← University
Auditing Your HR Practices for Legal Compliance
0 of 6

A mid-sized manufacturing company operating in central Alberta has grown steadily over the past 12 years, expanding from a single production facility with 35 employees to a multi-site operation employing approximately 280 workers across 3 locations. The company produces specialized industrial components and serves clients throughout western Canada. Its workforce includes unionized production staff at the original facility, non-unionized workers at 2 newer locations, administrative personnel, supervisors, and a small executive team. The human resources function, originally managed by a single office administrator who handled payroll alongside other duties, has evolved into a 4-person department reporting to the chief operating officer.

The company's HR documentation has accumulated in layers over the years. The original employee handbook dates to the company's founding and has been amended piecemeal through 8 separate addenda. Employment contracts vary significantly depending on when employees were hired and which location they joined. Some long-tenured workers operate under offer letters that predate the company's current corporate structure, while newer hires received contracts drafted from a template purchased from an online legal document service 6 years ago. The termination provisions in these contracts differ substantially, with some referencing specific notice periods and others containing language that purports to limit entitlements to statutory minimums without the protective clauses that courts have required in recent years.

Recent events have prompted the company's leadership to examine its HR practices more closely. A former supervisor filed a wrongful dismissal claim 4 months ago, alleging that his termination lacked adequate notice and that the company's progressive discipline policy was applied inconsistently. Around the same time, a workplace harassment complaint revealed that the company's harassment policy had not been updated since 2017 and did not reflect procedural requirements introduced by subsequent amendments to occupational health and safety legislation. A routine inspection by provincial employment standards officers identified deficiencies in the company's record-keeping for hours worked by certain employees classified as exempt from overtime provisions.

The chief operating officer has tasked the HR manager with conducting a comprehensive internal audit of the company's employment practices before the organization incurs further legal exposure. The audit must examine employment contracts across all 3 facilities, assess whether workplace policies align with current legislative requirements in Alberta, review documentation and record-keeping practices against statutory retention obligations, and evaluate the procedures used for discipline and termination decisions. The findings will inform a remediation plan and establish monitoring mechanisms to maintain ongoing compliance.

Acting on Audit Findings: Remediation and Ongoing Monitoring

Completing an HR compliance audit represents a significant investment of organizational resources, but the true value of that investment materializes only through what happens next. The audit itself, regardless of how thorough or well-designed, produces nothing more than information. That information becomes meaningful only when translated into action through systematic remediation of identified gaps and the establishment of ongoing monitoring mechanisms that prevent future compliance drift. For Canadian employers operating across multiple jurisdictions, this final phase of the audit cycle presents both the greatest challenges and the greatest opportunities to build genuinely compliant workplace practices that protect the organization while respecting employee rights under federal and provincial law.

The legal foundation for remediation obligations flows directly from the same statutory frameworks that create compliance requirements in the first place. Under the Canada Labour Code, as of the date of authorship, federally regulated employers maintain affirmative obligations to ensure workplace safety, prevent harassment, and provide minimum employment standards protections. Provincial employment standards legislation across British Columbia, Alberta, Saskatchewan, Ontario, and Quebec creates parallel obligations for provincially regulated employers, which constitute the vast majority of Canadian workplaces. Human rights legislation at both federal and provincial levels imposes duties to accommodate and prohibits discriminatory practices, while occupational health and safety statutes across all jurisdictions require employers to take every reasonable precaution to protect worker safety. When an audit reveals non-compliance with any of these frameworks, the employer's knowledge of that non-compliance creates heightened legal exposure. Courts and tribunals consistently view employer awareness of a problem, combined with failure to address it, as an aggravating factor that can increase damages, penalties, and the likelihood of adverse findings.

That’s the free preview

You’ve reached the end of what’s open to read. The rest of this lesson is part of a $149 course — purchasing unlocks it, or sign in if you already have access.