Canada
- Introducing PEO in Canada
- What types of employment contract are there in Canada?
- What mandatory clauses must be included in a Canadian employment contract?
- How do you amend an employment contract in Canada?
- What makes a contract invalid in Canada?
- What are the minimum employee entitlements in Canada?
- What are the mandatory benefits in Canada?
- Is private health insurance available in Canada?
- Can employees receive stock options in Canada?
- Are there any other benefits available to employees in Canada?
- What is the minimum wage in Canada?
- What is the standard work week in Canada?
- What are the statutory public holidays in Canada?
- What are the overtime rules in Canada?
- What are the standard leave policies in Canada?
- Are alternative work arrangements possible in Canada?
- What is the required documentation for onboarding in Canada?
- How do you register an employee in Canada?
- What are the contract signing requirements in Canada?
- Can companies implement their own onboarding in Canada?
- What rules concern the base salary in Canada?
- How are bonuses and commissions handled in Canada?
- How are allowances handled in Canada?
- How is individual income tax handled in Canada?
- What are some other payroll considerations in Canada?
- How are expenses handled in Canada?
- Who makes the decision to terminate an employment contract in Canada?
- What is the procedure to terminate an employment contract in Canada?
- How are final pay and accrued leave handled in Canada?
- How is severance pay handled in Canada?
What types of employment contract are there in Canada?
There are 4 types of employment contract in Canada, each offering specific protections for both Canadian and foreign workers:
- Permanent contracts: The most common type of contract for employees in Canada. Permanent contracts usually include health care benefits, an annual salary, and possibly bonuses as well. This contract type is also considered an open-ended contract. Employers of permanent employees must regularly contribute to their Employment Insurance (EI), Canadian Pension Plan (CPP), and withhold applicable income tax.
- Freelance/contract employment: This type of employment is typically based around a certain project or period of time. Normally, freelance/contract employees are not entitled to EI or CPP contributions by the employer, and benefits are limited to the individual’s contract fee.
- Part-time employment: These employees work less than 30 hours per week, and employers contribute to both EI and CPP. Part-time employment can be comprised of a set number of hours (less than 30) each week, and it can also include occasional or weekend work.
- Temporary work: Temporary work in Canada is often seasonal, for example, agricultural workers who work during the harvest season, lifeguards, rangers, tourism workers, and others. Temporary workers have specific rights to pay, employee safety, and other employee rights, but EI and CPP contributions are optional.
A local PEO can help you determine which contract type is appropriate based on your business needs and the type of work to be performed.
If you have questions about employment contracts in Canada, please get in touch with our team today!
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