Staffing Considerations for Canadian News Businesses

Written by Kelly-Anne Riess on behalf of LION Publishers.

As a Canadian news startup preparing to hire your first employee, it’s essential to have a clear understanding of how full-time and part-time employment is typically defined in Canada — although there is no specific legal definition. This will help you establish proper employment contracts and policies.

Full-Time Employment:

Generally, full-time employment means working more than 30 hours per week.

Many employers in Canada observe an eight-hour work day with a 30-minute unpaid lunch hour. Therefore, a full-time week is 37.5 paid hours per week.

Full-time employees usually enjoy additional benefits not commonly available to part-time employees. These benefits can include health and dental coverage, profit sharing, or contributions to a registered retirement savings plan (RRSP).

The company may cover the entire health insurance premium or share the cost with the employee.

Hourly pay or salary?

Full-time employees can be paid by the hour, or you can offer a salary. 

If paid by the hour, the employees must be paid for overtime and receive statutory holiday pay, which is required when an employee works a nationally or provincially recognized holiday.

Salaried employees are not paid overtime. Even if they work 80 hours a week, their compensation will not change. Salaried employees are not paid for statutory holidays even if they work on those days. 

Typically, a company distributes a salary to the employee in equal or near-equal amounts for every pay period, which could be monthly or bi-monthly.

Part-Time Employment:

Part-time employment is usually less than 30 hours per week.

Technically, a worker can work up to 40 hours per week and still be considered part-time. The designation of full-time versus part-time employment depends on the employment contract and the employer’s policies.

Under the Canada Labour Code and provincial and territorial regulations, part-time workers must be paid overtime.

Overtime Pay

In most provinces and territories, the overtime threshold is generally 40 work hours per week. There are, however, exceptions in certain provinces. Ontario’s overtime threshold is 44 hours.  In Nova Scotia and Prince Edward Island, it is 48 hours. 

Any hours worked beyond the regulated hourly threshold in a single workweek are considered overtime hours and must be paid in accordance with provincial or territorial rules.

Typically, most Canadian companies do not offer health and dental coverage, profit sharing, or contributions to an RRSP to part-time workers.

Contractor or employee?

In Canada, determining whether someone is an employee or a self-employed contractor is crucial, as it impacts tax obligations and contributions to employment insurance and pension plans.

“Employers are responsible for deducting Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and income tax from remuneration or other amounts they pay to their employees,” according to the Canadian Revenue Agency’s (CRA) online guide RC4110, Employee or Self-Employed?

According to CRA, the employer’s intent going into the employment relationship and the degree of control over the worker are important factors in determining whether you have an employer-employee or a business relationship.

Differences between employees and independent contractors

	Employees	Independent Contractors (Self-Employed Workers or Freelancers)
Employment Status	Works for one client or company.	Works for many clients or companies.
Control	The employer directly controls how and when the work is carried out.	The client has limited control over how and when the work is carried out.
Tools and Equipment	The employer usually provides tools and equipment to the worker, such as a computer. Employees sometimes have to provide their own tools, so this does not automatically make someone an independent contractor.	Independent contractors usually own the tools necessary for the job. They are also responsible for the costs of repairs, maintenance and insurance.
Subcontractors and Assistants	Employees have to personally do the work they have been assigned and cannot hire an assistant.	Independent contractors and freelancers do not personally have to do the work they have been hired for. They can hire another party to complete all or part of the work required. The employer has no say in whom the independent contractor hires.
Financial Risk	Employees are reimbursed for any expense incurred while completing their job. They are not responsible for operating expenses or financially liable if they do not fulfil their contractual obligations. The relationship between a worker and an employer is usually continuous rather than limited to a specific task or project.	Independent contractors generally take on a measure of financial risk and can incur losses. They often have fixed operating costs for operating a workspace or hiring helpers or assistants. The relationship between an independent contractor and a business is limited to a specific task or project rather than an ongoing relationship.
Responsibility for Investment and Management	An employee usually does not need to make any investment to provide the service required by the employer.	Independent contractors may be required to make significant investments to provide the service required. For instance, a freelance photographer would likely own their own equipment.
Opportunity for Profit	Even though their compensation can vary depending on the terms of their contracts, employees normally do not have the chance to profit from their work.	Independent contractors may have the chance to profit or incur losses from their work. They can set their own prices and claim the expenses on their income taxes.
Benefits	Employees are entitled to benefit plans such as registered pension plans, group accident insurance, and health and dental insurance plans.	Independent contractors are not entitled to benefit plans.

Volunteers and unpaid interns

Each province and territory has different regulations around volunteering and unpaid internships, so be sure to look into the rules where your business is located. Ensuring that volunteer work meets the specific criteria outlined by the law is crucial to avoid any potential fines and penalties.

For instance, in Manitoba, volunteering can only be unpaid if the work is performed for a charitable or political organisation, according to Manitoba’s employment standards laws.

The term “internship” is commonly used to describe on-the-job work experiences. These internships and other forms of unpaid training may be permitted in your province or territory if they meet certain conditions. For example, in Manitoba the training must be for a limited duration and approved by the provincial or federal government or a school board. An example of an allowable unpaid internship in Manitoba is a co-op placement required for graduation from a college program. Mandatory job-specific training must be compensated.

If you have an unpaid internship that does not properly meet the regulations of your province, a complaint could be filed against your company.

For example, an event planner in Winnipeg hired unpaid interns without proper provincial approval. Manitoba Employment Standards launched an investigation and determined the interns should have been paid for their work. The employer paid the owed wages, and the claims were closed. Further non-compliance could have resulted in a penalty.

When in doubt, seek legal advice to understand the requirements surrounding unpaid volunteering and internships. 

Note: Whenever possible, LION recommends its member organisations pay interns for their work.