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Written by Bailey Quartz
and Michael Cheung JD Candidate 2024 | UCalgary Law In the world of small business, fostering a collaborative culture is a key ingredient for success. Collaboration encourages teamwork, creativity, and innovation, leading to improved productivity and growth. As women entrepreneurs, you have a unique opportunity to build a cohesive and inclusive work environment that thrives on collaboration. Today, the BLG Business Venture Clinic will explore some tips to help cultivate a collaborative culture in your small business, empowering your team to achieve their full potential. Be Smart About Setting Goals and Expectations The foundation of any collaborative culture lies in establishing clear goals and expectations. As a leader, it's crucial to articulate the objectives of collaboration and ensure that every team member understands their role in achieving them. Transparency fosters a sense of purpose and unity, aligning efforts towards common goals. Regularly communicate progress and celebrate milestones to reinforce the value of collaboration within your small business. Foster Knowledge Sharing Encourage an open and supportive environment where team members feel comfortable sharing their knowledge and expertise. Recognize and reward individuals who actively contribute to the growth and development of their colleagues. This knowledge-sharing culture enhances skills and promotes continuous learning within your organization. Implement mentorship or peer learning programs to facilitate the exchange of valuable insights and experiences. Embrace Cross-Functional Projects Break down departmental barriers and offer opportunities for team members to collaborate on cross-functional projects. Allowing employees to step outside their usual roles not only promotes personal and professional growth but also facilitates a deeper understanding of various aspects of your business. This fresh perspective can lead to more creative problem-solving and the development of innovative solutions. Prioritize Communication and Conflict Resolution Effective communication is the backbone of any successful collaboration. Provide regular training on communication techniques and conflict resolution strategies to empower your team to express their ideas and concerns constructively. Create an atmosphere where everyone feels heard and valued. By addressing conflicts promptly and constructively, you can build stronger relationships and foster a more cohesive work environment. Build Team Spirit Team-building activities play a significant role in fostering collaboration and strengthening relationships among your employees. Organize events and exercises that encourage trust, understanding, and camaraderie. Activities such as team-building workshops, off-site retreats, or fun challenges not only promote collaboration but also create a positive and enthusiastic work atmosphere. Boost Collaboration with Walking Meetings Ditch the traditional meeting room and opt for walking meetings to invigorate creativity and encourage brainstorming. A change of scenery and physical movement can stimulate fresh perspectives and active participation from team members. These walking meetings not only improve productivity but also promote a sense of equality and openness within your small business. So, if your office is in an area or a neighborhood with a good walk score (70 is considered very good), pick a nearby destination and head out for the meeting. Digitize and Store Important Documents In a collaborative work environment, quick and easy access to information is essential. Keep crucial documents digitized and stored in the cloud to ensure they are readily available to your employees. Converting files into PDF format enhances compatibility and secures valuable information for efficient teamwork. Cloud storage solutions facilitate seamless collaboration, even in remote or hybrid work settings. Cultivating a collaborative culture in your small business is an ongoing process that requires dedication and a strong commitment to teamwork. By setting clear goals, encouraging knowledge-sharing, embracing cross-functional projects, prioritizing communication, organizing team-building activities, adopting walking meetings, and utilizing digital tools, women entrepreneurs can create a thriving work environment where collaboration thrives. A collaborative culture not only enhances productivity and creativity but also empowers your team to overcome challenges and achieve remarkable success in your small business journey. The BLG Business Venture Clinic has the legal assistance you’ve been looking for. Let us know if you have any questions!
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Written by Ryan Morstad
JD Candidate 2024 | UCalgary Law As news cycles debate whether Canada is or remains in a labour shortage, employers and employees alike should spend the time to learn about the rights and obligations involved in their employment relationships. Canadians may not be aware that whether or not they have a formal written employment contract with their employer, the nature of their working relationship is nonetheless contractual. A lack of written agreement may create some ambiguity in the terms of this agreement. Still, boiled down to the bare minimum, all employment agreements generally include (1) that the employee will conduct work for the employer, and (2) that the employer will pay them for this work. Other terms, such as termination provisions, will be implied into the contract if the parties do not explicitly address them. As discussed in a recent BVC Blog post[1], one such implied term of an unwritten employment agreement is that employers cannot terminate employees without cause unless they provide adequate notice of termination to the Employee. Other implied terms include that the employer will not unilaterally change the employees’ job duties, hours, or location of work and that they will not make the workplace intolerable. These implied terms are generally found to be fundamental provisions of the employment agreement. If these terms are changed, employees may claim that their work has changed so much that, even though they haven’t been formally fired, they have been fired in effect. This is called “Constructive Dismissal”. Although not a formal termination of employment, Constructive Dismissal arises when an employee claims that the nature of their employment has changed to such an extent that they should be deemed legally to have been dismissed[2]. In legal language, this might be called a fundamental or substantial breach of the employment agreement. If the employee is successful in their claim that they have been constructively dismissed, the employer will be required to provide them notice or payment in lieu of notice for termination, which, depending on various factors, can be a substantial. The test for constructive dismissal is contextual and involves two steps, which are that:
To avoid costly or stressful legal claims, employers should ensure they have complete written agreements with their employees! Employment contracts are critical to ensure that employers and employees understand the terms of their working relationship. [1] Alec Colwell, “Common Law Reasonable Notice for Termination” (March 11, 2024), online (blog):BVC < http://www.businessventureclinic.ca/blog/think-twice-before-youre-taxed-twice5050080> [2] Potter v. New Brunswick Legal Aid Services Commission, 2015 SCC 10 [3] Ibid at para 32 [4] Ibid [5] Tymrick v. Viking Helicopters Ltd., 1985 CarswellOnt 867 at para 11 [6] Merilees v. Sears Canada Inc., 1988 CarswellBC 93 [7] Pulak v. Algoma Publishers Ltd., 1995 CarswellOnt 277 [8] ; Chan v. Dencan Restaurants Inc., 2011 CarswellBC 2874 at para 34 [9] See Alberta Employment Standards Code, RSA 2000, c E-9 section 62. Written by Ali Abdulla
JD Candidate 2024 | UCalgary Law Background - What are “Articles of Incorporation”? To incorporate a corporation under Alberta’s Business Corporations Act (the “ABCA”), the incorporator must send an application package to the Registrar of Corporations.[1] The most significant document in this application package is the “articles of incorporation”, which is a so-called “constating document” that establishes the corporation. Certain information must be set out in the articles of incorporation, including:
With this background in mind, we shall now discuss some of the more advanced considerations for articles of incorporation in Alberta. 1. Ensuring that the Corporation Meets the Private Issuer Exemption Essentially, in order to comply with securities laws in the province, a corporation must either file a prospectus, or fall under a “prospectus exemption”, before it issues shares.[4] One common prospectus exemption is the Private Issuer Exemption, which requires, among other things, that:
Note that the above discussion glosses over several nuances of the relevant securities laws, and is meant purely to flag issues related to the articles of incorporation. 2. Allowing Directors to Appoint Additional Directors between Annual General Meetings The articles of incorporation can grant the board of directors the power to appoint additional directors between annual general meetings, up to 1/3 of the current board.[6] This may help avoid a prolonged vacancy on the board of directors, or mitigate the stress of trying to quickly communicate with a large number of shareholders, if a director unexpectedly resigns or dies. 3. Miscellaneous Considerations The articles of incorporation can also include provisions allowing:
Conclusion Articles of incorporation can include much more than just the basic information required under section 6 of the ABCA. In order to set up the corporation for success, and avoid the headache of needing to amend the articles of incorporation, great care should be taken when drafting the constating documents. [1] Business Corporations Act, RSA 2000, c B-9 [“ABCA”], s 5 and 7(1); see also Government of Alberta, "Incorporate an Alberta corporation" (2023), online: <https://www.alberta.ca/incorporate-alberta-corporation>. [2] ABCA, s 6. [3] Ibid. [4] Securities Act, RSA 2000, c S-4, s 110(1). [5] This is an over-simplification, see National Instrument 45-106: Prospectus Exemptions, 2.4. [6] ABCA, s 106(4). [7] ABCA, s 30(1). [8] ABCA, s 107. [9] ABCA, s 48(14). Written by Alec Colwell
JD Candidate 2025 | UCalgary Law Termination is a common occurrence in start-up businesses. Employees don’t always work out as anticipated at the time of hire – this is even more true in a start-up where roles are typically less defined, highly dynamic, and lacking in established procedures.[1] The government and the courts have recognized that it would significantly disrupt employees' lives if they could be suddenly terminated with no time to seek replacement employment. To mitigate this problem, the mandatory minimums for reasonable notice were established. The Employment Standards Code[2] [the “Code”] outlines the mandatory minimum notice periods. The Code provides for a range of minimum notice periods depending on the employee’s length of service. In Alberta, this range begins at one week of notice for an employee who has been employed between three months to two years and increases to eight weeks of notice for an employee who has been employed for ten years or more.[3] Alternatively, an employer may opt to pay the employee a lump sum equal to their regular salary during the termination notice period without allowing them to continue working during that period.[4] This is known as severance pay. Common law factors, outlined in Bardal v Globe & Mail Ltd., [5] can entitle employees to more substantial severance compensation that is known as reasonable notice. The Bardal factors account for the likelihood that an employee can acquire similar work and include 1) the character of the employment, 2) the length of service, 3) the age of the employee, and 4) the availability of similar employment.[6] This common law determination of reasonable notice is the default position unless the employee is terminated with cause or the employment agreement contains a termination clause to limit the notice period.[7] If you can contract for the mandatory minimum notice period in a termination clause of an employment contract, then why concern yourself with the common law factors for determining reasonable notice? One reason is that a termination clause will not always stand up in court. In Machtinger v HOJ,[8] the employer’s contracted below the statutory minimum. As a result, the court held that the entire termination provision was void and the common law factors for determining reasonable notice would apply.[9] In McKercher v Stantec,[10] the court severed the termination provision of the employment contract when they found that the terms of the contract no longer reflected the objective reality of the plaintiff’s employment. The plaintiff had worked his way up in seniority over several years with no alterations made to his original contract.[11] The court again defaulted to the common law to determine reasonable notice.[12] To limit the amount of severance that an employer will have to pay, the best course of action is to seek legal help in drafting an unambiguous employment contract with a legal termination clause. Additionally, having employees sign updated employment contracts when significant terms of their contract change will alleviate issues regarding the enforceability of a termination clause. If an employment contract does not contain a termination provision, being aware of how the Bardal factors affect the determination of reasonable notice will assist an employer in negotiating fair severance. [1] Bryce Tingle, Start-Up and Growth Companies in Canada: A Guide to Legal and Business Practice, 3rd ed (LexisNexis Canada Inc, 2018) at pp 127-130. [2] Alberta Employment Standards Code, RSA 2000, c E-9 [Code]. [3] Ibid at s 56. [4] Ibid at s 57. [5] [1960] OJ No 149 (ONSC). [6] Ibid at para 21. [7] Ibid. [8] [1992] SCJ No. 41, [1992] 1 SCR 986, at 508 (SCC). [9] Ibid. [10][2019] SCJ No. 159, 2019 SKQB 100. [11] Ibid. [12] Ibid. |
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