Life In Ontario is About to Get More Expensive and Why We Should All Be Worried

t’s a shocking decision that’s still reverberating within boardrooms and businesses across the province of Ontario.

When the Supreme Court of Canada ruled the city of Sudbury was responsible for the construction site where a woman was accidentally crushed to death in 2015, it found that “a person can be an employer… even where they lack control over the worker or the workplace.”

The City argued it wasn’t responsible and the liability rests with the contractor they hired to do the job because the city wasn’t legally the “employer,” nor is it a constructor.

Outside legal experts and law firms are now advising their construction-related clients that the ruling “will increase risk of legal exposure for construction project owners.”  So if you hire a contractor, you are to blame and liable for any safety violations that occur.

And remember, the fines are now up to $500,000 with possible jail time of up to one year.

The fallout is expected to lead to higher risk-related insurance rates, increased spending on legal fees, and other unforeseen expenses.

Companies should always ensure safety with proper training, education, and due diligence.  But if you can’t directly control the actions of an individual worker, where does individual responsibility begin?

To sustain operations, companies may already be adjusting their pricing structures, affecting consumers province-wide with higher prices for goods and services.

The court ruling, however, noted that the City “can escape liability” by proving it exercised due diligence when it came to ensuring the construction zone was safe and all of the rules were being followed properly by the crews.   But even proving that would be an intensive and costly exercise. 

Navigating these new responsibilities will have to be a priority for business owners and CEOs as we head into 2024.  Let’s hope a little more common sense can be applied as the case heads back to appeals court for a final decision. 

Still, we should all be aware… and be prepared.