Key Insights on Hiring in Canada

When expanding or operating in Canada, it is important to understand the country’s labour laws and employment practices. Canada offers a well-regulated, employee-friendly environment, with strong emphasis on legal compliance, workplace safety, social protections, and equitable treatment. Below is a practical guide to the key aspects of hiring in Canada.

1. Employment Contracts

Overview:

Employment contracts in Canada define the terms of the employer-employee relationship, including responsibilities, compensation, working conditions, and termination clauses.

Common Types of Contracts:

  • Permanent (Indefinite) Employment
  • Fixed-Term Contracts
  • Casual or On-Call Employment
  • Part-Time Employment
  • Independent Contractors

2. Probationary Periods

Overview:

Probationary periods are permitted in Canada vary by province, but they must be reasonable and stated clearly in the employment agreement.

Typical Practice:

  • Most probationary periods last three to six months.
  • During probation, employees may have limited entitlements to notice or severance (subject to provincial employment standards).

3. Rights and Duties of Workers

Overview:

Canadian workers are protected under various federal and provincial/territorial laws that promote safety, fairness, and equality at work.

Employee Rights Include:

  • Minimum wage and fair compensation
  • Safe and healthy working conditions (regulated by OH&S laws)
  • Equal opportunity and freedom from discrimination or harassment
  • Freedom of association and the right to unionize
  • Entitlement to statutory leave and rest
  • Protection from wrongful dismissal

 

Employee Duties Include:

  • Performing assigned duties diligently and ethically
  • Following company policies and procedures
  • Respecting workplace health and safety requirements
  • Maintaining confidentiality and protecting employer property
  • Promoting a respectful and inclusive work environment

4. Working Hours

Overview:

Standard working hours are regulated under both federal and provincial labour codes. Most employees are covered under provincial jurisdiction.

Standard Workweek:

  • 8 hours per day / 40 hours per week (may vary slightly by province or sector)
  • Overtime is typically paid at 5 times the regular rate for hours beyond the standard (after 44 hours in most provinces)
  • Mandatory meal and rest breaks are required in many jurisdictions

5. Leave Entitlements

Overview:

Leave entitlements may vary by province and employment status.

Statutory Leave Includes:

  • Annual Vacation
  • Public Holidays
  • Sick Leave
  • Maternity and Parental Leave
  • Bereavement, Jury Duty, and Compassionate Care Leave

6. Taxation and Social Contributions

Overview:

Canada has a well-developed taxation and social security system that supports healthcare, pensions, unemployment insurance, and public services.

Employer Payroll Obligations:

  • Income Tax (PAYE)
  • Canada Pension Plan (CPP) / Quebec Pension Plan (QPP)
  • Employment Insurance (EI)
  • Workers’ Compensation
  • Provincial Health Tax

 

Penalties for Non-Compliance:

Failure to comply with payroll remittance and registration requirements may result in:

  • Fines and interest penalties
  • CRA audits
  • Legal action
  • Loss of business reputation