A brief overview of the Canadian employment laws
For many businesses vying to enter the Canadian space, understanding the Canadian employment laws can become complex process. Familiarity with the Canadian labor laws is essential to foster a smooth business operation and a pleasing work culture in Canada. This blog aims to offer an adequate outline of some of the primary employment laws in Canada, with a unique emphasis on factors like employment requirements, human rights, health and protection, and employees’ remuneration. In the end, the blog will also highlight how Global Squirrels as an EOR can help your business effortlessly navigate the Canadian labour market without the need to set up an entity in this nation. Let us first discuss Canada employment laws and understand the ways they work.
Federal vs. provincial jurisdiction
Canadian employment laws are regulated by both federal and the provincial government. However, there are specific federal laws that exist in the fields that are considered to be federal, that is, banking, telecommunication, and transportation sectors, while the rest of the employment laws belong to the provincial domain.
Federal jurisdiction: This is implemented in various fields, such as banking sectors, airline services, railway services, and telecommunication services.
Provincial jurisdiction: It applies to most other industries, including retailing, accommodations, and manufacturing.
What are the key areas of Canadian labor laws?
1. Working hours and overtime
Standard work hours: The standard work-week includes forty hours, even though this will differ primarily based on the province in which you are hiring the workers.
Overtime pay: Workers are commonly covered via law to obtain a one-and-a-half wage for the wide variety of hours they work beyond the regular operating hours. Thus, their hourly wages are one and a half times their ordinary wages for any hours labored over the standard workweek.
2. Minimum wage
Provincial rates: Most of the minimum wages are provincial and may be changed from time to time. There is nothing wrong with the current rates, and employers have to make sure that they work according to the set rates.
3. Human rights in the workplace
Canadian employment laws emphasize the significance of human rights inside the workplace. As an employer, you must ensure workplace discrimination and harassment are eliminated or, at a minimum, no longer triumphant.
4. Health and safety regulations
Ensuring the fitness and protection of employees is an essential factor of Canadian labor law. Some of the employer’s responsibilities are risk evaluation, provision of training to the employees in occupational safety, and enacting measures for safety.
Provincial Occupational health and safety (OHS) acts: As for the legislation for OHS, each province has its Act that establishes the responsibilities of employers and employees in providing and maintaining safety at the workplace.
5. Employee benefits and compensation
Canadian employment law also covers various employee benefits and compensation structures. Employers must adhere to these regulations to attract and retain top talent.
6. Additional benefits
Health Insurance: Supplemental health insurance, though not a legal requirement, can also be offered to increase the level of satisfaction amongst the employees.
Retirement savings plans: Group Registered Retirement Savings Plans (RRSP) is an employee-sponsored retirement plan available commonly with many employers across Canada.
Best practices for ensuring compliance with Canadian labor laws
Global companies must ensure compliance with Canadian labor laws to avoid legal issues and foster a positive workplace culture. Here are a few standard practices that you too can follow:
1. Staying informed
Employment laws can be subject to change more often than any other laws, and therefore, employment relations can be dynamic. Employers should regularly ensure themselves with changes taking place within the federal and provincial legislation. In addition to the labor laws, employers must also be well-informed about the work environment and culture followed in Canada before hiring workers.
Legal advice: Consult with legal experts to ensure your company’s policies comply with the Canadian employment law.
2. Execution of policies
Employee handbooks: Establish clear and comprehensive policies and procedures that can guide the remote employees.
Training programs: Regularly train employees and management on their rights and responsibilities under Canadian employment law.
3. Monitoring and auditing
Internal audits: It is recommended that organizations perform routine legal compliance audits to make sure that all the relevant employment standards, health and safety requirements, and human rights legislation are being followed.
Feedback mechanisms: Provide procedures through which employees can express their grievances or express instances that they feel violate certain employment laws.
How Global Squirrels’ EOR solution will help you navigate the Canadian labour market
Canada employment laws involve numerous legal provisions that business organizations are required to meet to avoid legal repercussions. It is one of the crucial legal frameworks that international organizations carrying out their businesses in Canada ought to comply with.
Global Squirrels helps businesses hire top talent worldwide through their end-to-end HR platform. Our AI-powered software will help you source qualified candidates from across Canada based on your job requirements, streamlining the entire hiring process.
Global Squirrels’ platform makes hiring simpler and more affordable by handling all aspects of payroll, benefits, and compliance as your Employer of Record in Canada. This allows you to focus on growing your business while we manage the administrative complexities of employing workforce in Canada.
With our assistance, your business can minimize legal issues and foster a more positive working environment. It is essential for your business to observe these laws because they not only protect your business from legal consequences but also enhance the morale of your workers and make them work smarter.
With our platform’s latest features, you can effortlessly hire and manage Canadian remote workers. Some of the features that will enable seamless remote employee management include country-specific timesheet customization, leave management, tasks assignments (one-time and recurring), onboarding, and termination. Our hiring and payroll platform is designed to keep your employees productive and organized. Request a demo here to see how our platform works!
