Survey: Half of small and medium businesses not ready for new French-language rules

A good number of Quebecsmall and medium businesses (SMEs) are not yet ready for the new French-language obligations stemming from Law 14 (previously known as Bill 96), according to a survey by the Canadian Federation of Independent Business (CFIB). For many, the lack of time, the significant costs and the administrative burden are obstacles that could prevent them from adopting the changes before the deadline. 

On June 1, new provisions of Law 14 on the official and common language of Quebec will come into force for businesses. They target the exterior commercial signage of a premises and the trademarks registered on products. 

Small businesses with 25 to 49 employees are also required to register before June with the Office québécois de la langue française (OQLF) and begin a francization process.

According to the CFIB’s survey of its members released Sunday, more than half of respondents (53 per cent) said they were not ready for the regulatory changes to come into force, compared to 43 per cent who said they were. About a third of respondents also said they were not aware of the new requirements. 

The FCEI has been working for several months to inform its members of what is coming through webinars, its website, newsletters and representatives who go door-to-door, summarizes the FCEI’s vice-president for Quebec, François Vincent, in an interview. 

According to him, the gradual implementation of the French language reform since its adoption about three years ago may have had the effect of reducing “the awareness” surrounding the upcoming obligations. 

But the management of more urgent matters may also have led entrepreneurs to put aside the changes surrounding the new law, he suggests. 

“The last five years have been a roller coaster ride for small and medium-sized business owners. It’s the equivalent of being on a roller coaster of unpredictability for their business,” says Vincent. 

“There was the pandemic, then there was a labour shortage like we had never seen before. There were rising costs. Then there were the uncertainties about a trade war with the United States. So there were a lot of fires to put out on the company floor,” he adds. 

Although the OQLF is “very active,” the government could increase communications with business people to avoid “an entrepreneur finding himself in a dead end,” believes Vincent. 

Questioned some time before the adoption of the new regulation specifying the application of certain provisions of law 14, last June, the OQLF assured that it would provide awareness-raising actions for businesses, certain transitional measures as well as personalized assistance depending on the situation. 

Significant costs anticipated

When asked in the survey, “What factors might prevent you from complying with the requirements?”, 40 per cent said the administrative burden of the new requirements, 32 per cent said the lack of time, and 29 per cent said the high costs associated with them. More than a third (36 per cent) said there were no factors preventing them from complying.

The survey conducted last fall also highlights that 61 per cent of SMEs anticipate significant costs to comply with the new obligations. More than half (54 per cent) say they will have to call on external resources to meet the requirements. 

The FCEI believes that the government should provide financial compensation to SMEs so that the changes they make as part of the reform are made at no cost. 

“They did it for other measures. When there was a change in billing in the restaurant sector, the Quebec government subsidized part of the acquisition of new sales recording modules,” Vincent gives as an example. 

According to the FCEI, it is also necessary to simplify the “cumbersome and outdated” francization process. It also hopes that the government will support SMEs once the deadline has arrived, rather than handing out fines for non-compliance with the requirements. 

The organization recently contacted the Minister of the French Language, Jean-François Roberge, regarding these requests by sending a letter.

“I heard a great deal of sensitivity to supporting entrepreneurs once the rules come into force, but there will be no change of date. June 1 is a firm date,” said Vincent, specifying that he had not had any feedback regarding the request for financial assistance. 

The survey was conducted online from Oct.10 to Nov. 7. The results are based on responses from 364 FCEI members who own small businesses.

–This report by La Presse Canadienne was translated by CityNews