Workplace policies for small businesses in Canada

Workplace policies can help small businesses in Canada create structure, support compliance and outline expectations for both employers and employees. They provide a framework for day-to-day operations, decision making and workplace conduct.

This article provides an overview of essential workplace policies for Canadian small businesses, along with practical guidance on how to create, implement and maintain them.

What are workplace policies?

Workplace policies are written guidelines that describe how a business operates and what standards of behaviour and performance are expected. They can cover topics such as attendance, health and safety, code of conduct and remote work.

Types of workplace policies

Code of conduct

A code of conduct outlines the standards of behaviour employees, contractors, students and volunteers are expected to uphold at work and when representing the company. It sets expectations for professionalism, confidentiality and respectful communication. By clarifying these standards, small businesses can foster a positive work environment and prevent misunderstandings. Additionally, a well-defined code of conduct outlines the process for addressing policy violations, facilitating accountability and fairness across the team.

Anti-harassment and discrimination policies

Anti-harassment and discrimination policies protect employees, contractors, students and volunteers from inappropriate or unfair treatment and help ensure compliance with the applicable federal, provincial or territorial human rights code and health and safety legislation. These policies clearly define what constitutes harassment and discrimination, provide examples of prohibited behaviour and outline how employees can report concerns safely. By clearly communicating these procedures and anti-retaliation protections, organizations can help foster a respectful and inclusive workplace culture.

Health and safety policies

Employers in Canada have a legal obligation to maintain a safe and healthy work environment. Health and safety policies should reflect compliance with applicable federal, provincial or territorial occupational health and safety legislation, covering important topics such as hazard reporting, emergency preparedness, harassment and violence prevention and equipment use. These policies, often developed in consultation with a health and safety committee or representative, define the responsibilities of all parties in preventing injuries and promoting workplace safety through proper training, reporting of hazards and incidents and making relevant information readily available.

Remote work and telecommuting policies

As flexible and hybrid work arrangements become more common, clear remote work policies are essential. They should outline eligibility criteria (being considerate of an employer’s accommodation obligations), performance expectations, communication standards and the use of company equipment or technology. Defining working hours, data security measures, availability expectations and occupational health and safety responsibilities helps maintain collaboration, protect company assets and support accountability, even outside the traditional office setting.

Leave and attendance policies

Leave and attendance policies clarify how time off and work schedules are managed within the organization. These policies should align with applicable federal, provincial or territorial employment standards and human rights legislation, covering various forms of leave, including, but not limited to, vacation, sick days, statutory holidays or parental leave. Clearly outlining the process for requesting time off, the required notice period, consequences and any necessary documentation helps prevent scheduling conflicts and facilitates fairness in managing attendance.

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Developing effective workplace policies

To develop effective workplace policies:

1. Identify the areas where guidance or consistency is needed, for example, attendance, performance and communication.
2. Engage employees in discussions to gather input and ensure relevance.
3. Review applicable federal, provincial or territorial employment standards, human rights legislation and health and safety regulations for legal compliance.
4. Draft the policy addressing the identified needs.
5. Communicate the policy to all employees.
6. Regularly review and update policies to align with any legislative changes and evolving business operations.

Communicating workplace policies

Consider the following steps to effectively communicate workplace policies:

• Use clear and straightforward language to communicate policies.
• Introduce policies during onboarding and training sessions for new employees.
• Store all policy documents in a shared location, such as an employee handbook or digital workspace, so they are easily accessible by employees as needed and adhere to any legal requirements for making policies and relevant legislation available.
• Encourage questions and feedback to promote understanding and clarity.
• Regularly assess and update policies (at least annually) to keep them relevant and easy to follow.

Enforcement of workplace policies

Consistent enforcement of workplace policies is crucial for maintaining fairness and credibility within the organization. To effectively implement this, consider the following:

• Uniform application: Ensure all policies are applied consistently with all employees to promote fairness, taking into consideration any accommodation duties under applicable human rights legislation.
• Documentation: Maintain thorough documentation for any disciplinary actions or performance-related discussions to uphold transparency.
• Clear violation process: Establish a well-defined progressive discipline process for addressing violations, including steps such as verbal reminders, written warnings or formal reviews.

Impact of workplace policies on company culture

Workplace policies play an important role in shaping company culture. When policies are transparent, inclusive and clearly communicated, they can foster trust and predictability within teams. They can also demonstrate a business’s commitment to equity, safety and employee well-being. For small businesses, these benefits can contribute to stronger engagement, enhanced retention and a more cohesive work environment.

From policy to strategy: Your next step

Establishing clear workplace policies is an important step toward creating a strong and consistent foundation for your business. As your team grows, your responsibilities also increase, ranging from managing payroll and meeting compliance obligations to fostering employee engagement and well-being. ADP Canada’s small business toolkit provides practical resources to help you navigate these challenges.

FAQS

This guide is intended to be used as a starting point in analyzing workplace policies and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.