diff --git a/docs/build/doctrees/2_compliance.doctree b/docs/build/doctrees/2_compliance.doctree index 9d78dd9..12f16b4 100644 Binary files a/docs/build/doctrees/2_compliance.doctree and b/docs/build/doctrees/2_compliance.doctree differ diff --git a/docs/build/doctrees/environment.pickle b/docs/build/doctrees/environment.pickle index 14fe206..5b3cff6 100644 Binary files a/docs/build/doctrees/environment.pickle and b/docs/build/doctrees/environment.pickle differ diff --git a/docs/build/html/2_compliance.html b/docs/build/html/2_compliance.html index eb766c2..e232913 100644 --- a/docs/build/html/2_compliance.html +++ b/docs/build/html/2_compliance.html @@ -336,27 +336,216 @@ applicable statutory deductions.

2.5. Statistics Canada

+

Statistics Canada produces statistics that help Canadians better understand their country—its +population, resources, economy, society and culture. +In Canada, providing statistics is a federal responsibility. As Canada’s central statistical +agency, Statistics Canada is legislated under the Statistics Act to serve this function for the +whole of Canada and each of the provinces/territories. +Objective statistical information is vital to an open and democratic society. It provides a solid +foundation for informed decisions by elected representatives, businesses, unions and non- +profit organizations, as well as individual Canadians. +Statistics Canada is committed to protecting the confidentiality of all information entrusted to +them and to ensure that the information delivered is timely and relevant to Canadians.

2.6. Personal Privacy

+

The Canadian federal government and all provincial governments have legislation that sets +limits on the collection, use or disclosure of personal information. Private sector privacy laws +in Canada currently only cover the employee personal information of employees that work +for federally regulated companies or who are located in one of the four provinces with +provincial private sector privacy laws: Alberta, British Columbia, Manitoba and Québec1. +Public sector employees have some privacy protection under all jurisdictions except Ontario +which excludes employee information from its public sector privacy legislation. Employees +who are covered by a collective agreement also have statutory privacy protection based on +arbitral jurisprudence and their particular collective agreement. Therefore, approximately +half of workers in Canada have privacy rights backed by legislation, while the remaining +50% of the country’s more than 20 million or so workers have privacy rights that are either +voluntarily set in place by employers who have developed employee privacy codes or have +privacy rights because they have a collective agreement in place. +Employers should also be aware that egregious violations of privacy may open them up to +civil damages, including class action lawsuits. Legislatures and the courts are recognizing +privacy rights and providing opportunities for civil remedies. +In drawing up its legislation for the protection of personal information, the Canadian +government based its privacy provisions on a set of guidelines that had been developed by +the Canadian Standards Association in its Model Code for the Protection of Personal +Information.

2.6.1. The Privacy Principles

+

The Canadian Standards Association (CSA) Model Code is a set of principles that was +developed with input from organizations, governments, consumer associations and other +privacy stakeholders. They are incorporated in Federal private sector privacy legislation and +have become the generally accepted framework for evaluating privacy processes and systems +in Canada2. +Principle 1. Accountability +An organization is responsible for personal information under its control and shall designate +an individual or individuals to be accountable for the organization’s compliance with the +following principles. +Principle 2. Identifying Purposes +The purposes for which personal information is collected shall be identified by the +organization at or before the time the information is collected. +Principle 3. Consent +The knowledge and consent of the individual are required for the collection, use, or +disclosure of personal information, except where inappropriate. Note: In certain +circumstances, personal information can be collected, used, or disclosed without the +knowledge and consent of the individual. For example, legal, medical, or security reasons +may make it impossible or impractical to seek consent. +Principle 4. Limiting Collection +The collection of personal information shall be limited to that which is necessary for the +purposes identified by the organization. Information shall be collected by fair and lawful +means. +Principle 5. Limiting Use, Disclosure, and Retention +Personal information shall not be used or disclosed for purposes other than those for which it +was collected, except with the consent of the individual or as required by law. Personal +information shall be retained only as long as is necessary for the fulfillment of those +purposes. +Principle 6. Accuracy +Personal information shall be as accurate, complete, and up-to-date as is necessary for the +purposes for which it is to be used. +Principle 7. Safeguards +Personal information shall be protected by security safeguards appropriate to the sensitivity +of the information. +Principle 8. Openness +An organization shall make readily available to individuals specific information about its +policies and practices relating to the management of personal information. +Principle 9. Individual Access +Upon request, an individual shall be informed of the existence, use and disclosure of his or +her personal information and shall be given access to that information. An individual shall be +able to challenge the accuracy and completeness of the information and have it amended as +appropriate. In certain situations, an organization may not be able to provide access to all the +personal information it holds about an individual. Exceptions to the access requirement +should be limited and specific. The reasons for denying access should be provided to the +individual upon request. Exceptions may include information that is prohibitively costly to +provide, information that contains references to other individuals, information that cannot be +disclosed for legal, security, or commercial proprietary reasons, and information that is +subject to solicitor-client or litigation privilege.

+
+
+

2.7. Principle 10. Challenging Compliance

+

An individual shall be able to address a challenge concerning compliance with the above +principles to the designated individual or individuals accountable for the organization’s +compliance.

-

2.6.2. The Personal Information Protection and Electronic Documents Act (PIPEDA)

+

2.7.1. The Personal Information Protection and Electronic Documents Act (PIPEDA)

+

The federal government drew upon the CSA Privacy Principles in its drafting of the federal +Personal Information Protection and Electronic Documents Act (PIPEDA) and the spirit and +much of the wording of the principles can be found throughout PIPEDA.

+

The mandate of the Office of the Privacy Commissioner of Canada (OPC) is overseeing +compliance with both the Privacy Act, which covers the personal information-handling +practices of federal government departments and agencies (including employee data), and the +Personal Information Protection and Electronic Documents Act (PIPEDA), Canada’s private +sector privacy law.

+

PIPEDA has applied to federally regulated organizations such as banks, telecommunications +and transportation companies since January 2001 and applies to the collection, use or +disclosure of personal information in the course of any commercial activity within a province +that does not have its own privacy legislation, since January 2004.

+

While this protection of personal information legislation has a significant impact on how +organizations collect, use and disclose personal information relating to commercial +transactions (for example, customer/client lists and information), it is the effect of this +legislation on employee personal information that concerns the payroll and human resources +departments.

+

Employers collect personal employee information to conduct and protect their business, and +to comply with government legislation (for example, Employment/Labour Standards and +statutory deductions relating to CPP/QPP contributions, EI and QPIP premiums along with +income tax). As well, many employers provide benefits such as dental, medical and pension +plans that require the collection of even greater amounts of personal data.

+
+

Note

+

PIPEDA does not require that employers obtain consent from prospective employees, current +employees, or terminated employees to collect, use, and disclose information about that +person where the information is necessary for the creation, maintenance, and termination of +the employment relationship. It is, however, the case that the employer will provide notice to +the employee so that they are knowledgeable with respect to the information that the +employer collects, uses, and discloses. +This notice should be provided to prospective employees as part of the recruitment process +and also as part of the on-boarding process. In addition, if there are changes to personal data +practices for employee information, employees should be informed about such changes in a +timely manner.

+
+

Consent

+

According to PIPEDA, employers must obtain an employee’s consent before they collect +personal information where that information is not required for the employment relationship. +Further, the information collected must be for a specific purpose and must be destroyed once +that purpose is no longer valid.

+

There are two forms of consent that can be obtained from an employee - expressed and +implied:

+

Expressed consent should be used for particularly sensitive employee information such as +might be asked for in the case of a voluntary employee assistance program.

+

Implied consent means the employee is considered to have consented indirectly. An +example of implied consent is when an employee completes a form for an employer provided +but optional service such as a social club for birthday gifts and notices. Participating in this +club is not required for the employment relationship so consent is required. But the +information requested, and the context is not overly sensitive so consent for the collection +and use of employee data may be implied by the fact that the employee completed the +voluntary form. It doesn’t need an “I consent” checkbox.

+

In essence, the more sensitive the information, the more one should use express written +consent, which outlines in detail the specific purpose for which an employer is using the +information. It is critical for those working in payroll to be aware of the requirements of +privacy legislation that applies to their employees and to have the necessary procedures in +place to comply with the legislation. If an employee chooses not to disclose the information +and is not required to do so by law, an employer cannot force an employee to divulge it.

+

Exceptions to Consent Requirement

+

Subparagraph 7(3) of the Personal Information Protection and Electronic Documents Act +(Bill C6) allows an employer to disclose personal information without the knowledge or +consent of the individual if the disclosure is made to a government institution which has +identified its lawful authority, and if the disclosure is for the purpose of administering any +law of Canada.

+

PIPEDA permits federal government agencies such as the CRA, ESDC, Service Canada and +provincial/territorial Ministries of Labour to obtain personal employee information needed to +administer programs or benefits, or to perform an audit. Legislation specifically provides +these government bodies with the right to request personal employee information and inspect +certain records and documents. As a result, the employer does not need to obtain the +employee’s permission to provide the information.

+

In addition to disclosures to government that are mandated by legislation and in relation to +employment, subparagraph 7.3 of PIPEDA states that an employer that is regulated by +federal labour codes can “…collect, use and disclose personal information without the consent of the individual if +(a) the collection, use or disclosure is necessary to establish, manage or terminate an +employment relationship between the federal work, undertaking or business and the +individual; and +(b) the federal work, undertaking or business has informed the individual that the personal +information will be or may be collected, used or disclosed for those purposes”.

+

Use and Storage of Personal Information +According to PIPEDA, organizations can only use information for the purpose for which it +was collected. Employers must fully disclose in writing to the employee the reasons why +they require the information, as well as what will be done with it.

+

Personal information must not be disclosed to external stakeholders without the employee’s +consent and only for the purpose for which the information was collected. For example, if the +organization is being audited by a government agency, such as the CRA, the employee’s +medical information should not be included with the information provided for audit purposes.

+

There are times when employers are required to collect information about employees in order +to comply with employment/labour standards or human rights legislation. For example, to +accommodate an employee for religious days and holidays, an employer needs to know about +the employee’s religious beliefs. To seek out this type of information for any other reason +invades the individual’s right to privacy.

+

Limitations on Use - the Social Insurance Number example +The purpose of a social insurance number (SIN) is to identify an individual for specific +government programs. This information may not be collected, stored, used or disclosed for +any other purpose without the employee’s consent. Where the SIN is to be used for purposes +of identification, an organization must provide a convenient method for the employee to +withdraw his/her consent for that use at any time.

+

Employers are authorized to collect a SIN from employees in order to produce Records of +Employment and income tax information slips. Unless the employee has provided a SIN for +another specific use, and has consented to that specific use in writing, an employer could be +subject to fines for each improper use of that number.

+

As a general rule, an employer may not communicate the number to a third party without the +employee’s specific consent to do so. Exceptions are cases in which it is the employer’s +obligation to report an employee’s SIN to RQ, CRA, ESDC or Service Canada.

+

The SIN should not be used on pay statements or communicated to unions or benefit carriers. +They should not be used as an identifier by any organization other than the government +agencies mentioned above, unless the employee provides written consent to do so.

-

2.7. Pension Benefits Standards Act

+

2.8. Pension Benefits Standards Act

-

2.8. Canadian Human Rights Act

+

2.9. Canadian Human Rights Act

-

2.9. Employment Equity Act

+

2.10. Employment Equity Act

-

2.10. Summary

+

2.11. Summary

  • Under the Canada Pension Plan Act and the Employment Insurance Act, the Canada Revenue Agency is responsible for determining: @@ -378,35 +567,79 @@ applicable statutory deductions.

  • the administration of provisions regarding Job Creation programs

+
  • Employment and Social Development Canada’s Employment Insurance program

  • -

    Employment and Social Development Canada’s Employment Insurance program -provides temporary financial assistance for unemployed Canadians while they look -for work or upgrade their skills. -Service Canada serves as the government’s operational arm while Employment and -Social Development Canada operates as the policy-making body. -Service Canada is responsible for: -o the issuance of Social Insurance Numbers (SIN) and the protection and -security of SIN information -o the delivery of services to employers, including Record of Employment on the -Web -o the administration of Employment Insurance programs to individuals, -including regular, illness, pregnancy/parental, critically ill or injured person -and compassionate care benefits -o the administration of the Employment Insurance Premium Reduction -program, including granting qualified employers a reduced Employment -Insurance premium rate

    +

    provides temporary financial assistance for unemployed Canadians while they look +for work or upgrade their skills.

      -
    • the administration of Canada Pension Plan benefits, including retirement, disability, survivor, children’s and death benefits

    • -
    • the administration of benefits for seniors, including the Old Age Security Program and the Guaranteed Income Supplement Payroll is responsible for deducting and remitting Employment Insurance premiums

    • +
    • Service Canada serves as the government’s operational arm while Employment and

    -

    on behalf of employees and employers. Payroll is responsible for capturing information related to insurable earnings and -hours, and reporting that information on the Record of Employment.

    +

    Social Development Canada operates as the policy-making body.

    +
    +
      +
    • Service Canada is responsible for:

      +
        +
      • the issuance of Social Insurance Numbers (SIN) and the protection and security of SIN information

      • +
      • the delivery of services to employers, including Record of Employment on the Web

      • +
      • the administration of Employment Insurance programs to individuals, including regular, illness, pregnancy/parental, critically ill or injured person and compassionate care benefits

      • +
      • the administration of the Employment Insurance Premium Reduction program, including granting qualified employers a reduced Employment Insurance premium rate

      • +
      • the administration of Canada Pension Plan benefits, including retirement, disability, survivor, children’s and death benefits

      • +
      • the administration of benefits for seniors, including the Old Age Security Program and the Guaranteed Income Supplement Payroll is responsible for deducting and remitting Employment Insurance premiums on behalf of employees and employers.

      • +
      +
    • +
    • Payroll is responsible for deducting and remitting Employment Insurance premiums on behalf of employees and employers.

    • +
    • Payroll is responsible for capturing information related to insurable earnings and hours, and reporting that information on the Record of Employment.

    • +
    • The Canadian government based its privacy provisions in its legislation for the

    • +
    +
    +

    protection of personal information on a set of guidelines called the Ten Privacy +Principles.

    +
    +
      +
    • The Personal Information Protection and Electronic Documents Act has applied to

    • +
    +
    +

    federally-regulated organizations such as banks, telecommunications and +transportation companies since January 2001.

    +
    +
      +
    • Since January 2004 the Personal Information Protection and Electronic Documents

    • +
    +
    +

    Act has applied to the collection, use or disclosure of personal information in the +course of any commercial activity within a province that does not have its own +privacy legislation.

    +
    +
      +
    • Express consent means the employee provides their consent either verbally (in which

    • +
    +
    +

    case when and how the consent was received should be documented) or in writing.

    +
    +
      +
    • Implied consent means the employee is considered to have consented indirectly.

    • +
    • The employer does not need to obtain the employee’s permission to provide personal

    • +
    +
    +

    information where legislation provides federal government agencies such as the +Canada Revenue Agency, Employment and Social Development Canada, Service +Canada and provincial/territorial Ministries of Labour with the right to request +personal employee information in order to administer programs or benefits, or in the +case of an audit.

    +
    +
      +
    • Other than an employer’s obligation to report an employee’s Social Insurance

    • +
    +
    +

    Number to the Canada Revenue Agency, Employment and Social Development +Canada, Service Canada or Revenu Québec, an employer may not communicate the +number to a third party without the employee’s specific consent to do so.

    -

    2.11. Review Questions

    +

    2.12. Review Questions

    1. What are the three main programs specifically related to payroll that the Canada Revenue Agency administers?

    2. If an organization deducts $27,400 in Canada Pension Plan contributions from its employees and $21,200 in Employment Insurance premiums, how much would have to be remitted in total to the Canada Revenue Agency?

    3. @@ -420,6 +653,13 @@ hours, and reporting that information on the Record of Employment.

      There is a new type of earning in the new collective agreement. You are not sure if it is insurable.

      The organization would like to apply for a reduction in its Employment Insurance premium rate.

      +

      6. How does the Personal Information Protection and Electronic Documents Act +legislation affect the handling of employee personal information?

      +

      7. Explain the difference between implied and express employee consent and provide an +example of each.

      +

      8. The Personal Information Protection and Electronic Documents Act contains ten +privacy principles. Choose two and develop a statement for each that could be included +in your organization’s privacy policy.

    @@ -449,14 +689,17 @@ hours, and reporting that information on the Record of Employment.

  • 2.5. Statistics Canada
  • 2.6. Personal Privacy
  • -
  • 2.7. Pension Benefits Standards Act
  • -
  • 2.8. Canadian Human Rights Act
  • -
  • 2.9. Employment Equity Act
  • -
  • 2.10. Summary
  • -
  • 2.11. Review Questions
  • +
  • 2.7. Principle 10. Challenging Compliance +
  • +
  • 2.8. Pension Benefits Standards Act
  • +
  • 2.9. Canadian Human Rights Act
  • +
  • 2.10. Employment Equity Act
  • +
  • 2.11. Summary
  • +
  • 2.12. Review Questions
  • diff --git a/docs/build/html/_sources/2_compliance.rst.txt b/docs/build/html/_sources/2_compliance.rst.txt index fc24505..a263c7c 100644 --- a/docs/build/html/_sources/2_compliance.rst.txt +++ b/docs/build/html/_sources/2_compliance.rst.txt @@ -310,15 +310,226 @@ applicable statutory deductions. Statistics Canada ~~~~~~~~~~~~~~~~~~~~~ +Statistics Canada produces statistics that help Canadians better understand their country—its +population, resources, economy, society and culture. +In Canada, providing statistics is a federal responsibility. As Canada’s central statistical +agency, Statistics Canada is legislated under the Statistics Act to serve this function for the +whole of Canada and each of the provinces/territories. +Objective statistical information is vital to an open and democratic society. It provides a solid +foundation for informed decisions by elected representatives, businesses, unions and non- +profit organizations, as well as individual Canadians. +Statistics Canada is committed to protecting the confidentiality of all information entrusted to +them and to ensure that the information delivered is timely and relevant to Canadians. Personal Privacy ~~~~~~~~~~~~~~~~~ +The Canadian federal government and all provincial governments have legislation that sets +limits on the collection, use or disclosure of personal information. Private sector privacy laws +in Canada currently only cover the employee personal information of employees that work +for federally regulated companies or who are located in one of the four provinces with +provincial private sector privacy laws: Alberta, British Columbia, Manitoba and Québec1. +Public sector employees have some privacy protection under all jurisdictions except Ontario +which excludes employee information from its public sector privacy legislation. Employees +who are covered by a collective agreement also have statutory privacy protection based on +arbitral jurisprudence and their particular collective agreement. Therefore, approximately +half of workers in Canada have privacy rights backed by legislation, while the remaining +50% of the country’s more than 20 million or so workers have privacy rights that are either +voluntarily set in place by employers who have developed employee privacy codes or have +privacy rights because they have a collective agreement in place. +Employers should also be aware that egregious violations of privacy may open them up to +civil damages, including class action lawsuits. Legislatures and the courts are recognizing +privacy rights and providing opportunities for civil remedies. +In drawing up its legislation for the protection of personal information, the Canadian +government based its privacy provisions on a set of guidelines that had been developed by +the Canadian Standards Association in its Model Code for the Protection of Personal +Information. The Privacy Principles ----------------------- +The Canadian Standards Association (CSA) Model Code is a set of principles that was +developed with input from organizations, governments, consumer associations and other +privacy stakeholders. They are incorporated in Federal private sector privacy legislation and +have become the generally accepted framework for evaluating privacy processes and systems +in Canada2. +Principle 1. Accountability +An organization is responsible for personal information under its control and shall designate +an individual or individuals to be accountable for the organization's compliance with the +following principles. +Principle 2. Identifying Purposes +The purposes for which personal information is collected shall be identified by the +organization at or before the time the information is collected. +Principle 3. Consent +The knowledge and consent of the individual are required for the collection, use, or +disclosure of personal information, except where inappropriate. Note: In certain +circumstances, personal information can be collected, used, or disclosed without the +knowledge and consent of the individual. For example, legal, medical, or security reasons +may make it impossible or impractical to seek consent. +Principle 4. Limiting Collection +The collection of personal information shall be limited to that which is necessary for the +purposes identified by the organization. Information shall be collected by fair and lawful +means. +Principle 5. Limiting Use, Disclosure, and Retention +Personal information shall not be used or disclosed for purposes other than those for which it +was collected, except with the consent of the individual or as required by law. Personal +information shall be retained only as long as is necessary for the fulfillment of those +purposes. +Principle 6. Accuracy +Personal information shall be as accurate, complete, and up-to-date as is necessary for the +purposes for which it is to be used. +Principle 7. Safeguards +Personal information shall be protected by security safeguards appropriate to the sensitivity +of the information. +Principle 8. Openness +An organization shall make readily available to individuals specific information about its +policies and practices relating to the management of personal information. +Principle 9. Individual Access +Upon request, an individual shall be informed of the existence, use and disclosure of his or +her personal information and shall be given access to that information. An individual shall be +able to challenge the accuracy and completeness of the information and have it amended as +appropriate. In certain situations, an organization may not be able to provide access to all the +personal information it holds about an individual. Exceptions to the access requirement +should be limited and specific. The reasons for denying access should be provided to the +individual upon request. Exceptions may include information that is prohibitively costly to +provide, information that contains references to other individuals, information that cannot be +disclosed for legal, security, or commercial proprietary reasons, and information that is +subject to solicitor-client or litigation privilege. + +Principle 10. Challenging Compliance +~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ +An individual shall be able to address a challenge concerning compliance with the above +principles to the designated individual or individuals accountable for the organization's +compliance. + The Personal Information Protection and Electronic Documents Act (PIPEDA) -------------------------------------------------------------------------- +The federal government drew upon the CSA Privacy Principles in its drafting of the federal +Personal Information Protection and Electronic Documents Act (PIPEDA) and the spirit and +much of the wording of the principles can be found throughout PIPEDA. + +The mandate of the Office of the Privacy Commissioner of Canada (OPC) is overseeing +compliance with both the Privacy Act, which covers the personal information-handling +practices of federal government departments and agencies (including employee data), and the +Personal Information Protection and Electronic Documents Act (PIPEDA), Canada's private +sector privacy law. + +PIPEDA has applied to federally regulated organizations such as banks, telecommunications +and transportation companies since January 2001 and applies to the collection, use or +disclosure of personal information in the course of any commercial activity within a province +that does not have its own privacy legislation, since January 2004. + +While this protection of personal information legislation has a significant impact on how +organizations collect, use and disclose personal information relating to commercial +transactions (for example, customer/client lists and information), it is the effect of this +legislation on employee personal information that concerns the payroll and human resources +departments. + +Employers collect personal employee information to conduct and protect their business, and +to comply with government legislation (for example, Employment/Labour Standards and +statutory deductions relating to CPP/QPP contributions, EI and QPIP premiums along with +income tax). As well, many employers provide benefits such as dental, medical and pension +plans that require the collection of even greater amounts of personal data. + +.. note:: + + PIPEDA does not require that employers obtain consent from prospective employees, current + employees, or terminated employees to collect, use, and disclose information about that + person where the information is necessary for the creation, maintenance, and termination of + the employment relationship. It is, however, the case that the employer will provide notice to + the employee so that they are knowledgeable with respect to the information that the + employer collects, uses, and discloses. + This notice should be provided to prospective employees as part of the recruitment process + and also as part of the on-boarding process. In addition, if there are changes to personal data + practices for employee information, employees should be informed about such changes in a + timely manner. + +**Consent** + +According to PIPEDA, employers must obtain an employee's consent before they collect +personal information where that information is not required for the employment relationship. +Further, the information collected must be for a specific purpose and must be destroyed once +that purpose is no longer valid. + +There are two forms of consent that can be obtained from an employee - expressed and +implied: + +**Expressed consent** should be used for particularly sensitive employee information such as +might be asked for in the case of a voluntary employee assistance program. + +**Implied consent** means the employee is considered to have consented indirectly. An +example of implied consent is when an employee completes a form for an employer provided +but optional service such as a *social club* for birthday gifts and notices. Participating in this +club is not required for the employment relationship so consent is required. But the +information requested, and the context is not overly sensitive so consent for the collection +and use of employee data may be implied by the fact that the employee completed the +voluntary form. It doesn't need an “I consent” checkbox. + +In essence, the more sensitive the information, the more one should use express written +consent, which outlines in detail the specific purpose for which an employer is using the +information. It is critical for those working in payroll to be aware of the requirements of +privacy legislation that applies to their employees and to have the necessary procedures in +place to comply with the legislation. If an employee chooses not to disclose the information +and is not required to do so by law, an employer cannot force an employee to divulge it. + +**Exceptions to Consent Requirement** + +Subparagraph 7(3) of the Personal Information Protection and Electronic Documents Act +(Bill C6) allows an employer to disclose personal information without the knowledge or +consent of the individual if the disclosure is made to a government institution which has +identified its lawful authority, and if the disclosure is for the purpose of administering any +law of Canada. + +PIPEDA permits federal government agencies such as the CRA, ESDC, Service Canada and +provincial/territorial Ministries of Labour to obtain personal employee information needed to +administer programs or benefits, or to perform an audit. Legislation specifically provides +these government bodies with the right to request personal employee information and inspect +certain records and documents. As a result, the employer does not need to obtain the +employee's permission to provide the information. + +In addition to disclosures to government that are mandated by legislation and in relation to +employment, subparagraph 7.3 of PIPEDA states that an employer that is regulated by +federal labour codes can “…collect, use and disclose personal information without the consent of the individual if +(a) the collection, use or disclosure is necessary to establish, manage or terminate an +employment relationship between the federal work, undertaking or business and the +individual; and +(b) the federal work, undertaking or business has informed the individual that the personal +information will be or may be collected, used or disclosed for those purposes”. + +Use and Storage of Personal Information +According to PIPEDA, organizations can only use information for the purpose for which it +was collected. Employers must fully disclose in writing to the employee the reasons why +they require the information, as well as what will be done with it. + +Personal information must not be disclosed to external stakeholders without the employee's +consent and only for the purpose for which the information was collected. For example, if the +organization is being audited by a government agency, such as the CRA, the employee's +medical information should not be included with the information provided for audit purposes. + +There are times when employers are required to collect information about employees in order +to comply with employment/labour standards or human rights legislation. For example, to +accommodate an employee for religious days and holidays, an employer needs to know about +the employee's religious beliefs. To seek out this type of information for any other reason +invades the individual's right to privacy. + +Limitations on Use - the Social Insurance Number example +The purpose of a social insurance number (SIN) is to identify an individual for specific +government programs. This information may not be collected, stored, used or disclosed for +any other purpose without the employee's consent. Where the SIN is to be used for purposes +of identification, an organization must provide a convenient method for the employee to +withdraw his/her consent for that use at any time. + +Employers are authorized to collect a SIN from employees in order to produce Records of +Employment and income tax information slips. Unless the employee has provided a SIN for +another specific use, and has consented to that specific use in writing, an employer could be +subject to fines for each improper use of that number. + +As a general rule, an employer may not communicate the number to a third party without the +employee's specific consent to do so. Exceptions are cases in which it is the employer's +obligation to report an employee's SIN to RQ, CRA, ESDC or Service Canada. + +The SIN should not be used on pay statements or communicated to unions or benefit carriers. +They should not be used as an identifier by any organization other than the government +agencies mentioned above, unless the employee provides written consent to do so. Pension Benefits Standards Act ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ @@ -356,28 +567,55 @@ Summary - the administration of provisions related to Wage Loss plans - the administration of provisions regarding Job Creation programs -Employment and Social Development Canada’s Employment Insurance program + - Employment and Social Development Canada's Employment Insurance program provides temporary financial assistance for unemployed Canadians while they look for work or upgrade their skills. -Service Canada serves as the government’s operational arm while Employment and + + - Service Canada serves as the government's operational arm while Employment and Social Development Canada operates as the policy-making body. -Service Canada is responsible for: -o the issuance of Social Insurance Numbers (SIN) and the protection and -security of SIN information -o the delivery of services to employers, including Record of Employment on the -Web -o the administration of Employment Insurance programs to individuals, -including regular, illness, pregnancy/parental, critically ill or injured person -and compassionate care benefits -o the administration of the Employment Insurance Premium Reduction -program, including granting qualified employers a reduced Employment -Insurance premium rate - - the administration of Canada Pension Plan benefits, including retirement, disability, survivor, children's and death benefits + - Service Canada is responsible for: - - the administration of benefits for seniors, including the Old Age Security Program and the Guaranteed Income Supplement Payroll is responsible for deducting and remitting Employment Insurance premiums -on behalf of employees and employers. Payroll is responsible for capturing information related to insurable earnings and -hours, and reporting that information on the Record of Employment. + - the issuance of Social Insurance Numbers (SIN) and the protection and security of SIN information + - the delivery of services to employers, including Record of Employment on the Web + - the administration of Employment Insurance programs to individuals, including regular, illness, pregnancy/parental, critically ill or injured person and compassionate care benefits + - the administration of the Employment Insurance Premium Reduction program, including granting qualified employers a reduced Employment Insurance premium rate + - the administration of Canada Pension Plan benefits, including retirement, disability, survivor, children's and death benefits + - the administration of benefits for seniors, including the Old Age Security Program and the Guaranteed Income Supplement Payroll is responsible for deducting and remitting Employment Insurance premiums on behalf of employees and employers. + + - Payroll is responsible for deducting and remitting Employment Insurance premiums on behalf of employees and employers. + + - Payroll is responsible for capturing information related to insurable earnings and hours, and reporting that information on the Record of Employment. + + - The Canadian government based its privacy provisions in its legislation for the +protection of personal information on a set of guidelines called the Ten Privacy +Principles. + + - The Personal Information Protection and Electronic Documents Act has applied to +federally-regulated organizations such as banks, telecommunications and +transportation companies since January 2001. + + - Since January 2004 the Personal Information Protection and Electronic Documents +Act has applied to the collection, use or disclosure of personal information in the +course of any commercial activity within a province that does not have its own +privacy legislation. + + - Express consent means the employee provides their consent either verbally (in which +case when and how the consent was received should be documented) or in writing. + + - Implied consent means the employee is considered to have consented indirectly. + + - The employer does not need to obtain the employee's permission to provide personal +information where legislation provides federal government agencies such as the +Canada Revenue Agency, Employment and Social Development Canada, Service +Canada and provincial/territorial Ministries of Labour with the right to request +personal employee information in order to administer programs or benefits, or in the +case of an audit. + + - Other than an employer's obligation to report an employee's Social Insurance +Number to the Canada Revenue Agency, Employment and Social Development +Canada, Service Canada or Revenu Québec, an employer may not communicate the +number to a third party without the employee's specific consent to do so. Review Questions ~~~~~~~~~~~~~~~~~~~~~ @@ -398,4 +636,14 @@ Review Questions There is a new type of earning in the new collective agreement. You are not sure if it is insurable. - The organization would like to apply for a reduction in its Employment Insurance premium rate. \ No newline at end of file + The organization would like to apply for a reduction in its Employment Insurance premium rate. + +6. How does the Personal Information Protection and Electronic Documents Act +legislation affect the handling of employee personal information? + +7. Explain the difference between implied and express employee consent and provide an +example of each. + +8. The Personal Information Protection and Electronic Documents Act contains ten +privacy principles. Choose two and develop a statement for each that could be included +in your organization's privacy policy. diff --git a/docs/build/html/index.html b/docs/build/html/index.html index 22e6304..17d3625 100644 --- a/docs/build/html/index.html +++ b/docs/build/html/index.html @@ -85,14 +85,17 @@ to confidently perform essential payroll functions encountered in day-to-day ope
  • 2.5. Statistics Canada
  • 2.6. Personal Privacy
  • -
  • 2.7. Pension Benefits Standards Act
  • -
  • 2.8. Canadian Human Rights Act
  • -
  • 2.9. Employment Equity Act
  • -
  • 2.10. Summary
  • -
  • 2.11. Review Questions
  • +
  • 2.7. Principle 10. Challenging Compliance +
  • +
  • 2.8. Pension Benefits Standards Act
  • +
  • 2.9. Canadian Human Rights Act
  • +
  • 2.10. Employment Equity Act
  • +
  • 2.11. Summary
  • +
  • 2.12. Review Questions
  • 3. EMPLOYEE vs. INDEPENDENT CONTRACTOR +
  • +
  • + + 2.7. Principle 10. Challenging Compliance + +
  • - 2.7. Pension Benefits Standards Act + 2.8. Pension Benefits Standards Act
  • - 2.8. Canadian Human Rights Act + 2.9. Canadian Human Rights Act
  • - 2.9. Employment Equity Act + 2.10. Employment Equity Act
  • - 2.10. Summary + 2.11. Summary
  • - 2.11. Review Questions + 2.12. Review Questions
  • @@ -2021,6 +2028,18 @@ applicable statutory deductions. ¶ +

    + Statistics Canada produces statistics that help Canadians better understand their country—its +population, resources, economy, society and culture. +In Canada, providing statistics is a federal responsibility. As Canada’s central statistical +agency, Statistics Canada is legislated under the Statistics Act to serve this function for the +whole of Canada and each of the provinces/territories. +Objective statistical information is vital to an open and democratic society. It provides a solid +foundation for informed decisions by elected representatives, businesses, unions and non- +profit organizations, as well as individual Canadians. +Statistics Canada is committed to protecting the confidentiality of all information entrusted to +them and to ensure that the information delivered is timely and relevant to Canadians. +

    @@ -2029,6 +2048,28 @@ applicable statutory deductions. ¶

    +

    + The Canadian federal government and all provincial governments have legislation that sets +limits on the collection, use or disclosure of personal information. Private sector privacy laws +in Canada currently only cover the employee personal information of employees that work +for federally regulated companies or who are located in one of the four provinces with +provincial private sector privacy laws: Alberta, British Columbia, Manitoba and Québec1. +Public sector employees have some privacy protection under all jurisdictions except Ontario +which excludes employee information from its public sector privacy legislation. Employees +who are covered by a collective agreement also have statutory privacy protection based on +arbitral jurisprudence and their particular collective agreement. Therefore, approximately +half of workers in Canada have privacy rights backed by legislation, while the remaining +50% of the country’s more than 20 million or so workers have privacy rights that are either +voluntarily set in place by employers who have developed employee privacy codes or have +privacy rights because they have a collective agreement in place. +Employers should also be aware that egregious violations of privacy may open them up to +civil damages, including class action lawsuits. Legislatures and the courts are recognizing +privacy rights and providing opportunities for civil remedies. +In drawing up its legislation for the protection of personal information, the Canadian +government based its privacy provisions on a set of guidelines that had been developed by +the Canadian Standards Association in its Model Code for the Protection of Personal +Information. +

    The Privacy Principles @@ -2036,7 +2077,69 @@ applicable statutory deductions. ¶

    +

    + The Canadian Standards Association (CSA) Model Code is a set of principles that was +developed with input from organizations, governments, consumer associations and other +privacy stakeholders. They are incorporated in Federal private sector privacy legislation and +have become the generally accepted framework for evaluating privacy processes and systems +in Canada2. +Principle 1. Accountability +An organization is responsible for personal information under its control and shall designate +an individual or individuals to be accountable for the organization’s compliance with the +following principles. +Principle 2. Identifying Purposes +The purposes for which personal information is collected shall be identified by the +organization at or before the time the information is collected. +Principle 3. Consent +The knowledge and consent of the individual are required for the collection, use, or +disclosure of personal information, except where inappropriate. Note: In certain +circumstances, personal information can be collected, used, or disclosed without the +knowledge and consent of the individual. For example, legal, medical, or security reasons +may make it impossible or impractical to seek consent. +Principle 4. Limiting Collection +The collection of personal information shall be limited to that which is necessary for the +purposes identified by the organization. Information shall be collected by fair and lawful +means. +Principle 5. Limiting Use, Disclosure, and Retention +Personal information shall not be used or disclosed for purposes other than those for which it +was collected, except with the consent of the individual or as required by law. Personal +information shall be retained only as long as is necessary for the fulfillment of those +purposes. +Principle 6. Accuracy +Personal information shall be as accurate, complete, and up-to-date as is necessary for the +purposes for which it is to be used. +Principle 7. Safeguards +Personal information shall be protected by security safeguards appropriate to the sensitivity +of the information. +Principle 8. Openness +An organization shall make readily available to individuals specific information about its +policies and practices relating to the management of personal information. +Principle 9. Individual Access +Upon request, an individual shall be informed of the existence, use and disclosure of his or +her personal information and shall be given access to that information. An individual shall be +able to challenge the accuracy and completeness of the information and have it amended as +appropriate. In certain situations, an organization may not be able to provide access to all the +personal information it holds about an individual. Exceptions to the access requirement +should be limited and specific. The reasons for denying access should be provided to the +individual upon request. Exceptions may include information that is prohibitively costly to +provide, information that contains references to other individuals, information that cannot be +disclosed for legal, security, or commercial proprietary reasons, and information that is +subject to solicitor-client or litigation privilege. +

    +
    +
    +

    + Principle 10. Challenging Compliance + + ¶ + +

    +

    + An individual shall be able to address a challenge concerning compliance with the above +principles to the designated individual or individuals accountable for the organization’s +compliance. +

    The Personal Information Protection and Electronic Documents Act (PIPEDA) @@ -2044,6 +2147,174 @@ applicable statutory deductions. ¶

    +

    + The federal government drew upon the CSA Privacy Principles in its drafting of the federal +Personal Information Protection and Electronic Documents Act (PIPEDA) and the spirit and +much of the wording of the principles can be found throughout PIPEDA. +

    +

    + The mandate of the Office of the Privacy Commissioner of Canada (OPC) is overseeing +compliance with both the Privacy Act, which covers the personal information-handling +practices of federal government departments and agencies (including employee data), and the +Personal Information Protection and Electronic Documents Act (PIPEDA), Canada’s private +sector privacy law. +

    +

    + PIPEDA has applied to federally regulated organizations such as banks, telecommunications +and transportation companies since January 2001 and applies to the collection, use or +disclosure of personal information in the course of any commercial activity within a province +that does not have its own privacy legislation, since January 2004. +

    +

    + While this protection of personal information legislation has a significant impact on how +organizations collect, use and disclose personal information relating to commercial +transactions (for example, customer/client lists and information), it is the effect of this +legislation on employee personal information that concerns the payroll and human resources +departments. +

    +

    + Employers collect personal employee information to conduct and protect their business, and +to comply with government legislation (for example, Employment/Labour Standards and +statutory deductions relating to CPP/QPP contributions, EI and QPIP premiums along with +income tax). As well, many employers provide benefits such as dental, medical and pension +plans that require the collection of even greater amounts of personal data. +

    +
    +

    + Note +

    +

    + PIPEDA does not require that employers obtain consent from prospective employees, current +employees, or terminated employees to collect, use, and disclose information about that +person where the information is necessary for the creation, maintenance, and termination of +the employment relationship. It is, however, the case that the employer will provide notice to +the employee so that they are knowledgeable with respect to the information that the +employer collects, uses, and discloses. +This notice should be provided to prospective employees as part of the recruitment process +and also as part of the on-boarding process. In addition, if there are changes to personal data +practices for employee information, employees should be informed about such changes in a +timely manner. +

    +
    +

    + + Consent + +

    +

    + According to PIPEDA, employers must obtain an employee’s consent before they collect +personal information where that information is not required for the employment relationship. +Further, the information collected must be for a specific purpose and must be destroyed once +that purpose is no longer valid. +

    +

    + There are two forms of consent that can be obtained from an employee - expressed and +implied: +

    +

    + + Expressed consent + + should be used for particularly sensitive employee information such as +might be asked for in the case of a voluntary employee assistance program. +

    +

    + + Implied consent + + means the employee is considered to have consented indirectly. An +example of implied consent is when an employee completes a form for an employer provided +but optional service such as a + + social club + + for birthday gifts and notices. Participating in this +club is not required for the employment relationship so consent is required. But the +information requested, and the context is not overly sensitive so consent for the collection +and use of employee data may be implied by the fact that the employee completed the +voluntary form. It doesn’t need an “I consent” checkbox. +

    +

    + In essence, the more sensitive the information, the more one should use express written +consent, which outlines in detail the specific purpose for which an employer is using the +information. It is critical for those working in payroll to be aware of the requirements of +privacy legislation that applies to their employees and to have the necessary procedures in +place to comply with the legislation. If an employee chooses not to disclose the information +and is not required to do so by law, an employer cannot force an employee to divulge it. +

    +

    + + Exceptions to Consent Requirement + +

    +

    + Subparagraph 7(3) of the Personal Information Protection and Electronic Documents Act +(Bill C6) allows an employer to disclose personal information without the knowledge or +consent of the individual if the disclosure is made to a government institution which has +identified its lawful authority, and if the disclosure is for the purpose of administering any +law of Canada. +

    +

    + PIPEDA permits federal government agencies such as the CRA, ESDC, Service Canada and +provincial/territorial Ministries of Labour to obtain personal employee information needed to +administer programs or benefits, or to perform an audit. Legislation specifically provides +these government bodies with the right to request personal employee information and inspect +certain records and documents. As a result, the employer does not need to obtain the +employee’s permission to provide the information. +

    +

    + In addition to disclosures to government that are mandated by legislation and in relation to +employment, subparagraph 7.3 of PIPEDA states that an employer that is regulated by +federal labour codes can “…collect, use and disclose personal information without the consent of the individual if +(a) the collection, use or disclosure is necessary to establish, manage or terminate an +employment relationship between the federal work, undertaking or business and the +individual; and +(b) the federal work, undertaking or business has informed the individual that the personal +information will be or may be collected, used or disclosed for those purposes”. +

    +

    + Use and Storage of Personal Information +According to PIPEDA, organizations can only use information for the purpose for which it +was collected. Employers must fully disclose in writing to the employee the reasons why +they require the information, as well as what will be done with it. +

    +

    + Personal information must not be disclosed to external stakeholders without the employee’s +consent and only for the purpose for which the information was collected. For example, if the +organization is being audited by a government agency, such as the CRA, the employee’s +medical information should not be included with the information provided for audit purposes. +

    +

    + There are times when employers are required to collect information about employees in order +to comply with employment/labour standards or human rights legislation. For example, to +accommodate an employee for religious days and holidays, an employer needs to know about +the employee’s religious beliefs. To seek out this type of information for any other reason +invades the individual’s right to privacy. +

    +

    + Limitations on Use - the Social Insurance Number example +The purpose of a social insurance number (SIN) is to identify an individual for specific +government programs. This information may not be collected, stored, used or disclosed for +any other purpose without the employee’s consent. Where the SIN is to be used for purposes +of identification, an organization must provide a convenient method for the employee to +withdraw his/her consent for that use at any time. +

    +

    + Employers are authorized to collect a SIN from employees in order to produce Records of +Employment and income tax information slips. Unless the employee has provided a SIN for +another specific use, and has consented to that specific use in writing, an employer could be +subject to fines for each improper use of that number. +

    +

    + As a general rule, an employer may not communicate the number to a third party without the +employee’s specific consent to do so. Exceptions are cases in which it is the employer’s +obligation to report an employee’s SIN to RQ, CRA, ESDC or Service Canada. +

    +

    + The SIN should not be used on pay statements or communicated to unions or benefit carriers. +They should not be used as an identifier by any organization other than the government +agencies mentioned above, unless the employee provides written consent to do so. +

    @@ -2146,46 +2417,177 @@ applicable statutory deductions. +
  • +

    + Employment and Social Development Canada’s Employment Insurance program +

    +
  • - Employment and Social Development Canada’s Employment Insurance program -provides temporary financial assistance for unemployed Canadians while they look + provides temporary financial assistance for unemployed Canadians while they look for work or upgrade their skills. -Service Canada serves as the government’s operational arm while Employment and -Social Development Canada operates as the policy-making body. -Service Canada is responsible for: -o the issuance of Social Insurance Numbers (SIN) and the protection and -security of SIN information -o the delivery of services to employers, including Record of Employment on the -Web -o the administration of Employment Insurance programs to individuals, -including regular, illness, pregnancy/parental, critically ill or injured person -and compassionate care benefits -o the administration of the Employment Insurance Premium Reduction -program, including granting qualified employers a reduced Employment -Insurance premium rate

    • - the administration of Canada Pension Plan benefits, including retirement, disability, survivor, children’s and death benefits -

      -
    • -
    • -

      - the administration of benefits for seniors, including the Old Age Security Program and the Guaranteed Income Supplement Payroll is responsible for deducting and remitting Employment Insurance premiums + Service Canada serves as the government’s operational arm while Employment and

    - on behalf of employees and employers. Payroll is responsible for capturing information related to insurable earnings and -hours, and reporting that information on the Record of Employment. + Social Development Canada operates as the policy-making body. +

    +
    +
    +
      +
    • +

      + Service Canada is responsible for: +

      +
        +
      • +

        + the issuance of Social Insurance Numbers (SIN) and the protection and security of SIN information +

        +
      • +
      • +

        + the delivery of services to employers, including Record of Employment on the Web +

        +
      • +
      • +

        + the administration of Employment Insurance programs to individuals, including regular, illness, pregnancy/parental, critically ill or injured person and compassionate care benefits +

        +
      • +
      • +

        + the administration of the Employment Insurance Premium Reduction program, including granting qualified employers a reduced Employment Insurance premium rate +

        +
      • +
      • +

        + the administration of Canada Pension Plan benefits, including retirement, disability, survivor, children’s and death benefits +

        +
      • +
      • +

        + the administration of benefits for seniors, including the Old Age Security Program and the Guaranteed Income Supplement Payroll is responsible for deducting and remitting Employment Insurance premiums on behalf of employees and employers. +

        +
      • +
      +
    • +
    • +

      + Payroll is responsible for deducting and remitting Employment Insurance premiums on behalf of employees and employers. +

      +
    • +
    • +

      + Payroll is responsible for capturing information related to insurable earnings and hours, and reporting that information on the Record of Employment. +

      +
    • +
    • +

      + The Canadian government based its privacy provisions in its legislation for the +

      +
    • +
    +
    +
    +

    + protection of personal information on a set of guidelines called the Ten Privacy +Principles. +

    +
    +
    +
      +
    • +

      + The Personal Information Protection and Electronic Documents Act has applied to +

      +
    • +
    +
    +
    +

    + federally-regulated organizations such as banks, telecommunications and +transportation companies since January 2001. +

    +
    +
    +
      +
    • +

      + Since January 2004 the Personal Information Protection and Electronic Documents +

      +
    • +
    +
    +
    +

    + Act has applied to the collection, use or disclosure of personal information in the +course of any commercial activity within a province that does not have its own +privacy legislation. +

    +
    +
    +
      +
    • +

      + Express consent means the employee provides their consent either verbally (in which +

      +
    • +
    +
    +
    +

    + case when and how the consent was received should be documented) or in writing. +

    +
    +
    +
      +
    • +

      + Implied consent means the employee is considered to have consented indirectly. +

      +
    • +
    • +

      + The employer does not need to obtain the employee’s permission to provide personal +

      +
    • +
    +
    +
    +

    + information where legislation provides federal government agencies such as the +Canada Revenue Agency, Employment and Social Development Canada, Service +Canada and provincial/territorial Ministries of Labour with the right to request +personal employee information in order to administer programs or benefits, or in the +case of an audit. +

    +
    +
    +
      +
    • +

      + Other than an employer’s obligation to report an employee’s Social Insurance +

      +
    • +
    +
    +
    +

    + Number to the Canada Revenue Agency, Employment and Social Development +Canada, Service Canada or Revenu Québec, an employer may not communicate the +number to a third party without the employee’s specific consent to do so.

    @@ -2238,6 +2640,19 @@ hours, and reporting that information on the Record of Employment.

    +

    + 6. How does the Personal Information Protection and Electronic Documents Act +legislation affect the handling of employee personal information? +

    +

    + 7. Explain the difference between implied and express employee consent and provide an +example of each. +

    +

    + 8. The Personal Information Protection and Electronic Documents Act contains ten +privacy principles. Choose two and develop a statement for each that could be included +in your organization’s privacy policy. +