HR Heartbeat: $60k fines, fraud in the workplace and…

Welcome to HR Heartbeat, where we take a look at the most pressing HR and employment law stories. With over a decade of experience working within the HR and employment law industry, I give my opinion on current trends impacting your business, as well as my own personal commentary on all things HR and legal.

$60,000 fines for violating employment legislation

A few cases out of Ontario have shown that regulators are focusing more on recordkeeping and honesty when they investigate your employment processes.

A temporary help agency and its director were recently fined for failing to comply with a statutory demand to produce employment records during an inspection.

The regulator provided the employer with a clear deadline, yet it went ignored with no requests for an extension.

As a result, the company was fined $40,000 in combined penalties. That’s no small fine for any business, and it reinforces to employers that when an employment standards officer requests records, you’re expected to produce them promptly and in full.

In another case, an immigration consulting firm was fined for submitting misleading employment information in an immigration application. The application was refused as key details weren’t properly disclosed, it contained false representations and other unverifiable information. The firm was fined $20,000.

Both cases also carried additional victim fine surcharges as required under provincial rules.

It’s become clearer for employers and advisors that weak documentation processes and inaccurate submissions are no longer low-risk administrative issues. They are enforcement priorities with financial and reputational consequences attached.

Trust alone isn’t fraud prevention

A recent Ontario court ruling involving an office manager ordered to repay more than $1.1 million is a reminder that trust alone is never enough when it comes to internal controls.

Over a two-year period, the employee used access to their employer’s banking information, cheques, and electronic signatures to make unauthorized transfers and payments for personal expenses. The fraud only came to light after another employee noticed a suspicious transaction.

The scale of the theft is extreme, and even though you may be operating a smaller business, the lesson for employers is this. Whenever employees are given access to financial accounts, payroll systems, or sensitive business information, it’s vital to put proper checks and balances in place.

The court found that the employee’s level of access created fiduciary duty—a legal obligation to act in the employer’s best interests. But the case also highlights the importance of employers protecting themselves with clear approval processes, monitoring systems, documented authorization procedures, and regular oversight.

Establishing strong internal controls may seem like it signals distrust, but they protect both your business and employees. And if you run a smaller team where one person may wear multiple hats, it’s a reminder that long-term trust should never replace accountability measures.

Contracts cut both ways

A recent decision from the Manitoba Labour Board involving a Commissioner is a reminder to all that employment contracts are binding for both parties.

Manitoba’s commissioner of teacher professional conduct has stepped down after it was discovered she failed to meet key terms of the employment relationship, contributing to a breakdown in trust and the eventual dispute. While the facts are specific to the role and circumstances, the message is clear, both employers and employees must honour the agreed terms of employment.

Whether it relates to duties, working arrangements, or performance expectations, contracts set the standard for the working relationship. And when either party doesn’t follow those terms, it can be just cause for corrective action and in some cases termination as long as you follow a fair and documented process.

For employers, it’s a reminder to ensure contracts are clear, current, and consistently enforced. For employees, it reinforces that ignoring agreed terms can carry real consequences.

And that’s a wrap from me. Come back next time for my take on the latest headlines and employment law stories, helping keep your business ahead!