‍Employing in Canada

In order to foster harmonious labor relations that are advantageous to employers, employees, and the economy, the labor program has implemented various measures. These include collective bargaining, initiatives to prevent disputes, and the appointment of arbitrators for resolution.

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Employee Contract

In Canada, employment contracts can be written in either English or French. However, it is important to note that in the province of Quebec, it is mandatory for the contract to be in French.

Probation Period

‍The probationary period followed in Canada is from one to six months.

Payroll Cycle

The following are the payroll frequencies typically followed in the top provinces of Canada:

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Alberta: Weekly, Monthly, Bi-monthly

British Columbia: Bi-weekly, Monthly 

Ontario: Monthly, Bi-monthly 

Quebec: Hourly, Monthly, Bi-monthly

Minimum Wage

Minimum wage in Canada is subject to variation across provinces. Provided below is a compilation of the leading provinces in Canada, inclusive of their corresponding minimum wage rates. Kindly note that these rates pertain to general workers, and there may exist exceptions based on the employee's age (particularly for those under 17) and the associated industry.

Overtime pay

Employees are entitled to the following provisions:

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Compensation of at least 1.5 times the regular hourly wage, or

Time off with pay, equivalent to 1.5 hours of time off for every hour worked.

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In Ontario, overtime is applicable for any additional time worked beyond 44 hours, whereas in Quebec, it begins after 40 hours.

Bonus — 13th Month Pay

There is no legal requirement for the provision of a 13th month pay in Canada.

Employee Benefits

• Canada Pension Plan
• Parental leaves
• Employment insurance
• Health insurance

VAT

The standard GST rate in Canada is 5% while PST (provincial sales tax) rate varies in different provinces.

Termination Process

The Canada Labor Code explains the procedure to follow while terminating the employment of an individual employee or a group termination involving 50 or more employees from a single industrial establishment who are dismissed simultaneously within four weeks.

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If an employee believes the dismissal as unjust, they can file a complaint alleging unjust dismissal within 90 days, from the dismissal date.

Notice Period

The notice period for employees on probation and permanent employees is between one to twelve weeks.

Severance Pay

Employees possess the right to receive severance pay provided they have completed at least 12 consecutive months of continuous employment prior to their layoff or dismissal. They are entitled to two days of regular wages for each full year of service rendered to the employer before their termination. The minimum benefit granted is five days' worth of wages.

Visa and Immigration

Both Canadian citizens and permanent residents hold the right to work in Canada. However, non-Canadian nationals typically require a valid work permit to legally work in the country.

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