All full-time employees in Canada are guaranteed certain benefits. While Canada does allow probationary periods during which employers can terminate employees without cause, workers in Canada generally enjoy more rights and protections than workers in the US.
Importantly, Canada does not practice the concept of at-will employment in general. Probationary periods provide trial periods for employers to “feel out” the fit of an employee, but beyond probationary periods, employers must have at least one valid reason to end an employment relationship.
Paid Time Off
Canadian federal law mandates a minimum two weeks’ paid time off per year for employees with at least one year of employment. After five years of employment, the minimum increases to three weeks. After 10 years, the minimum reaches its highest point of four weeks.
Canada Pension Plan
Employers and employees collectively contribute to a statutory pension plan called the Canada Pension Plan. In Quebec, companies and their workers contribute to the Quebec Pension Plan instead.
In 2020, employers and employees both pay 5.25% of the employee’s salary to the CPP, making the total contributions from both parties equal to 10.5% of the employee’s total salary. These contributions only apply to salaries between CAD $3,500 and $58,700.
Personal Leave
In addition to paid time off, employees in Canada are entitled to personal leave after they have worked in the same position for three consecutive months. Employers must pay for this leave, but only for the first three days.
Personal leave allows employees to take time off for important tasks, like caring for a sick family member. Employers may not punish employees for using the full amount of their personal leave.
Sick Leave
Canadian employees are eligible for up to 17 weeks of unpaid leave for medical issues related to illness, injury, organ donation, tissue donation, or medical appointment attendance, including hospital stays. For illnesses lasting three days or longer, employers may require documentation from a healthcare practitioner confirming the circumstances prevented the employee from working.
Employers may reassign employees returning from medical leave to new positions when employees are unable to perform the duties their old positions required.
Maternity Leave
Canada guarantees a minimum of 15 weeks’ maternity leave to all employees who give birth. Some provinces mandate more maternity leave, but 15 weeks is the minimum across the country.
Parents in Canada are also entitled to a minimum of 27 weeks of shared parental leave, regardless of gender. Some provinces increase parental leave to 35 weeks.
New parents can use this leave whenever they like, consecutively or separately, as long as they use it within one year of the birth of the child.
Bereavement Leave
When an employee’s immediate family member passes away, federal law provides the employee with a minimum of five days of bereavement leave. As is the case with personal leave, employees may take five days of leave, but employers are only required to pay for three. These minimums apply after employees have been with the employer for at least three consecutive months.
Medical Benefit
Employers in Canada often offer private health insurance plans to attract top talent, even though Canada does provide public healthcare to all residents. Private health insurance premiums tend to be smaller than those in the US, and Canadians with private insurance get access to a wider variety of healthcare facilities and potential treatments. Employers can also offer vision and dental insurance, although these benefits are not required by law.
There are many other things that a series of companies provide to their employees, including:
Retirement savings account, long-term disability insurance, religious and national leave, family violence leave, discounts and coupons for using public sports facilities, barbecue day , appreciation of employees and receiving gifts, etc.
