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Written Agreements

In Canada, an employment contract can be either written or verbal - both are equally binding and enforceable. Employment arrangements equivalent to or surpassing a period of 6 months within a year are secured by signed and dated written contracts of employment.

Employers are prohibited from entering into solely non-compete agreements or contracts containing non-compete agreement clauses. Non-solicitation clauses are not included in the mandate.

Beginning June 1, 2022, Quebec passed Bill 96,which institutes massive changes to the Charter of the French Language(the law declaring French as the official language of Quebec and related rules). The bill fortifies the use of French throughout business processes and communication.

Oral Agreements

Oral contracts are binding and enforceable in Canada - the labor code does not require a written contract.

Implied Agreements

Industry best practice dictates that the employer enter into a written employment agreement with the employee, as it is binding and legally enforceable.

Without a written contract of employment, the actions and conduct of the employer (for example, during a job interview) may be construed by the courts as creating an implied contract that guarantees employment and includes terms the employer did not intend.

The statutory hours for employees are eight per day or 40 per week. The maximum number of hours of work permitted per week is 48. Where the nature of work in an industrial establishment necessitates irregular distribution of employees' working hours, daily and weekly hours may be calculated as an average for a period of two or more weeks. Regulations allow for different standard working hours for certain industries and types of work.

During a week when one or more holidays occur, the standard hours of work are reduced by eight for each holiday.

Employers must create a policy with general rules on respecting employee’s time outside of working hours. If there are any exceptions to the rules, they must be outlined and justified in the policy. The policy should state the date that the policy comes into effect.

New Year’s Day (January 1, National), Bank Holiday (January 3, Quebec only), Family Day (February 13, British Columbia only), Islander Day (February 20, Prince Edward Island only), Heritage Day (February 20, Nova Scotia only), Family Day (February 20, Alberta, Ontario and Saskatchewan), Louis Riel Day (February 20, Manitoba only), Heritage Day (February 24, Yukon only), Good Friday (April 14, National), Easter Monday (April 17, National), Victoria Day (May 22, National but excludes Quebec), National Patriots’ Day (May 22, Quebec only), National Aboriginal Day (June 21, Northwest Territories and Yukon only), Quebec’s National Day (June 24, Quebec only), Canada Day (July 1, National), Nunavut Day (July 9, Nunavut only), Civic Holiday (August 7, National but excludes Quebec and Yukon), Discovery Day (August 21, Yukon only), Labor Day (September 4, National), Thanksgiving Day (October 9, National), Remembrance Day (November 11, National), Christmas Day (December 25, National), Boxing Day (December 26, National).

Canada's Labour Code allows termination without notice or severance within three months of the beginning of an employee's contract. A probationary period is set at the provincial level. Statutory probationary periods are set by each province, ranging from 1 to 12 months.

Notice Period

Federally regulated employees are not required to give their employer notice if they choose to quit. However, when employers decide to terminate a position, they must either give the employee 2 weeks’ written notice or pay 2 weeks’ regular wages in lieu of the notice. When employees resign or are dismissed for just causes, they are not entitled to a notice.

In the case of collective dismissals of over 50 employees, an additional notice of 16 weeks is required.

Severance Benefits

Employees in Canada are entitled to severance pay if they have completed at least 12 consecutive months of continuous employment before the layoff or dismissal resulting in termination.

The severance pay is calculated as two days' regular wages for each full year worked before termination of employment. The minimum benefit is five days of wages.

Severance pay eligibility and benefits may differ by province. And in Ontario, there is a distinction between severance pay and termination pay. In that province, employees are eligible for severance pay if they have at least 5 years of service and the employer

• has a global payroll of at least $2.5 million or
• severed the employment of 50 or more employees in a 6-month period because all or part of the business permanently closed.

Employees dismissed for just cause are not entitled to severance pay.

Termination Pay

Termination pay in Ontario is given in lieu of the required notice of termination, and it has eligibility requirements and a payment calculation that differ from severance pay.

The notice required to terminate an employee in Ontario (and therefore the amount of termination pay) depends on the duration of employment.

Minimum Wage

In Canada, experienced adult employees receive the federal minimum wage. Employees working in a province or territory with a higher minimum wage will receive the higher rate. The minimum wage rates vary from CAD 15.00 to CAD 19.00 per hour.

Overtime, Holiday & Vacation Pay

According to the Canada Labor Code, any hours worked in excess of the standard hours of work are considered overtime. Overtime pay is calculated at a rate of at least 1.5 times the regular hourly wage. Employees can also request time off of 1.5 hours per each hour of overtime instead of overtime pay. These regulations may differ by province. Certain categories of employees (whose work is supervisory or managerial in character) are exempt from overtime. Provincial overtime legislation may exempt additional categories of employees. For example, Ontario and Alberta exempt information technology professionals from overtime regulations and British Columbia exempts high technology employees.

An employee who works on a holiday is compensated at a rate equal to at least 1.5 times their regular pay rate.

Visas

There are two main categories of visas in Canada:

• Temporary visas – allow the holder to stay in Canada for a limited amount of time for purposes of tourism, visiting family, studying, or working, usually up to 6 months (can be single-entry or multiple-entry)
• Permanent visas – allow the holder to move to Canada permanently to work and be on a path to Canadian citizenship.

Work Permits

Foreign nationals are required to obtain a work permit for most jobs in Canada. The types of documents required depend on the type of work permit noted in the application. There are two types of work permits:

• Employer-specific work permit - allows a person to work for a specific employer in Canada. This permit must include the type of work to be performed, the employer, the place of work, and its duration.
• Open work permit - allows any to work for any employer in Canada with a few exceptions

Regulated professions are required to ensure they comply with any regulations respecting English or French language proficiency testing requirements. Additional qualifications are required.