Workplace Harassment Policies: A Canadian SMB Guide

What the law requires: Ontario's OHSA harassment obligations

Bill 132 (the Sexual Violence and Harassment Action Plan Act) amended Ontario's Occupational Health and Safety Act in 2016 to substantially strengthen harassment obligations for all Ontario employers. The requirements are not optional and do not scale with business size, a two-person restaurant has the same legal obligations as a 500-person technology company.

Under the OHSA, every Ontario employer must:

• Prepare and review at least annually a written workplace harassment policy.
• Develop and maintain a program to implement the policy. The program must include measures to control harassment, a procedure for workers to report incidents, and an investigation process.
• Post the harassment policy in a conspicuous location in the workplace.
• Provide information and instruction to workers on the contents of the policy and program.
• Investigate incidents of workplace harassment in a way that is appropriate to the circumstances.
• Inform the parties involved of the results of the investigation and any corrective action taken.

The OHSA covers both workplace harassment (a pattern of vexatious comment or conduct) and workplace sexual harassment. Bill 132 also requires that your investigation process be objective, meaning complaints cannot be investigated by someone with a conflict of interest, such as a friend or direct report of the respondent.

What counts as workplace harassment vs conflict

The OHSA defines workplace harassment as engaging in a course of vexatious comment or conduct against a worker in a workplace that is known or ought reasonably to be known to be unwelcome. There are two key elements: the conduct must be vexatious (annoying, distressing, or tormenting rather than legitimate workplace criticism), and the harasser must know or should know the conduct is unwelcome.

A single serious incident can qualify as harassment even though the definition includes the phrase "course of conduct." Sexual harassment, or any incident involving physical touching, threats, or severe humiliation, does not require a pattern.

What the law explicitly does not treat as harassment:

• Reasonable management actions taken in good faith, assigning work, giving performance feedback, implementing discipline, or denying a request for time off, even if the worker dislikes the decision.
• Differences of opinion between coworkers that do not involve personal attacks.
• Ordinary workplace conflict that is handled professionally on both sides.

The distinction matters because conflating normal friction with harassment creates a workplace where managers are afraid to give feedback and workers use the harassment policy to resolve disputes that belong in a different process. A good policy defines the line clearly.

Writing a harassment policy that actually works

The Ministry of Labour provides a model harassment policy on its website that satisfies the basic OHSA requirements. However, a boilerplate policy that workers have never read and managers have never enforced provides little practical protection. A policy that actually works includes the following elements in plain language:

• Definition of harassment. Include the OHSA definition and two or three concrete examples relevant to your workplace, the kind of specific language that helps workers recognize it and managers respond to it.
• Complaint procedure. Who does a worker report to? What happens in the first 24–48 hours? For most SMBs, complaints go to the owner or manager. If the owner is the respondent, who does the worker report to? You must name an alternative, this is where a third-party HR consultant can serve as the reporting contact for small businesses without HR staff.
• Investigation process. Who investigates? What steps does an investigation follow? What timeline will you aim to complete it within? The Ministry of Labour expectation is that investigations conclude within a reasonable time, with 90 days generally considered reasonable for most cases.
• Confidentiality clause. State that information about complaints and investigations will be kept confidential to the extent possible. Note that perfect confidentiality is not always achievable when an investigation requires speaking with witnesses.
• Anti-retaliation protection. The OHSA prohibits reprisal against a worker who reports harassment. Your policy must state this explicitly, including the consequences for retaliation.

Have an employment lawyer review your policy at least once. The cost is typically $500–$1,500 for a review and edit, substantially cheaper than defending a human rights tribunal complaint arising from an inadequate policy or failed investigation.

Handling a complaint as a small business owner

When a complaint arrives, the instinct for many small business owners is to try to resolve it informally, have a conversation, smooth things over, and move on. That approach is a liability. The OHSA requires a proper investigation. Informal resolution that bypasses investigation can later be characterized as failing to take the complaint seriously, which is a finding that compounds the original problem.

The practical steps when a complaint is made:

1. Acknowledge the complaint in writing. Send an email or hand a written note confirming you have received the complaint and will be investigating. This sets the clock and demonstrates you took it seriously from the start.
2. Assess who can conduct the investigation. If you are a party to the complaint, you cannot investigate it. If you have any friendship, reporting relationship, or conflict of interest with the respondent, that disqualifies you. For small businesses, an independent HR consultant or employment lawyer is often the most defensible choice.
3. Separate the parties if feasible. Where possible, adjust schedules, locations, or reporting structures during the investigation to minimize contact between complainant and respondent. Document this interim measure.
4. Document everything. Written notes from every conversation, copies of any relevant communications, dates and names for every step. If the matter later goes to the Ontario Human Rights Tribunal or an OHSA inspection, your documented record is your defence.
5. Communicate the outcome. Once the investigation is complete, inform the complainant and respondent of the result and any corrective action. You are not required to share every detail of the investigation, but you must communicate the conclusion.

Keep all investigation records for at least seven years. If a complaint is later filed with the Human Rights Tribunal or a civil claim is made, your records are the primary evidence of how the matter was handled.

Prevention: what works in practice

The most effective harassment prevention at small businesses is proportionally simple: clear reporting channels, consistent communication that the policy exists, and manager training on recognizing and responding to early warning signs.

Practical steps that work for small teams:

• Review and post your harassment policy at annual all-hands or team meetings. A five-minute reminder that the policy exists, and where to find it, is significantly more effective than a posted document that workers have never heard mentioned.
• Make the reporting path genuinely accessible. If the only way to report harassment is to talk to the owner directly, and the owner is often the one people are afraid of, the reporting path is not functional. Designate an alternative contact (another manager, an external HR line, or a third-party provider).
• Train supervisors and managers annually on what harassment looks like, how to respond when a worker raises a concern informally, and what not to do (reassure the person it will "blow over," dismiss the concern, talk to the respondent before the complaint is formal).
• Address low-level inappropriate behaviour immediately and informally when it is clearly a first instance and not serious. Letting minor incidents pass without comment creates an environment where escalation is more likely.

For more employer compliance guidance, see our related posts on workplace safety for Ontario small businesses, Ontario employment standardsand our employee handbook guide for Canadian SMBs.

Frequently asked questions