Canada, Ontario

Contract Types 

Contracts can be Fixed Term or Indefinite.

Probation          

In Ontario probation can be extended if this is specified in the contract. Generally probation is set at 3 months with a possible extension of a further 3 months. Note that if an employee takes any kind of leave during  probation then this time does not count as part of the probationary period.

Working Hours 

The normal working week is 40 hours, for 8 hours per day. A maximum of 48 hours per week can be worked.

Overtime

Overtime has to be paid for hours above 44 per week and is paid at 150%. Alternatively, time off in lieu can be given. There are exemptions for managerial staff.

Other Financial

Salaries are usually paid twice per month but can be paid monthly for managerial personnel. There are no requirements regarding 13th month salaries.

The employer can terminate the contract through providing written notice to the employee in accordance with their  length of service, or by termination due to just cause for reasons such as gross misconduct.

1 week for less than 1 year’s service but more than 3 months;

2 weeks for 1 to 3 years’ service;

3 weeks for 3 to 4 years’ service;

4 weeks for 4 to 5 years’ service;

5 weeks for 5 to 6 years’ service;

6 weeks for 6 to 7 years’ service;

7 weeks for 7 to 8 years’ service;

8 weeks for over 8 years of service;

If an employer does not give notice, then the employee should be given pay in lieu to the equivalent amount. Should the contract state the notice period then this should be adhered to when calculating the compensation unless it is below the statutory amount of notice required. During the notice period any contributions to benefit plans should continue.

Payment in lieu of notice is allowed or a combination of notice and payment. Payments should include not only normal salary but also holiday pay.

Severance Pay  

Severance pay is additional to any notice paid and is due when an employee has more than 5 years’ service and the employer has a global payroll of more than CAD 2.5 million, or they are dismissing 50 or more employees within a 6 month period. Payment is 1 week’s wages for each year of service pro rated for part years. The maximum payment is 26 weeks. This is not payable if the employee resigns or if the employer terminates for just cause, for example for gross misconduct.

All payments are due 7 days after termination or the date the next salary is due, whichever is later.

Accrued and untaken holiday should also be paid out on termination.

Annual Leave 2025

Public Holidays: 9 plus 1 optional day

New Year’s Day – 1st January

Day Given in Lieu:       Yes

Family Day – 17th February   

Day Given in Lieu:       N/A

Good Friday – 18th April        

Day Given in Lieu:       N/A

Victoria Day – 19th May        

Day Given in Lieu:       N/A

Canada Day – 1st July

Day Given in Lieu:       Yes

Optional Provincial Holiday – 4th August     

Day Given in Lieu:       N/A

Labour Day – 1st September 

Day Given in Lieu:       N/A

Thanksgiving Day – 13th October     

Day Given in Lieu:       N/A

Christmas Day – 25th December      

Day Given in Lieu:       Yes

Boxing Day – 26th December

Day Given in Lieu:       Yes

Comment:

Employees are entitled to these days off as paid. Alternatively, they can agree in writing to have public holiday pay plus premium pay for hours worked or be paid their regular wage and receive another substitute holiday.

Paid legal entitlement

After 1 year’s service employees are entitled to a minimum of 2 consecutive  weeks of paid leave. Over 5 years’ service the entitlement increases to 3 weeks’ paid leave. Many employers will allow their employees to take leave as they accrue it during their first year and some will give leave of up to 25 days.

Carry over permitted     

With the agreement of both parties, employees may carry over leave which is above their statutory entitlement to the following year. The maximum which can be carried over is 10 days.

Timings

Vacation can be taken at the discretion of the employer or at a time mutually agreed by both parties. It must begin no later than 10 months after the completion of the year of employment in which the employee became entitled to the vacation. A minimum of 2 weeks’ notice must be given.

Payment in lieu allowed              

Leave cannot be paid out except on termination.

Holiday Allowance

Vacation pay of at least 4% of wages paid in the previous year for the first 5 years of employment, and 6% of wages from the 5th year onwards, should be paid at least 7 days before the employee is set to take leave. This can be paid out monthly if agreed in writing.

Sick       

Employees must give notice to the employer if they are unable to work. They can take up to 3 days of unpaid, job protected leave. This leave does not carry over. Canadian national social insurance provides long-term sick leave of up to 26 weeks if required and length of service continues whilst on sick leave.

Maternity

Maternity leave is called pregnancy leave in Canada. If the pregnant employee commenced employment 13 weeks before the due date, they are entitled to up to 17 weeks of unpaid leave. This can start up to 17 weeks before the due date (unless the baby arrives before). It is at the  employers’ discretion to whether they provide any pay, but many will provide a top up to the government benefit. The employee must give 2 weeks’ written notice and provide a medical certificate with the due date. Social security pays benefits whilst on pregnancy leave of 55% of average salary up to a maximum amount. Pregnancy leave has to be taken in one block.

In the case of miscarriages and still births, employees do not qualify for maternity leave unless the event is within 17 weeks of the due date. In such cases the leave ends on the latest of 17 weeks after it began or 12 weeks after the still birth or miscarriage, and thus the leave can potentially extend beyond 17 weeks.

Paternity

See parental leave.

Parental

At the end of maternity leave, the mother can extend the leave with parental leave for up to 61 weeks of unpaid parental leave. This does not have to be taken immediately after maternity leave in cases where the baby is not yet in the mother’s care, for example if the baby is still in hospital, but must begin within 78 weeks of the child coming into the mother’s (or father’s) care. Mothers who do not take pregnancy leave and other new parents (including adopting parents) are entitled to up to 63 weeks’ leave. Employees must give 2 weeks’ written notice but do not have to specify an end date.

Again, parental leave is unpaid but benefits are available. Employees must have been employed for a minimum of 13 weeks to be entitled to parental leave.

Parental leave is not available for the partner in the case of a stillbirth or miscarriage.

During pregnancy and parental leave employees retain the benefits associated with their employment (eg pensions, medical and life insurance). All contributions, from the employer and the employee, for such benefits should continue during the leave.

Domestic Violence Leave

There are two entitlements in Ontario regarding sexual or domestic violence leave; a 10 day and a 15 week entitlement. Both leaves are job protected. Salary is paid for a total of  5 days of this leave (from either entitlement) in any one year. Notice of such leave should be given as soon as is possible.

Bereavement    

Employees are able to take 2 days of unpaid leave for the death of an immediate family member. Leave can be spread out and taken in non consecutive days.

Other

Employees can avail of 3 days of family responsibility leave, 8 weeks’ compassionate care leave, 37 weeks for critical illness and up to 104 weeks’ leave in the event of the death or disappearance of a child. All such leave is job protected and unpaid.

Additional unpaid leave is available for jury and witness service and up to 20 days’ unpaid leave is available for reservists who are deployed (after 26 weeks’ service).

Medical

State health provision in Canada is extremely good, though patients do have to pay the full cost of prescriptions. Private medical insurance is commonly offered to cover this and other items such as dental, therapies and optical but would not normally cover in-patient treatment.

Life       

Most employers would offer a Group Life plan to cover 12 months’ salary. Additional clauses would typically include Long and Short Term Disability, accidental death, and some form of income protection.

Pension

A Registered Retirement Savings Plan is often provided by employers. Typical employer contribution is 4%.