Hiring staff in a co-ownership

People hired by a syndicate of co-owners have rights; it's best to be aware of them and to understand the implications.

The management of personnel within a co-ownership (condominium) is of the responsibility of the board of directors and so, whether it concerns the janitor, the security guard or any other employee of the immovable; he is in charge of the hiring and the laying off but also of the training and he must ensure that the work done by the employees corresponds to the situation of the building knowing that the attributions can evolve with time.

Acting responsibly

Before hiring, with the assistance of a lawyer, the directors should arrange the drafting of a contract of employment; when retaining the services of anyone, this document will safeguard the rights of both the employer and the employee and the latter will know exactly what to expect regarding his tasks, his schedule and his salary.

Obligations

As an employer, the law imposes several obligations to the syndicate towards its employees; it must not only ensure the performance of the tasks agreed upon and pay the agreed upon remuneration, it is also required to take appropriate measures to preserve the health, safety and dignity of its employees. The obligations in question are set out in several laws including the Civil Code of Québec and in the Act Respecting Labor Standards. In addition, the syndicate must comply with the minimum wage legislation, allow employees weekly rest periods and remunerate them on statutory holidays and vacations; it must also limit the work week to 40 hours, every additional hour needing to be paid at an increased rate of 50%. The Act Respecting Labor Standards also contains legal recourses against abuse such as the dismissal of an employee who has completed two years of uninterrupted service “without good and sufficient cause” or the termination of employment without an adequate prior notice; also, a victim of psychological harassment can file a complaint to the Labor standards, equity, health and safety Commission (Commission des normes, de l’équité, de la santé et de la sécurité au travail) (CNESST).

Beware of "under the table work"

As an employer, the syndicate of co-owners is liable for taxes: it must make source deductions from the wages and remit those amounts to Canada Revenue Agency and Revenu Québec; in addition, it is required to contribute to employment insurance, to the Quebec Pension Plan (QPP) and to the Labor standards, equity, health and safety Commission (Commission des normes, de l'équité, de la santé et de la sécurité au travail) (CNESST). Syndicates that partake in "under the table work" are exposed to fines (penalties); some co-ownerships adopt such conduct either on account of ignorance of the law or to save money but in all cases, this is never recommended. If caught, the syndicate at fault will have to pay the various outstanding employer contributions and statutory deductions as well as all interest charges and heavy fines.

Janitor’s unit

Providing an apartment to the janitor is fraught with good intentions but presents several challenges; in the event of a dismissal, the janitor in place can't be immediately evicted from his apartment because the law allows him to remain therein for a minimum of one month after his dismissal, unless the contract signed beforehand states otherwise. Thus, before hiring and in order to prevent problems, it's best to prepare a well drafted contract of employment.

Disciplinary measures if needed

More often than not, the directors of the syndicate are not very familiar with the management of human resources; yet, in the event of a complaint, the syndicate will be treated like any other employer and will have to demonstrate that it acted in compliance with the applicable labor rules.

 

 WHAT YOU SHOULD KNOW! Even if paid as members of the board of directors, the directors are not considered to be "employees" of the syndicate because there is no relationship of subordination or control over their work performance.

 WHAT TO KEEP IN MIND: It is important to not confuse on one hand, the contract of employment characterized by a relationship based on subordination and the syndicate’s control exercised over its employees and on the other hand, the contract for services in which the service provider retains the choice of the means of execution of the contract and does not have a relationship of subordination toward the syndicate.

 WARNING! Syndicates of co-owners sometimes hire one of the co‑owners to perform various housekeeping chores in the common portions; if so, the syndicate should never pay that employee through a reduction of his common expenses because this practice not only infringes the common expenses allocation method but also distorts the amount of the real co-ownership expenses.

 

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