HR Essentials for Small Business Owners: The Big Three
Running a small business is like juggling flaming torches while riding a unicycle… except your torches are employees, contractors, and a pile of paperwork. HR can feel overwhelming, but if you focus on the three big areas, you’ll stay on top of your game.
1. Employment Standards Compliance
The rules are in place for a reason. In BC, the Employment Standards Act (ESA) sets minimums for wages, hours, overtime, breaks, vacation, and termination.
Why it matters: Missing a step here can mean complaints, fines, or legal headaches.
Tip: Keep a simple checklist of ESA requirements and review it regularly.
2. Hiring, Classification, and Payroll
Getting it wrong here is expensive. Make sure you know the difference between employees and subcontractors. Your payroll setup must comply with CRA rules, and benefits, deductions, and overtime need to be handled correctly.
Why it matters: Misclassification or payroll errors can lead to audits or unexpected bills.
Tip: Write accurate job descriptions and double-check payroll deductions before hitting “submit.”
3. Employee Management and Policies
Clear policies make life easier. Think onboarding, performance management, workplace conduct, and dispute resolution. Even small teams benefit from written guidelines.
Why it matters: Policies protect your business and help employees know what’s expected.
Tip: Create simple, clear, written policies and review them at least once a year.
My Two Cents
HR doesn’t have to be a mystery. If you focus on compliance, hiring/payroll, and policies, you’ll cover most of the critical risks and keep your team happy and productive.
Think of it like building a house: compliance is the foundation, hiring/payroll are the walls, and policies are the roof. Miss any one, and things get messy fast.
HR 103: Managing Duties Outside the Job Description in BC
Sometimes employees are asked to perform tasks that aren’t included in their original job posting or commonly accepted duties. While it might seem harmless, it’s important to handle this carefully to stay compliant with the Employment Standards Act (ESA) and maintain a fair workplace.
Why Job Descriptions Matter
A clear job description sets expectations for both the employer and employee.
Duties listed in the job posting help determine pay, classification, and work hours.
Other Duties as Assigned
Many job descriptions include “other duties as assigned,” but this does not give unlimited authority to assign unrelated tasks.
Additional duties must be reasonably related to the original role. Assigning tasks outside the employee’s skill set or area of responsibility may create legal and workplace issues.
Pay and Classification Considerations
Significant changes in duties or responsibilities may require a pay adjustment or reclassification.
Substantial increases in hours or scope could also trigger overtime eligibility under the ESA.
Best Practices: Upholding Transparency and Fairness
To ensure compliance with the ESA and foster a positive working relationship, consider the following practices:
Accurate Job Descriptions
Ensure that job postings and descriptions accurately reflect the nature of the work, responsibilities, and conditions associated with the position.
Clear Communication of Role Expectations
Clearly communicate any expectations regarding duties, work hours, and other job-related conditions to prospective and current employees.
Avoid Misleading Statements
Refrain from making statements that could be construed as misleading or false regarding the availability of the position, the type of work, wages, or conditions of employment.
Documented Agreements
Where possible, provide written documentation outlining the terms and conditions of employment to prevent misunderstandings.
Regular Review and Updates
Regularly review and update job descriptions and employment terms to ensure they remain accurate and reflective of the actual work being performed.
Key Takeaway
Employees should not be expected to take on unrelated tasks without proper discussion, training, or compensation. Clear communication, updated job descriptions, and adherence to the ESA help ensure fairness and reduce legal risk for employers.
HR 102: Breaks in BC – Because recharging is essential
Let’s be real: everyone needs a break. Coffee, stretching, staring out the window pretending you’re deep in thought, it’s the little pauses that can keep humans functional.
In BC, breaks aren’t just nice-to-haves.
The Employment Standards Act (ESA) has some rules, and ignoring them can land you in hot water.
What the ESA Says About Breaks
Meal Breaks
Employees who work more than 5 hours in a row are entitled to a 30-minute unpaid meal break.
If the employee is required to be available to work during the break, it must be paid.
Breaks can be split or delayed with mutual agreement, but generally, they should happen mid-shift.
Rest Breaks
The ESA doesn’t require paid 15-minute rest breaks, but many employers provide them to keep employees sane and productive.
If you require employees to stay “on call” or available during rest breaks, then those breaks must be paid.
Exceptions
Some jobs with unusual hours, like emergency services or continuous operations, may have different arrangements. Always check the ESA or get advice if you’re unsure.
Why You Can’t Just Skip Breaks
Denying legally required meal breaks is a violation of the ESA. Employees can file complaints, and the Employment Standards Branch can investigate.
Even if you’re a small business and “everyone just works through lunch,” the law doesn’t care.
My Two Cents
Breaks aren’t just for employees to scroll TikTok. They’re legally protected, and they keep your team functional and sane. Treat them fairly, schedule them properly, and everyone wins.
Think of it like pit stops in a race. Skip them, and your car (or your employee) overheats. Take them seriously, and everyone crosses the finish line without melting down.
HR 101: Employee or Subcontractor in BC - Know the Difference
Let’s talk about the classic small business headache: who do you hire, and how do you pay them without accidentally inviting the CRA or Employment Standards Branch over for tea?
In BC, it’s not just about what the worker calls themselves. Whether someone is an employee or a subcontractor determines taxes, benefits, and who’s responsible for what. Get it wrong, and it can get expensive —> and fast.
Employees
Employees are the people whose paychecks you control. You tell them what to do, when to show up, and how to do it. In return, you:
Withhold and remit income tax, CPP, and EI
Provide statutory benefits like vacation pay, statutory holidays, and overtime according to the Employment Standards Act (ESA)
Follow ESA rules for hours of work, breaks, leaves, and termination notice
Pros:
You know exactly what your obligations are thanks to the ESA
Their legal rights are protected, so payroll rules are clear
Cons:
You handle all the payroll, taxes, and compliance — mistakes can get expensive fast
Mistakes can also make your life a bit like a paperwork horror show
Subcontractors (Independent Contractors)
Subcontractors are the cool cousins. They do their thing on their terms. You usually pay them a fee, and they handle their own taxes, CPP, and EI. They aren’t covered by the ESA for things like vacation, statutory holidays, or overtime.
Subcontractors are supposed to be independent: you hire them for a service, they do it their way, and they handle their own taxes and benefits. Sounds simple, right? But lots of business owners make the “I can boss them around like an employee and still call them a subcontractor” mistake.
Pros:
True subcontractors manage their own taxes, CPP, EI, vacation, and breaks
You pay for a service, not a full-time employee package
Cons:
If you control how, when, and where they work, they might actually be employees in the eyes of the CRA and ESA
Misclassification can trigger CRA audits, ESA complaints, and penalties - plus awkward conversations you don’t want
Treating subcontractors like employees kills the independence that makes the relationship legal and fair
How to Decide
The CRA and ESA look at:
Control – Who decides how, when, and where the work is done?
Tools and Equipment – Do they use their own or yours?
Financial Risk – Do they carry business risk or get paid regardless?
Integration – Are they part of your business or just providing a service?
Hint: If you answer “you” to most of these questions, they’re probably an employee.
My Two Cents
It’s tempting to call everyone a subcontractor to avoid paperwork. Don’t. Misclassification can cost big, and it’s stressful to fix.
Employees are covered by the ESA, which protects their rights and sets your obligations.
Subcontractors are business owners too and the work they do reflects their reputation as much as yours. Because of that, when treated correctly, they can be just as dedicated and even deliver better outcomes than an employee who’s simply following instructions.
The key is that subcontractors provide a service on their own terms, manage their own taxes and benefits, and aren’t subject to the same control rules as employees. If you treat them like an employee but call them a subcontractor, it can create legal risk for your business.
The takeaway: know the difference, respect the relationship, and follow the rules. Employees have ESA protections; subcontractors operate independently. Doing it right keeps everyone happy, avoids penalties, and ensures the working relationship actually works - with dedication, professionalism, and no surprises.
Welcome to The Ledger: Where Business Stories Unfold
So, you’ve stumbled across The Ledger. Nice.
This is not your stiff-collared, calculator-tapping, “please-hold-while-I-put-you-on-hold” kind of business. Nope. I’m here to help small businesses and solopreneurs make sense of the not-so-glamorous side of work: bookkeeping, payroll, human resources, and even a little design magic. Basically, all the behind-the-scenes stuff that keeps your business from turning into a bonfire of receipts and sticky notes.
Think of me like the buddy who remembers your dog’s name, knows how you take your coffee, and also just so happens to keep your books balanced, your payroll on time, and your HR headaches from turning into lawsuits.
Why the name The Ledger?
Because a ledger isn’t just numbers - it’s a story. Every sale, every paycheck, every late-night "oops-I-bought-a-printer" expense is a chapter in your business journey. My job? Make sure that story reads smooth, accurate, and maybe even a little inspiring.
What you’ll find here:
Tips that cut through the jargon (because nobody needs another blog post about “leveraging synergy”).
Straight-up advice on bookkeeping, HR, payroll, and software - written like we’re chatting over lunch at your job site.
A dash of sass, because accounting doesn’t have to taste like cardboard.
So pull up a chair, grab a coffee (or something stronger, I don’t judge) and let’s get into it.
Welcome to The Ledger. I’m glad you’re here.