resources
Expansion
Product Help
Globe
India
What should I know about hiring in Canada?
Knowing Canada’s employment law is crucial. The Canadian government has enacted a number of rules and regulations meant to secure the rights of workers and guarantee impartial hiring procedures. These laws include the Canadian Human Rights Act, the Employment Equity Act, and the Canada Labour Code, among others.
Second, you should be familiar with the various work agreements that can be established in Canada. Among these are permanent, temporary, contract, and part-time jobs. Prior to making any hires, it is vital to familiarize oneself with the specific rules and regulations that apply to each sort of employment.
Last, you must be familiar with Canadian compensation standards, including the minimum wage. The federal government sets the minimum wage, but each state and territory sets its minimum salary and has additional overtime, vacation, and other benefits regulations.
Why is Canada a good choice for finding remote employees?
Canada is a popular destination for businesses hiring remote employees for various reasons. As a first point, Canada boasts a highly educated and skilled labor force, with many workers possessing post-graduate degrees and professional credentials.
As a result, businesses have access to a large pool of qualified, experienced candidates for a variety of remote positions. Canada’s multicultural society allows companies to draw from many potential employees. A remote team can benefit from this diversity of thought and experience by hearing about and considering new ways of doing things.
In addition, with a wealth of coworking spaces, networking groups, and training programs, Canada is an excellent place for remote teams to flourish. This system guarantees remote workers access to the tools and helps them to do their jobs well.
How can Native Teams help you hire in Canada
Native Teams can be an invaluable resource when it comes to hiring in Canada. With the help of our employer of record services, your business can more easily recruit new workers, pay them, and comply with Canadian labor laws. You can count on Native Teams to listen carefully to your hiring priorities and personal preferences so that they can craft a bespoke solution for you.
Hire your first Canadian employee with Native Teams.
Legal requirements for hiring in Canada
Minimum wage
The Canadian government recently set a new federal minimum wage at $15.55.
Contributions & Taxes
Employer Tax
The total employment cost in Canada is 7.91% + 1.37 CAD for every 100 CAD.
Corporate Tax
Corporations are subject to a 38% federal income tax, but after accounting for a 10% federal tax abatement and a 13% general tax reduction, their effective tax rate is closer to 15%.
Employee Tax
Employees contribute 5.70% to the Canada Pension Plan and 1.58% to Employment Insurance.
Income Tax
Income tax rates at the federal level are between 15% and 33%.
To calculate the salary and taxes in Canada please click here.
Payroll cycle
Pay periods in Canada range from weekly to hourly to monthly to semi monthly. Workers paid once a month must have their paychecks deposited into their bank accounts no later than the tenth business day following the end of the pay period.
Is there a 13th salary in Canada?
No requirements for 13th pay are specified in the law.
Labor rules
Probation period rules
In Ontario, a permanent employee must serve at least a 3-month probationary period.
Notice Period
In Canada, notice periods are often tied to the employee’s length of service and the grounds for termination and are spelt out in the employment contract or collective agreement.
- 1-week notice: up to 2 years of service;
- 2 weeks’ notice: 2 to 4 years of service;
- 4 weeks’ notice: 4 to 6 years of service;
- 5 weeks’ notice: 6 to 8 years of service;
- 6 weeks’ notice: 8 to 10 years of service;
- 8 weeks’ notice: 10+ years of service.
Severance Period
Employees are only eligible for severance payments if they have worked for the company for at least five years, the company has a payroll of more than CAD 2.5 million per year, or the company has laid off more than 50 workers in the past six months due to the closure of all or part of the business. The amount of severance pay equals one week’s salary times the number of years worked.
Working Hours
The Employment Standards Labor Code states that a worker’s schedule cannot exceed 8 hours a day, 40 hours a week, and 48 hours a week, including overtime.
Leave and benefits
Public holidays
Public holidays in Canada are different depending on where the individual works. Every province has its special day, and there are also national ones. National holidays are:
- New Year
- Good Friday
- Canada Day
- Labour Day
- Christmas Day
Sick leave
A maximum of 3 days of unpaid leave per year for personal illness, injury, or medical emergency are available to eligible employees who have worked for the same employer for at least 3 consecutive months.
Maternity leave & Paternity leave
If an employee has worked for the company for at least a year before the due date, they are entitled to up to 17 weeks of unpaid leave. The worker is entitled to at least two more weeks of maternity leave if the delivery happens after the anticipated date. Maternity leave must start no earlier than the 17th week before the expected due date and must terminate no later than 18 weeks later. When there is a chance that the pregnancy will end prematurely or when the pregnancy poses a risk to the mother’s or the unborn child’s health, special maternity leave may start 4 weeks before the due date. A medical certificate and 2 weeks’ notice are necessary.
Other leave
Bereavement leave
For the bereavement of a family member, there are 2 days of required leave. In the event of the child’s death or disappearance, the employee may take leave for up to 104 weeks.
Parental Leave
Parents are eligible for up to 63 weeks of unpaid vacation to care for a newborn or adopted kid. It is impossible to start parental leave until the week following the child’s birth or the week following the child’s official adoption.
The time off should start no later than 78 weeks after the birth or adoption.
Family Medical leave
Workers have up to 28 weeks of unpaid leave.
What are the minimum vacation days?
In Canada, employees receive 2 weeks of paid vacation after their first year on the job and 3 weeks of leave after 5 years.
Insurance
Health Security & Private Insurance
Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.
*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*
Why use Native Teams for hiring in Canada?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.
