US Employers What You Need To Know About Canadian Employment Laws

Jai hr management consultancy services

If you are a U.S. company looking to hire Canadian employees, you should be aware of some key differences in employment laws between the two countries. It?s important to have your company payroll services, whether it?s within the company or not, be knowledgable about these differences.

  1. Canadian employment laws are handled by each province, meaning they aren?t federally ruled. These laws include:
    • Minimum wage
    • Work hours
    • Vacation
    • Holidays
    • Leaves
    • Termination requirements

    Specifics on these laws may vary from province to province so this is something to keep in mind if you are have Canadian employees.

  2. There?s no ?employment at will? in Canada. Employment agreements state that an employee is entitled to notice of termination unless there is a just cause. The employee has to be given the notice they were told they would receive upon the start of their employment. A court determines the amount of notice for termination, also known as ?common law?, unless an employer properly implements an agreement about termination notice.
  3. Discrimination based on disability differs in Canada. While both the U.S. and Canada prohibit discrimination, drug addiction and alcoholism are seen as disabilities that require accommodation in Canada. This accommodation could involve job-protected leave if an employee needs to seek treatment.Because of this, drug and alcohol testing are restricted, whereas in the U.S. drug and alcohol testing are fairly common.
  4. Canadian salaries could be higher. The strengthening of the Canadian dollar has raised the average Canadian salary higher than in the Uk, U.S., and most of Europe as well. There is also differences in which employees are or are not eligible for being paid for working overtime. Overtime payment does not depend on if the employee is paid on a salary.

If you?re a U.S. company operating in Canada, you might want to use a Global Employment Organization or Canada Employer of Record to handle employment responsibilities. This will allow you to focus on the actual work rather than the company payroll services. A GEO could be the best payroll service approach if you?re looking to save time and effort when hiring in Canada. This could be key to payroll solutions for small businesses. If they outsource their company payroll services they could have their staff focus on core tasks rather than HR services and employee benefits.