Canada 🇨🇦
Congratulations on your decision to hire in Canada! Canada is known for its highly skilled workforce, affordable labor costs, and favorable business environment. Plane makes it easy for you to hire employees in Canada by providing automated tax document collection, payroll, benefits, and more, ensuring compliance and efficiency throughout the process. Navigating hiring in a new country can be challenging, so we’ve compiled some details to help guide you through the process.
Currency
CAD
Onboarding
1 - 2 weeks
Employer Cost
6% to 10%
Pay Frequency
Semi-Monthly
Public Holidays
10
5 Considerations Before Hiring in Canada
As an employer in Canada, it is important to have a comprehensive employment contract that outlines the terms and conditions of the employment relationship. The contract should include details such as compensation, benefits, vacation time, and sick leave policies. Before onboarding a new employee in Canada, take a moment to consider the following questions:
Getting Started with Hiring in Canada
Employment Laws and Regulations
In Canada, employment standards and regulations vary by province or territory, and it is essential to comply with them to avoid legal issues. Employment laws to consider include minimum wage, overtime pay, vacation and holiday pay, and termination notice.
Employment Contract
At Plane, we have a written employment agreement that includes clauses regarding termination, probation, salary, leaves, and other entitlements. You can have other agreements such as incentive plans, stock options, and anything specific related to your entity on a separate agreement between you and the employee.Employers can conduct background checks on prospective employees. However, these checks must be limited to information such as criminal background, education, employment history, and reference checks.
Payroll Timelines and Dates
Pay frequency: Employee payroll is semi-monthly (24 pay periods per year).Payroll change cutoff dates: To meet payroll deadlines, you must submit any changes to support@plane.com by the cutoff date.The payroll change cutoff date for Canada is 8 business days before payday.
- Canada paydays are the 15th and the last day of the month; it can be earlier if processing or a payday falls on a holiday or weekend.
- Plane will send payroll summaries to admins 3 to 4 business days before payday and charges will then be debited automatically.
- Payroll summaries are also available for admins in their Plane accounts, under Payroll history → Employees.
Payroll and Taxes
Plane deducts payroll taxes from employees' wages and remits them to the Canada Revenue Agency (CRA). The payroll taxes include Canada Pension Plan (CPP), Employment Insurance (EI), and income tax.
Working Hours
In Canada, the usual work period is 40 hours per week or 8 hours per day for 5 days. Federally regulated employees have a right to 24 hours of rest per week, typically on Sundays. If a holiday occurs in a week, the work week is shortened by 8 hours. Employees who work more than 40 hours in a week are entitled to overtime pay. The maximum number of hours an employee can work in a week is 48, although this can be exceeded in certain circumstances.
Public Holidays
Canadian employees are entitled to public holidays, which vary by province or territory. The employment contract should include the details of the public holiday policy, including the number of public holidays, payment for working on a public holiday, and any requirements for taking time off around public holidays.
Compensation
The minimum wage in Canada is determined by the National Minimum Wage, but it varies depending on the province, age, and industry. While it is not required to offer bonus payments in Canada, employers may choose to do so.You can check the remote salary data in Canada by job title using Plane's Remote Compensation Tool.
Health Insurance Benefits
Canada has a universal healthcare system. Employers in Canada are not required to provide supplemental health insurance benefits, but many choose to do so as a way to attract and retain employees.
RRSP
Plane offers clients the option to provide a group RRSP to their employees. This benefit can help you attract and keep employees. You can choose to offer voluntary only (no employer match) or employer matched plans.
Sick Leave
In Canada, employees are entitled to up to 17 days of unpaid sick leave, which varies by province or territory. The number of sick days an employee is entitled to receive is typically outlined in the provincial or territorial employment standards legislation.In some jurisdictions, employers are required to provide a minimum number of paid sick days, while in others, employers are only required to provide unpaid sick leave. You can find a list of federally regulated industries and workplaces here. For absences of three days or more, a medical certificate may be required.Employees may also be entitled to employment insurance benefits if they cannot work due to illness or injury. The length of time and amount of benefits will depend on the specific circumstances.In addition to sick leave, employees in Canada can take up to five days of personal leave per year. This includes three paid days after three months of employment.
Vacation Leave
In Canada, employees are entitled to at least two weeks of vacation leave per year, which may vary depending on the province or territory. The employment contract should include the details of the vacation leave policy, including the number of weeks of vacation, how vacation time accrues, and any restrictions on taking vacation time.
Maternity / Paternity / Parental Leave
Employees giving birth are entitled to 17 weeks of unpaid maternity leave (this could be more, depending on how long the employee has been working with the company). Although the leave is unpaid, employees might be eligible for employee insurance benefits, which provides up to 15 weeks of maternity benefits. You can find more information about it here.Employees also receive up to 63 weeks of unpaid parental leave, or 71 weeks if the leave is shared between parents. Employees have a 78-week period from the date of birth or the date the child is adopted to use the leave.Like maternity leave, parental leave is unpaid, but employees may be eligible for employee insurance benefits.Remember that maternity leave is for a person who is pregnant or has given birth, while parental leave is for the parents of a newborn baby or newly adopted child. Someone who takes maternity leave may also be eligible for parental leave.Please note that during maternity, paternity, and parental leave, employees have job protection and cannot be terminated or laid off.
Employment / Termination
Employers are required to give employees two weeks' written notice of termination or pay two weeks' wages in lieu of notice. Depending on the employment agreement:
- The notice period may not be required if the employee is within the probationary period, resigns, or is dismissed for misconduct connected to their work, or if it is the end of a contracted position.
- The recommendation is to include and offer an Enhanced Severance Package in exchange for a signed waiver and release letter.
- Employees who have worked for their employer for at least five years are entitled to severance pay. The amount of severance pay depends on several factors, including the employment agreement, applicable bargaining agreements, and provincial laws. Employees with at least 12 months of continuous service generally receive one week's pay for each year of service up to a maximum of 26 weeks.
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Enter details about your hire to get an estimated employment cost, including taxes.
Annual cost of employment*
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| Salary | Taxes (32.65%) | Total | |
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| Monthly | 0BRL | 0BRL | 0BRL |
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*rates for: July 23, 2024
Once you have sorted out the details mentioned above, you can add the employee to the Plane platform. We provide a step-by-step workflow that shows what tasks need to be completed, as well as real-time updates and notifications. This way, you can stay on top of the hiring process at all times. With Plane, you can confidently hire, knowing that you have a powerful tool at your disposal to manage the entire process from start to finish. Here are the instructions for adding a new employee to the platform:
How to hire and onboard an employee
Plane offers a guided process for administrators and managers to hire and onboard their new employees...
Learn moreHiring an employee in a new country can be a complex process, but with the right guidance and resources, it can be a smooth and successful transition. At Plane, we're committed to helping you navigate the process of hiring an employee in Canada. We'll keep you informed and up-to-date with the latest regulations and employment laws.Good luck with your new hire, and welcome to Canada!
Frequently Asked Questions
Here are the answers to some common questions about hiring employees in Canada with Plane:
Canada Employment Laws: A Guide for US Companies
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Canada Vacation Laws: A Guide for US Companies Hiring Abroad
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