Canada – Ontario

Employment

There are two types of employment contracts in Ontario – fixed term and open ended. They can be either written or agreed orally.

Payroll

Salaries are paid bi weekly, bi-monthly or monthly. The paydays are decided between the employee and employer.

HR & Labor

Working Hours: Full time employment is considered 40 hours and 8 hours a day. If the work day lasts longer than 8 hours, there must be a written agreement between the employer and employee. Employee receives a break after working 5 consecutive hours. Overtime is paid 1.5 of the regular wages, known as time and half.
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Minimum Working Age: Employees can be as young as 14 years old, however between the ages 14-17 they can’t be employed during school hours.

Immigration

If the employee is in Ontario for a certain amount of time, they can apply for temporary working permit issued by the Canadian government. If the employee wants to work in Ontario permanently, they must apply for Ontario Immigrant Nominee Program.

Minimum Wage

The minimum wage is $11.40.

Pension Fund

Employers contribute 4.95%

Employees contribute 4.95% with maximum contribution of $2,544.30.

Severance Payments

One week of severance pay for each year spent in the company.

Advance Notice

Employee must give a minimum of two week written notice.

Termination Procedure

If the employee has been in the company for less than 3 months of employment, no notice required. From 3 months to 1 year, 1 week notice. From 1 year to less than 3 years, 2 weeks’ notice. 3 years to less than 4 years, 3 weeks’ notice. From 4 to 5 years, 4 weeks’ notice, and 1 week of additional notice time until 8 years in the company. From 8 years and on, 8 weeks only.

Sick Days

An employee is protected for any absence not exceeding 17 weeks.
The employer is not required to continue salary payments while the employee is absent. The Code provides job security only. There is no provision for paid leave of absence. Some employees, however, may be entitled to cash benefits under the Employment Insurance Act (EI).

Public Holidays

There are 9 public holidays.

Vacation Days

Employees are entitled 2 weeks of vacation for every 12 months of consecutive work in the company. Vacation pay is at least 4% of the “gross” wages earned during those 12 months.

Maternity Leave

As there is no provision for paid leave in Canada, the following information pertains to the benefits under the Employment Insurance Act.

Maternity benefits are offered to biological mothers, including surrogate mothers, who cannot work because they are pregnant or have recently given birth. A maximum of 15 weeks of maternity benefits is available. Benefits can be paid as early as 12 weeks before the expected date of birth, and can end as late as 17 weeks after the actual date of birth. The weekly benefit rate is 55% of the claimant’s average weekly insurable earnings up to a maximum amount.
EI parental benefits are offered to parents who are caring for a newborn or newly adopted child or children.

Paternity Leave

See Parental Leave

Parental Leave

Parental benefits are offered to parents who are caring for a newborn or newly adopted child or children.

Standard parental benefits can be paid for a maximum of 35 weeks and must be claimed within a 52 week period (12 months) after the week the child was born or placed for the purpose of adoption. The weekly benefit rate is 55% of the claimant’s average weekly insurable earnings up to a maximum amount. The two parents can share these 35 weeks of standard parental benefits.

Extended parental benefits can be paid for a maximum of 61 weeks and must be claimed within a 78-week period (18 months) after the week the child was born or placed for the purpose of adoption. The benefit rate is 33% of the claimant’s average weekly insurable earnings up to a maximum amount. The two parents can share these 61 weeks of extended parental benefits.

You can choose to claim extended parental benefits only if your child was born or placed with you for the purpose of adoption on or after December 3, 2017.

Additional Employee Withholdings

1) Employment Insurance

1) Employer contributes 1.88%

1) Employee contributes 1.88%.

VAT

VAT is 13% standard rate.