Mr Smith owns a small start-up where he will be producing in-house made pharmaceutical products. Mr Smith recently moved from Edmonton, AB to Surrey, BC. He will be setting up his pharmaceutical practice in Surrey. The following are some payroll decisions he has made since incorporation. He is adopting the Semi-Monthly payroll cycle.

1) He employed a bookkeeper, Susan and decided to pay her $15/hour. Susan will be allowed to work from home however the maximum hours she can claim in any given week is 30 hours . Any overtime will not be allowed as Mr Smith believes this would compensate for the days where there is less work. The bookkeeper he employed is a stay-at-home mom with a CPA designation.

2) To boost sales, Mr Smith hired a Sales Manager, George. George will be compensated with a salary of $20,000 p.a and performance based commission payout. George's commission is set @7.5% for a successful sale contract signed. George will also be given an auto and cell phone allowance.

3) Mr Smith does not have the time to interview the new staff and therefore has managed to receive assistance from few friends to handle new appointments. They interview the applicants, appoint them and they gather all the personal information of the new recruits and keep these records in their homes.

4) Mr Smith ventured into making beauty creams and had to employ a chemist to manufacture those products. Mr Smith being a chemist himself knows he will be able to lead the experiments. The compensation rates for an experienced chemist would usually range from $100,000 to $150,000 per annum. Due to cash flow problems he employs an elderly retired chemist, Mrs Agnes - whom he is able to pay $55,000 per annum instead.

5) Susan, the bookkeeper who has been working with the company for nine months now, is over-whelmed with the amount of work and has asked for a raise. Mr Smith is not really keen on raising wages and hence informs Susan he will employ an assistant to help her out. Susan is rather disappointed with Mr Smith and hence informs Mr Smith through email of her frustrations. Mr Smith terminates her contract. Mr Smith believes he accrues no payout to her accept her final wages.

6) One of Mr Smith's friends, Matt pointed out to him that while he was interviewing few people there were two candidates he found who could handle the marketing department. Jacob has a bachelors' degree in Marketing and Business Administration, he is wheel chair bound. Sheila - only has marketing experience with no formal educational background and had an awesome personality. Mr Smith chooses Sheila.

7) Mr Smith is currently doing really well with his start-up and has seen profits triple during the last few months. George who has been performing really well now decides that he should be given a better compensation package. George therefore has requested to be given a broader base salary. Mr Smith has yet to decide whether this would infact benefit the company or should he hire another Sales Manager to divide the work.

8) Mr Smith has decided to introduce a new policy in the company. He would like all full-time employees to work a 9hr/day work week for five days. However he has allowed for two compulsory personal days offs in a month to compensate for the extra hour of work.

9) Mrs Agnes has a few medical conditions and had recently fell down at work due to the boxes of inventory that were not cleared away by the office staff. Mrs Agnes believes she should receive medical benefits as part of her employment contract. Mr Smith is not sure and hence decides to just pay Mrs Agnes's medical bills for the accident.

10) Mr Smith has now decided to give himself a salary since the company has started to make reasonable profits. He pays himself a salary of $200,000 per annum with auto benefits and medical benefits for himself and family.

Requirements

1) For each scenario described above - reference it to most relevant employment standard that is being mentioned. State your reasons for referencing the standard.

2) For every scenario - state whether you agree or disagree with the way Mr Smith handles employment related matters. Explain why do you agree or disagree. Please note : You are required to note the employment standards of the province in which the company resides for this part of the question.

Answer rating: 100% (QA)

1 Employment Standards for different cases 1 The employment standard in this case relates to work time and overtime and getting paid for work This standard is being referred to here because the case t... View the full answer