Mr Smith owns a small start-up where he will be producing in-house made pharmaceutical products. Mr

Smith recently moved from Edmonton, AB to Surrey, BC. He will be setting up his pharmaceutical practice

in Surrey. The following are some payroll decisions he has made since incorporation. He is adopting the

Semi-Monthly payroll cycle.

1) He employed a bookkeeper, Susan and decided to pay her $15/hour. Susan will be allowed to work

from home however the maximum hours she can claim in any given week is 30 hours . Any overtime will

not be allowed as Mr Smith believes this would compensate for the days where there is less work. The

bookkeeper he employed is a stay-at-home mom with a CPA designation.

2) To boost sales, Mr Smith hired a Sales Manager, George. George will be compensated with a salary of

$20,000 p.a and performance based commission payout. George's commission is set @7.5% for a

successful sale contract signed. George will also be given an auto and cell phone allowance.

3) Mr Smith does not have the time to interview the new staff and therefore has managed to receive

assistance from few friends to handle new appointments. They interview the applicants, appoint them

and they gather all the personal information of the new recruits and keep these records in their homes.

4) Mr Smith ventured into making beauty creams and had to employ a chemist to manufacture those

products. Mr Smith being a chemist himself knows he will be able to lead the experiments. The

compensation rates for an experienced chemist would usually range from $100,000 to $150,000 per

annum. Due to cash flow problems he employs an elderly retired chemist, Mrs Agnes - whom he is able

to pay $55,000 per annum instead.

5) Susan, the bookkeeper who has been working with the company for nine months now, is over-whelmed

with the amount of work and has asked for a raise. Mr Smith is not really keen on raising wages and hence

informs Susan he will employ an assistant to help her out. Susan is rather disappointed with Mr Smith and

hence informs Mr Smith through email of her frustrations. Mr Smith terminates her contract. Mr Smith

believes he accrues no payout to her accept her final wages.

6) One of Mr Smith's friends, Matt pointed out to him that while he was interviewing few people there

were two candidates he found who could handle the marketing department. Jacob has a bachelors'

degree in Marketing and Business Administration, he is wheel chair bound. Sheila - only has marketing

experience with no formal educational background and had an awesome personality. Mr Smith chooses

Sheila.

7) Mr Smith is currently doing really well with his start-up and has seen profits triple during the last few

months. George who has been performing really well now decides that he should be given a better

compensation package. George therefore has requested to be given a broader base salary. Mr Smith has

yet to decide whether this would infact benefit the company or should he hire another Sales Manager to

divide the work.

8) Mr Smith has decided to introduce a new policy in the company. He would like all full-time employees

to work a 9hr/day work week for five days. However he has allowed for two compulsory personal days

offs in a month to compensate for the extra hour of work.

9) Mrs Agnes has a few medical conditions and had recently fell down at work due to the boxes of

inventory that were not cleared away by the office staff. Mrs Agnes believes she should receive medical

benefits as part of her employment contract. Mr Smith is not sure and hence decides to just pay Mrs

Agnes's medical bills for the accident.

10) Mr Smith has now decided to give himself a salary since the company has started to make reasonable

profits. He pays himself a salary of $200,000 per annum with auto benefits and medical benefits for

himself and family.

Requirements

1) For each scenario described above - reference it to most relevant employment standard that is being

mentioned. State your reasons for referencing the standard.

2) For every scenario - state whether you agree or disagree with the way Mr Smith handles employment

related matters. Explain why do you agree or disagree.

Please note : You are required to note the employment standards of the province in which the company

resides for this part of the question.