The Cost of Complying with the Law

I heard an interesting report on the news yesterday and followed it up by reading an article in the Globe & Mail today about the cost to Ontario Small Business due to red tape.

As you’re reading this Blog Entry, scroll down to the one Scott wrote last week – notice all the paragraphs about the Acts that have to be complied with?

Last week’s Blog didn’t even scratch the surface – there are a lot of obligations on Ontario Companies due to Provincial Legislation and Regulation.

The CFIB (Canadian Fedaration of Independent Business) has estimated the cost to be just under $ 6 000.00 per employee per year to a business.

We’ve noticed a trend over the past four years of more Government requirements in the workplace: accessiblity, increased harrassment policies, enhanced privacy requirements, it feels like it never ends.

Of course, if you have made the business decision not to comply, the feeling of “endlessness” will soon be replaced by dread and frustration, not to mention costs. Refusing to comply is not the solution to frustration, getting involved in the political process to effect change is.

It is far cheaper to pay the legal fees to comply, than the legal fees to respond to inquiries, complaints and lawsuits.

Still, that $ 6000 per employee per year number – wow is that high.

Inga B. Andriessen JD