If you’re an American employer planning to expand operations in Canada, you need to understand Canadian Employment Law before starting your operations. This includes drafting employment agreements and independent contractor agreements from a Canadian perspective.
It also means localizing workplace policies for the applicable legislation, including employment equity and access laws. In addition, you should not let the cultural familiarity with the Canadian workplace obscure your legal obligations, as there may be major differences.
Below are some basic tips to understand Canadian Employment Law.
Unlawful Dismissal
If you’ve been fired from your job, you may be wondering whether you have a case for unfair dismissal under Canadian Employment Law. Here are three examples of such dismissals and why you should be careful.
The first case involves Colin MacDonald, who had worked for a communications company for 18 years. While his technical abilities were well respected, he developed a negative attitude towards co-workers and refused to do work outside of his regular duties.
Non-unionized Employees
Canada has long been a top choice for companies in North America because of its strong labor laws. There are two main types of labor laws in Canada – collective agreements and individual contracts.
Collective agreements are agreements between the union and the employer that detail all terms and conditions of employment.
Employers in unionized organizations must know how to deal with traditional labor relations issues – such as discipline and discharge, work assignments, contracting out, and privacy and social networking. And there you can consult experienced employment lawyers like Levitt LLP as a source of expert knowledge.
Improper Classification
The impact of improperly classifying an employee under Canadian employment law for US employers is not easily understood. The absence of “at-will” employment can be a big issue in Canadian employment law.
While the United States has very strict employment laws, Canadian employers should not overlook the importance of knowing the laws governing employee classification in Canada. In addition to understanding the differences between the two countries employment laws, it is important for US employers to understand their responsibilities to employees in Canada.
Unemployability
If your company is planning to hire Canadian workers, it is essential that you understand the Canadian employment law and understand the rights of your employees. The law protects both the employer and the employee by regulating matters directly tied to the livelihood of employees.
While many of the rules are similar between Canada and the U.S., Canada tends to have more protective regulations for employees.
Severance Packages
If you’re an American company considering establishing a Canadian operation, you’re probably wondering if it can afford to provide severance packages. In most provinces, the Employment Standards Act requires employers to pay at least one week’s salary for each year an employee worked for the company.
However, the OLRB and the Divisional Court of Ontario have decided otherwise. Although the OLRB’s ruling is important for any Canadian employer, the implications of the Hawkes decision are far-reaching. For example, employers with a few employees in Ontario may be required to pay severance for up to 26 weeks.
As an employer, it is important to be aware of the employment law in the country where your business is located. This is especially true if you are doing business in a country with different employment laws than your own.
For example, if you are a US employer with employees in Canada, you need to be familiar with Canadian employment law. Failure to comply with Canadian employment law can result in significant penalties, including fines and jail time.
There are several key differences between Canadian and US employment laws that employers need to be aware of. One significant difference is that Canada has a federal minimum wage, while the United States does not. In addition, Canadian employees are entitled to paid vacation days and holidays, while US employees are not.
Another key difference is that Canadian workers can file a complaint with the government if they feel their Employer has violated their rights, while US workers cannot. As an Employer, it is important to understand these differences in order to comply with Canadian employment law.
