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3 Biggest Compliance Mistakes Companies Make When Hiring Canadian Employees

Jun 22, 2022 | Business

Expanding your business into the international market is exciting but often stressful. Government compliance challenges and the ever-changing employment regulations can emerge and kill your dream to thrive. It is prudent to understand if your business qualifies to hire international employees when entering the Canadian market. You may also need to adjust the employee handbook to avoid penalties from compliance mistakes and company flaws. As an HR practitioner, you must comply with federal laws on human rights, pay equity, and labor standards, among other regulations. Next are the three biggest mistakes to watch out for when hiring Canadian employees. 

1. Failed Employee Benefits Plan

According to Canadian Pension Plan acts, employees are entitled to a paid leave. Your company should adhere to the set laws and offer tailored benefits to all hired employees. For example, an employee can get a personal emergency leave if they lose a child. The leave provisions vary, requiring you to research the standards in your location. Afterward, create a benefit payment strategy that best suits you to maintain productivity and comply with leave laws.

Employees should also file claims to qualify for workers’ compensation when workplace accidents occur. The risks can be significant to a company, but you can minimize your liability by implementing employee safety programs. If you are unsure how to go about it, it is wise to get an expert to help you understand accident trends and preventive measures. Achieving this will give you an edge over competitors to attract talented employees and issue compensation effectively.

2. Overlooked Entity Creation Hurdles 

Any company seeking to enter the Canadian market must adhere to the set entity set up laws and regulations. Job candidates expect you to keep their personal information safe. This calls you to store documents in a secure office, only accessible by authorized individuals in the company. Insufficient knowledge of the provisions and unsafe entities can cause setbacks. It may also delay the hiring process and your expansion strategies in Canada. As an employer: 

  • Ensure you familiarize yourself with Canadian work style culture.
  • Nurture workable communication styles that rejuvenate employees. 
  • Establish hands-on relationship-based interventions between different levels in your company.
  • Create ample ways employees can report unethical activities in the workplace.
  • Avoid inappropriate interview questions and those unrelated to the work role.

3. Misaligned Payroll and Job Classification

Classification of employees’ payroll is a stumbling block most companies hiring Canadians face. Recruiters should avoid discrimination based on religion, race, disability, or gender. Sometimes, shift lengths and work hours vary. Misclassified job descriptions affect employment protection eligibility and tax payment. 

Workers must be distinguished from contractors to avoid legal implications and wage claims. Your company will also incur added costs and taxes, which you should calculate and file or risk being audited. Luckily, most provinces have laws on how to pay wages. 

Avoid These Compliance Mistakes Companies Make When Hiring Canadian Employees

While most industries’ workers labor for 40 hours per week, the weekly working hour can snowball to 44 hours in sawmills. If an employee works more than eight hours, they qualify for overtime pay. Some provinces have provisions for employees to get lieu time instead of overtime pay. You can use a payroll service to calculate the payments and tax deductions to save time and improve accuracy. 

If you’re unfamiliar with the local and provincial laws, it is easy to make mistakes when hiring Canadian employees. Building a new workforce requires adequate planning to ensure your business gets to new heights. It is also advisable to document your company policies to make workforce management easier. If you struggle to add new members to your international workforce, it is only wise to consult a professional employer firm for help. 

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