Question

1. Explain the employment law as it affects federal and provincial jurisdiction in Canada

2. Compare and contrast sole proprietorship and partnership form of business. minimum 450 words.

Answer 1

EMPLOYMENT LAW IN CANADA

There are Canadian labour law and Canadian employment law. Labour laws are the law which regulate the rights, restrictions and obligations of the labours, trade unions and workers wheras employment law governs law related to non- union workers.

Federal and provincial jurisdiction have impact on the employment law in Canada. Federal jurisdiction is given to employment in industries like maritime navigation and shipping, banking, television broadcasting etc. And they have provisional jurisdiction for inter transportation facilities. Each province is in charge for any kind of unrestricted provisional jurisdiction. There are 3 kinds of workers such as employees, independent contractor and dependent contractors and all those workers classified as employees are protected by employment standards legislation.

SOLE PROPRIETORSHIP AND PARTNERSHIP

Sole proprietorship is a form of business which is not legally bound and here a person starts a business with his own capital and he is solely responsible for all the debts. He is the one who owns and carries out the business. A sole proprietorship can be easily set up as it involves only the owner itself and he can make changes according to his needs but a certain disadvantage is that he has to bear all the loss all by himself and if a business fails he may have to suffer a huge financial crisis. And also if the business succeed he can enjoy all his profits for himself.

A partnership is a formal arrangement which involves two or more persons who agree to come forward and form a business together and they share all the profits and losses. There are general partnership, limited partnership and joint ventures. In general partnership every partner shares profits and losses equally and limited partnership only limited number of people will have to operate and bear losses others liability is limited and they have no authority also. Joint venture is one which is formed to operate a particular project this brings many partners together and they may continue to be partners of the business succeed otherwise they are adjourned.

The difference between a sole proprietorship and a partnership business is as follows,

Basis	sole proprietorship	partnership
Definition	it is a mode of business which is ownedand operated by a individual	it is a mode of business where two or more persons join together to form a business and carry out its operations together
Minimum number of persons	one	Two
Maximum number of persons	one	100
Business act	no specific act	comes under specific acts According to country Eg: Indian Partnership Act
Incorporation	Not necessary	It is necessary
Capital and finance	Limited as it only involves single person	scope is high because it has more than one person
Profit and losses	it is borne by the owner itself	it is borne together by all partners equally
Co-ordination	Easy to co-ordinate as there is only one person	Difficultly in co-ordinating all activities as there are more number of people
Business secrets	it is only open to the sole proprietor	it is open to all the partners
Decision making	quick decision making is possible	delay in decision making as every partner has to be involved.