Hiring and HR Compliance Considerations for Canadian News Businesses

By Andrew Rockway | July 24, 2023 |

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

Here are some additional HR compliance matters to consider for Canadian publishers hiring their first employees.

Payroll compliance

Payroll compliance legislation in Canada ensures employees are treated fairly and that payroll taxes and deductions are paid properly.

This legislation defines employers’ rights and obligations and outlines the specific procedures for processing payroll. It includes things like minimum wage, overtime, vacation pay, and deductions.

Payroll compliance legislation in Canada is continuously changing and evolving, so employers must keep updated to stay compliant. There are many ways to do this, such as following the Canada Revenue Agency on social media and by subscribing to CRA updates by email.

The two main types of payroll legislation you need to pay attention to are:

Provincial Legislation: Each province has its own labour and employment standards legislation, which outlines specific requirements for employers. These laws may cover areas such as minimum wage, work hours, vacation pay, and other entitlements. Requirements for deductions, remittances, and reporting differ in each province.
Tax Legislation: Both federal and provincial tax legislation defines the taxes employers must collect from employees and remit to the government. These laws also specify deductions and remittances for employment insurance and pension contributions. Here’s an employer’s guide.

Registering for a payroll account with the Canada Revenue Agency:

Before you hire your first employee, your company must register for a payroll account with the CRA.

A payroll account gives your company a unique account number that serves as an identification number when reporting and remitting to the CRA taxes, deductions and contributions related to your employees.

For more information on setting up a payroll report and filing remittances with the CRA, click here.

Employers should be aware of any province-specific reporting requirements related to payroll taxes.

Payroll compliance processes:

Consider hiring a payroll company, like ADP, to automate payroll compliance systems to simplify and streamline your processes. This will help reduce the possibility of making any errors.

Automated systems also facilitate the timely remittance of legislated deductions to government agencies, which often must be made quarterly.

With automated systems, you can generate pay slips that comply with the relevant legislation. This ensures your employees receive clear and transparent information about their compensation.

Regulations for Employee Termination

Complying with all applicable provincial and federal laws is important when terminating an employee. Here are the key regulations to keep in mind:

Notice Period: Employers must provide at least two weeks’ notice before termination. This ensures employees have sufficient time to make necessary arrangements.
Severance Package: In certain cases, a severance package may be required. This package includes additional compensation for employees upon termination beyond their regular wages. It is important to consult a lawyer to determine if a severance package is required.
Documentation: Employers must provide employees with a Record of Employment (ROE) upon termination. The ROE is a document that outlines the employee’s earnings and employment history, which is necessary for the employee to be able to collect Employment Insurance.

Payroll non-compliance:

Non-compliance with payroll legislation can result in fines imposed on the employer.

Employers could also face civil liability for damages suffered by employees as a result of non-compliance. This can include compensation for financial losses, emotional distress, or other harm caused by the employer’s actions.

Statutory holiday pay

Canadian businesses must provide statutory or public holiday pay to eligible full-time and part-time workers.

Statutory holidays are days when most businesses are legally required to close, but they must still pay eligible employees as if it were a regular workday.

There are five statutory holidays recognized in every jurisdiction across Canada:

New Year’s Day
Good Friday
Canada Day
Labour Day
Christmas Day

In addition to these national statutory holidays, each province and territory may have its own public holidays where businesses must pay their eligible employees holiday pay.

Holiday leave

Holiday leave, also known as paid time off, is accrued based on a percentage of earnings and varies by province or territory, as follows:

British Columbia, Alberta, Manitoba, Ontario, Northwest Territories, Nunavut:

Vacation pay: 4% of earnings for the first five years of employment; 6% afterwards
Vacation entitlement: two weeks after one year of employment; three weeks after five years

Saskatchewan:

Vacation pay: 3/52 of earnings for the first nine years of employment; 4/52 afterwards. Saskatchewan has a vacation pay calculator to help with the math.
Vacation entitlement: three weeks after one year of employment; four weeks after ten years

Quebec:

Vacation pay: 4% of earnings for the first three years of employment; 6% afterwards
Vacation entitlement: one day per month for the first year of employment up to two weeks if less than one year; two weeks after one year; three weeks after three years
Employees entitled to two weeks of vacation may request an additional week’s leave without pay, which the employer must grant. This additional leave cannot be divided into several periods unless the employer allows it.

New Brunswick:

Vacation pay: 4% of earnings for the first eight years of employment; 6% at the start of the employee’s eighth year
Vacation entitlement: one day per month or two weeks of vacation yearly for the first eight years of employment; 1.25 days per month, or three weeks of vacation yearly afterwards

Nova Scotia, Prince Edward Island:

Vacation pay: 4% of earnings for the first eight years of employment; 6% afterwards
Vacation entitlement: two weeks after one year of employment; three weeks after eight years

Newfoundland and Labrador:

Vacation pay: 4% of earnings for the first 15 years of employment; 6% afterwards
Vacation entitlement: two weeks if less than 15 years of employment; three weeks after 15 years

Yukon:

Vacation pay: 4% of earnings
Vacation entitlement: two weeks after one year of employment

Sick or unpaid leave

Every province or territory organises the number of days employees are entitled to unpaid leave, or unpaid sick days, as follows:

Alberta

Employees are entitled to up to five days of unpaid leave.

British Columbia, Nova Scotia:

Employees are entitled to three days of unpaid job-protected sick leave.
In Nova Scotia only, sick leave can be used to care for a family member or for doctor’s appointments.

Manitoba:

Employees are entitled to a 17-week leave for a serious illness or injury; otherwise, three sick days.

New Brunswick, Northwest Territories:

Employees are entitled to five days of unpaid leave per year.

Newfoundland and Labrador:

Employees are entitled to seven days of unpaid leave per year after 30 days of employment.

Prince Edward Island:

Employees are entitled to three days of unpaid leave per year after three months of service. After five years of continuous employment with the same company, the employee is entitled to four days of leave, and the employer pays the first day.

Ontario:

Employees are entitled to three days of unpaid leave per year.

Quebec:

Employees are entitled to two days paid by the employer; an employee cannot be absent for more than 26 weeks in a 12-month period.

Saskatchewan:

Employees are entitled to 12 days per year unpaid. In the case of a serious illness or injury, they are entitled to 12 weeks unpaid.

Nunavut:

Employees accrue 1.25 days each month for a maximum of 10 days unpaid.

Yukon:

Employees accrue one day per month of employment for a maximum of 12 days unpaid.

The remaining provinces don’t impose a sick leave entitlement on employers, instead leaving it to the company’s discretion.

Employees working for their employers for at least three months are protected against dismissal, demotion, and layoffs during an absence caused by illness. Depending on the province, this can be up to 17 weeks.

Employees on sick leave keep accruing pension, health, seniority, and disability benefits as long as they keep making their contributions, which obliges employers to keep making their share of the contributions.

Other leaves, such as parental and compassionate leaves, can be interrupted to take sick leave and resumed immediately after the sick leave ends.

Maternity Leave

Pregnant employees in Canada are entitled to a minimum of 15 weeks and up to 17 weeks (12 weeks in the case of a miscarriage or stillbirth) of maternity leave, which the government pays through the Employment Insurance (EI) program. The cash benefit is 55% of the employee’s average salary, capped at $595 per week. However, you can top up the employee’s allowance as an employer. In Quebec, the government payment is capped at $900.

To be eligible for paid maternity leave, an employee must have worked and accumulated 600 insured hours within the past 52 weeks. The length of maternity leave and threshold for eligibility varies by province and territory:

Alberta, Nova Scotia: 16 weeks
Ontario, British Columbia, Manitoba (after seven months of employment), New Brunswick, Newfoundland and Labrador (after 20 weeks of employment), Prince Edward Island (after 20 weeks of employment), Northwest Territories, Nunavut, Yukon (after 12 months of employment): 17 weeks
Quebec: 18 weeks
Saskatchewan: 19 weeks, including an adopted child’s primary caregiver. It can be extended by an additional 6 weeks (for a total of 25 weeks) with a valid medical reason for not returning to work.

Paternity Leave

In Canada, there is no statutory paternity leave except in Quebec. In Quebec, employees are entitled to five uninterrupted weeks of leave. The Social Security authorities pay for the leave.

Five-Day Leave

In Quebec, biological and adoptive parents have the right to be absent from work for five days, with the first two days being paid. This leave is applicable for the birth or adoption of a child or a termination of pregnancy occurring after the 20th week of pregnancy. Employees are entitled to this leave regardless of the length of their employment. However, if the mother is already on maternity leave or the father is on paternity leave, they are not eligible for this leave.

Parental Leave

All parents, regardless of gender, are entitled to parental leave after the birth or adoption of a child. Both parents can take this leave simultaneously and are paid through the Employment Insurance (EI) program. The benefit amounts to 55% of the employee’s average salary, capped at $595 per week ($900 in Quebec). Some employers may choose to top up the leave pay to 100%.

The length of parental leave varies by province:

Alberta, British Columbia, New Brunswick, Prince Edward Island: 62 weeks
Manitoba (after 7 months of employment), Yukon (after 12 months of employment): 63 weeks
Ontario, Newfoundland and Labrador (after 20 weeks of employment), Nova Scotia, Northwest Territories: 61 weeks — 69 weeks if shared between parents in Northwest Territories
Quebec: 78 weeks for biological parents, including paternity and maternity leave. In the case of adoption, each parent is entitled to 65 weeks.
Saskatchewan: The parent who took maternity or adoption leave is eligible for 59 weeks of parental leave. Parents who didn’t take either maternity or adoption leave are eligible for up to 71 weeks.
Nunavut: 37 weeks. Maternity and parental leave combined cannot exceed 52 weeks.

Parental leave must be taken within the first year of the child’s birth or adoption. To be eligible for paid leave, the employee must have been employed for at least three months and made EI contributions.

During leave, employees are protected from dismissal and have the right to return to their previous job at the end of their leave. Employment benefits, including seniority, continue to accumulate during their absence.

An employee typically takes maternity leave, followed by paternal leave.

For more information, click here.

Personal & family responsibility leave

Employees are entitled to a minimum of three days per year of personal leave after being employed for three months.

The following circumstances can be used for taking a personal leave:

treating an injury or illness
taking care of health obligations for any family member
taking care of family responsibilities
education obligations for any family member under the age of 18
managing any urgent situation that concerns the employee or a family member
attending their citizenship ceremony under the Citizenship Act

The duration may vary by province/territory, as follows:

Quebec: ten days — the first two paid by the employer; the remainder unpaid
Alberta, British Columbia: five days, unpaid
Manitoba (after being employed for 30 days), New Brunswick, Ontario, Prince Edward Island: three days, unpaid
Newfoundland and Labrador (after 30 days of employment): seven days, unpaid
Nova Scotia: combined with sick leave, three days, unpaid
Ontario: ten days of unpaid personal emergency leave
Saskatchewan: no days available
Northwest Territories: no days available
Nunavut, Yukon: the leave not covered by the Labour Standards Act

Bereavement leave

Employees are entitled to a minimum of three days of bereavement leave following the death of an immediate family member or, in Alberta’s case, when a pregnancy ends other than in a live birth. Employees become eligible for bereavement leave after three months of employment. The duration may vary by province/territory as follows:

Quebec: five days – the first two paid by the employer and the remainder unpaid; in the case of the death of an extended family member, one unpaid day off; 104 weeks if an underage child dies or if a partner, parent, or child dies by suicide
Alberta, British Columbia, Manitoba (after 30 days of employment): three days, unpaid
New Brunswick, Nova Scotia, Saskatchewan: five days, unpaid
Newfoundland and Labrador (after 30 days of employment), Prince Edward Island: three days — the first day paid by the employer; the remainder unpaid
Ontario: two days, unpaid
Northwest Territories: three days if the funeral or memorial service takes place in the community the employee resides; seven days if outside the community
Nunavut: the leave not covered by the Labour Standards Act
Yukon: one week, unpaid

Compassionate care leave

Employees are entitled to unpaid compassionate leave to care for a family member who has a serious medical condition or is at risk of death, which varies by province/territory as follows:

New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Manitoba, Prince Edward Island, Saskatchewan, Yukon: 28 weeks within any 52-week period
Alberta, British Columbia, Quebec, Northwest Territories: 27 weeks within any 52-week period (in Quebec, the first two days are paid)
All other provinces/territories: eight weeks within any 52-week period
The leave is paid by Employment Insurance at 55% of an employee’s average salary and is capped at $595 weekly.

Domestic violence & sexual assault leave

Employees are entitled to a minimum of ten days and up to 26 weeks of leave, paid or unpaid, depending on the province/territory, as follows:

Quebec: 26 weeks — the first two days paid by the employer if the employee hasn’t used their paid days entitlement for illness, accident, organ donation or to care for a loved one; the remainder is unpaid
Federal jurisdiction, Saskatchewan: ten days — the first five days are paid by the employer; the remainder are unpaid
Alberta: ten days, unpaid
British Columbia: ten days — the first five days are paid by the employer and the remainder are unpaid; if necessary, up to 15 more weeks of unpaid leave is available
Newfoundland and Labrador, Prince Edward Island: ten days — the first three days are paid by the employer; the remainder are unpaid
Manitoba, New Brunswick, Nova Scotia, Ontario, Northwest Territories: Two types of interpersonal violence leave exist. The first type allows employees to take either 10 consecutive or intermittent days in a 52-week period, as needed. The second type allows employees to take up to 17 weeks (16 in New Brunswick and Nova Scotia, 15 in Ontario and Northwest Territories) in a 52-week period in one continuous stretch. The employer pays only for the first five days (three days in Nova Scotia).
Nunavut: the leave is not covered by the Labour Standards Act.
Yukon: the leave has been proposed but is not part of the Labour Standards Act yet.

Critical illness leave

Employees are entitled to time off in the case of a family member’s critical illness. The duration varies by province/territory as follows:

Manitoba, Newfoundland and Labrador, Ontario, Saskatchewan, Northwest Territories, Yukon: 17 weeks for sick adults, unpaid; 37 weeks for children, unpaid
Alberta, British Columbia, Quebec: 16 weeks for sick adults, unpaid; 36 weeks for children, unpaid.
New Brunswick, Nova Scotia: 16 weeks for sick adults; 37 weeks for children
Prince Edward Island: 37 weeks for children under 18; not applicable to sick adults
Nunavut: the leave is not covered by the Labour Standards Act.

Employees may be eligible for critically ill or injured children/adult benefits under EI.

Child death leave & crime-related child disappearance leave

Employees are entitled to a 52-week unpaid leave following a crime-related disappearance of a child and 104 weeks in the case of a child’s death. In New Brunswick, each leave is 37 weeks long. In Quebec and Saskatchewan, the leave for the disappearance of a child is 104 weeks. The Labour Standards Act doesn’t cover this leave in Nunavut.

Employees may receive financial assistance from the Federal Income Support for Parents of Murdered or Missing Children grant.

Leave of absence for members of Canada’s Reserve Force

Employees who have been working for their employer for at least three months are entitled to unpaid leave to assist the country in the following situations:

An operation designated by the Minister of National Defence in Canada or abroad
An activity set out in the Reserve Force Training Leave Regulations
Canadian Armed Forces military skills training
Training ordered under the National Defence Act
Lawful duties ordered under the National Defence Act
Service in aid of civil power under the National Defence Act
Treatment, recovery, or rehabilitation from physical or mental health problems that resulted from service in an operation or activity listed in the Labour Code

The duration of leave may vary by province/territory, as follows:

Nova Scotia: 24 months of leave in a 60-month period
Alberta (if employed for 26 consecutive weeks), British Columbia: 20 days for training and as many days as needed for emergencies, unpaid
Manitoba, Newfoundland and Labrador, Ontario, Prince Edward Island, Saskatchewan, Northwest Territories: as required by Canadian Forces Reserve, unpaid
New Brunswick: 30 days for training and 18 months for other purposes
Quebec: 15 days for training and 18 months for other purposes
Nunavut: the leave not covered by the Labour Standards Act
Yukon: 15 days for training and as many days as needed for other purposes

Other leaves:

Certain provinces have specific leaves for certain situations, as follows:

Citizenship leave: one day off to attend a citizenship ceremony — applicable in Alberta (half-day off, unpaid), Manitoba (four hours off), Nova Scotia, and Saskatchewan
Wedding leave: one paid day off (if the wedding takes place on a working day) by the employer on the employee’s wedding day; employees are also entitled to an unpaid day off on the wedding day of their immediate family or their partner’s immediate family; applicable in Quebec only
Legal proceedings: Employees are entitled to unpaid time off for jury services and for acting as witnesses. The leave does not apply to those in lawsuits.
Organ donation: In Ontario, up to 13 weeks of unpaid leave for employees donating organs or tissue. In Quebec, the leave is 26 weeks, and the first two days may be paid if the employee hasn’t used their entitlement to two paid days off due to illness, domestic violence, or to care for a loved one. In Saskatchewan, the leave is up to 26 weeks unpaid.
Nomination or election: Nomination, election and candidate and public office leaves are unpaid for as many days as required. This type of leave applies to municipal, provincial, territorial, federal, school board, and band council nominations, elections, and offices in Saskatchewan only (must work for more than 13 weeks consecutively to be eligible).