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Canada Hiring/Employment Compliance

Expanding your company and hiring new employees in Canada is an exciting time. However, you could face costly fines or other sanctions if you do not follow Canada’s employment compliance closely.

How to Hire Employees in Canada

You can choose to hire employees yourself or work with a global PEO to help you find talent.

Hiring your employees on your own requires a significant time commitment and the willingness to travel to Canada multiple times. You will need to make sure your company’s key players have time to spare so you can hire abroad.

You may also choose to work with a global PEO such as Globalization Partners. Our RecruitGlobal service helps you maximize your time and find quality candidates for your business. While setting up a subsidiary is a months-long process to finish before you can even hire an employee, we can act as the Employer of Record and hire employees on your behalf to get you up and running in days.

Canada Employment Compliance

Canada has extensive employment laws at both the federal and provincial level, which can make Canada employment compliance bewildering for businesses new to the country. Every province has its own withholding, social services, and notice periods. About 80% of Canadian employees are protected by provincial employment laws, while the rest is covered by federal law.

Most provinces limit the number of hours your employees can work in a week, although some jurisdictions have exceptions for the maximum hours for specific industries. Employees also have the right to an annual paid vacation — although this also varies by province.

Canadian employment contracts often include a probationary period of three months. However, employers are required to provide reasonable notice of termination.

Onboarding Canadian Employees

Before you officially hire Canada employees, you’ll need to examine each new employee’s Social Insurance Number (SIN) and record it. If the number begins with nine, the worker is not a Canadian citizen or permanent resident and can only work for a particular employer with authorization from Citizenship and Immigration Canada.

You’ll also need to ask employees to fill out required forms such as Form TD1 before their first day.

Benefits of Canada Hiring Outsourcing

Because Canada has extensive employment laws, you’ll need to stay well-versed on both federal regulations and those in the particular province where you are hiring. Canada hiring outsourcing with a global PEO is a great way to stay compliant and save you time and money.

Globalization Partners can hire employees on your behalf to get you started without setting up a subsidiary. As the Employer of Record, we handle all Canada employment compliance and take the liability off your shoulders. Contact us today for more information.

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