individuals who would otherwise be subjected to unlawful discrimination Employment Equity - designed to improve status of cert
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