Canada Country Guide
N2S provide expert solutions for businesses looking to expand or grow into Canada, including compliance, payroll management and employment support. N2S provide expert solutions for businesses looking to expand or grow into Canada, including compliance, payroll management and employment support.
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Onboarding
1. Employment contracts must be in French or English and in writing.
2. Maximum probationary period of 90 days.
Engagement Types
1. Employment (Permanent or Fixed Term)
2. Independent Contractor engagement
IC Compliance
1. Contractors should be distinct from employees and be in business on their own account.
2. When classifying contractors in Canada, the determination metrics vary depending on where the contract was formed – as in Quebec, different rules apply.
3. The following elements should be considered when making a classification determination:
o Control
o Subcontracting
o Equipment
o Financial risk
o Management
o Contracts
o Opportunity for profit
Social Security/Taxes
1. Tax and Social Security obligations can vary depending on the worker, salary and location.
2. Including Pension, Federal Employment Insurance, Workplace Safety Insurance and Health Tax, this is circa 10%.
Minimum Wages
1. This varies across provinces, territories and industries.
2. The wage rate is typically increased each year.
Working Hours
1. Standard working hours are 8 hours per day and 40 hours per week.
2. Standard workweek is Monday to Friday.
Statutory Leaves
1. Annual leave varies by province and territory, usually between 2 and 3 weeks.
2. Maternity leave varies by province and territory, usually between 17 and 19 weeks.
3. Paid public holidays vary by province and territory, usually at least 5 days.
4. Parental leave varies by province and territory, usually between 59 and 65 weeks.
Termination
1. Overview
o Outside the probationary period, terminations must generally have just cause.
This does not include acts of gross misconduct, mutual agreement, valid expiry of fixed term contract, or other material breaches of the contract or other employee duty.
2. Notice Periods
o Notice periods vary by province and territory, usually capped at 8 weeks.
3. Severance
o Severance varies by province and territory and will also vary according to length of employment.
o Usually around 2 days per year of service.
