Hiring & Recruiting in Canada.

When expanding your company to hire employees in Canada, you must navigate a complex web of federal and provincial laws that govern the entire employment lifecycle. Understanding these regulations is critical for compliant and successful hiring.

Sourcing talent in Canada

To effectively attract top talent in Canada's competitive job market, companies need a strategic recruitment plan. Building a strong employer brand is essential, showcasing a commitment to diversity, competitive salary packages, and desirable benefits. Offering remote work options can also draw in a more extensive pool of applicants, appealing to those who seek flexibility. Utilizing professional networks and social media platforms enhances visibility and reach in attracting qualified candidates. 

Ensuring a smooth and engaging hiring process, where applicants feel valued, also contributes to maintaining a positive reputation in the market. These strategies help businesses not only attract but retain high-quality Canadian employees, enhancing workforce stability.

Common recruitment channels in Canada include major online job boards such as Indeed and Eluta.ca, professional networking sites like LinkedIn, and the federal government's Job Bank. Posting on your company's career page is also standard practice. Each province and territory has its own set of employment standards and human rights laws that impact the recruitment process, from job postings to interviews.

Legal compliance in hiring

Non-discrimination and human rights

Both federal and provincial human rights legislation prohibit discrimination in hiring. Job advertisements, interview questions, and hiring decisions cannot discriminate based on protected grounds. While these vary slightly by jurisdiction, they universally include race, religion, sex, age, sexual orientation, disability, and marital or family status. More recent protections in most jurisdictions also explicitly cover gender identity, gender expression, and genetic characteristics.

• In Ontario, the Human Rights Code prohibits job postings that directly or indirectly express a limitation or preference based on a protected ground.
• In Quebec, the Charter of Human Rights and Freedoms provides similar protections and restricts interview questions to those directly related to the candidate's ability to perform the job.

Permissible background checks

Employers may conduct background checks, but they must be limited to what is a bona fide occupational requirement (BFOR) for the position. Consent from the candidate is required. 

Types of checks include:

• Criminal record checks: Generally only permissible for positions where it is directly relevant, such as roles involving vulnerable populations or high security.
• Credit checks: Restricted to positions with significant financial responsibility.
• Reference checks: A standard practice, but questions asked must comply with human rights laws.

Data privacy compliance

Employers must handle candidate data in compliance with privacy legislation. Federally regulated businesses are governed by the Personal Information Protection and Electronic Documents Act (PIPEDA). Alberta, British Columbia, and Quebec have their own private-sector privacy laws that are deemed substantially similar, while other provinces are covered by PIPEDA for commercial activities. Key principles include obtaining consent, collecting only necessary information for a reasonable purpose, and ensuring data is securely stored.

Employment contracts in Canada

While not always legally required, written employment contracts are a best practice and strongly recommended. A comprehensive contract should clearly outline the terms of employment, including duties, compensation, work hours, and termination provisions.

When expanding to Canada, G-P Gia offers instant, expert guidance on compliance assessing risk and outlining employment laws—saving valuable time to focus on hiring the right talent. Gia also provides real-time, multi-jurisdiction compliance checks on employment contracts — no more waiting days for legal counsel or accumulating costly billable hours.

Hiring full-time employees vs. contractors in Canada

With a well-developed hiring process, businesses can effectively manage their workforce needs. When looking to hire in Canada, companies can opt for different employment models including full-time hires and Canadian contractors. When considering whether to hire Canadian employees or opt for contractors, companies should evaluate their specific business requirements:

• Full-time employees typically provide stability and commitment to the company, and they are entitled to benefits like health insurance and paid leave under Canadian employment laws.
• Independent contractors offer flexibility, usually handling specific projects without long-term commitments, which can benefit businesses with fluctuating workloads. 

It's important to consider the legal and tax implications when choosing between full-time and contract employment. Misclassifying a contractor as an employee can lead to legal issues and unexpected costs. Understanding these employment distinctions helps companies align their hiring strategies with their business goals. G-P Contractor provides a centralized platform that simplifies contract creation, makes it easy for your teams to onboard contract talent. Using G-P to manage contractors allows you to centralize your global workforce, gain peace of mind, and accelerate your strategic growth.

Canada probationary periods

A probationary period must be explicitly stated in the employment contract to be enforceable at common law. Many employers use a 3-month period, which often aligns with the minimum statutory notice period under provincial employment standards. However, terminating an employee during probation may still trigger entitlements to common law reasonable notice if not handled correctly in the contract.

Language requirements in Quebec

As of recent changes to the Charter of the French Language, employment contracts and all related documentation in Quebec must be presented to the employee in French first. An employee may only agree to be bound by a version in another language after being provided with the French version.

Onboarding employees in Canada

Once an offer is accepted, employers must complete several key onboarding steps.

• Verify Social Insurance Number (SIN): Employers must view an employee's SIN card or confirmation letter and record the number. A SIN beginning with a “9” indicates a temporary worker who requires a valid work permit from Immigration, Refugees and Citizenship Canada (IRCC).
• Complete Tax Forms: Employees must complete both a federal Form TD1, Personal Tax Credits Return, and a corresponding provincial or territorial TD1 form. In Quebec, employees must complete federal Form TD1 and provincial Form TP-1015.3-V, Source Deductions Return.

Grow globally with G-P.

G-P EOR makes hiring global teams in a matter of minutes simple, risk free and compliant. All without the need to set up entities or spend time, money and resources engaging consultants and local experts in HR, law and taxes. With G-P Contractor you get simple work flows, integrations, and AI-powered features that transform the way you onboard, manage, and pay contractors in more than 130 currencies and over 190 countries. Saving you hours of manual work.

Request a proposal to learn more about how we can help you recruit, hire, and onboard anyone, anywhere.