Labour and Social Law
The employment of local and seconded workers in Canada often creates misunderstandings and legal risks that can be avoided by early advise through experts.
Canadian German Chamber
- coordinates the compilation of employment contracts by local lawyers
- provides information on bilateral labour, tax and social law
- offers practical and tax-optimized solutions for the social security of your employees in Canada
At no time does CGCIC grant legal or tax advice in Canadian or German law. The activities of the Chamber are limited to project management and coordination as well as communication with local lawyers who in turn provide legal advice.
Details on Labour and Social law
Canadian labour law, unlike German law, is not federal but provincial law. In this respect, the provinces have different regulations, such as minimum wages and working hours.
Employment contracts with local employees
Canadian employment law can be very employer friendly and flexible if contracts are properly drafted. However, this flexibility also entails risks. For this reason, CGCIC advises against using sample contracts and instead using individual employment contracts.
Employment contracts with expatriates
In the case of expatriates from Germany, various employment contracts may exist in parallel: e.g. a contract with the German parent company and a local employment contract under Canadian law. These contracts should be optimally coordinated.
Furthermore, precautions must be taken in advance and certain framework conditions must be observed in order to benefit from the provisions of the double taxation and social security agreements.
Branch office problems
If employees are employed in Canada by a company domiciled in Germany, the wording of the employment contract may lead to a Canadian branch being classified as a permanent establishment, which may have unwanted tax consequences.
Company and Private Pension Plans in Canada (Benefits and Pensions)
The Canadian government offers a minimum level of social security, which in many cases is inadequate. In addition, there is a pronounced system of occupational and private pension provision. Health, long-term care and disability insurance as well as old-age provision are mainly the responsibility of employees or rather employers.
In order to find qualified personnel and retain them over the long term, companies must familiarize themselves with local conditions and regularly offer their employees social benefits and pension plans as part of their compensation package.