Canadian Payroll Reporter

3 Canadian HR Reporter, a Thomson Reuters business 2014 News CPR | December 2014 An act of understanding An act of understanding Knowing steps from draft legislation to law can help prepare for changes Knowing steps from draft legislation to law can help prepare for changes BY SHEILA BRAWN MENTION CANADA'S LEGISLATIVE pro- cess and you may get blank stares, a glazed look of boredom or anger at perceived waste or injustice in the country's legislatures. However, the steps involved in turning an idea (a bill) into a legislated act are a funda- mental part of our democracy. For payroll, legislation is a big part of the job. The Canadian Payroll Association says there are over 190 laws and regulations with which payroll professionals must comply. For those who want to stay on top of legislative and regulatory changes, it is essential to have at least a basic understanding of the legisla- tive process. Knowing that a bill has been tabled can give you a heads-up that changes may be coming. Knowing where a bill is in the leg- islative process can give you an idea of when you have to start preparing to implement it. Laws get their start as bills. The process of creating or amending a law can be lengthy and complicated or short and simple, de- pending on the subject. Legislation affecting payroll can come from the federal government (such as CPP, EI, income tax, GST/HST and the Canada Labour Code) or a provincial/territorial gov- ernment (such as employment standards, workers' compensation or payroll levies). Regardless of the subject, though, the leg- islative process is steeped in tradition and rules. As the House of Commons Compendi- um points out: "(T)here is a clearly defined method for enacting legislation. A bill must go through a number of specific stages in the House of Commons and the Senate before it becomes law." The steps for provincial/territorial bills are the same as those for federal legislation, with the exception that there are no Senate stages. Bills can be brought forward by cabinet ministers or by members of the House of Commons who are part of the government (called backbenchers) or by members of the opposition parties. Cabinet ministers' proposals are known as government (or public) bills, while those in- troduced by other members of the legislature are called private member's bills. A government bill is much more likely than a private member's bill to pass all stages and become law; however, there are instances in which private member's bills do make it. A payroll-related example includes a 2007 Nova Scotia bill that amended the Labour Standards Code to require employers to pro- vide employees with a 30-minute rest or meal break after five consecutive hours of work. Currently, the House of Commons is con- sidering a private member's bill that would make Remembrance Day a statutory holiday observed across the country. At press time, it was not known whether the bill would succeed but, if so, it would be one of the rare cases where a private mem- ber's bill made it all the way through the leg- islative process. Before a bill can be tabled in the legislature, the cabinet minister or the member of Parlia- ment responsible for it must notify the House of Commons 48 hours in advance of his in- tention to introduce a bill. The tabling of a bill is called first reading. It formally begins the legislative process. Be- fore this reading, though, the government sometimes presents the legislation in draft form and requests public feedback. The federal finance department often re- leases proposed tax changes for comment before the finance minister tables the chang- es in a bill in the House of Commons. Sometimes when governments plan major legislative changes, they seek public com- ment before writing or finalizing a bill. When the Saskatchewan government de- cided to consolidate 12 labour-related acts into one a couple of years ago, it first released a discussion paper on the topic to get feed- back on possible changes. It used the feedback when drafting the Sas- katchewan Employment Act, which came into force earlier this year. When a bill is given first reading, it means the minister or member sponsoring the bill rises in the legislature to give a brief summary of the proposed legislation. Copies of the bill are then printed and giv- en to all members of the House of Commons. First reading is also the time when the bill is assigned a number. Federal bills originat- ing in the House of Commons begin with a "C" while those beginning in the Senate start with an "S." Some jurisdictions use a specific number- ing system to designate a government bill from a private member's bill. Next up is second reading and the com- mittee stage. Members of the legislature de- bate the purpose and "general scope" of a bill during second reading. In some cases, sec- ond reading will quickly follow first reading. Other times, it may not take place until later in a legislative session. During second reading, there may be lengthy debate about the bill's purpose and scope. Once the debate is over, members vote on whether the bill should proceed. If the majority vote for it — which is usu- ally the case with bills that cabinet ministers in a majority government sponsor — the bill passes second reading. It is then usually referred to a committee, where a group of legislative members scrutinize it clause by clause. The committee can choose to con- duct hearings and call upon expert witnesses and interested parties to provide input into the proposals. The committee may approve the bill as is or recommend amendments to it. When the committee is finished, it submits a report to the House of Commons, including any amendments. At the report stage, other members of the legislature (especially those who were not on the committee studying the bill) can recom- mend amendments. The members of the legislature then debate and vote on all of the changes. After any amendments are reviewed, the minister or member responsible for the bill moves that the bill be given third and final reading. At this point, members have a last oppor- tunity to debate the bill in its final form. If a majority vote for the bill, it passes third read- ing, moving closer to becoming a law. If payroll professionals have printed off a copy of a bill at first reading, it is a good idea to print or read the final version of the bill in case it was changed at the committee stage. In provincial and territorial legislatures, the next step is royal assent. At the federal level, though, once the House of Commons passes a bill, it sends the bill to the Senate. There, it must go through a similar process, with three readings, committee study and votes. The Senate may approve the bill with or without any changes. If it amends the legislation, the bill goes back to the House of Commons, where members decide whether to accept the Sen- ate's amendments. If they accept them, royal assent happens shortly afterwards. If the House does not ac- cept the amendments, it informs the Senate and the Senate decides whether it still wants the changes. If the two bodies cannot agree, there is a formal procedure for resolving the disagree- ment, although it is rarely used. Once the House and the Senate pass the bill in identical form, the bill is ready for royal assent. This is where the governor general formally approves the legislation. In provin- cial and territorial legislatures, assent is given by the jurisdiction's lieutenant governor or commissioner. Some acts come into force as soon as they receive royal assent. Others take effect on a see GOOD IDEA on page 8

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