Canada Recruiting & Hiring
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 and recruiting compliance laws closely.
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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 and recruiting compliance laws closely.
Recruiting in Canada
The most common Canadian recruiting source is job boards. Many professionals will look up an advertisement on a popular job board, then also check the company’s recruitment website. However, uploading CVs into a database is becoming a more popular option, so you may want to search for the right candidates on a well-respected resume database.
Just as the culture shifts among provinces, so do the recruiting laws. Each province has the authority to create its own regulations while following the Canadian government’s overarching staffing and recruiting laws. For example, Ontario has the Ontario Human Rights Code (OHRC), which applies to job advertisements. To stay within the law, your advertisement cannot contain any statements, qualifications, or references that could be seen as discriminatory.
In Quebec, all job postings must be made available in French in a way comparable to the non-French versions. Employers are also prohibited from requiring knowledge of a language other than French unless the nature of the employment requires it. You also must phrase all interview questions in a non-discriminatory manner. You could break the Canadian Charter of Human Rights and Freedoms if you directly or indirectly ask a candidate about personal characteristics such as their age, ethnic origin, or disability.
Laws Against Discrimination in Canada
Canada’s human rights legislation protects employees from discrimination. These laws vary by province but commonly protect against discrimination related to race, religion, sex, age, sexual orientation, disability, and marital or family status.
Some jurisdictions in the country have adopted privacy legislation that will protect your employees’ or potential employees’ sensitive data. When you’re staffing your Canadian business, you can collect personal information only for a rational, necessary purpose and must collect it by fair and lawful means. Canadian law requires the employee’s knowledge and consent for the collection, use, or disclosure of personal information. Personal information must also be protected by appropriate security safeguards.
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. 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 Laws
Canada has extensive employment laws at both the federal and provincial levels, 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 90% of Canadian employees are protected by provincial employment laws, while the rest is covered by federal law. Federally-regulated industries include banks, telecommunications, and air transportation.
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.
In Quebec, as of June 1, 2022, employment documentation, handbooks and other written communication must be in French, unless the employee quests that the document be in another language. This requirement applies to all employment contracts of adhesion.
Onboarding in Canada
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 (Personal Tax Credits Return), before their first day.
Benefits of Hiring Outsourcing in Canada
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.
Work With Globalization Partners To Expand Globally
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.