Can a U.S. employer hire Canadian employees? Whether establishing a physical presence or remote, this should be a primary concern for American businesses considering expansion up north. Read below to learn how U.S. employers can hire Canadian workers.
Why Hire Canadian Employees?
Hiring Canadian employees may not have crossed many employer’s minds before, but it’s certainly a realistic option for a number of reasons.
By employing Canadians,U.S. employers can take advantage of the market up north, expanding their geographic area, customer base, and services offered.
Canada may offer a surplus of workers for a specific industry who are simply unavailable at the current time to U.S. employers. Hiring Canadian employees exposes U.S. businesses to a highly-skilled workforce with experience in a variety of fields.
Before hiring Canadian workers, you’ll need to research how you can. One of the easiest ways to manage Canadian employees is by contracting them through an outsourced provider, instead of hiring directly. These agencies have the best understanding for compensating these employees,handling benefits, and complying with work regulations. If you’re thinking about hiring directly, consult your in-house legal staff, or a local law firm, to determine the correct documents needed for Canadian employment, tax filing, and wage compensation.
Research the Labour and Employment Laws
Can a U.S. employer hire Canadian employees and follow the same employment laws in the States? Not at all. Canadian employment and labour standards are much different from those south of the border. To ensure a U.S. business meets the current guidelines, Canadian employment regulations will need to be reviewed–at both the federal and provincial level. Researching beforehand will ensure a U.S. business is aware of the necessary laws.
As each province has its own employment standards, each act will need to be individually reviewed for the specific location of the Canadian employee. Wage rates vary across thecountry, meaning the minimum rate must meet the particular province’s employment standards. Different provinces set different pay periods for when employers must distribute wages–whether it’s biweekly, weekly, or simply as the employer sees fit. Also be aware of human resources: health and safety, hiring and firing practices, and employee benefits, to make sure your Canadian employees receive everything they’re entitled to.
Other matters U.S. employers need to review include the difference in holiday schedule– Thanksgiving, Family Day, Canada Day, and the Fourth of July, (to name a few,) differ in these countries. American employers will need to be aware of unions and understand their authority regarding Canadian employees and benefits. Employment contracts vary in terms and standards. For example, non-compete clauses in Canadaare worded differently from those in the States. Canadian courts place more emphasis on balancing workers’ rights with employers’ rights torun a business.
Can a U.S. employer hire Canadian employees and seek additional help in Canada? You bet. If you’re still unsure about hiring Canadian employees as a U.S. employer, considering partnering with a Canadian organization to ensure your U.S. business meets all the requirements.
A professional employer organization, or employer of record (EOR) in Canada, is an incredibly useful team who covers the time-consuming and complex matters of employment in Canada. Acting as the legal employer for Canadian employees, they’ll handle payroll calculation and distribution, benefits, legality, and any other issues that could arise. EORs are already familiar with the system, making them a reliable and knowledgeable resource to ensure compliance and that matters are properly covered.
Providing assistance in many departments, EORs assist with global management services to handle Canadian payroll duties and regulations, and cover the brunt of legal responsibility. Partnering with an EOR will ensure your businessis compliant and operates error-free in Canada.