If you’re looking to hire in Canada, one important task is understanding the
country’s labor rules and regulations, especially when it comes to paid leave
entitlements for employees (which can add up quickly for local employers).
Paid time off is governed by t he Canada Labour Code in federally regulated
workplaces, but many employers will be held to the specific laws of each
province and territory where employees reside.
Read on to learn more about paid leave laws in Canada and how to navigate the
legislative complexity as a local employer.
Vacation and paid time off
As you prepare international benefit and compensation packages, it’s important to know how much time off the
government requires you to give employees. Canadian workers are entitled to
the following vacation time , based
on their length of employment :
- One or more year of service. At least two weeks of vacation pay at 4% of their gross earnings.
- Five or more years of service. At least three weeks of vacation pay at 6% of their gross earnings.
- Ten or more years of service. At least four weeks of vacation pay at 8% of their gross earnings.
But what about the timing of vacations? Can employees take their vacation all
at once or can employers require them to spread it out? In some cases, for
example, it might pose a risk to your business to have an employee away for a
full month of earned vacation.
Under the code, eligible employers have the discretion to come to a
collective agreement in regards to allowing employees to take their vacation
at one time or spread it out over multiple periods.
Types of unpaid and paid leave
Employees need to take time off for a variety of reasons including, personal
illness, illness of a child or close relative, death of a family member, or
domestic violence. For these life situations, there are various types of
leaves that apply and rules around what eligible employers must provide (which
vary by province). Consider the following:
Personal leave. You must provide every worker with at least five days
of personal leave a year. Qualifying for this leave requires an employee to
first work for three consecutive months for the employer. Three of these leave
days must be paid. Qualifying reasons for an employee to take personal leave
vary and may include illness or the need to take care of a family member.
Leave for traditional or aboriginal practices. Employees of aboriginal
descent may take up to five days of unpaid leave annually to participate in
aboriginal practices. This may include hunting, harvesting, fishing and more.
The employee must first work for at least three consecutive months to qualify.
Additionally, the employer can require documentation proving the employee is
of aboriginal descent be provided within 15 days of his or her returning from
leave.
Family violence victims leave. Employees that are the victim of family
violence have access to up to 10 days of leave per year. Having worked for at
least three consecutive months is required to qualify for the leave. Five of
the days must be paid by the employer.
Jury duty or court leave. Employers are required to offer leave to
those that need to serve as witnesses in court or participate in the jury
process. This leave is not required to be paid.
Maternity and parental leave. Employees are entitled up to 17 weeks
of maternity leave and up to 63 weeks of unpaid parental leave (depending on
the province). Employers are not required to pay employees or provide benefits
during maternity leave. But employees may be eligible for pay and benefits
under the federal Employment Insurance program.
Pregnant and nursing leave. In addition to maternity leave, if an
employee is unable to work because of a pregnancy or nursing, they are
eligible for unpaid leave—from the start of a pregnancy until 24 weeks after
birth.
Bereavement leave. Employees that have completed at least three
consecutive months of employment are entitled to take up to five days of
bereavement leave. The first three days must be paid by the employer.
Medical leave. Employers must provide up to 17 weeks of leave for
illness, medical appointments or organ and tissue donations. The leave isn’t
required to be paid sick leave and there is no minimum regarding how long an
employee must first be employed to qualify. Employers may request a note from
a health provider if an employee’s sick days continue past 3 days.
Paid holidays. Employees are also entitled to paid holidays. The nine general holidays in Canada include
New Year’s Day, Good Friday, Victoria Day, Canada Day, Labour Day,
Thanksgiving Day, Remembrance Day, Christmas Day and Boxing Day.
Navigating paid leave in Canada
Not only do local employers need to account for different types of employee
leave, but they may also need to navigate scenarios when an employee stacks
multiple leave entitlements. For example, an employee may need to take a
personal leave and medical leave simultaneously. HR teams will need to know
when it’s possible for an employee to use multiple types of leave and how to
structure it legally.
For employers in Canada, the area of paid time off can be challenging to
navigate, especially with recent revisions to the Canada Labour Code. If
you’re considering business growth in the Canadian market, it’s important to
consider any employment contracts that you’ll have in place and any collective
agreements, as well as how those fit into the code.
How an employer of record can help
Working with an employer of record can help if you’re considering expanding your business in Canada. An employer of record can:
- Keep you up to date with employment regulations as they change
- Make sure every contract, for every worker, meets all requirements
- Provide guidance about cultural norms and hiring best practices
Learn how our employer of record solution in Canada
can help ensure you stay in full compliance with all statutory benefits and paid
leave requirements in the local market.
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