In April 2024, the federal government released Budget 2024: Fairness for Every Generation. In a nutshell, it’s a whopping 430-page document detailing proposed measures to boost economic growth and prosperity, cut red tape, and improve existing legislation. Bill C-69, known as the Budget Implementation Act, 2024, No. 1, is the first bill associated with this budget, which received royal assent on June 20, 2024. It’s even bigger (686 pages), though it includes only a handful of the provisions of the Budget.
Feeling overwhelmed already? We understand. It can be challenging for business owners and HR professionals to review all that and understand the effects on their business. Don’t worry, we’re here to help! We bring you seven provisions of Budget 2024 you should know about with tips to help you get ready.
Getting Ready for Budget 2024: Seven Key Steps
Hiring Young Workers
Budget 2024 proposes two measures to encourage and support businesses hiring young workers, with over $500 million divided between two programs. The goal is to create opportunities for postsecondary students and seasonal workers by offering aid for small businesses to hire them.
Applying for these programs is a good idea, but first ensure your business is ready to welcome young workers. Their inexperience makes them vulnerable to health and safety hazards, so it is important to have a health and safety training program ready. You should also establish a New and Young Workers Health and Safety Plan to outline measures you will take to protect these workers, and make the most of their time with your company.
Receiving Carbon Rebate Benefits
The budget proposes amendments to the Income Tax Act to return fuel charge proceeds to businesses through a new refundable tax credit, the Canada Carbon Rebate for Small Businesses, which is included in the Budget Implementation Act, 2024, No. 1, and came into force on royal assent.
Canada’s carbon pricing system is essentially a financial incentive to reduce pollution. If you want to profit from it, consider what environmentally friendly practices your business can implement, and document them in an Environmental Measures Policy. You should also keep everyone in the company informed of how they can contribute to your sustainability efforts.
Establishing the Right to Disconnect
You’ve probably already heard of the right to disconnect. Basically, it’s a measure aimed at restoring work–life balance and addressing the harms caused by being connected all the time, a growing problem in the digital age. Budget 2024 brings amendments to this issue with full details available in the Budget Implementation Act, 2024, No. 1. This measure comes into force on a date to be proclaimed, and employers will have one year from that date to comply with the requirements.
Ontario introduced a similar requirement in 2021, and it’s a sure bet more jurisdictions will follow suit. To prepare, we recommend you implement a Disconnecting from Work Policy to set expectations for work-related communications outside work hours. Doing so can help foster a healthier workforce and encourage work–life balance, showing your employees you care about their wellbeing.
Protecting Gig Workers
Gig work refers to casual work, short-term work arrangements, or specific or one-off tasks, and is associated with digital platforms. These workers are usually independent contractors, although they share similarities with employees. With the amendments to the Canada Labour Code arising from the Budget Implementation Act, 2024, No. 1, a person paid or otherwise compensated by an employer is be presumed to be an employee unless the employer can prove otherwise (with limited exceptions), something that may affect your business if you rely on gig workers.
These protections came into force on royal assent, and apply to federally regulated workers. However, we expect that more jurisdictions will implement similar measures. Misclassifying employees can result in significant liability for employers, so it’s a good idea to get specialized support to help with this task.
Investing in AI
AI is everywhere, and there is no turning back from it. This is why the government proposed the Artificial Intelligence and Data Act (AIDA), which holds businesses accountable for AI activities under their control. This act is proposed under Bill C-27, the Digital Charter Implementation Act, 2022. This bill is currently going through the legislative process.
Now is a good time to review AI use in your business. Make sure to have an AI usage policy in place, where you set clear usage rules and requirements. Ensure that AI is used responsibly, associated risks are mitigated, and you are transparent about its use, especially if your AI deals with sensitive data. Check out this video to get some interesting insights on this topic.
The End of Forced Labour, the Growth of Employment Equity
As the government looks to build on equity in the workplace and enforce the end of forced labour, ensure your business is compliant with current laws. Consider introducing equity rules and policies if you don’t have any and updating existing ones to reflect the latest trends. The government plans to broaden existing protections by expand designated equity groups under the Employment Equity Act, and build on existing requirements to strengthen the import ban on goods produced with forced labour under the Fighting Against Forced Labour and Child Labour in Supply Chains Act. These measures are not yet introduced in legislation. It may be a good idea to also encourage the identification and reporting of illegal labour in your supply chain.
Recognizing Foreign Credentials
Finally, the budget proposes streamlining foreign credential recognition for healthcare professionals and construction workers to meet the current demand. The federal government is also encouraging other jurisdictions to make credential recognition faster and easier. Some jurisdictions, like British Columbia and Saskatchewan, have already taken action to improve this process, and more are expected to follow suit, which will increase the qualified talent pool for employers to recruit from. If you intend to hire these professionals, you should review your recruitment and selection policies and procedures to ensure your business is prepared to comb through more candidates.
Keeping HR Sharp in This Ever-Changing Landscape
Now that you’re aware of these changes and the implications for your business, you can take steps to prepare your workplace, but that doesn’t mean handling all that on your own! Sign up for a completely free demo of all the resources Citation Canada can offer in health and safety, compliance, training, and much more. Get in touch today, and let us show you how we can help you take your business to the next level.