As businesses scale, the legal requirements they must meet evolve just as quickly. This case study highlights how one Ontario technology company turned to Achkar Law to help manage compliance risks during a period of rapid growth. 

The Company and the Challenge

• Business Name: Lanovia Systems
• Industry: Technology & Software Development 
• Location: Markham, Ontario
• Legal Challenge: Rapid expansion led to surpassing key employee thresholds, triggering new compliance obligations under the Employment Standards Act (ESA), Occupational Health and Safety Act (OHSA), and the recent Working for Workers Four Act, 2024.

The Situation at a Glance

Lanovia Systems, an Ontario-based software firm, experienced significant growth over three years, expanding from a team of 10 to over 65 employees. This rapid expansion introduced legal complexities the company had not fully anticipated.

Key Compliance Challenges

1. Employment Standards Act (ESA)

• Sick Notes for Short-Term Absences: Lanovia’s policy required employees to provide a doctor’s note for any sick leave. However, under the ESA, employers cannot require a medical certificate for personal emergency leave of 10 days or less.

2. Occupational Health and Safety Act (OHSA)

• Health and Safety Representative: Once the workforce surpassed 20 employees, Lanovia was legally required to appoint a health and safety representative—something they had not yet done.

3. Working for Workers Four Act, 2024

• AI in Recruitment: The upcoming Act includes new rules requiring employers to disclose their use of artificial intelligence in recruitment. Lanovia used AI screening tools but had not informed job applicants.
• Pay Transparency Requirements: The Act introduces mandatory salary ranges in job postings and prohibits employers from requesting a candidate’s pay history. Lanovia had not updated their recruitment practices to comply.

Recognizing the potential for legal risk, Lanovia contacted Achkar Law for assistance.

Where Things Went Wrong

As Lanovia Systems scaled quickly, the leadership team overlooked key compliance requirements that applied once certain employee thresholds were passed: 

❌ Outdated Sick Leave Policy

The company continued to require medical notes for short absences, contrary to ESA guidelines for personal emergency leave. 

❌ No Health and Safety Representative

Despite surpassing 20 employees, Lanovia failed to appoint a health and safety representative, as required under the OHSA. 

❌ Non-Disclosure of AI Use

The company used AI in screening job applicants but had not informed candidates, which will soon be required under new legislation. 

❌ Lack of Pay Transparency

Job postings did not include salary ranges, and recruiters still asked about compensation history—both practices that will violate Ontario’s new pay transparency rules.

While none of these issues had yet resulted in complaints or penalties, they left Lanovia exposed to legal and reputational risk as the business continued to grow. 

How Achkar Law Helped

We worked closely with Lanovia’s leadership to resolve immediate compliance issues and prepare the company for sustainable growth: 

✅ Revised Sick Leave Policy 

Updated the policy to comply with the ESA, eliminating the requirement for a doctor’s note for personal emergency leaves of 10 days or less. 

✅ Health and Safety Compliance

Developed and rolled out required health and safety training programs for employees. 

Guided the appointment of a health and safety representative. 

✅ Working for Workers Four Act Preparation 

Helped the company disclose its use of AI in hiring by drafting clear candidate communications. 

Updated job postings and hiring policies to include salary ranges and remove questions about prior compensation. 

✅ Workplace Policy Audit and Overhaul

Conducted a full review of all workplace policies to identify gaps, inconsistencies, and outdated provisions.

Helped draft and update policies to reflect current legal standards, best practices, and upcoming legislative changes.

✅ Ongoing Compliance Monitoring

Created a compliance calendar to help Lanovia track deadlines and new legal obligations, allowing them to stay ahead of future legislative changes. 

Lessons for Employers

• Growth Brings New Legal Obligations – As your employee count increases, so do your responsibilities under employment and health and safety laws.
• Policies Must Keep Up with Legislation – Periodic policy reviews help ensure your workplace is aligned with both current laws and those coming into force.
• Legal Advice Can Prevent Legal Risk – Early legal guidance helps identify compliance gaps before they become costly issues.

Lanovia Systems assumed its internal policies would grow with the business—but that assumption nearly led to non-compliance across multiple fronts. With Achkar Law’s help, the company implemented new policies, fulfilled its legal obligations, and positioned itself for future growth with confidence.

Is Your Growing Business Compliant? 

As your organization expands, so does your legal responsibility. Achkar Law can help ensure that your employment practices evolve with your business, keeping you compliant and protected. 

This case study represents a real-world legal issue based on actual matters handled by Achkar Law. Names and certain details have been changed to protect privacy while maintaining the accuracy of the legal principles involved.