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Employer of Record Canada | Employee Benefits in Canada

Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax

Planning to expand your business operations to Canada? Managing employees in a new country can present various challenges and require considerable time and effort. That's where an Employer of Record (EOR) in Canada can be your trusted partner. Our web page provides detailed information about the role of an EOR and the ways they can streamline your expansion process. Explore the advantages of collaborating with an EOR in Canada, including ensuring compliance with local employment laws, efficient payroll administration, comprehensive HR support, and effective risk management. With our deep expertise and understanding of the Canadian employment landscape, you can confidently navigate the complexities and concentrate on achieving your business objectives.

Time zoneUTC−08:00 (PT) — larger western part of British Columbia, Tungsten and the associated Cantung Mine in Northwest Territories, Yukon
Total Time zones6
Working hours per week40
Working weekMonday–Friday
Typical hours worked8
Personal Tax filing deadline30 April (15 June for self-employed individuals)
Financial Year1 April – 31 March

Probation Period in Canada

In Canada, probationary periods are commonly allowed and typically last up to three months. During this period, employers may have the ability to terminate employees without providing statutory notice of termination or pay in lieu. However, it's important to note that employees terminated during the probationary period can still claim discrimination in employment or termination and seek damages if discrimination is found. Furthermore, unless there is a clear contractual agreement limiting an employee's right to notice of termination, employees may still be entitled to notice or pay in lieu of notice under common law. It's worth mentioning that in Quebec, contractual limitations on an employee's right to reasonable notice of termination, as per the Civil Code of Quebec, are not permitted. Therefore, employees in Quebec may still have an entitlement to notice during a probationary period, depending on the circumstances.

Workplace Policies and Requirements

In various jurisdictions, employers are mandated to have written health and safety policies that meet specific content criteria based on the number of employees or the nature of the business operations. Additionally, certain jurisdictions require employees to undergo specific health and safety training. Workplace violence, workplace harassment, workplace sexual harassment, and anti-bullying policies are required in several jurisdictions, while anti-discrimination policies are highly recommended everywhere. In Ontario, specific policies concerning accessibility, an employee's right to disconnect, and electronic monitoring are also necessary, depending on the number of employees.

It's important to note that accessibility policies extend beyond employees to interactions with the public and other third parties. Privacy policies are also required, and in many jurisdictions, they must address the protection of employee personal information. Moreover, some jurisdictions mandate the display of information on basic employment laws and health and safety standards.

Employee Benefits and Retirement Savings

Employers in Canada generally have no legal obligation to offer benefits or pensions beyond what is provided through mandatory social security contributions like the Canada Pension Plan/Quebec Pension Plan and Employment Insurance. However, it is common for many Canadian employers to provide health and welfare benefits as well as some type of retirement savings program. In Quebec, employers are required to offer a Registered Retirement Savings Plan through a third-party provider, although they are not obligated to contribute to the plan on behalf of the employee. Workers' compensation insurance is typically required in most jurisdictions to provide coverage for workplace injuries or accidents.

Termination of Employment in Canada

Termination of employment in Canada is subject to various legal considerations and requirements, both at the provincial and federal levels. Understanding the rights and obligations related to terminations is crucial for both employers and employees.

Termination for Cause and Without Cause:

In Canada, termination for cause without notice or pay in lieu is permitted, but the standard is high. It typically requires gross or willful misconduct, willful neglect of duty, fraud, serious breach of applicable policies, or material and repeated insubordination. Termination without cause is permissible in most jurisdictions, provided that proper notice of termination or pay in lieu, as well as any severance entitlements, are provided.

Additional Protections:

Certain provinces, such as Quebec and Nova Scotia, offer additional protections for employees who have acquired tenure. In these circumstances, termination may only be possible for bona fide reasons, such as position elimination or lack of work.

Federally Regulated Employers:

Federally regulated employers, operating in industries of national interest such as banking, telecommunications, air transport, and more, have specific rules regarding termination. They may not terminate non-managerial employees with at least one year of service without sufficient reason, which is generally just cause or a discontinuance of the job function.

Termination Protections:

In general, employees in Canada cannot be terminated without just cause or without proper notice or pay in lieu, along with severance pay if applicable, under statutory and common law. The right to reinstatement is typically limited to unionized employees, employees terminated contrary to human rights legislation, employees terminated for exercising statutory rights, or employees in federally regulated industries or specific provinces like Quebec and Nova Scotia.

Prohibited Terminations:

Terminations based on prohibited grounds, filing a harassment complaint, or reprisals for asserting statutory rights are strictly prohibited.

Mass Layoff Rules:

When a mass layoff occurs, specific rules must be followed, including providing increased statutory notice or pay in lieu and/or severance pay. The threshold for a group termination varies by jurisdiction, typically ranging from 50 or more employees within a specified period. Consultation obligations may not exist, but notice may need to be given to a governmental authority.

Notice Period:

The minimum length of notice of termination varies by jurisdiction and is based on the employee's length of service. Most jurisdictions limit notice of termination to 8 weeks for individual terminations, while longer notice periods may be awarded at common law, unless limited by a valid termination clause in an employment agreement.

Pay in Lieu of Notice or Garden Leave:

Pay in lieu of notice is permitted in Canada, and garden leave, where an employee is asked to stay away from work during the notice period, is becoming more common. With proper care and planning, employers can often achieve this objective for a reasonable period.

Severance Pay:

In Ontario and the federal jurisdiction, eligible employees may be entitled to severance pay. The specific entitlements vary, with factors such as years of service and the size of the employer's payroll taken into account.

Understanding the termination process and the legal requirements is essential for both employers and employees in Canada to ensure compliance with employment laws and to protect their rights and interests. Consulting with legal professionals specializing in employment law can provide valuable guidance in navigating the complexities of terminations.