Proposed minimum fines could 'unfairly penalize smaller companies'
Ontario introducing mandatory minimum fines of $500,000 for corporations convicted of repeat workplace safety violations, is sparking debates among industry experts. Ryan Conlin, a partner at Stringer LLP and an authority on occupational health and safety law, critiques the plan for its potential to disproportionately affect smaller businesses while removing judicial discretion.
“This legislation shows the province’s determination to crack down on repeat offenders,” Conlin says. “But mandatory minimum fines eliminate the courts’ ability to consider unique circumstances, which can unfairly penalize smaller companies.”
Conlin highlights how these fines disproportionately impact smaller organizations. “A $500,000 fine devastates a small business far more than a large multinational corporation,” he explains. “For some, it could lead to bankruptcy.”
He also points out that mandatory penalties prevent courts from acknowledging mitigating factors, such as investments in safety improvements after violations.
How it could play out in court
Conlin dismisses the likelihood of legal challenges succeeding against the fines. “Corporations cannot argue the fines violate section 12 of the Charter [prohibiting cruel and unusual punishment],” he explains, citing a 2020 Supreme Court ruling involving the Quebec Attorney General that bars such challenges for businesses.
Conlin notes that the significant fines push more employers to contest cases in court. “With fines this high, companies feel less inclined to plead guilty and more likely to defend their cases at trial,” he says. This shift could escalate legal costs and prolong case resolutions.
Despite his reservations, Conlin acknowledges the government’s intent to address serious workplace safety violations. “The focus is on the worst offenders,” he says. “But removing judicial discretion creates significant fairness concerns.”
Employers must act
Conlin urges employers to bolster safety measures to avoid penalties. “Companies need to make occupational health and safety a top priority,” he states. “This legislation moves forward, and businesses must allocate resources to compliance to protect workers and avoid steep fines.”
Part of Ontario’s broader Working for Workers Six Act, the new fines aim to enhance worker safety and accountability. As the legislation advances, its impact on businesses and workers sparks intense discussions across the province.
