The Recruitment and Hiring Process in Canada
Foreign companies recruiting staff to open a legal entity in Canada must follow various procedures to register and onboard employees. These include:
• Registering for payroll with the Canada Revenue Agency (CRA)
• Completing Form RC1 for a Business Number (BN) and forwarding it to the relevant Tax Service Office (TSO) or Tax Centre (TC)
• Ensuring employment contracts comply with Labor Standards laws for the relevant province and the employee has a Social Insurance Number (SIN)
• Completing employee’s Form TD1 (Personal Tax Credits Return) to calculate how much tax is deducted from earnings
• Registering a payroll program account and obtaining the payroll number for making and remitting deductions and filing returns as soon as you start hiring employees
• Calculating deductions and contributions for the Canadian Pension Plan (CPP), Employment Insurance (EI) and income tax
• Sending payroll information returns and completing year-end summary for all employees’ pay and deductions. Remitting deductions for CPP, EI and income tax
Bradford Jacobs’ Professional Employer Organization (PEO) and Employer of Record (EOR) services provide all the answers to recruiting and hiring top talent to fill the roles vital to your company’s successful expansion into Canada. Our solutions are cost-effective and time-saving … it’s that simple.
Legal Checks you can make on Employees in Canada
Background checks, or pre-employment screening, in Canada are generally governed by privacy law relating to the public sector. In the private sector, checks are not always governed by privacy law.
Checks should be made only after making a provisional job offer.
General guidance for the employer covers:
• Don’t collect more information than necessary or relevant
• Use information only for the stated purpose
• Restrict information to those for whom it is relevant
• Make collected personal information available for the potential employee to verify
• Delete or destroy information once it is no longer needed
Specific points include:
• Avoid discrimination. It is illegal to ask a candidate’s age, sexual orientation, place of origin or other human rights-protected grounds
• Education background checks are to confirm accuracy of the educational qualifications
• Professional experience checks confirm where they worked previously and for how long
• Employment references checks can be made with the former employer
• Background credit checks are permissible where employment may give the opportunity to commit theft or fraud, such as in banking or accountancy
• A driver’s record check applies only where relevant to employment, such as drivers or sales positions
• Criminal background checks, which risk contravening human rights and privacy laws, should be undertaken only with the candidate’s written consent. They comprise Criminal Record Checks (CRCs), Police Information Checks (PICs) and Vulnerable Sector Checks (VSCs)
How do you hire Employees in Canada?
• The hiring process in Canada begins through verbal or written agreements
• Employers must operate within the jurisdiction of federal and provincial laws
• Conditions of employment, such as working hours, overtime, minimum wages, national holidays, vacations, benefits, leaves of absence, notice periods and severance and termination pay, vary from jurisdiction-to-jurisdiction and being aware of these are essential to the hiring process
The procedures for onboarding employees include:
• Registering for payroll
• Obtaining employee’s Social Insurance Number (SIN) within three days of starting work, and completing Form TD1 Personal Tax Credits Return within seven days of starting and before starting salary payments
• Opening a payroll program account for making and remitting deductions and filing returns
• Calculating deductions and contributions for the Canadian Pension Plan (CPP), Employment Insurance (EI) and income tax
• Sending payroll information returns. Completing and filing year-end summary of all employees’ pay and deductions. Remitting deductions for CPP, EI and income tax to the Canada Revenue Agency (CRA)
Outsourcing the recruitment and hiring process through Bradford Jacobs’ Professional Employer Organization (PEO) network gives you the confidence that our in-depth know-how will deal with all aspects of hiring and onboarding new staff. Trusting our Employer of Record (EOR) services to handle every aspect of payroll compliance guarantees a stress-free move into your new territory.
Basic Facts on Hiring in Canada
Companies hiring new staff for their expansion into Canada face a framework of rules and regulations at both federal and provincial level. Generally, provinces have jurisdiction over employment, while federal laws govern such sectors as aeronautics, banking and inter-province transport logistics.
The federal government and provinces have legislation setting minimum standards for such as sick leave, minimum wages, work hours, maternity allowances and holidays. Other rules regulate workplace discrimination and employee privacy.
To hire employees, companies must follow procedures set by the Canada Revenue Agency (CRA).
• If you pay employees you must register for payroll
• Obtain the employee’s Social Insurance Number (SIN) within three days of their starting work and complete Form TD1 Personal Tax Credits Return within seven days
• Obtain a payroll number and open payroll program for making and remitting deductions, give date employees receive first payment, the number of employees, frequency of payments and parent company’s country if a foreign-owned entity
• Calculate deductions for Canadian Pension Plan (CPP) and Employment Insurance (EI)
• Submit payroll information returns, complete and file year-end summary of pay and deductions for all employees
Your company will operate effectively in the shortest time by outsourcing payroll to an Employer of Record (EOR) such as Bradford Jacobs. We have the experience and expertise to handle all levels of the process, relieving employers of the headaches associated with complying with federal and provincial employment and tax regulations.
Canadian Work Culture
Teamwork is highly valued in the Canadian business environment. Working well with others, listening to their ideas and sharing responsibility are important skills. Co-workers are treated with respect, from those working in entry-level positions to supervisors and managers.
• Knowledge of French is important throughout Canada as English and French have equal standing, but is vital if the business is based in or serving Québec
• Start introductions formally with titles. Canadians tend to move quickly onto first-names. A firm handshake is the standard greeting, maintaining eye contact
• Being punctual is valued
• Dress code is generally formal for men and women in business, more informal in tech companies
• Canadians value everybody’s opinions being heard. Business communication is direct and courteous. Avoid aggressive sales pitches. Decisions tend to be based on verifiable facts. French culture in Québec may see more deference for senior figures
• Swapping business cards at either end of the meeting is usual – it’s a good idea to print English on one side and French on the reverse
• Be wary of offering a gift before the deal is sealed, in case it is seen as an attempt to curry favor. The public sector has a code of conduct prohibiting this practice. Agreements are often sealed by a handshake and written order, later confirmed in documentation. That might be the time to offer a small gift … or suggest lunch or dinner
What Employment Laws exist in Canada?
Canada’s Labor Code details the rights and responsibilities of employers and employees under federal, provincial and territorial laws, which also cover foreign workers.
• The Canada Labor Code defines the rights and responsibilities of 12,000 businesses and 820,000 employees in federally-regulated sectors, covering industrial relations, workplace health and safety, holidays, working hours, unjust dismissals, minimum wage and severance payments
• The Canadian Human Rights Act prohibits discrimination in employment and services within federal jurisdiction
• The Employment Equity Act requires federally-regulated organizations to provide equal opportunities to women, Aboriginal groups (Indian, Inuit or Métis), people with disabilities, members of minorities. These provisions also come under The Federal Contractors Program, which applies to employers incorporated in a particular province who have federal contracts in excess of CAD1,000,000
• The Legislated Equity Employment Program requires employers to report annually how many individuals from the four groups have been integrated into their workforce
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How do you onboard employees in Canada?
Moving existing employees into Canada or recruiting staff in-country are the first steps for companies planning expansion. The most efficient and effective method is through a Professional Employer Organization (PEO) global recruitment company such as Bradford Jacobs. Our employment experts will source top talent and obtain work permits or visas, which demands in-depth understanding of the complex multi-category application system.
Locating and onboarding staff within Canada avoids visa issues, but new staff members must still be integrated into the company’s business culture. Making them a happy, motivated and effective team member is an essential requirement. Human resource are a key element of the Employer of Record (EOR) services at Bradford Jacobs.
We devise specific onboarding plans to integrate new employees, with guides, information, resources and support to understand local customs, culture and business etiquette. Our consultants ensure the process begins before ‘Day One’ and ongoing support lasts well beyond the first week.
What is the Benefit of outsourcing hiring in Canada?
A major benefit of outsourcing recruitment in Canada is that it streamlines international expansion by opening potential new markets efficiently, speedily and cost-effectively. Outsourcing allows companies to focus on planning and managing their new venture.
Advantages for the parent company include:
• A wide-ranging talent search undertaken by the Professional Employer Organization (PEO) with reduced recruitment costs
• Control over capital expenditure, without the need to establish premises for a subsidiary or branch
• Mitigate risks with an ‘easy in, easy out’ operation while exploring new markets
• Quickly launch new projects
• Focus on core business
• Improve flexibility and scale your global workforce to fit the expansion blueprint
The next stage is to outsource payroll, by using Bradford Jacobs’ Employer of Record (EOR) expertise to deal with the demanding requirements of Canadian employment laws at federal and provincial level. Bradford Jacobs’ global recruiting and EOR services take care of selection, onboarding, payroll, compliance and providing ongoing support. Do what you do best – outsource the rest.
Working with Recruitment Agencies in Canada
Canada’s recruitment sector represents two million temporary workers and 13% of the country’s workforce, generating around CAD15 billion in the economy. The sector engages with information technology, engineering, administrative support, sales and business development, finance and accounting, human resources, professional and managerial services, healthcare and industrial services.
Canadian employers can use recruitment agencies to hire foreign ‘Express Entry’ candidates in the absence of Canadians or permanent residents with the necessary skills.
Disadvantages of using a recruitment agency, instead of outsourcing hiring to a Professional Employer Organization (PEO), include higher costs, no guaranteed cultural fit with the business or location and little awareness of company branding.
The Canadian government has a federal site to attract jobs in various sectors, such as in government, security and defence and public services as well as for graduates and indigenous peoples.
Employment Contracts in Canada
• Legally. employment contracts can be verbal or in writing. Written contracts are advisable where complex terms apply to such as compensation, benefits and pensions and must comply with provincial and territorial laws
• Contracts can be fixed-term or indefinite
• Any restrictions on confidentiality or intellectual property rights must be covered in the contract
• Foreign workers’ contracts must comply with representations made in the work permit application
Work with Bradford Jacobs’ Global Recruitment Services
Bradford Jacobs’ Employer of Record (EOR) and Professional Employer Organization (PEO) specialists use their market-leading understanding of hiring and recruiting in Canada when consulting with international companies on their global expansion plans. Canada is among the world’s strongest economies and attracts foreign investment and expansion, but negotiating the complex federal, provincial and territorial labor laws and complying with payroll, tax and registration issues demands expert guidance. Every aspect of hiring and recruiting in Canada falls within our expertise and experience. Remove the risks, costs and uncertainty of establishing a subsidiary in Canada by outsourcing your recruitment and payroll through Bradford Jacobs. Contact us now – we have the solutions.