Right Legal: August 2018

Friday, August 24, 2018

Need an employment lawyer? Learn more about unjust dismissal claims.

What are the different types of unjust dismissal?

If you’ve lost your job and think you’ve been treated unfairly, you may want to engage an employment lawyer and inquire about an unjust dismissal claim. An unjust dismissal claim is one where you challenge an employer’s decision to terminate your employment as being unlawful (either by violating terms of the original employment contract, or by a violation of legal code governing employment standards) and demand fair compensation. Although such claims are often settled out of court, litigation is sometimes required. In either case, a lawyer specializing in employment law can be invaluable in outlining your options and the best strategy for getting fair compensation.

*If you’re looking for a lawyer specializing in employment law, click here.

Wrongful dismissal claims can be broadly categorized into three types – unfair, wrongful and constructive.

Unfair Dismissal

An unfair dismissal is one where an employee is unjustly dismissed:

without fair reason, and an employer refuses to pay fair compensation (fair reasons include prolonged absence, misconduct (such as theft), or unsatisfactory performance),
without fair procedure (such as an unfair evaluation of an appropriate reason to dismiss), or
for an unfair reason (such as unlawful discrimination based on, sex, gender, religion, ethnicity or sexuality to name a few. Click here to learn more about the Canadian Human Rights Act).

Wrongful Dismissal

Wrongful dismissals occur when an employee’s dismissal breaches the terms outlined in their employment contract, such as failing to provide the correct notice period prior to dismissal without compensation (the pay that would have been earned had the dismissal notice period been properly observed.

Constructive Dismissal

Constructive dismissals occur when an employee is forced to resign due to a gross breach of their employment contract by their employer (such as via bullying, failing to pay, creating an intolerable work environment (e.g. dangerous conditions), or unreasonably changing the original conditions of employment (e.g. unreasonable hours or location).

Learn more about unjust dismissal laws in Canada.

*For more information on employment law, see our article here.

The post Need an employment lawyer? Learn more about unjust dismissal claims. appeared first on Right Legal.

Tuesday, August 21, 2018

What is Right Legal - Canada's Top Lawyer Referral Service

Watch on YouTube here: What is Right Legal - Canada's Top Lawyer Referral Service
Via https://www.youtube.com/channel/UCBvOHth2YGmVgrc-aM42BUA/videos

Monday, August 20, 2018

Legal Business Ownership Structures. Which one should I choose? (Part II)

What are the pros and cons of Canadian business ownership structures? (Part II)

Last week, we posted an article outlining the benefits and drawbacks of two of the four business ownership structures: sole-proprietorship and partnerships. This week, we’ll be exploring the remaining two Canadian business ownership structures: corporations and cooperatives.

*If you’re looking for a lawyer specializing in business law in Edmonton, click here.

Corporations

When a business decides to become a corporation (incorporate), it becomes a legal entity that is separate from its shareholders/owners. This legal curiosity is known as ‘Corporate Personhood‘, where the corporation has some legal rights and responsibilities enjoyed by real persons, such as the right to enter into contracts, be held legally liable for actions or pursue legal actions, etc. Unlike unincorporated associations of persons, shareholders and owners of a corporation do not share in its legal liability. As such, shareholders and owners are not personally liable for any debts or acts of the corporation.

Incorporation in Canada can be done on the federal or provincial level, each having its own unique requirements. As such, Corporate law is tricky and it is strongly advised that you get advice from a lawyer specializing in corporate law before you consider incorporating your business.

*If you’re considering incorporating your business, see this post here.

Pros:

Separate legal entity from shareholders/owners
Limited liability
Set up to make ownership transfer simple
Raising capital is often easier than with other business ownership structures
Often are taxed less that unincorporated businesses

Cons:

Corporations are strictly regulated
It’s more expensive to set up a corporation than other business ownership structures
Extensive corporate record keeping is required by law and must be filed each year with government agencies
Depending on level of incorporation (federal or provincial), directors of the corporation may be subject to residency and/or citizenship requirements
Conflicts between shareholders and directors of the corporation can arise.

Learn more about new laws affecting Canadian corporations.

Cooperatives

The least common of the four Canadian business ownership structures is the cooperative. The cooperative is essentially special kind of corporation, where a group of people and/or businesses come together and pool resources to provide access to common social, cultural and/or economic needs. Though often set up as being not-for-profit, cooperatives can be for-profit organizations.

Pros:

Owned and controlled by its members in a democratic fashion (each member is accorded a vote).
Limited liability
Clear profit distribution

Cons:

Like corporations, cooperatives are required by law to keep extensive records.
Raising capital can be more difficult than under other business structures, as there can be less incentive to invest further after the initial cooperative is set up.
Can take longer to make business decisions, as participation of all members is required.
Conflicts between members can stall business proceedings.

Additional Resources

For more information on Canadian corporate business structures, click here.
For more information on the cooperative business structure in Canada, click here.
For more information on corporate law, see our article here.
If you’d like to speak with an Edmonton-based corporate lawyer click here.

The post Legal Business Ownership Structures. Which one should I choose? (Part II) appeared first on Right Legal.

Friday, August 17, 2018

Legal Business Ownership Structures. Which one should I choose? (Part I)

What are the pros and cons of Canadian business ownership structures?

Earlier this week, we posted an article outlining certain commercial situations that a business lawyer can help with. In this article, we get into a bit more detail on the pros and cons of the first two common Canadian business ownership structures that a lawyer can help you with.

*If you’re looking for a lawyer specializing in business law in Edmonton, click here.

Sole proprietorship

As its name suggests, businesses under this legal structure are headed by a single owner. As such, the owner of a sole proprietorship business is alone in their responsibility for all debts and obligations related to their business, but also keep all profits. However, because owners under this structure are personally liable, a creditor can make a claim against not only business assets, but also an owner’s personal assets outside of their business, in order to pay off any debts.

Pros:

Owner keeps all profits.
Process for registration is simple and relatively inexpensive.
Start-ups require comparatively little working capital
Typically fewer legal regulations apply
Owner has direct control of decision making
Some tax advantages for struggling businesses

Cons:

Unlimited liability (claims can be made against your personal assets to pay off creditors)
Income is taxable at the owner’s personal income tax rate. As such, if a business is profitable, this can result in the owner being placed in a higher tax bracket.
Owner is required to be personally involved in all major dealings related to the business.
Available capital is limited to what an owner can raise on their own.

*For more information on the sole proprietorship business structure, click here.

Partnership

Just as it sounds, a partnership is business that is created between two or more people, but is not incorporated. In a partnership, business partners pool financial resources to put into a business and then share profits according to a legal agreement that establishes the terms of the partnership. There are three varieties of partnership business structures:

General Partnership – In this business structure, all owners of the business share liability, often in proportion to the amount of the business they own: They are jointly responsible for satisfying any debts their business accrues.
Limited Partnership – In this business structure, not all of the owners are involved in the business’ operations. Some owners may buy into or contribute to the businesses solely to share in the profits, but have no power over decisions made.
Limited Liability Partnership (LLP) – This is a special kind of partnership business structure that is usually limited to groups of professionals such as lawyers, doctors, engineers or accountants. In an LLP, some or all of the owners/partners have limited liabilities, which means that they are not liable for any other partner’s misconduct or negligence. As such, legal action against one partner does not impact the others.

Regardless of the variety of partnership, they all share common benefits and drawbacks:

Pros:

Process for registration is simple and relatively inexpensive.
Costs, management, profits and assets are all shared between owners
Some personal income tax tax advantages for owners of struggling partnership businesses.

Cons:

Good business partners can be hard to find! Owners are financially responsible for business decisions made by partners (E.g. Broken contracts).
Unlimited liability (owners’ personal assets can be used to pay off business debts)

*For more information on the partnership business structure, click here.

Next week, we’ll explore the remaining two business ownership structures: Corporation and Co-operative.

The post Legal Business Ownership Structures. Which one should I choose? (Part I) appeared first on Right Legal.

Thursday, August 16, 2018

Interested in purchasing a Condo? Be aware of these legal pitfalls.

Condo Real Estate Law Edmonton

What lawyers look for when reviewing condo documents.

Though the general rule of “buyer beware”, applies to most property acquisition, it’s particularly important when considering real-estate purchases given the scale in their value. This is further complicated with buying a condo, as you’re actually buying into a condo corporation (essentially becoming a shareholder in a company), rather than acquiring physical land.

The overall well-being of a condo can’t be entirely determined by conventional means, such as doing a walk-through to gauge the overall condition of the building or the unit for sale – you have to dig deeper. The condominium documents allow you to look into the financial state of the condo corporation as well as the effectiveness of the condo board. These documents are usually numerous and can be difficult to interpret, so it’s vital that you get them reviewed professionally by a real-estate lawyer, so that you can make an informed choice in your purchasing decision. The following are a few examples of what real-estate lawyers are trained to look for when reviewing the documents of a condo corporation:

Board meeting minutes content and continuity

Real-estate lawyers carefully review all the records of the condo board meetings, not only analyzing their content, but also looking for gaps in the minutes. The minutes should be complete, with no gaps. If gaps are present, then there may be vital information missing relevant to your choice to buy or not.

Reserve fund health

A condo corporation is required by law to have an properly maintain a reserve fund to cover the costs of anticipated maintenance, repairs or replacement of the property of the corporation. As such, gauging the health of the reserve fund requires looking beyond the actual amount in the the bank and looking at the reserve fund study, which is required to be completed every 5 years. Your lawyer will be able to weigh the cost of current and projected upcoming expenses with the amounts currently in and expected to be in the reserve fund from monthly condo fees. If there is a discrepancy in these values, your lawyer will be able to advise you on the likelihood, timing and magnitude of a future special assessment.

Lawsuits

No one would think of buying into being the target of a lawsuit, but failure to properly review condo documents can result in just that! If you buy into a condo corporation that is being sued, you become, in part, a target of that lawsuit as a legal shareholder. Your real-estate lawyer will be able to inform you of any legal actions currently in process or being proposed against the condo corporation, as well as an estimate of the legal costs and outcomes of these actions. Legal costs come out of the reserve fund, as do any damages ordered to be paid by the condo corporation. A successful lawsuit against the condo corporation can mean costly special assessments for shareholders.

Learn more about condo law in Edmonton.

If you fail to properly review condo documents before making a purchase, you may be left with no course of action against the seller. That’s why it’s vital to have them professionally reviewed by a real-estate lawyer.

*If you’re interested in buying a condo, click here to read about a recent change in the Condominium Property Act.

*If you’re looking for a real-estate lawyer in Edmonton, click here.

The post Interested in purchasing a Condo? Be aware of these legal pitfalls. appeared first on Right Legal.

What kind of lawyer do I need? What a business lawyer can do for you.

What can a business lawyer help with?

With so many different areas of law, sometimes it can be challenging to figure out what kind of lawyer you need. In this article, we briefly explore what a business lawyer can do for you. Though business law is a very large section of law and branches into numerous specialties, broadly speaking, business lawyers can be divided into two groups: Small-business lawyers, who specialize in the legal counsel most often required in the early stages of a new business, and corporate lawyers, who more often focus on the the structure and financial status of larger, established businesses, while also providing legal support for daily business dealings.

Learn more about important business laws in Alberta.

Regardless of the size of your business, the following are just a few of the common kinds problems a business lawyer can help you with:

Choosing or converting your business’ ownership structure.

A business lawyer can help you select the most advantageous ownership structure for your business. In Canada, this means choosing between sole proprietorship, partnership, a corporation, or a co-operative. Each business structure has different benefits and constraints regarding raising capital, tax benefits, control and legal liability.

Writing contracts

Legal formal agreements (known as contracts) are a vital part of any business. A business lawyer can advise you on what legal forms you’ll need as well as help you draft these contracts to meet the exact needs of your business. Here are just a few examples of the kinds of contracts a business lawyer can help you with:

Licensing agreements
Franchise agreements
Employment contracts
Partnership, incorporation or shareholder agreements
Lease agreements
Mortgage, purchase agreements
Confidentiality agreements
Non-Competition agreements
Sales contracts

For more information on contract law in Canada, click here.

Contractual disputes or breaches.

What happens when a contract is breached, such as when a client fails to pay for services or an employee breaches confidentiality? A business lawyer can advise you on your response and negotiate with relevant parties on your behalf.

Compliance and risk management.

Every action a business takes involves a certain amount of uncertainty or risk. As a business in Canada, you are obligated to take certain measures against corruption, fraud, ethical violations, or money laundering from occurring within your business dealings. A business lawyer can help you identify and mitigate risks as well as advise you on your legal risk management obligations.

Resolving employee issues and claims.

Even the most prepared and conscientious business owners occasionally run into problems regarding employee management such as issues surrounding disability, sick-leave, workplace safety or discrimination to name a few. A business lawyer can advise you on relevant laws, best courses of action and represent you when a problem arises.

Company mergers and acquisitions.

Whether you’re looking to join forces with another business, buying out a competitor, or are in the process of being acquired by a larger company, a business lawyer is an invaluable asset during such negotiations, as they provide vital legal advice while guiding you through the process.

*If you’re looking for a lawyer specializing in business law in Edmonton, click here.

The post What kind of lawyer do I need? What a business lawyer can do for you. appeared first on Right Legal.

At what age should you make a will? Know when to start estate planning.

When should you start estate planning?

Having a legal will is often seen as being a function of age, but this really couldn’t be much further from the truth: In reality, no age is too young to have a legal will, but there are certain life events/conditions that prompt the need to create or update your legal will:

If you possess significant assets, such as a home.

Having significant assets is a strong indication that you need a will. If you’re like most Canadians, your largest asset is housing. If you are already a home owner or hold a mortgage (see Edmonton real estate lawyers) you should definitely consider updating or creating a legal will.

If you have recently moved moved.

If you already have a will but have moved between provinces or out of country, you will need to update it as different provinces and countries have their own unique set of laws regarding estate law.

If you own shares in a business.

If you own shares in a private business, you can avoid estate administration taxes (known as probate) in many provinces by making a secondary or cooperate will. While the amount for probate in Alberta is capped at a maximum of $525, in other provinces, such as British Columbia, probate fees have no upper limit and are charged as a percent value of the estate (in British Columbia, this often works out to be ~1.4%).

Depending on the size of your estate, this can represent a sizeable portion of your assets not going to your beneficiaries. Furthermore, probate fees can also be avoided by placing assets in legal trusts, as directed by your will, which are not subject to probate fees. It’s also important to note that, while you may live in one jurisdiction, your assets (such as the location or setup of a private company) may be subject to the laws of a different jurisdiction. If this is the case, it is vital to have a lawyer properly format your will to comply with the legal requirements of both jurisdictions.

If you are getting married, divorced, or remarried.

Changes in your matrimonial status often mean significant changes in personal relationships, and thus, your choice of likely beneficiaries in your will. Furthermore, it’s important to know that wills created before a change in matrimonial status are rendered null and void unless otherwise specified in the will. For legal advice see our Edmonton divorce lawyers page.

If you have children.

Having an updated will ensures that you can properly provide for your children in the event of your death. This is especially true for children under the age of majority, as your will specifies their legal guardians in the event of the death of both parents. Once your children reach the age of majority, you may wish to update your will to include their spouse(s) and/or children. Furthermore, as you and your children age, you may want to grant them more responsibility regarding your estate and name them as executors.

If you anticipate changes in your health.

Legal wills allow you to assign power of attorney in the case you become incapacitated or otherwise incapable of managing your own affairs. This is a decision that should not be taken lightly as your appointee will make decisions regarding not only your property but also your personal care on your behalf.

If it’s been more than 5 years since you last updated your will.

It’s recommended that you update your will every 5 years to reflect the changes the events above describe, though other events such as the death of beneficiaries, changes in law, or changes in marital status within your family to name a few, often necessitate the updating of your will.

*For lawyers specializing in wills and estates in Edmonton click here.

Given the profound nature a will can have on the lives of your loved ones after your passing, it’s surprising to note that majority of Canadians don’t have a legal will. Although the topic of estate planning is often seen as grim or morbid, many find that once they’ve completed their legal will they experience a peace of mind knowing that their estate will be divided amongst their loved ones according to their wishes.

The post At what age should you make a will? Know when to start estate planning. appeared first on Right Legal.

Friday, August 10, 2018

Important things to consider before starting a small business in Alberta.

Small businesses play an important role in Alberta’s business landscape. They represent an overwhelming majority of businesses in the province. They fit into a variety of domains and niches and can be found in almost every corner of the province. In many ways, they fuel Alberta’s growth and development. It is quite evident that the larger multinational companies rely heavily on small businesses for countless goods and services. Alberta is considered to be one of the best provinces in Canada to establish a small business. Compared to a national average of 12.1 percentage, Alberta’s growth in terms of small businesses is higher at 19 percent. – Alberta Small Business Profile.

However, most of the small business owners are tied into some legal obligations. Below are few important things to consider if you a are a small business owner:

Choice of Ownership:

Choosing the right ownership is one of the first and most important steps for your business incorporation. Your type of business may have direct or indirect implications for various liabilities, risks, patents, taxations, etc. Three generally used types of business structures are – sole proprietorship, partnership, and corporation. It is, therefore, important to understand each one of these from your business perspectives. In cases of uncertainty, one must consider getting help from a business lawyer.

Our Business Lawyers at Right Legal can help you with any advice related to your company’s structure.

Intellectual Property Issues

You must consult an IP expect to make sure your business qualifies for it. Most of the times, small business owners ignore the importance of maintaining an Intellectual Property, but in long-term it may turn out to be a valuable asset.

Taxation and Compliance

Handling tax liabilities can be challenging, especially if you are a first-time business owner. You may end up spending a lot of time if you are not familiar with the existing tax laws or any recent changes. Also, there may be ways to balance the tax liabilities if you can get help from a right lawyer. One of the key advantages of assigning the tax-related issues to a lawyer is, you can relax and focus on your operations, without the fear of failing to comply with the tax rules.

Employment Terms

As an employer, you must be aware of Alberta’s employment laws relating to wages, employee standards and hours of operations. The details of employment laws in Alberta can be found here.

Before hiring an employee, you must ensure that you have legally binding documents related to an employment contract, which can be referred to in cases of conflict.

You can read more about major legal issues faced by small business.

The post Important things to consider before starting a small business in Alberta. appeared first on Right Legal.