All posts by root

WHAT TO KNOW ABOUT UNPAID INVOICES AND UNPREDICTABLE FINANCIAL LOSSES

One of the wisest sayings in business is that you have not really made a sale until you have the money in hand. So if having good sales practices is important for a company, having good credit and collection policies is even more important. We are sure that you are familiar with this type of problems; every business, at some time and for a variety of reasons, has trouble or fails to collect outstanding invoices. In worst-case scenario, unpaid accounts receivable can cripple or bring down a business. A much greater amount of new business must be generated to make up for the lost profits of an unpaid invoice. If the invoice is paid but late, the cash flow impact can be costly, eroding your profit margin. And remember, the longer an invoice goes unpaid, the harder it is to collect. You may not be able to escape the problem, but LegaMax Legal Services knows the steps and procedures that we can take in order to reduce your losses that arise from unpaid invoices.

“WORKPLACE BULLYING” – ANOTHER FORM OF HARASSMENT?

Even though Canadian standards in relation to protection of human rights in every possible environment are pretty high, there are no guarantees that you will be immune from various forms of harassment at your place of work. Everybody knows what meaning the term “bullying” has. It is common to think that this term closely relates to schools, educational facilities and teenagers. Adults are presumed to be mature and educated enough to get involved in this particular behavior. Unfortunately, in the reality “workplace bullying” is hitting top charts among other forms of harassment. The study shows workplaces are growing more toxic, particularly for women, with 58% of all bullying victims being female, and that women suffer most at the hands of other women.

Why is it happening? It is common to talk about harassment and discrimination issues. Unfortunately the growing problem of workplace bullying is not addressed at the same level. Both employees and their employers are not properly educated and are not capable of handling these matters. Most victims are suffering from mental distress and face psychological hardship once they choose to go to court in order to resolve this type of a dispute.

For the reason that charges of harassment are judged objectively, and a principal of a “reasonable person’s” reaction takes place, it is crucial for a victim to comply with following steps:

  • It is imperative to have a “paper trail”. At every time of the abuse, a written response should be send to the abuser, copying the bully’s boss and human resources representative;
  • Furthermore, at every stage there should be compelling medical evidence obtained from your physician or another medical professional that clearly describes your health and psychological damage.
  • OBTAIN LEGAL ADVICE AND RETAIN A LEGAL REPRESENTATIVE to handle the dispute on your behalf.

Contact LegaMax Legal Services Professional Corporation in order to discuss your matter in greater detail.

CONTRACT BREACHES & DISPUTES: FORMATION OF THE CONTRACTUAL RELATIONSHIP AND ITS COMMON PITFALLS.

One of the most common processes of carrying on a business involve transactions, arrangements, negotiations, consultations, services, employment, and other forms of interactions. All these transactions are based on contracts between the parties. A contract may be defined as a voluntary exchange of promises or commitments between parties that are legally enforceable in our courts. When people enter into such contracts, they create a world of law unto themselves. They may create new obligations and responsibilities, but, meanwhile, they have a chance to modify or even remove certain obligations and responsibilities.
Are you hiring a contractor to paint your house? Are you entering in real estate transaction? Are you signing a new employment contract? Are you lending money to your friend?


Here are some useful hints that you should consider at the time when you are entering into an agreement with the other party.

  • Your contract should clearly outline rights and responsibilities of very party to the contract.
  • Descriptions of required activities, timeframes for their implementation, and assignment of responsibilities should be included into the contract.
  • You should always include a clause that would clearly acknowledge subsequent remedies in case of breach of the contract.
  • Make sure to bring every party’s attention to every substantial clause. By putting a signature under the clause, a party to the contract acknowledges its full awareness. A person should never sign a contract without being fully aware of their rights and responsibilities. Participants are expected to keep these things in mind throughout the execution of the agreement.

Your goal is to create a sound, all-inclusive contract that needs to be fulfilled and discharged. However, should there be any problems; the contract has to be clear enough to assist in maintaining the true intentions of the parties and resolving the dispute with minimal effort. Damages should be calculated and provable with clear evidence of loss.

Usual contractual disputes may be revolved around the existence of the contract, complaints about the conduct of the party at the time of agreement, or the performance of the obligations.
LegaMax Legal Services Professional Corporation can help you to resolve your contractual disputes. Meanwhile, our company may assist you in the drafting process where our paralegals will make sure that every substantial and crucial clause will be included. We will guide you through the entire process starting from the formation of the contractual relationship. As a result, you will avoid mistakes as to the nature, terms or other aspects of the agreement, misrepresentation, duress, and undue influence.

POTENTIAL EMPLOYMENT DISPUTES: INDEPENDENT CONTRACTOR VS. EMPLOYEE. WHAT TO KEEP IN MIND?

It is very important for both employers and employees to have a basic understanding of significant factors that determine the status of the employee. It is very convenient for an employer to hire an independent contractor. We are not going to outline these sound benefits. What we would like to do is to bring your attention to case law that will be considered in the process of determination whether Mr.X is an employee with all the statutory rights and privileges or an independent contractor.index
Who is this independent contractor? To name a few examples: independent sales agents, independent construction workers, consultants, etc.

You might have a question: “why does it matter?” Please note that there are different legal consequences for each employment status. For example, regular employees are protected by various statutes like the Employment Standards Act. In accordance with the ESA employees  are entitled to vacation, minimum wage, overtime and public holiday pay, pregnancy/parental leave, and most importantly termination notice and severance. If you are an employee you would be happy to have these statutory guarantees. On the other hand, if employers choose to proceed with the formal employment, employers are required to pay Employer Health Tax, CPP and Employment Insurance deductions. These payments and deductions along with the absence of significant obligations enforceable under the ESA force employers to go with independent contractors. Unfortunately, even if there is a signed agreement that puts a perspective employee into the independent contractor shoes, there is a chance that this agreement will be determined as unenforceable. Subsequently, an employer may end up with an employee and a number of obligations to fulfill.

In order to determine whether a worked is an employee under a contract of services or self-employed under a contract for service we would like to bring your attention to relevant common law principles. These following factors will be considered by the Court in the process of determination whether there was a contract of service or a contract for service. There are four factors: 1) control 2) ownership of tools 3) chance of profit 4) risk of loss.

Control test
Does the employer have substantial control over the employee? Most of the time in the employer-employee relationship, the employer controls, directly or indirectly, the way the work should be done, when and how the work should be done, and if it was actually done. Please note that it is not necessary that the control actually be exercised, only that it can be exercised.

Ownership of tools
Generally speaking, if there is an employer-employee relationship, the employer supplies the equipment and tools that are necessary for the completion of the work by the employee. Moreover, most of the time, the employer is responsible to for costs related expenses in connection with the use of these equipment and tools. Certain relevant specifications should be considered with respect to the nature of the work that should be performed by the employee.
Chance of profit/risk of loss
In the employer-employee relationship, the employer alone assumes the risk of loss in relation to operating costs, office expenses, out-of-pocket expenses, wages for other employees, employment benefits, insurance premiums, delivery and shipping costs, etc. The employee assumes little or no financial risk and is entitled for full salary or wages regardless of the financial status of the business.

Another important factor that should be considered by both employer and employee is the actual status of “dependent contractor”. In the case, where a worker will be determined to fit within the above-noted category, “dependent contractors” will get employee-style rights such as reasonable notice of termination.

If one of the outlined scenarios applies to you, please do not hesitate to contact us at LegaMax Legal Services in order to discuss the specifics of your case.