Employer of Record Canada: How works

Employer of Record Canada: How works?

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Canada In a Nutshell

Population Approximation: 37.53 Million (2019)

Dollars in Canadian dollars (CAD). The currency sign is $.

City: Ottawa

There are 196 languages spoken in the country that are officially recognized, of which 2 are official languages. There are another 128 immigrant languages and 66 indigenous languages.

Commonly utilized languages include English and French.

Working in Canada 

The Canadian Constitution limits the federal government’s ability to influence the country’s labor regulations. Only the federal programs for public pension benefits and unemployment insurance are managed by the federal government. Otherwise, each province and territory in Canada is solely responsible for its own set of labor regulations. However, federal law has control over sectors including aviation, telecommunications, and international shipping. For businesses trying to grow remotely, navigating the complicated legal environment may be quite difficult. 

Foreign employees as well as native Canadians are subject to Canadian labor laws. Some of the fundamental guidelines for employment in Canada include mandatory remuneration for work, workplace security, and the ban on employers seizing a foreign worker’s passport or work visa.

Costs to Employers in Canada with a Global Employer of Record

Payments from the Employer: Employers are required to make contributions depending on the wages of their workers. In Canada, employers are in charge of handling all payroll expenses and income tax preparation.

CPP (Canada Pension Plan): 11.4% of an employee’s income, up to a maximum of $64,900, of which the employee and employer each contribute 50%. As a result, the employer will get 5.7% and 5.7% respectively.

EI (Employer Insurance) premiums: Insurance costs vary by area and profession.

5.7% of employee contributions go to the Canada Pension Plan (CPP) for those under the age of 70.

Hours of Work in Canada

Weekly Hours Worked

In Canada, 8 hours per day and 40 hours per week—up to 48 hours per week—are considered standard working hours.

Insurance and Benefits in Canada

Employers often provide supplementary benefits including health and dental insurance as well as a variety of savings programs in Canada, however doing so is not required.

Canadian Termination Laws

Severance

In Canada, there must be a notice period and/or severance following probation to end an employment contract. The length of the notice period varies per province. Similar to American law, Canadian law protects workers against wrongful dismissal, including dismissal based on race, gender, or sexual orientation.

Canadian Public Holidays

The Days Off In Canada

Employees are entitled to two weeks of paid time off for holidays each year. After five years of work, this rises to three weeks, and after ten years of employment, to four weeks.

In Canada, there are ten public holidays:

Jan. 1 is New Year’s Day.

The Friday before Easter is called Good Friday.

the Monday before May 25th is Victoria Day.

Canada Day is on July 1; Civic Holiday is on August 1; Labor Day is on September 1; Thanksgiving Day is on October 2; Remembrance Day is on November 11; Christmas Day is on December 25.

Boxing Day, December 26

Contract of Employment in Canada

Employment Agreement

In Canada, a formal work contract is not legally necessary, although it is advised. Labor contracts must be written in English, with the exception of the province of Québec, where the native language is French. Any wages and benefits to which an employee would be entitled in Canada will be outlined in the labor contract.

Probation Term In Canada, the probation period is normally three months long, although it may go up to a year.