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Changes to the capital gains inclusion rate and the employee stock option deduction rate (as proposed in Budget 2024) will apply to stock options exercised and shares sold on or after June 25, 2024. 

The new measure reduces the stock option deduction and capital gains tax exemption from 1/2 of the taxable amount to 1/3 of the taxable amount, if an individual’s annual combined limit of CAD 250,000 has been exceeded. The individual taxpayer can choose how to allocate the preferential tax treatment between the stock option income and capital gains to the extent the combined limit has been exceeded. 

There is still uncertainty as to how employers should manage tax withholding on stock option income (i.e., apply a 1/2 or 1/3 exemption), given they would not be in a position to know whether the combined limit has been reached by the employee and how the employee has chosen to allocate the exemptions. Further technical changes in the legislation are expected to be introduced at the end of July 2024 that may provide additional clarification on this point. For now, it may be reasonable for employers to assume that only 1/3 of the stock option income is exempt and withhold taxes accordingly and leave it up to the employees to claim the 1/2 deduction (if available) when they file their individual tax returns. Continue Reading Changes to Taxation of Stock Options and Capital Gains – Effective Immediately

Cyberbullying is becoming an increasingly pertinent issue in the workplace. With the growing prevalence of remote work and employee social media groups, employers face greater liability for online communications that occur outside of the office.

While the law is sparse on the topic of cyberbullying, victims may have several legal avenues to address this issue.

Employers are being faced with difficult decisions about potentially reducing their headcount to eliminate redundant positions in light of a shift in the economic climate and an increased focus on business efficiency.

With any termination comes liability.

In this 3-part series of In Focus videos specific to Reductions in Force, our Labour and Employment…

Background

In May 2020, the Government of Ontario first introduced O. Reg. 228/20: Infectious Disease Emergency Leave (the “Regulation”) under the Employment Standards Act, 2000 (the “ESA”). The Regulation provided employers with temporary relief from the notice of termination and severance pay obligations under the ESA during the COVID-19 period. The Regulation first defined the…

On June 1, 2022, the Québec National Assembly passed Bill 96, An Act respecting French, the official and common language of Québec, introducing significant changes to the Charter of the French Language and other laws. The Bill aims to reinforce the use of French in business, services, communications, education, and the workplace by…

In light of recent social justice movements, businesses are increasingly aware of issues pertaining to diversity and inclusion, making it essential for employers to take proactive steps to address inequality in the workplace. Our presenters explore how to set up special programs under human rights legislation, and discuss best practices for advancing substantive equality in…

Special thanks to moderator Benjamin Ho and presenters Liliana Hernandez-Salgado (Mexico City), Leticia Ribeiro (Sao Paulo – Trench Rossi Watanabe), Maria Cecilia Reyes (Bogota) and Matias Herrero (Buenos Aires).

Our four-part Global Guided Tour for US Multinational Employers webinar series is your passport to ensure that your organization is up to speed on the key…

Earlier this summer, several Ontario municipalities established bylaws requiring businesses to ensure masks or face coverings are worn by the public in enclosed public spaces (see our earlier article here). On October 3, 2020, the Ontario government amended the Rules for Areas in Stage 3, O Reg 364/20 (the “amended regulation”), establishing similar requirements for most Ontario businesses, summarized below.

Who Must Wear Masks or Face Coverings?

Generally speaking, businesses and organizations must ensure that anyone located in an indoor area within their premises, or within a vehicle that is operating as part of the business or organization, wears a mask that covers their mouth, nose, and chin.Continue Reading Ontario Amends Mask and Face Covering Requirements for Businesses

All Canadian provinces have adopted emergency measures requiring the closure of non-essential businesses, and today the Ontario government revised its list of “essential businesses”. To help you keep up with these changes, we have provided a chart below that includes a hyperlink to the current essential service list in each province, and lists the potential penalties for failure to comply in each jurisdiction.
Continue Reading Non-Essential Business Shutdowns Across Canada