Canadian Employment Laws

Entrepreneur’s 2-Minute Guide to Canadian Employment Laws

Whether you are a foreign investor or local entrepreneur, Canada has several business opportunities for you. The stable economy, lower corporate taxes, and availability of skilled labor are significant reasons that attract entrepreneurs worldwide. Not to mention, the country was also on the list of “best countries for business.” This article will guide you to Canadian employment laws.

Canadian Corporate Law

However, just like any other jurisdiction, the country has its own laws and regulations for business. Thus, if you are also planning to do business in Canada, keep in mind certain sets of laws you need to comply with. Failing to do that can make you potentially liable in court for your actions. This is especially important for employment and labor laws.

Note: Every state has its own corporate laws. For instance, the business laws in Edmonton could be a bit different from the ones in Ontario.

According to an Edmonton business lawyer, entrepreneurs must comply with mandatory labor laws and workplace safety standards.

Read on to learn more about the Canadian employment laws you need to comply with while setting up your business.

Hours of Work

As an entrepreneur, you need to know that the standard working hours of your employees are 8 hours/day. Employees can agree to work extra hours, provided there should be an electronic or written agreement between the employer and employee.

Minimum Wages

As an entrepreneur, it is important that you pay your employees minimum wages. You need to know that the minimum wage differs for every employee. For instance, the minimum wage for a student would be comparatively lower than an experienced worker.

Vacation Time & Pay

Employees with less than five years of employment are entitled to earn at least two weeks of vacation. Also, as an employer, you are entitled to pay them at least 4% of their total wages during their time off.

Leaves of Absence

As an entrepreneur, it is mandatory for you to keep in mind that all the eligible employees in your organization are entitled to several types of leaves. For instance, suppose one of your employees is pregnant. In that case, she is entitled to up to 17 weeks of paid maternity leave.

Work Records

According to Canadian employment law, you are obligated to keep written records of every employee. For this, you can ask employees to keep the records of their work or seek third-party help for the same. Such records should be readily available for Ministry of Labour employment.

Termination Notice

In case of termination, it is imperative that you notify your employees in writing. In fact, in many cases, employers are also required to release termination payments along with the notice. However, the amount depends upon the time period and employee contribution to the organization.

To Sum It All Up

Canada is one of the countries that create opportunities for entrepreneurs to thrive and succeed. From the excellent standard of living to industrial growth, there are several advantages of doing business in the country.

It is vital that your business complies with the necessary employment and labor laws. This, in turn, will allow you to keep the rights of the employees protected and ensure the smooth functioning of your venture.

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