Fair Pay and Commercial Rent Protections

Summary#

• This bill aims to help small businesses and charities get paid on time and keep stable, fair commercial rents. It creates a Small Business Commissioner to handle complaints and mediate disputes. It also sets rules that cap rent hikes for eligible small business and charity tenants. The law would take effect January 1, 2027.
• Key changes:
  • Adds automatic interest on late payments in all commercial contracts. Large companies must report how fast they pay their bills and can face penalties for too many late payments.
  • Creates a Small Business Commissioner to take complaints, investigate unfair treatment, and offer low‑cost mediation between small businesses and other businesses or public bodies.
  • Sets who qualifies as a “small business” (generally incorporated, registered, independent, with up to 50 employees and up to $3 million in annual revenue).
  • Caps rent increases for eligible small business and charity tenants to the annual inflation rate (CPI), only once per year, and not in the first year of a lease. Allows larger increases only if the landlord proves higher taxes/utilities or major improvements.
  • Limits non‑renewals and evictions to specific reasons and gives tenants a right to renew or go month‑to‑month. Bars landlords from refusing to rent just because a tenant is eligible under this program.
  • Requires a “tenant certificate” to access rent protections. Chains, franchisees, publicly listed companies, and tenants tied to the landlord do not qualify. Significant fines apply for rule‑breaking.

What it means for you#

• Small businesses

  • Prompt payment: If a customer pays you late under a commercial contract, interest is automatically owed at a rate set by regulation or, if none is set, the Bank of Canada overnight rate plus 8%.
  • Disputes: You can bring complaints about unfair treatment or unfair contracts with other businesses or public bodies to the Small Business Commissioner. Low‑cost mediation is available. In most cases, court action waits until the Commissioner certifies mediation failed.
  • Rent protections (if eligible): With a valid tenant certificate, your rent cannot increase in the first 12 months of a lease, can rise only once per year after that, and by no more than the annual CPI. Rent includes base rent plus common‑area and operating charges.
  • Lease rights: At lease end, you choose renewal on the same terms or month‑to‑month. Evictions and non‑renewals are limited to specific reasons (such as major renovations, owner’s own use, demolition/sale, substantial breach, or very late rent). If services you had (like cleaning or parking) are cut, you can seek a rent reduction.
  • Transparency: Landlords must give you an annual statement of maintenance and operating charges. They must itemize fees in your lease.
  • Group action: Tenants in the same building with the same landlord can apply together on shared issues.
  • Who qualifies: To get a tenant certificate as a small business, you must be incorporated and registered in Nova Scotia, have no more than 50 employees, have annual revenue up to $3 million (may adjust with inflation later), and be independent (not a subsidiary, franchisee, or affiliate of a national/multinational company).

• Charitable organizations

  • Similar rent protections and lease rights as small businesses if you have a tenant certificate. You must be registered as a charity and have fewer than 50 full‑time equivalent employees.

• Large businesses

  • Reporting: Within three months after each fiscal year, you must report to the Commissioner your average payment time and how many invoices you paid within 30 days, 31–60 days, and over 60 days. If too many payments are late (threshold set by regulation), you can face administrative penalties.
  • Interest: You owe automatic interest on late payments under commercial contracts.

• Landlords of commercial space

  • Rent caps for eligible tenants: Annual increases are limited to CPI, only once per year, and not in the first year. You can apply for a larger increase if you prove higher property taxes/utilities or qualifying capital improvements, with documents and a fair cost spread over time.
  • Leasing rules: Leases must be in writing and usually at least 12 months (unless the tenant waives that). You must maintain premises suitable for the tenant’s agreed business or charitable use and itemize operating charges.
  • Renewals and evictions: You cannot refuse to renew only because the term expired. Valid reasons are limited (e.g., substantial breach, owner’s own use, major renovations, demolition/sale), with notice and proof to the Director where required. If the tenant stays without a non‑renewal notice, the lease continues month‑to‑month on the same terms.
  • No discrimination: You cannot refuse to rent or renew solely because a tenant is eligible for the program. Written reasons are required for any refusal, and the Director can order remedies or penalties.
  • Penalties: Overcharging above allowed rent must be repaid. Serious fines apply for violations, including a minimum fine equal to one year’s rent for some breaches.

• Public bodies (government agencies, universities, etc.)

  • The Commissioner can receive complaints about dealings with small businesses and may request information. You can refuse if releasing it would harm the public interest or if it is legally privileged. Information‑sharing agreements are allowed.

• Everyone using commercial contracts

  • Automatic interest on late payments applies to all commercial contracts, not just those involving large businesses.

• Timing

  • Most measures start January 1, 2027. Revenue and employee thresholds for “small business” may be adjusted later for inflation by regulation.

Expenses#

No publicly available information.

Proponents' View#

• Helps small businesses get paid on time by adding automatic interest and shining a light on large companies’ payment practices.
• Provides a one‑stop office (the Commissioner) to handle complaints quickly and cheaply, avoiding costly court fights.
• Makes rent more predictable for local shops and charities, limiting sudden spikes that can force closures.
• Still allows landlords to recover real cost increases and investments, with proof and oversight.
• Sets clear rules on renewals and evictions to prevent bad‑faith non‑renewals and “renovictions.”
• Promotes fair treatment across industries and lets government tailor rules (like prompt payment in construction) where needed.

Opponents' View#

• Rent caps and renewal rights could discourage investment in commercial buildings, lead to higher starting rents, or reduce space offered to small tenants.
• New rules add paperwork and compliance costs for landlords and large businesses (reports, itemized statements, applications).
• Requiring mediation before court could delay resolution for some disputes.
• The tenant certificate excludes many firms (franchisees, chains, publicly listed companies, unincorporated businesses), creating uneven treatment.
• Government will need new funding and staff for the Commissioner and enforcement, but costs are unclear.
• Complex rules and fines may increase legal disputes and uncertainty during the transition.