Mandatory Employee Benefits in Canada: A Guide for Overseas Employers

Employing workers in a foreign country requires companies to learn and comply with a whole new set of employment and labor entitlements. Some of these may be more or less generous than in your own country, so you might need to adjust your internal policies to meet the standards.

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Canada has a reasonable benefit structure, that is not nearly as employee-friendly as the European Union, but does have higher entitlement levels than the US.  It is complicated somewhat by the fact some benefit amounts and contribution rates are fixed at the province level. This guide will detail the primary employee benefit levels and how they are funded.

Which employee benefits are mandatory in Canada?

The following benefits are all statutory and required for any employee working in Canada.

Vacation Leave in Canada

Employees in Canada receive 10 paid public holidays and the amount of vacation leave depends on the province.  But in general, 2 weeks of paid vacation leave are offered after 12 months of service.  Some employers allow it to accrue monthly in the first year of service so it can be taken sooner.

Sick Leave 

Sick leave is generally... read more

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Tim Burgess

Director, Shield GEO Services Ltd