Recruiting Top Talent
Canadian Top Talent
Canada is in the world’s top 10 economies, forms the second largest land mass in the world and is rich in natural resources. There are thriving ports on both the Atlantic and Pacific coasts with global connections to key international markets for exports and imports. These benefits are backed by a highly-skilled, well-educated, and motivated workforce. Hiring the right talent in Canada to expand your company can result in a thriving business with numerous opportunities. However, the recruitment process can be complicated when you have no physical presence in Canada yet. Our PEO and EOR service can be the solution for your company. Recruitment can be a tricky business, especially when a company is venturing into unfamiliar countries and exploring new markets. This is the perfect occasion to bring in a specialist to oversee the process for you. Our comprehensive knowledge of all Canadian employment sectors and understanding of the culture and customs guarantee an untroubled transition. Look through our guide to familiarize yourself with everything an employer needs to know about the recruitment process in Canada.
The Recruitment Process in Canada
Recruitment is the first stage of making your company operational and competitive in Canada. It is vital to know where to locate the finest talent to be a perfect fit for your company’s global expansion plans. Foreign companies opening a legal entity subsidiary must follow strict procedures to register and onboard employees, complying with federal laws and those applied by the 10 provinces and three territories. These include:
- Registering for payroll with the Canada Revenue Agency (CRA)
- Completing Form RC1 for a Business Number (BN) and forwarding it to the relevant Tax Service Office (TSO) or Tax Centre (TC)
- Ensuring employment contracts comply with Labor Standards laws for the relevant province and the employee has a Social Insurance Number (SIN)
- Completing employee’s Form TD1 (Personal Tax Credits Return) to calculate how much tax is deducted from earnings
- Registering a payroll program account and obtaining the payroll number for making and remitting deductions and filing returns as soon as you start hiring employees
- Calculating deductions and contributions for the Canadian Pension Plan (CPP), Employment Insurance (EI) and income tax
- Sending payroll information returns and completing year-end summaries for all employees’ pay and deductions. Remitting deductions for CPP, EI and income tax
The recruitment process is time-consuming and requires dedication – a challenging task when facing a host of other complicated issues involved in international expansion. Partner with Bradford Jacobs as your Employer of Record (EOR). We will provide all the answers. We will convert your expansion blueprint for Canada into an action plan, with additional support including:
- Advising on payroll method – This involves paying employees and payroll tax to the Canada Revenue Agency (CRA) and the tax agency of the relevant province or territory, if applicable, and filing tax returns
- Bradford Jacobs locates the ideal employees for your company, then steps in as EOR to ensure they comply with Canadian employment contracts law, payroll, HR and, if required, visa requirements and permits
- We manage all work-related registration formalities and on-going employment issues while you have daily control of your employees
- The employees complete their time sheets and any expenses claims and we invoice you, the client. Once paid, we deduct all contributions to the relevant Canadian authorities and transfer the balance into the employees’ accounts
- Within a few days your company has an international presence in Canada, in prime position to explore expansion throughout North, Central and South America without risking the initial expense, commitment or hassle of setting up your own subsidiary or branch office. Make contact today.
Legal Checks You Can Make on Employees
Background checks, or pre-employment screening, in Canada are governed by privacy law relating to the public sector. In the private sector, checks are not always governed by privacy law. General guidance for employers covers:
- Do not collect more information than necessary or relevant
- Use information only for the stated purpose
- Restrict information to those for whom it is relevant
- Make collected personal information available for the potential employee to verify
- Delete or destroy information once it is no longer needed
Other checks include:
Criminal Record Checks: Can be made through Canadian Police Information Check (CPIC), Criminal Record Checks (CRCs) and Vulnerable Sector Checks (VSCs). In some sectors, such as working with children, the law may require more detailed checks. Any checks should have the prospective employee’s permission and be made after a conditional job offer.
Discrimination: Asking questions that compromise human rights are prohibited, making it illegal to ask a candidate’s age, sexual orientation, place of origin, matrimonial or social status, political or religious belief among other restrictions.
Educational and Reference Checks: Are regularly conducted but must be with candidate’s permission and should not be excessive. Professional experience checks are allowed to verify previous position and length of employment.
Credit Checks: Permitted where candidate’s credit history is relevant to the position but must not contravene consumer-protection legislation.
What is also required for employment checks is to verify that candidates are legally allowed to work in Canada by obtaining their Social Insurance Number (SIN) after making a conditional job offer.
Basic Facts on Hiring in Canada
Companies hiring fresh staff for their expansion into Canada face a framework of rules and regulations at both federal and provincial level. Generally, provinces have jurisdiction over employment, while federal laws govern such sectors as aeronautics, banking, and inter-province transport logistics. The federal government and provinces apply legislation setting minimum standards for sick leave, minimum wages, work hours, maternity allowances, and holidays for example. Other rules regulate workplace discrimination and employee privacy.
To hire employees, companies must follow procedures set by the Canada Revenue Agency (CRA). These include:
- Registering for payroll if they reimburse employees for salaries, bonuses, or other benefits
- Obtaining the employee’s Social Insurance Number (SIN) within three days of their starting work and completing Form TD1 for Personal Tax Credits Return within seven days
- Obtaining a payroll number and open payroll program for making and remitting deductions, providing date employees receive first payment, the number of employees, frequency of payments and parent company’s country if a foreign-owned entity
- Calculating deductions for Canadian Pension Plan (CPP) and Employment Insurance (EI)
- Submitting payroll information returns, completing, and filing year-end summary of pay and deductions for all employees
Legally, employment contracts can be verbal or in writing. Written contracts are advisable where complex terms apply to such as compensation, benefits and pensions and contracts must comply with any provincial and territorial laws. Your company will operate effectively in the shortest time by outsourcing payroll to an Employer of Record (EOR) such as Bradford Jacobs. We have the experience and expertise to oversee all levels of the process, relieving employers like you of the headaches associated with complying with federal and provincial employment and tax regulations.