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Law Dictionary
Fulcrum Law is a Business Law Firm in Vancouver, BC. This dictionary was designed for Canadian Business Owners to better understand legal terms and how it relates to them and their business.
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Electronic signatures
Electronic signatures
An electronic signature is information in electronic form that a person creates or adopts in order to sign a record, such as a typed name, a scanned signature or a click to accept. In BC, electronic signatures are generally legally effective, subject to limited exceptions and to any specific formal requirements of the transaction.
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Electronic voting systems.
Electronic voting systems.
Electronic voting systems are technologies used to cast and count votes electronically, such as online voting at a company's shareholder meeting or a strata corporation's general meeting. For BC companies, whether electronic voting is permitted, and how it must be run, depends on the BCBCA and the company's articles rather than on election law.
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Employee benefits
Employee benefits
Employee benefits are forms of compensation provided to employees in addition to wages, such as extended health and dental coverage, life and disability insurance, retirement plans and additional paid time off. Most benefits are provided by contract and are not legally required. Certain minimum entitlements and contributions are required by statute.
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Employee handbooks
Employee handbooks
An employee handbook is a written collection of an employer's workplace policies, procedures and expectations, covering matters such as conduct, leave, technology use and discipline. It is a useful management tool, but a handbook does not automatically form part of the employment contract or bind existing employees to new terms.
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Employee privacy
Employee privacy
Employee privacy refers to the protection of personal information about employees and the limits on how an employer may collect, use and disclose it, including monitoring, background checks and health information. In BC, private sector employers are subject to a specific regime for employee personal information that differs from the general consent rules.
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Employee stock option plan
Employee stock option plan
An employee stock option plan lets a company grant employees, directors and consultants the right to buy its shares at a fixed price in the future. In BC, private companies grant options under a prospectus exemption in National Instrument 45-106, and the Income Tax Act defers tax for Canadian-controlled private corporation employees until the shares are sold.
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Employer-specific work permit (LMIA)
Employer-specific work permit (LMIA)
An employer-specific work permit allows a foreign national to work in Canada for a named employer. Most require a positive Labour Market Impact Assessment from Employment and Social Development Canada showing a need for the foreign worker, although some categories, such as intra-company transferees and CUSMA professionals, are exempt. It is Canada's closest equivalent to the US H-1B visa.
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Employment contract
Employment contract
An employment contract sets the terms on which an employee works for an employer, including duties, pay, benefits and termination. In British Columbia it may be oral or written, cannot reduce Employment Standards Act minimums, and without a valid termination clause the employee is entitled to reasonable notice at common law, which often exceeds the statutory minimum.
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Employment contracts
Employment contracts
An employment contract is the agreement between an employer and an employee setting out the terms of employment, such as duties, pay, benefits, hours and termination. It can be written or oral. Written contracts are strongly recommended, especially for termination, confidentiality and restrictive covenant terms, which are otherwise left to the common law.
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Employment standards
Employment standards
Employment standards are the minimum workplace entitlements set by statute. In British Columbia, the Employment Standards Act sets minimum wage, hours of work, overtime, vacation, statutory holidays, paid sick leave, leaves of absence and termination pay. Employers and employees cannot contract out of these minimums, and complaints go to the Employment Standards Branch.
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Encryption
Encryption
Encryption is the process of converting data into a coded form that can only be read with the correct key, used to protect information stored on devices or sent over networks. It is a technical security term rather than a legal one, but it is an important way for a business to meet its legal duty to protect information.
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Endorsement
Endorsement
An endorsement is a signature or notation that changes or confirms a document's legal effect. A holder signing the back of a cheque or bill of exchange transfers it under the federal Bills of Exchange Act. In insurance, an endorsement amends the policy. In advertising, endorsements and testimonials must not be false or misleading under the Competition Act.
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End user licence agreement (EULA)
End user licence agreement (EULA)
An end user licence agreement (EULA) is a contract in which a software owner grants a user a limited right to install and use software without transferring ownership. In British Columbia, a EULA is enforceable if its terms were reasonably brought to the user's attention, but unconscionable terms can be struck and consumer EULAs remain subject to consumer protection law.
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Environmental law
Environmental law
Environmental law is the body of law protecting air, water, land and wildlife, regulating pollution, waste, contaminated sites, environmental assessment of major projects and resource use. In Canada it is shared between federal, provincial and local governments. For businesses, it is especially relevant to property transactions, industrial operations and development.
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Environmental regulations
Environmental regulations
Environmental regulations are the specific rules made under environmental statutes that control how businesses handle emissions, discharges, waste, hazardous substances and contaminated land. They often require permits or approvals and set standards that must be met. In BC, they come from federal, provincial and local governments.
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Equipment leasing
Equipment leasing
Equipment leasing is a contract giving a business the use of equipment for a term in exchange for periodic payments. In British Columbia, a lease for a term of more than one year, or a lease that in substance secures payment, is covered by the Personal Property Security Act and should be registered in the Personal Property Registry.
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Equity compensation
Equity compensation
Equity compensation is pay delivered as an ownership interest in the company, usually stock options, restricted share units or shares issued to employees, directors and consultants. In British Columbia, grants must be authorized under the BCBCA and the company's articles, must rely on a securities law prospectus exemption, and are taxed under section 7 of the federal Income Tax Act.
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Equity financing
Equity financing
Equity financing is raising capital by issuing shares of a company to investors in exchange for money. In British Columbia, the company must issue the shares under the BCBCA and its articles, and must sell them under a prospectus or a prospectus exemption, such as the private issuer or accredited investor exemption in National Instrument 45-106.
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Equity kicker
Equity kicker
An equity kicker is an extra return given to a lender or investor on top of interest, usually warrants, a right to convert debt into shares, or a share of profits or sale proceeds. Its value can count as interest under the Criminal Code's criminal interest rate provision, and any shares or warrants issued must comply with BC securities law.
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Escrow agreements
Escrow agreements
An escrow agreement is a contract under which a neutral escrow agent, often a lawyer or trust company, holds money, shares or documents and releases them only when stated conditions are met or the parties jointly instruct release. In British Columbia business deals, escrow commonly secures purchase price holdbacks, closing deliveries, escrowed shares and software source code.
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Estate administration
Estate administration
Estate administration is the process of dealing with a deceased person's estate: collecting assets, paying debts and taxes, and distributing the remainder under the will or the intestacy rules. In BC, the executor or administrator often needs a court grant of probate or administration to deal with assets such as land and bank accounts.
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Estate planning
Estate planning
Estate planning is arranging how a person's property, including private company shares, will be managed during incapacity and passed on at death. In British Columbia, it uses wills under the Wills, Estates and Succession Act, enduring powers of attorney, trusts and, for business owners, estate freezes and shareholders agreements that deal with a shareholder's death or incapacity.
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Examination for discovery
Examination for discovery
An examination for discovery is the pre-trial questioning under oath of a party to a British Columbia Supreme Court action by an adverse party's lawyer. It is recorded and transcribed, is limited to seven hours unless the person examined consents or the court orders otherwise, and an adverse party may read admissions from it into evidence at trial.
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Exclusion clauses
Exclusion clauses
An exclusion clause is a contract term that excludes or limits one party's liability for breach, negligence or other loss. Canadian courts enforce it under the Tercon test: the clause must apply to the facts on its proper interpretation, must not have been unconscionable when the contract was made, and must not be overridden by public policy.
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Exculpatory clauses
Exculpatory clauses
An exculpatory clause is a contract term that excludes or limits a party's liability, for example for negligence, certain types of loss, or amounts above a cap. It is also called an exclusion or limitation of liability clause. Courts enforce these clauses if they apply on their terms, but may decline to do so in limited circumstances.
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