

Insights
Legal Compliance & Due Diligence: Protecting Your Small Business
By
Luis Arroyo
For many small businesses, OHS compliance might seem like something only large corporations worry about. Yet, the numbers tell a different story. According to Ontario’s Ministry of Labour, Immigration, Training and Skills Development (MLITSD), small business workers represent 26% of all workers covered by the Workplace Safety and Insurance Board (WSIB). However, half of all traumatic fatalities and 45% of critical injuries in 2019 occurred in small businesses.
Running a small business in Ontario often means wearing many hats: managing operations, handling clients, and keeping up with day-to-day demands. However, one area that can’t be overlooked is legal compliance and due diligence in Occupational Health and Safety (OHS). Understanding and meeting your obligations under Ontario’s Occupational Health and Safety Act (OHSA) isn’t just a legal requirement, it’s a critical part of protecting your workers, your business, and your reputation.
Why Compliance Matters
For many small businesses, OHS compliance might seem like something only large corporations worry about. Yet, the numbers tell a different story. According to Ontario’s Ministry of Labour, Immigration, Training and Skills Development (MLITSD), small business workers represent 26% of all workers covered by the Workplace Safety and Insurance Board (WSIB). However, half of all traumatic fatalities and 45% of critical injuries in 2019 occurred in small businesses.
These figures highlight a serious challenge: smaller organizations often face barriers to implementing health and safety practices, from limited resources to lack of specialized knowledge. In response, the WSIB, the Ministry, and the Institute for Work and Health (IWH) have studied these barriers to help make health and safety easier for small businesses to manage.
Ultimately, legal compliance isn’t just about avoiding penalties. It’s about protecting your people and the future of your business.
Understanding Your Legal Duties
Under the OHSA, every workplace in Ontario has defined responsibilities shared among employers, supervisors, and workers. Understanding these roles is the foundation of due diligence.
Employers must:
Take every reasonable precaution to protect worker health and safety.
Develop and maintain written policies, programs, and procedures.
Ensure that workers and supervisors receive appropriate training and supervision.
Maintain records such as inspection reports, incident investigations, and training certificates.
Supervisors are required to:
Ensure workers comply with the OHSA and workplace safety policies.
Advise workers of potential hazards and provide instruction on safe work practices.
Take corrective action when unsafe conditions or behaviours are identified.
Workers must:
Work safely and follow all training and instructions.
Use personal protective equipment (PPE) as required.
Report hazards, injuries, or contraventions to their supervisor or employer.
When each role is understood and fulfilled, a strong safety culture takes shape. One based on accountability, prevention, and trust.
Documentation: Your Proof of Due Diligence
In health and safety, if it’s not documented, it didn’t happen. Keeping up-to-date and accurate documentation is one of the most important parts of legal compliance.
Small businesses should ensure they maintain:
Health and Safety Policy & Program: Reviewed annually and signed by the employer.
Training Records: For all mandatory and job-specific safety training (e.g., WHMIS, working at heights).
Inspection Reports: Monthly or regular workplace inspections noting hazards and corrective actions.
Incident and Injury Reports: Complete investigations and corrective actions following any incident.
Maintaining proper documentation not only supports compliance but also demonstrates due diligence in the event of a Ministry inspection, WSIB audit, or legal claim.
Consequences of Non-Compliance
Failing to meet legal obligations under the OHSA can lead to serious financial and operational consequences. Businesses may face:
Fines and penalties issued to employers, supervisors, or even individual workers.
Stop-work orders, halting operations until hazards are corrected.
Increased liability, particularly if an injury occurs and due diligence cannot be proven.
Beyond penalties, non-compliance can damage your reputation, reduce employee morale, and limit future opportunities, especially as many clients and contractors now require proof of compliance or COR® (Certificate of Recognition) certification before awarding contracts.
Compliance Builds Credibility and Opportunity
Legal compliance isn’t just about meeting the minimum standard; it’s about positioning your business for growth and sustainability. A strong safety record builds credibility with clients, demonstrates professional integrity, and supports eligibility for programs such as COR® certification, which can open doors to larger projects and government contracts.
When small businesses take proactive steps toward compliance by implementing safety programs, engaging workers, and maintaining documentation, they send a clear message: we value our people and operate responsibly.
Final Thoughts
Legal compliance and due diligence may seem daunting at first, but they are powerful tools for small business success. By understanding your duties under the OHSA, maintaining proper records, and fostering a culture of safety, you not only avoid penalties but also create a safer, more resilient workplace.
Remember, safety isn’t just a legal requirement, it’s a business investment. Every effort you make toward compliance protects your employees, enhances your reputation, and helps ensure your small business thrives in Ontario’s competitive landscape.
At HS Enterprise, we specialize in helping small businesses navigate Occupational Health and Safety compliance with confidence. Whether you need help developing policies, conducting workplace inspections, or preparing for COR® certification, we provide practical, affordable solutions tailored to your operations.
Don’t wait for an inspection or an incident to reveal gaps in your safety program, take proactive steps today. Contact us to schedule a consultation and learn how we can help you strengthen compliance, protect your team, and build the foundation for long-term success. Give us a call or book a free consultation meeting today.