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Chapter 4 Meeting Legal Requirements 4 4 MEETING LEGAL REQUIREMENTS CHAPTER OBJECTIVES After studying this chapter, you should be able to: Explain the impact of government on human resource management. Identify the jurisdictions of Canadian human rights legislation. List the major provisions of the Canadian Human Rights Act. Explain the effect of human rights legislation on the role of human resource specialists. Define harassment and explain what is meant by the term sexual harassment. Outline an Employment Equity Program. POWERPOINT® SLIDES Canadian Human Resource Management includes a complete set of Microsoft PowerPoint® files for each chapter. (Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the lecture outline that follows, a reference to the relevant PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.) 4-1 Part 3 Attracting Human Resources ® LECTURE OUTLINE (with PowerPoint slides) GOVERNMENT IMPACT Meeting Legal Requirements Slide 1 Government Impact Slide 2 The Charter of Rights and Freedoms Slide 3 Governments present many challenges to human resource departments. Federal and provincial laws regulate the employeeemployer relationship and challenge the methods human resource departments use. Governments create special regulatory bodies such as commissions and boards, to enforce compliance with the law and aid in its interpretation. • Responsibilities of human resource specialists: -- Stay abreast of laws, interpretations and rulings -- Develop and administer programs to ensure compliance -- Pursue their traditional roles of obtaining, maintaining, and retaining an optimal workforce THE CHARTER OF RIGHTS AND FREEDOMS The Canadian Charter of Rights and Freedoms is contained in the Constitution Act of 1982 and is probably the most far-reaching legal challenge for human resource managers. Although the charter provides fundamental rights to every Canadian it does not include: • The Right to Bargain Collectively and to Strike -- Are not fundamental freedoms therefore, strikers can be legislated back to work and have compulsory arbitration imposed The Right to Picket -- Employers can ask for injunctions to restrict picketing activities The Right to Work -- Mandatory retirement at the age of 65 is permissible HUMAN RIGHTS LEGISLATION Human Rights Legislation Slide 4 Human rights legislation is a family of federal and provincial acts that have a common objective to provide equal employment opportunities for members of protected groups. The two layers of employment laws: Federal law -- Passed by Parliament and enforced by the federal Human Rights Commission (applies to employers under federal jurisdiction) Provincial law -- Passed by provincial governments and enforced by provincial human rights commissions (applies to employers under provincial jurisdiction) 4-2 Chapter 4 Meeting Legal Requirements Direct vs. Indirect Discrimination Slide 5 Human Rights Legislation Slide 6 DISCRIMINATION • Discrimination is defined as “a showing of partiality or prejudice in treatment; specific action or policies directed against the welfare of minority groups” (Source: Webster’s New World Dictionary of the American Language) Discrimination is not defined in the Charter of Rights and Freedoms Direct discrimination on grounds specified in the human rights legislation is illegal Systemic (indirect or unintentional) discrimination -- Any company policy, practice, or action that is not openly or intentionally discriminatory, but that has an indirectly discriminatory impact or effect -- Examples include minimum height and weight requirements; internal hiring policies, internal hiring policies, limited accessibility of buildings or facilities HUMAN RIGHTS LEGISLATION Prohibited Grounds of Discrimination Slide 7 Bona fide occupation qualification (BFOQ) -- Legal form of discrimination -- Justified business reason for discriminating against a member of a protected class Duty to accommodate -- Requirement that an employer must accommodate the employee to the point of “undue hardship” PROHIBITED GROUNDS OF DISCRIMINATION 1. Race and Colour -- Discrimination that is intentional or unintentional, subtle or very open 2. National or Ethnic Origins -- It is illegal for human resource decisions to be influenced by the national or ethnic origins of applicants 3. Religion -- A person’s religious beliefs and practices should not affect employment decisions -- An employer must accommodate an employee’s religious practices unless those practices present undue hardship 4. Age -- It is not considered discriminatory to terminate employment because a person has reaching the normal age of retirement for employees working in similar positions 4-3 Part 3 Attracting Human Resources 5. Sex/Sexual Orientation -- It is illegal to recruit, hire and promote employees because of their sex -- It is unlawful to have separate policies for men and women -- In 2000, Parliament passed legislation treating same-sex partners the same as legally married and common-law couples for all purposes of federal law 6. Marital/Family Status -- Discrimination based on marital status is illegal e.g. denying a woman a job because her husband is already employed by the same company -- Nepotism is a form of discrimination based on family status i.e. having a policy of hiring employees’ children for summer jobs 7. Disability -- With practical exceptions (e.g. a blind person cannot be a truck driver) a person should not be denied employment solely for the reason of being disabled -- Drug-dependency or alcoholism may be interpreted as disabilities 8. Pardoned convicts -- The Canadian Human Rights Act prohibits discrimination against a convicted person if a pardon has been issued for the offence HARASSMENT Harassment Slide 8 Enforcement Slide 9 Harassment occurs when a member of an organization treats an employee is a disparate manner because of that person’s sex, race, religion, age, or other protective classification. Examples of harassment -- Verbal abuse or threats -- Unwelcome remarks, jokes, taunting -- Practical jokes that cause awkwardness -- Leering or other gestures -- Condescension or paternalism that undermines self-respect Sexual harassment -- Unsolicited or unwelcome sex-or gender-based conduct that has adverse employment consequences for the complainant -- Men may also be subjected to sexual harassment Reasonable person—it will be assumed that harassing behaviour has taken place if a “reasonable person” ought to have known that such behaviour was unwelcome ENFORCEMENT Responsibility for enforcement of the Canadian Human Rights Act lies with the Canadian Human Rights Commission (CHRC) Deals with complaints -- May also act on its own if an infraction is perceived 4-4 Chapter 4 Meeting Legal Requirements Employment Equity Slide 10 EMPLOYMENT EQUITY Four Designated Groups: Women Aboriginal people Persons with a disability Employment Equity Act (1987) Slide 11 Employment Equity Amendment (1996) Slide 12 Functional Impact of Employment Equity Slide 13 Provincial Human Rights Laws and Human Rights Commissions -- All provinces and two territories (NWT and Yukon) have their own human rights laws and human rights commissions with similar discrimination criteria, regulations and procedures Visible minorities The Abella Commission on Equality in Employment was appointed to determine the most effective, efficient, and equitable methods of promoting employment opportunities for four designated groups • Employment Equity Act was passed by the federal government in August 1987 -- Employers with 100 employees or more under federal jurisdiction are required to develop annual plans setting out goals and timetables -- As of 1996, employers are responsible for providing “reasonable accommodation” eg. providing a sign-language interpreter for a job interview with a deaf applicant, altering dress or grooming codes to allow Aboriginal people to wear braids etc. Functional Impact of Employment Equity • Human resource plans -- Must reflect the organization’s employment equity goals Job descriptions -- Must not contain unneeded requirements Recruiting -- Must ensure that all types of applicants are sought Selection -- Screening devices must be job-relevant and non-discriminatory Training and development -- Must be made available for all workers, without discrimination Performance appraisal -- Must be free of biases that discriminate Compensation programs -- Must be based on skills, performance, and/or seniority 4-5 Part 3 Attracting Human Resources EMPLOYMENT EQUITY PROGRAMS Developed by employers to undo past employment discrimination or to ensure equal employment opportunity in the future. Major Steps: Employee Equity Programs Slide 14 Major Steps in Employment Equity Programs • Exhibit commitment -- Total support from top officials is required e.g. raises, bonuses, and promotions dependent upon each manager’s compliance • Appoint a director -- Some member of the organization should be responsible e.g. vice president of human resources with an HR specialist responsible for day-to-day implementation • Publicize commitment -- Publicized externally and internally Survey the workforce -- To compare the composition of the employer’s workforce with the composition of the workforce in the labour market Develop goals and timetables -- Goals and timetables to eliminate underutilizaton and concentration should be established Design specific programs -- Human resource specialists design remedial, active, and preventive programs Establish controls -- Benchmarks are required to evaluate and reward success Pay Equity Slide 15 PAY EQUITY According to Statistics Canada, in 1999, women earned, on average, 85 cents for every $1 earned by men • Equal pay for work of equal value -- Most provinces have laws that make it illegal to pay women less than men if their jobs are of equal value -- At the federal level, the Canadian Human Rights Act prohibits discrimination based on sex, making it illegal to pay women less than men if their jobs are of equal value • Recent cases -- Federal government settled in 1999 at a cost of $3.5 billion -- Bell Canada case was not settled at the time of this writing but the final settlement may be $400-500 million 4-6 Chapter 4 Meeting Legal Requirements Reverse Discrimination Slide 16 REVERSE DISCRIMINATION This charge usually arises when an employer seeks to hire or promote a member of a protected group over an equally (or better) qualified candidate who is not a member of a protected group • Places Human Resource departments in a difficult position • Canadian Human Rights Act declares Employment Equity Programs non-discriminatory if they fulfill the spirit of the law Principle of Natural Justice Slide 17 PRINCIPLE OF NATURAL JUSTICE • Minimum standards of fairness and implied obligations for decisionmaking: -- The right to a fair hearing -- The right to a bias-free proceeding -- The right to present the opposing argument -- The right of legal representation -- The right to timely notice of a hearing -- The right to a timely process Other Legal Challenges Slide 18 OTHER LEGAL CHALLENGES Other relevant issues include: Canadian Labour Code (1971) -- Regulates union certification and other aspects (Chapter 14) -- Provincial equivalents are the Employment (or Labour) Standards Acts Dismissal -- An employee or employee can terminate an employment relationship as long as reasonable notice is given. Immediate dismissal can occur if the employee is provided severance pay Hours of work and overtime regulations -- Canada Labour Code sets the standards Minimum wages -- Set by provincial and federal boards (Chapter 9) Occupational health and safety -- Regulation of occupational health and safety issues (Chapter 12) Weekly rest day -- Canada Labour Code specifies at least one full day of rest during the week is to be provided (preferably Sunday) Workplace Hazardous Material Information System (WHMIS) -- Regulates the handling and labelling of dangerous material (Chapter 12) 4-7 Part 3 Attracting Human Resources Strategic Implications Slide 19 STRATEGIC IMPLICATIONS OF LEGAL CHALLENGES Ensure all rules and policies consider legal aspects o -- Human Resources is responsible to ensure that all policies and rules take legal aspects into account Employment equity requirements -- Ensure that all long-range strategic plans follow employment equity requirements -- Required to do business with the federal government Good corporate citizen -- Project external equity to be attractive to job applicants Training -- To ensure managers and supervisors are familiar with the laws Sexual harassment and unjust dismissal -- Prominent issues 4-8 Chapter 4 Meeting Legal Requirements ANSWERS TO REVIEW AND DISCUSSION QUESTIONS determination, information about the distribution of protected classes in the firm's labour market is needed. 1. Suppose during your first job interview after graduation you are asked, "Why should a company have an Employment Equity Program?" How would you respond? 5. What conditions would have to be met before you could bring suit against an employer who discriminated against you because of your sex? Although each person has a different idea of why employment equity programs are needed, a minimum answer should mention the need for legal compliance in a proactive manner and the need to meet the organization's social responsibility. More fundamentally, organizations should undertake whatever steps they can to ensure equal employment opportunity to all people. Other reasons may include the need to be in compliance with conciliation agreements, court orders, or rules for government contractors. There have to be reasonable grounds to believe that an act of discrimination has occurred. The wrongdoer can be sued in court only after a conciliation effort by an appropriate human rights commission (federal or provincial) has failed and the verdict of a human rights tribunal has not been accepted. 6. A job applicant for a teller's job tells you that he has been convicted of cash theft, which he committed on his previous job, but that he had received a full pardon. The applicant appears to be the most qualified, but you are afraid that he might steal again. Is there a legal way to deny him the job? 2. List the major prohibitions of the Canadian Human Rights Act. Figure 4-2, p. 178, lists the prohibitions of the Canadian Human Rights Act and the prohibitions of all provincial human rights laws. No. Since he received a full pardon the conviction is stricken from his records. There is no need for him to inform you of his conviction. 3. Since a human resource department is not a legal department, what role does it play in the area of equal employment law? 7. Under the Charter of Rights and Freedoms, the Supreme Court of Canada has made a number of important decisions pertaining to union rights. What impact do these decisions have on management and unions? The human resource department is responsible for keeping the organization in compliance with the various human rights laws. To do this, it usually develops and monitors a detailed employment equity program. When charges do arise, it is the human resource department's responsibility to provide the legal department with the necessary employee relations records and other information for the legal department to defend the case. Employees have the right to organize without interference by management. However, the right to bargain collectively and to strike are not fundamental rights, but subject to regulations by the legislator. Also, the right to picket is not protected under the Charter. Employers can ask for injunctions to restrict the number of pickets or any other reasonable limitations of picketing activity. Mandatory retirement has been upheld, as well as the right by a same sex partner to receive benefit payments. 4. Suppose you are told that your first duty as a human resource specialist is to construct an Employment Equity Program. What would you do? What types of information would you seek? Figure 4-5, p. 192, outlines the major steps to follow to develop and implement an employment equity program. The information needed includes records about the concentration and underutilization of each protected class of workers employed by the firm. To make this 4-9 Part 3 Attracting Human Resources 8. A job candidate answers "yes" to the question of whether she a smoker. She is well-qualified, but you decide not to hire her. Does she have a legal recourse? No. The human rights legislation does not mention personal habits like smoking among the prohibited causes for discrimination. It means that an employee cannot appeal to a human rights commission if he or she challenges an employer on this ground. . 4-10 Chapter 4 Meeting Legal Requirements ANSWERS TO CRITICAL THINKING QUESTIONS 1. If you are a supervisor in the production department of a textile mill and an employee demands to be allowed to miss Fridays for religious reasons, what would you do? Under what circumstances would you have to let the employee have time off? Under what circumstances could you prohibit it? 3. You are the human resource manager in a hospital. A nurse informs you, in confidence, that he has been diagnosed HIV-positive. Are you required to take action? What legal options do you have in dealing with this case? It would be legal to restrict the nurse to non-invasive treatment of patients. No other action can be taken against this nurse. Since most firms have policies on such issues, the supervisor would be well-advised to check first with the human resource department. Although the supervisor's assessment of the situation would be a valuable input to the human resource department's considerations, policy considerations might override what the supervisor thinks is best. If the supervisor and the human resource department believe the employee's absence would not materially affect production or if they believe they could maintain production and accommodate this employee's religious preferences, the employee's request should be granted. However, if production would be affected significantly and no other reasonable accommodation can be made, the employee could be denied the demand. 4. Do you think other groups will receive special legislation to protect them from discrimination? Which groups might get additional protection? Probably the most likely group to get additional protection will be people with disabilities. Gay rights groups may gain wider protection from discrimination based on their sexual preferences. 2. You have a job opening for a warehouse helper, a position that requires sometimes heavy lifting, up to 50 kg. A woman applies for the job and claims that she is able to do the work. She looks rather petite and you are afraid that she may hurt herself. When you deny her the job she threatens to complain to the Human Rights Commission. What do you do? Of course, we know that looks are deceiving. The first step would be to ask for a demonstration of her capabilities, a kind of performance test. If she performs well, there is no legal reason to deny her the job. To be on the safe side, the HR manager can ask for a doctor's certificate that the applicant it capable of lifting 50 kg with no negative consequences to her health. 4-11 Part 3 Attracting Human Resources ETHICS QUESTION Comments to Instructors There is no right or wrong answer to this question. It is for class discussion purposes. WEB RESEARCH Comments to Instructors These exercises have been designed for students to demonstrate their computer and Internet skills to research the required information. Answers will vary. 4-12 Chapter 4 Meeting Legal Requirements INCIDENT 4.1: METROPOLITAN HOSPITAL’S EMPLOYMENT EQUITY NEEDS Incident Comments This incident points out the conflicts that can arise between line managers and human resource staff specialists. The issue is particularly sensitive after an employment equity plan is developed because the human resource department often strongly believes the first promotion or two can alert others in the organization as to how serious the Employment Equity Program will be taken. 1. What weight would you give to (a) Kate's seniority and experience? (b) Roy's superior training? (c) the recommendation of the records manager? (d) the new Employment Equity Program? Kate's seniority and experience imply that she has the necessary skills to perform the job if promoted. Although Roy's education is superior, Kate's experience may be as valuable, if not more so. The recommendation of the records manager should be considered carefully, since whoever is promoted will work for her. Moreover, since the records manager is responsible for the new supervisor's performance, her wishes should receive a significant weight in the final decision. However, at some point, the needs of the Employment Equity Program for the hospital should be considered. (In practice, more Employment Equity Programs are established so that management has the flexibility in any one promotion decision to select the best-qualified employee and focus on achieving the program’s goals with subsequent promotions.) 2. What are the implications for the Employment Equity Program if Roy gets the job? What are the implications for employees presently taking job-related courses if Kate gets the promotion? The most significant implication for the Employment Equity Program is how the employees in the hospital view Roy's promotion. Some may see his promotion as meaning the best-qualified still get promoted. Others may view his promotion as confirmation that management of the hospital is going to remain largely a male "club." If Roy gets the promotion, those who are trying to better themselves through job-related training may feel that training is a good stepping stone to promotion, and that people in the hospital are not promoted simply on the basis of seniority. 3. What decision would you make if you were the human resource manager? More important than the decision reached by students is the justification for their decision. One solution some organizations make is to postpone any decision until several promotions can be announced simultaneously. In this manner, women and men are promoted, which shows that the firm is serious about promoting women. However, by promoting some qualified men, it shows the work force that men are not being excluded from consideration because of the Employment Equity Program. 4-13 Part 3 Attracting Human Resources EXERCISE 4-1: CARVER JEWELLERY COMPANY 1. Identify which job classes at Carver exhibit underutilization. There is an underutilization of females, blacks, and Native peoples in the executive, management, and salaried/commission jobs. 2. Identify which job classes at Carver exhibit concentration. In the hourly paid jobs there is a considerable concentration of females. A slight concentration of blacks and Native peoples exists in this hourly classification. CASE STUDY: MAPLE LEAF SHOES LTD. – LEGAL CHALLENGES confrontational, would be to see the HR manager and explain the situation to her, pointing out the potential consequences for the company if a complaint with the Human Rights Commission were launched. This too should be a successful approach, assuming that the HR manager perceives the seriousness of the situation. Answers to Discussion Questions 1. Is there a case of sexual harassment in this situation or is it only fun? Rosetta can make a good case for sexual harassment, since she obviously feels uncomfortable and cannot get any help from the supervisor. The Supreme Court decision in Robicheau vs the Department of Defense makes it clear that it is the responsibility of the employer to make sure that the job environment is free of harassment. If Rosetta would complain to the Human Rights Commission, there would certainly be an investigation and, given the circumstances, the investigator would probably find in favour of her, compelling management to take action. Since she quit, she could even sue the company for "constructive dismissal" for making her work environment unbearable. 3. What are Al's responsibilities in this instance? Did he carry them out well? Why or why not? Al is clearly responsible for the situation in the finishing section, but he does not seem to be aware of his negligence. There is little doubt that an arbitrator or a judge would find him (actually, the company) liable for letting things get out of hand and for not stepping in after Rosetta complained to him. If he had taken his responsibility seriously, he would have admonished or reprimanded the culprits. He also could have called the work group together and told them about the legal situation. He also could have initiated sexual harassment information sessions, perhaps with a representative from the Human Rights Commission as the trainer or speaker (all HRCs have information officers, who are available free of charge for such requests). 2. If you were Eva, what would — and could — you do? What are the options? What is the probability of success of each option? Since she is a third party and not directly involved in the case, she would have to rely on Rosetta's testimony. However, Eva could initiate an investigation by the Human Rights Commission, with a high probability of success. She could also complain to the union, who could file a grievance on behalf of Rosetta, again with a good chance of succeeding. Another option, less 4-14 Chapter 4 Meeting Legal Requirements CASE STUDY: CANADIAN PACIFIC AND INTERNATIONAL BANK Answer to Discussion Question accommodate the needs of the disabled in their recruitment campaigns. 1. You are a human resource consultant. What advice will you give Mary? What measures should the bank take to increase a) the applications of aboriginal peoples and people with disabilities, b) the actual hiring of such candidates, and c) their survival in the organization? To encourage hiring of such people, CPIB must demonstrate commitment to hiring minorities and publicize their commitment both internally and externally. Any hiring standards that may discriminate indirectly against such groups and are not bona fide occupational requirements should be eliminated. To encourage aboriginal applicants, CPIB should advertise job openings in newspapers and media outlets accessible to aboriginals. CPIB can also send recruits to high schools and colleges and approach community leaders for assistance in recruitment. For people with disabilities, CPIB should emphasize their willingness to To ensure their survival in the organization, CPIB should foster a work climate that promotes diversity. HR and line managers should be rewarded on the basis of the success of the employment equity program. To evaluate that success, semi-annual and annual benchmarks should be given to Mary to ensure that the objectives are being met. 4-15